Circular of the Ministry of Ecology and Environment of the State Administration of Taxation of

                                                                                    Finance and Taxation (2018) No. 23 2018-3-30

Departments of Finance (Bureau), State Taxation Bureau, Local Taxation Bureau and Environmental Protection Bureau of provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning:

In accordance with the provisions of the Environmental Protection Tax Law of the People's Republic of China and its Implementing Regulations, the following notices are hereby made concerning the collection of environmental protection tax:

I. Monitoring and calculation of emissions of taxable air pollutants and water pollutants

When a taxpayer entrusts a monitoring institution to monitor the discharge of taxable air pollutants and water pollutants, if there are more than one monitoring data for the same kind of pollutant discharged from the same discharge outlet in the same month, the discharge of taxable air pollutants shall be calculated according to the average value of the monitoring data; The discharge of taxable pollutants is calculated according to the weighted average of the monitoring data with the flow as the weight. Where there is no monitoring data in the current month within the monitoring time limit prescribed by the competent department of environmental protection, the latest monitoring data may be used across months to calculate the amount of taxable pollutants discharged. The method for monitoring and calculating the amount of taxable pollutants discharged by taxpayers in industries included in the management of pollutant emission permits shall be implemented in accordance with the requirements of the management of pollutant emission permits.

If the monitoring conditions are not met due to the large number of pollutants discharged, the taxpayers shall calculate the amount of taxable pollutants discharged in accordance with the provisions of the Announcement on the Release of the Pollutant Discharge Coefficient and the Material Balance Method for the Calculation of Pollutant Discharge (the original Announcement of the Ministry of Environmental Protection No. 81, 2017). Among them, if the pollution discharge coefficient method applicable to the relevant industry has an interval value, the taxpayers shall determine the specific applicable value of the production and emission coefficient according to the actual situation; The taxpayers to be included in the industries of pollutant discharge permit administration shall be determined in accordance with the provisions on pollutant discharge permit. Where the Ministry of Ecology and Environment has not stipulated the application of the pollutant discharge coefficient and the material balance calculation method, the taxpayers shall temporarily calculate the amount of taxable pollutants by referring to the pollutant discharge coefficient, the material balance calculation method and the sampling calculation method based on which the pollutant discharge fee is paid.

The calculation of the pollution equivalent number of taxable water pollutants

The pollution equivalent number of a taxable water pollutant shall be calculated by dividing the discharge of the pollutant by the pollution equivalent value of the pollutant. Among them, the pollution equivalent number of chroma is calculated by multiplying the amount of sewage discharged by the multiple of chroma exceeding the standard and dividing by the applicable pollution equivalent value. The pollution equivalent number of water pollutants in the livestock and poultry breeding industry shall be calculated by dividing the monthly average number of livestock and poultry farms by the applicable pollution equivalent value. The monthly average number of livestock and poultry farms is calculated according to the average number of livestock at the beginning of the month and at the end of the month.

Iii. Calculation of the amount of taxable solid waste discharged and tax declaration

The amount of taxable solid waste discharged shall be the balance of the amount of taxable solid waste produced in the current period minus the amount of taxable solid waste stored, disposed of and utilized in the current period. Taxpayers shall accurately measure the amount of storage, disposal and comprehensive utilization of the taxable solid waste. If the measurement is not accurate, no deduction shall be made from the amount of taxable solid waste produced. Where a taxpayer transfers taxable solid waste to other units or individuals for storage, disposal or comprehensive utilization according to law, the amount of solid waste transferred shall be included in the amount of storage, disposal or comprehensive utilization of taxable solid waste in the current period accordingly; The amount of taxable solid waste transferred by a taxpayer shall not be included in the amount of taxable solid waste produced in the current period. The comprehensive utilization of taxable solid waste by taxpayers shall conform to the standards for the evaluation and management of comprehensive utilization of industrial solid waste formulated by the Ministry of Industry and Information Technology.

When filing tax returns, taxpayers shall submit to the tax authorities the amount of production, storage, disposal and comprehensive utilization of taxable solid waste, and at the same time submit tax payment materials that can prove the flow direction and quantity of solid waste, including the solid waste disposal and utilization commission contract, the qualification certificate of the entrusted party, the solid waste transfer sheet, and the copy of the hazardous waste management ledger, etc. If the relevant tax payment information has been collected in the environmental protection tax basic information collection form and has not changed, the taxpayer will not submit it anymore. Taxpayers shall, with reference to the management requirements of hazardous waste accounts, establish other taxable solid waste management accounts, faithfully record the type, quantity, flow direction, storage, disposal, comprehensive utilization, receipt and transfer of solid waste generated, and keep the taxable solid waste management accounts and relevant information for future reference.

Iv. The calculation of the tax payable on the taxable noise

The tax payable of taxable noise is the specific applicable tax amount corresponding to the number of decibels exceeding the standard stipulated by the state. The noise exceeds the standard decibel number is not integer value, according to the round. If more than one monitoring data of the same monitoring point of a unit exceeds the standard in the same month, the tax payable shall be calculated according to the highest exceeding sound level. If the sound source exceeds the standard for less than 15 days or exceeds the standard for less than 15 nights in a month, the tax payable shall be respectively reduced by half.

Ministry of Ecology and Environment, State Administration of Finance and Taxation

March 30, 2018