Policies on Urban Land Use Tax on Entities Employing Disabled Persons
· Document Number：No. 121  of the Ministry of Finance
· Area of Law： Civil Law Taxation
· Level of Authority： Departmental Regulatory Documents
· Date issued：12-21-2010
· Effective Date：12-21-2010
· Issuing Authority： Ministry of Finance State Administration of Taxation
· Status： Effective
Notice of the Ministry of Finance and the State Administration of Taxation on Policies on Urban Land Use Tax on Entities Employing Disabled Persons and Other Matters
(No. 121  of the Ministry of Finance)
The public finance departments (bureaus) and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning; the state taxation bureaus of Tibet, Qinghai and Ningxia Provinces (or Autonomous Regions); and the Public Finance Bureau of Xinjiang Production and Construction Corps:
Upon deliberation, you are hereby notified of policies on urban land use tax on entities employing disabled persons and other matters as follows:
I. Urban Land Use Tax on Entities Employing Disabled Persons
If the proportion of the average number of disabled persons actually employed every month during a tax year in the total number of employees of an entity is 25% or more, and the entity has actually employed ten or more disabled persons, its urban land use tax for such year can be reduced or exempted. The specific proportions and administrative measures for tax reduction or exemption shall be determined by the public finance and tax authorities of each province, autonomous region or municipality directly under the Central Government.
Item 4 of Article 18 of the Interpretation and Interim Provisions of the State Administration of Taxation on Several Specific Issues concerning Land Use Tax (No. 15  of the State Administration of Taxation) shall be concurrently repealed.
II. Real Estate Tax during the Rent-Free Period for a Rental Property
For a rental property, if the lease contract the parties to the lease have entered into provides for a rent-free period, the property owner shall pay real estate tax according to the original value of the property during the rent-free period.
III. Collection of Real Estate Tax with Land Price Included in the Original Value of a Real Estate Property
If tax on a real estate property is assessed according to the original value of the property, regardless of the method of calculation in accounting, the original value of the real estate property shall include the land price, which shall include the amount paid in order to obtain land use rights and the costs of land development. ratio of the total area of the real estate property to the parcel area is lower than 0.5, the land area shall be twice the construction area of the real estate property and the land price included in the original value of the real estate property shall be determined accordingly.
This Notice shall come into force on the date of issuance. For any discrepancies between previous provisions and this Notice, this Notice shall prevail. All local public finance and tax authorities shall follow up on policy implementation and report problems encountered in implementation to the Ministry of Finance and the State Administration of Taxation in a timely manner.
Ministry of Finance
State Administration of Taxation
December 21, 2010