Laws of the People's Republic of China

   Article 1. These Regulations are formulated to rationalize the use of land in cities and towns, to regulate the income differential on land, to improve efficient use of land in use and to strengthen land management.

   Article 2. Units and individuals which use land within the boundaries of cities, county towns, towns/bases operated under an organisational system and industrial and mining districts shall be the obligatory payers of tax (hereinafter referred to as taxpayers) on land used within cities and towns (hereinafter referred to as land use tax) and shall pay land use tax in accordance with provisions of these Regulations.

   Article 3. Calculation of land use tax shall be based on the actual area of land used by the taxpayer and shall be levied in accordance with the stipulated tax rate.

The work of measuring the area of land in use as referred to above shall be determined by the respective provincial, autonomous region or directly administered municipal people's government in accordance with the actual circumstances.

   Article 4. The annual rates for land use tax per square metre of land shall be as follows:

(1) between 5 jiao* and 10 yuan in large cities;

(2) between 4 jiao and 8 yuan in medium cities;

(3) Between 3 jiao and 6 yuan in small cities;

(4) between 2 jiao and 4 yuan in county towns, towns/bases operated under an organisational system and industrial and mining districts.

   Article 5. Based on factors such as the amount of municipal construction and the degree of economic prosperity, the various provincial, autonomous region and directly administered municipal people's governments shall determine appropriate tax rate ranges for the districts under their jurisdiction from within the range of tax rates listed above.

Municipal and county people's governments shall divide the land in their district into certain grades based on the actual circumstances and, within the tax rate ranges determined by the provincial, autonomous region and directly administered municipal people's governments, shall formulate appropriate tax rate standards. Details of the rates shall be submitted to the respective provincial, autonomous region or directly administered municipal people's government for approval and implementation.

Subject to approval by the provincial, autonomous region or directly administered municipal people's government, the land use tax rate levied in economically backward districts may be reduced appropriated, but shall not be lowered to more than 30% below the minimum tax rate stipulated in Article 4 of these Regulations. The land use tax rate levied in economically developed districts may be raised appropriately, but the amount shall first be approved by the Ministry of Finance.

   Article 6. Land use tax shall be exempted on the following types of land:

(1) land used by State organs, people's organisations and the armed forces;

(2) land used by units which have their operating expenses allocated by the State's finance departments;

(3) land occupied by religious temples and shrines, parks and places of historic interest and scenic beauty;

(4) publicly used land, such as that for municipal streets, public squares and areas of greenery;

(5) land directly used in production in the agricultural, forestry, pastoral and fishery industries;

(6) in the case of land whose reclamation from the sea or transformation from wasteland was approved, land use tax shall be exempted for between 5 and 10 years, to be calculated from the month in which usage commences;

(7) land which the Ministry of Finance has exempted from tax in other legislation, such as land containing energy resources or land used for transport or water conservancy facilities and other uses.

   Article 7. In addition to cases provided for under the provisions of Article 6 of these Regulations, a taxpayer who has genuine difficulty paying the prescribed land use tax may request a reduction of or exemption from the tax for a specific period. After the provincial, autonomous region or directly administered municipal tax organ has examined and verified the circumstances of the case, the details shall be submitted to the State Taxation Bureau for approval.

   Article 8. Land use tax shall be calculated annually and paid by instalments. The time limit for payments shall be determined by the provincial, autonomous region or directly administered municipal people's government.

   Article 9. Land use tax shall be paid on newly requisitioned land in accordance with the following provisions:

(1) if cultivated land is requisitioned, land use tax shall begin to be levied one year after the date on which approval to expropriate the land is given.

(2) if non-cultivated land is requisitioned, land use tax shall begin to be levied the month after approval to expropriate the land is given.

   Article 10. Land use tax shall be collected by the local tax organ in the area where the land is located. Land management organs shall provide local tax organs with information on titles to land use rights.

   Article 11. Control of the levying of land use tax shall be handled in accordance with the provisions of the Provisional Regulations of the People's Republic of China governing Control of the Levying and Collection of Taxes.

   Article 12. Income from land use tax shall come under financial budget control.

   Article 13. The Ministry of Finance shall be responsible for interpreting these Regulations. Implementing measures shall be formulated by the people's governments of the various provinces, autonomous regions and directly administered municipalities and the details shall be submitted to the Ministry of Finance for its records.

   Article 14. These Regulations shall take effect from 1 November 1988 and implementation of the land use fee measures formulated by the various districts shall be suspended simultaneously.