1.       Taxpayers

Enterprises and institutions and other manufacturers and operators that directly discharge taxable pollutants to the environment in the field of China and other sea areas under Chinese jurisdiction are taxpayers of environmental protection taxes.

2.       Tax item

a.Air pollutants
b.Water pollutants
c.Solid waste
d.Noise

3.       Tax Rate

a.Taxable air pollutants and taxable water pollutants: fluctuating fixed tax rate
b.Solid waste and noise: fixed tax rate

4．     Tax Basis

Tax Item	Tax Basis	Calculation Formula
Air pollutants and water pollutants	The pollutant equivalents converted from pollutant discharges	Equivalent Quantity = Pollutant Discharges ÷ The Pollutant Equivalent Value
Solid waste	The discharges of solid wastes（tonnes）	Discharge Volume = Current Generation of Solid Waste - Comprehensive Utilization of Current Solid Waste – Current Storage of Solid Waste - Current Disposal of Solid Waste
Noise	Noise decibels in excess of the national standards (months)	Determine the taxable amount according to the “Schedule of Tax Items and Tax Amounts of Environmental Protection Tax” Schedule

* Note:

① Air pollutants: Environmental protection tax is levied on the first three items of pollutants ranked in descending order of pollution equivalents.
② Water pollutants:
i. The first category of water pollutants: environmental protection taxes are levied on the first five pollutants ranked in descending order of their pollution equivalents.
ii. Other types of water pollutants: environmental protection taxes are levied on the first five pollutants ranked in descending order of their pollution equivalents.
③If taxable pollutants are discharged from more than two discharge ports, environmental protection tax shall be calculated and levied for each taxable pollutant discharged from each discharge port separately.

5.        Calculation of Taxable Amount

a.        Air Pollutants and Water Pollutants:

Taxable Amount = The Pollutant Equivalents × Applicable Tax Amount

b.        Solid Waste:

Taxable Amount = Discharge Volume × Applicable Tax Amount

c.        Noise:

Taxable Amount = The Specific Applicable Tax Amount Corresponding to the Number of Decibels Exceeding the National Standard

6.        Major Tax Reduction and Exemption     

a.        The following conditions are temporarily exempted from environmental protection tax:

① Taxable pollutants discharged by agricultural production (excluding large-scale farming);

② Taxable pollutants discharged by mobile pollution sources such as motor vehicles, railway locomotives, non-road mobile machinery, ships and aircraft;

③The taxable pollutants shall be discharged from the centralized treatment of urban and rural sewage and the centralized treatment of domestic waste in accordance with the law, and shall not exceed the national and local discharge standards;

④The solid waste comprehensively used by the taxpayer meets national and local environmental protection standards.

(2)      Environmental protection tax reduction for following conditions:

① If the concentration value of taxable air pollutants or water pollutants discharged by the taxpayers is lower than 30% of the national and local pollutant discharge standards, the environmental protection tax shall be reduced by 75%;

② If the concentration value of taxable air pollutants or water pollutants discharged by the taxpayers is lower than 50% of the national and local pollutant discharge standards, the environmental protection tax shall be reduced by 50%.