Official Reply of the State Administration of Taxation on Issues Concerning Income Tax Treatment of Compensation Received by Guangxi Heshan Coal Industry Co., Ltd.

This document provides a specific tax ruling that compensation received by Guangxi Heshan Coal Industry Co., Ltd. for future increased drainage or anti-submersion costs during coal mining should be recognized as deferred income and included in taxable income on a straight-line basis over 10 years (or the actual mining period if shorter).