Laws of the People's Republic of China

Official Reply of the State Administration of Taxation about Levy of Urban Land Use Tax of Foreign-invested Enterprises and Foreign Enterprises

Guo Shui Han [2007] No. 596

Local Taxation Bureau of Xiamen,

We have received your Request for Establishment of Transitional Period for the Levy of Land Use Tax of foreign-funded enterprises (Xia Di Shui Fa [2007] No.50). Upon study, we hereby render a reply as follows:

"Decision of the State Council on the Modification of 'Interim Regulations of the People's Republic of China Governing Land Use Tax in Cities and Towns'", which brings foreign-invested enterprises and foreign enterprises into the levy scope of urban land use tax, is an important measure of the country to strengthen administration of land, is conducive to give full play to taxation as an economic leverage, guide enterprises of all types to utilize land reasonably and economically, protect land resources, and make tax burden fair. All localities should levy urban land use tax on enterprises of all types, including foreign-invested enterprises and foreign enterprises in strict accordance with the decision of the State Council and relevant provisions of the revised "Interim Regulations of the People's Republic of China Governing Land Use Tax in Cities and Towns".

State Administration of Taxation

June 1, 2007