Treaty between China and Australia – application extended to new tax

The State Administration of Taxation (SAT) issued an announcement on 26 April 2013 (Gong Gao [2013] No. 20), stating that the Mineral Resource Rent Tax, which was introduced by Australia in 2012, is covered by the Australia - China (People's Rep.) Income Tax Treaty (1988). The Announcement takes effect as from 1 June 2013.

Mineral Resource Rent Tax is imposed on profits raised from iron and coal industries and of similar nature as resource rent tax on business activities in respect of pe…