Provisional Regulations on Urban Land Use Tax of the People’s Republic of China

(Promulgated on Order [1988] No. 17 of the State Council on Sept. 27, 1988)

Article 1 These Regulations are formulated for the purpose of making a rational use of urban land, regulating the differential incomes from land, improving the efficiency in the use of land and strengthening the administration thereof.

Article 2 An organization or individual using land in cities, county towns and administrative towns and industrial and mining districts shall be a payer of urban land use tax (hereinafter referred to as "the taxpayer" and "land use tax").

Article 3 The land use tax shall be levied according to the tax amount assessed on the basis of the actual area of the land used by a taxpayer in accordance with relevant regulations.

The measuring of the area of the land being used as provided in the previous passage shall be organized based on actual local conditions by the people's governments of the provinces, autonomous regions and municipalities directly under the State Council.

Article 4 The annual tax amount of each square meters of land used shall be as follows:

1. 0.5 to 10 yuan in big cities,

2. 0.4 to 8 yuan in medium-sized cities,

3. 0.3 to 6 yuan in small cities,

4. 0.2 to 4 yuan in county towns, administrative towns and industrial and mining districts.

Article 5 The people's governments of the provinces, autonomous regions and municipalities directly under the State Council shall determine a suitable tax amount range within the range of tax amount prescribed in the previous article and in light of the local urban construction and degree of economic development in the areas under their jurisdiction.

The municipal and county people's governments shall classify the local land into a number of grades and work out the norms for tax amount within the range of tax amounts defined by the people's governments of the provinces, autonomous regions and municipalities directly under the State Council and report to the latter for approval.

Economically underdeveloped regions may lower the norms for the amount of land use tax appropriately upon the approval by the people's governments of the provinces, autonomous regions and municipalities directly under the State Council, but the norm shall not be lowered by over 30% of the minimum tax amount prescribed in Article 4 of these Regulations. The norms for the amount of land use tax applicable to economically developed regions may be raised to an appropriate level, provided it is reported to the Ministry of Finance for official approval.

Article 6 The types of land listed below are free from land use tax:

1. The land of government institutions, people's organizations and military units for their own use,

2. Land for their own use of those institutions financed by government allocations by the Ministry of Finance,

3. Land of religious temples, public parks and public historical and scenic sites for their own use,

4. Streets, roads, public squares, lawns and other urban public land,

5. Land directly used in agriculture, forestry, animal husbandry and fish farming,

6. Land use tax shall be exempted within the first five to ten years on reclaimed wasteland and land reclaimed from the sea with official approval,

7. Land used for energy exploitation, transportation, water conservancy facilities and other land with special approval by the Ministry of Finance.

Article 7 In addition to the provisions of Article 6 of these Regulations, a taxpayer who truly has difficulty in paying land use tax may apply for tax exemption or reduction in a certain period of time for examination by the tax authorities of the province, autonomous region or municipality under the State Council which report to the State Administration of Taxation for approval.

Article 8 Land use tax shall be assessed on a yearly basis and paid by installments, and determined by the people's governments of the provinces, autonomous regions and municipalities directly under the State Council. The time limit for tax payment shall be determined by the people's governments of the provinces, autonomous regions and municipalities directly under the State Council.

Article 9 Land use tax shall be levied on newly expropriated land in accordance with the stipulations below:

1. Land use tax shall be levied on farmland after it has been expropriated for other use for a full year.

2. Land use tax shall be levied on non-farming land after it has been expropriated for other use for a full month.

Article 10 Land use tax shall be collected by the local tax authorities where the land is used. The department charged with the administration of the land shall provide the tax authorities with the information of the ownership of the land use right.

Article 11 Land use tax shall be administered in accordance with the provisions of the "Provisional Regulations of the People's Republic of China on Tax Administration".

Article 12 The revenue from land use tax shall come under the state budgetary control.

Article 13 The Ministry of Finance shall be responsible for the interpretation of these Regulations and the people's governments of the provinces, autonomous regions and municipalities directly under the State Council shall formulate the rules for the implementation thereof and report them to the Ministry of Finance for the record.

Article 14 These Regulations shall come into effect as from November 1, 1988 and the rules for the collection of charges on land use right formulated by local governments shall cease to be effective therefrom.