财税字[1995]63号
颁布日期：19950728 　实施日期：19950101 　颁布单位：财政部、 国家税务总局

Article 1　These Provisions are formulated in order to promote the development of the national economy， expand international economic and technological co-operation and encourage the development of on-shore oil resources in China.

Article 2　Chinese and foreign enterprises that are engaged in the co-operative development of oil resources on land within the territory of the People's Republic of China shall pay royalties in accordance with these Provisions.

Article 3　Royalties shall be computed and imposed for each oil or natural gas field in accordance with its total output of crude oil or natural gas. Royalties shall be charged at the following rates：

1. The following rates of charge shall apply to the Sino-foreign co-operative oil or natural gas fields in the three provinces/regions Qinghai， Tibet and Xinjiang， and Qianhai regions：

（a） Crude Oil

The total crude oil output of each oil field in a calendar year　Rate of Charge

for the portion less than 1 million tonnes　no charge

for the portion between 1 million and 1.5 million tonnes　4%

for the portion between 1.5 million and 2 million tonnes　6%

for the portion between 2 million and 3 million tonnes　8%

for the portion between 3 million and 4 million tonnes　10%

for the portion exceeding 4 million tonnes　12.5%

（b） Natural Gas

The total natural gas output of each gas field in a calendar year

Rate of Charge

for the portion less than 2 billion NCM　no charge

for the portion between 2 billion and 3.5 billion NCM　1%

for the portion between 3.5 billion and 5 billion NCM　2%

for the portion exceeding 5 billion NCM　3%

2. The following rates of charge shall apply to the Sino-foreign co-operative oil or natural gas fields in other provinces， autonomous regions and municipalities directly under the central government：

（a） Crude Oil

Each oil field in each calendar year

Rate of Charge

for the portion less than 500，000 tonnes　no charge

for the portion between 500，000 tonnes and 1 million tonnes　2%

for the portion between 1 million and 1.5 million tonnes　4%

for the portion between 1.5 million and 2 million tonnes　6%

for the portion between 2 million and 3 million tonnes　8%

for the portion between 3 million and 4 million tonnes　10%

for the portion exceeding 4 million tonnes　12.5%

（b） Natural Gas

The total natural gas output of each gas field in a calendar year

Rate of Charge

for the portion less than 1 billion NCM　no charge

for the portion between 1 billion and 2.5 billion NCM　1%

for the portion between 2.5 billion and 5 billion NCM　2%

for the portion exceeding 5 billion NCM　3%

Article 4　The royalties for crude oil and natural gas shall be paid in kind.

Article 5　The collection and administration of royalties for crude oil and natural gas shall be the responsibility of the tax authorities.

The royalties for Sino-foreign co-operative development of oil and gas fields shall be withheld by the operations of the oil and gas fields and handed over to China Oil Development Corporation， which shall pay such royalties on behalf [of the producers].

Article 6　Royalties shall be calculated annually and be paid in advance periodically or in installments. The tax account shall be settled after the end of the year. The time limits for advance payments and settlements shall be fixed by tax authorities.

Article 7　Oil and gas field operators shall report their quarterly output and send other relevant materials as requested to tax authorities within 10 days after the end of each quarter.

Article 8　The withholders and （representative） payers of royalties must pay the royalties within the time limit designated by the tax authorities. Where payment is overdue， tax authorities shall impose an additional overdue fine computed at a daily rate of 0.1% of the royalties， commencing from the day after the amount falls due.

Article 9　Tax authorities may impose， subject to their discretion， a fine of not more than Rmb 5，000 on oil or gas field operators who， in violation of Article 7， fail to report on time their actual oil or gas output or fail to send other relevant information materials required by the tax authorities. Where operators conceal their output， tax authorities may impose， subject to their discretion， a fine not more than five times the royalties due in addition to the original royalties due.

Article 10　The following terms， as used in these Provisions， shall refer to ：

1. Crude oil： soled and liquid hydrocarbons in a natural state， including any liquid hydrocarbon extracted from natural gas except CH4；

2. Natural gas： non-associated and associated natural gas in a natural state； non-associated natural gas： all gaseous hydrocarbons extracted from a gas pool including wet gas， dry gas and the residual gas left after liquid hydrocarbons are extracted from wet gas；associated natural gas： all gaseous hydrocarbons extracted together with crude oil form oil pools， including residual gas after the extraction of liquid hydrocarbons from such gaseous hydrocarbons；

3. Total annual crude oil output： the total amount of crude oil produced in each oil or gas field in a contracted area in a calendar year， minus oil used in operation and lost oil； and

4. Total annual natural gas output： the total amount of natural gas produced in each oil or gas field in a contracted area in a calendar year， minus gas used in operation and lost gas.

Article 11　The State Administration of Taxation shall be responsible for interpreting these Provisions.

Article 12　These Provisions after revision shall be implemented as of 1 January 1995.