财政部令第3号
（Approved by the State Council on January 13， 1990， promulgated¹ by Decree No. 3 of the Minister of Finance on January 15， 1990）
颁布日期：19900115 　实施日期：19900101 　颁布单位：财政部

　　Article 1 These Provisions are formulated² in order to promote the development of national economy， to expand international economic and technological³ cooperation， and to encourage the exploitation of China's petroleum⁴ resources on land.

　　Article 2 All Chinese and foreign enterprises， which are engaged in the cooperative exploitation of petroleum resources on land within the territory of the People's Republic of China， shall pay royalties⁵ in accordance with these Provisions.

　　Article 3 Royalties shall be computed⁶ and imposed on the basis of the gross output or crude oil or natural gas produced every calendar year from each oil-and-gas field. The rates of the royalties are as follows：

　　1. Crude oil

　　the portion of annual gross output of crude oil not exceeding 50，000 tons， shall not be subject to the payment of royalties；

　　for the portion of annual gross output of crude oil from 50，000 to 100，000 tons， the rate shall be 1%；

　　for the portion of annual gross output of crude oil from 100，000 to 150，000 tons， the rate shall be 2%；

　　for the portion of annual gross output of crude oil from 150，000 to 200，000 tons， the rate shall be 3%；

　　for the portion of annual gross output of crude oil from 200，000 to 300，000 tons， the rate shall be 4%；

　　for the portion of annual gross output of crude oil from 300，000 to 500，000 tons， the rate shall be 6%；

　　for the portion of annual gross output of crude oil from 500，000 to 750，000 tons， the rate shall be 8%；

　　for the port~ on of annual gross output of crude oil from 750，000 to 1 million tons， the rate shall be 10%；

　　for the portion of annual gross output of crude oil exceeding 1 million tons， the rate shall be 12.5%.

　　2. Natural gas

　　the portion of annual gross output of natural gas not exceeding 100 million standard cubic meters， shall not be subject to the payment of royalties：

　　for the portion of annual gross output of natural gas from 100 million to 200 million standard cubic meters， the rate shall be 1%；

　　for the portion of annual gross output of natural gas from 200 million to 300 million standard cubic meters， the rate shall be 2%；

　　for the portion of annual gross output of natural gas from 300 million to 400 million standard cubic meters， the rate shall be 3%；

　　for the portion of annual gross output of natural gas from 400 million to 600 million standard cubic meters， the rate shall be 4%；

　　for the portion of annual gross output of natural gas from 600 million to 1 billion standard cubic meters， the rate shall be 6%；

　　for the portion of annual gross output of natural gas from 1 billion to 1.5 billion standard cubic meters， the rate shall be 8%；

　　for the portion of annual gross output of natural gas from 1.5 billion to 2 billion standard cubic meters， the rate shall be 10%；

　　for the portion of annual gross output of natural gas exceeding 2 billion standard cubic meters， the rate shall be 12.5%.

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

　　Article 5 The Royalties for crude oil and natural gas shall be levied⁷ and administered by the tax authorities.

　　With respect to Chinese-foreign cooperative oil or gas fields， the operators shall act as agents for withholding⁸ the royalties， and shall hand over the royalties withheld⁹ to China National Petroleum Exploitation Corporation， which， in turn， shall act as an agent for making the payment of the royalties.

　　Article 6 The royalties shall be computed annually¹⁰ and paid in advance in installments¹¹ either based on times or on terms； and the final settlement shall be made after the end of tax year. The time limits for advance payment and final settlement shall be set by the tax authorities.

　　Article 7 The oil or gas fields operators shall， within 10 days after the end of each quarter， submit to the tax authorities a report on the output of oil or gas fields and any other related materials required by the tax authorities.

　　Article 8 The withholding agents and paying agents with regard to the royalties must， in accordance with the time limits set by the tax authorities， pay the royalties. In case of failure to pay the royalties within the time limits， the tax authorities shall impose a surcharge for overdue¹² payment equal to 1% of the overdue royalties for everyday in arrears¹³， starting from the first day the payment becomes overdue.

　　Article 9 In the case that the oil or gas fields operators， in violation¹⁴ of the provisions in Article 7， fail to submit on time to the tax authorities the reports on output of oil or gas fields and other related materials required by the tax authorities， the tax authorities may impose a fine， in light of the circumstances， up to but not exceeding RMB 5，000 yuan； in dealing¹⁵ with those who conceal¹⁶ the actual output， the tax authorities， in addition to pursuing the royalties payment， may impose a fine， in light of the circumstances， up to but not exceeding five times of the amount of royalties that shall be made up.

　　Article 10 The following terms， used in these Provisions， are defined below：

　　（1） Crude oil： refers to solid and liquid hydrocarbon¹⁷ in the natural state as well as any liquid hydrocarbon extracted from natural gas， except for methane¹⁸ （CH4）。

　　（2） Natural gas： refers to non-associated natural gas and associated natural gas in the natural state.

　　Non-associated natural gas： refers to all gaseous¹⁹ hydrocarbon extracted from gas deposits， including wet gas， dry gas， and residual²⁰ gas remaining after the extraction of liquid hydrocarbon from wet gas.

　　Associated natural gas： refers to all gaseous hydrocarbon extracted from oil deposits simultaneously²¹ with crude oil， including residual gas remaining after the extraction of liquid hydrocarbon.

　　（3） Annual gross output of crude oil： refers to total amount of crude oil produced by each oil or gas field in the same contracted area， in one calendar year， less the quantity of oil used for petroleum operations and that of wasted.

　　（4） Annual gross output of natural gas： refers to total amount of natural gas produced by each oil or gas field in the same contracted area， in one calendar year， less the quantity of natural gas used for petroleum operations and that of wasted.

　　Article 11 The State Taxation²² Bureau shall be responsible for the interpretation²³ of those Provisions.

　　Article 12 These Provisions shall become effective as of January 1， 1990