GUO WU YUAN LING [17] 1988.9.27

Article 1 These Regulations are formulated in order to properly utilize city and township land, regulate the different proceeds from different grades of land, increase the efficiency of land use and strengthen the administration of land.

Article 2 The units and individuals utilizing land within the area of city, county, township and mining districts shall be taxpayers of the City and Township Land Use Tax (hereinafter referred to as "Land Use Tax"), (hereinafter called "Taxpayers") who are liable to Land Use Tax in accordance with these Regulations.

Article 3 The computation of Land Use Tax shall be based on the amount of area actually occupied by taxpayers and by applying the amount of tax specified.
The measuring of the amount of area occupied as mentioned in the preceding paragraph shall be determined by the governments of provinces, autonomous regions or municipalities directly under the Central Government according to practical circumstances.

Article 4 The annual amount of Land Use Tax per square meter is as follows:

A.0. 5-10 Renminbi yuan in large cities;

B. 0. 4-8 Renminbi yuan in medium size cities;

C. 0. 3-6 Renminbi yuan in small cities;

D. 0. 2-4 Renminbi yuan in counties, townships and mining districts.

Article 5 The governments of provinces, autonomous regions and municipalities directly under the Central Government shall determine the applicable range of amount of tax for their own jurisdictions within the ranges listed in the preceding Article with respect to the city construction conditions and the extent of economic prosperity.

The municipal and county governments shall , based on practical conditions, classify the land in their jurisdictions into different grades, and formulate the applicable amount of tax in accordance within the range of amount of tax stipulated by the governments of provinces, autonomous regions and municipalities directly under the Central Government, and then submit it to the governments of provinces, autonomous regions and municipalities directly under the Central Government for approval.

Upon approval by the governments of provinces, autonomous regions and municipalities directly under the Central Government, the applicable range of tax amounts in economically backward areas may be appropriately lowered. However, the amount lowered shall not exceed 30% of the minimum amount of tax ^as stipulated in Article 4 of these Regulations. The range of tax amounts in economically developed areas may be appropriately raised upon approval of the Ministry of Finance.

Article 6 The following types of land shall be exempt from Land Use Tax:

A. land occupied by governmental organs, people's organizations and military units for self-use;

B. land occupied by units for self-use, which are financed by the institutional allocation of funds from financial departments of the State;

C. land occupied by religious temples , parks and historic scenic spots;

D. land for public use occupied by Municipal Administration, public squares and greenbelts;

E. land directly utilized for production in the fields of agriculture, forestry, animal husbandry and fishery industries;

F. land developed for mountain and river areas and waste land improved upon approval shall be exempt from Land Use Tax from five to ten years starting from the date they are put into operation;

G. land for energy, transportation and water conservancy and other land stipulated by Ministry of Finance for tax exemption.

Article 7 In addition to specifications in Article 6 of these Regulations, Taxpayers who have difficulty in paying Land Use Tax and request periodic tax reductions and exemptions must report to the State Administration of Taxation for approval after examination by the Tax Authorities of Provinces, Autonomous Regions and Municipalities directly under the Central Government.

Article 8 Land Use Tax shall be computed on an annual basis and paid in installments. The time limit for tax payment shall be determined by the Governments of Provinces, Autonomous Regions or Municipalities directly under People's Governments.

Article 9 Land Use Tax on newly taken-over land shall be levied according to the following rules:
A. Land Use Tax on taken-over farm land shall be levied one full year starting from the date of approval for taking over;
B. Land Use Tax on taken-over nonfarm land shall be levied as of the month following approval for taking over.

Article 10 Land Use Tax shall be collected by the tax department in the region where the land is located. The Land Administration Departments are obliged to provide tax departments the documents related to the ownership of land use rights.

Article 11 The collection and administration of Land Use Tax shall follow the provisions of "The Law of The People's Republic of China on the Administration of Tax Collection".

Article 12 Land Use Tax revenue shall be placed under financial budgetary control.

Article 13 The authority for interpretation of these Regulations is the Ministry of Finance; the measures shall be formulated by Governments of Provinces, Autonomous Regions and Municipalities directly under People's Governments and shall be submitted to the Ministry of Finance for recording.

Article 14 These Regulations shall come into effect as of November 1, 1988, and the measures for land use fees formulated by local Governments shall cease to be implemented at the same time.