Interim Regulations of the People's Republic of China on Occupation Tax for Cultivated Land (2007)

Order of the State Council [2007] No.511

December 1, 2007

The Interim Regulations of the People's Republic of China on Occupation Tax for Cultivated Land is hereby promulgated and shall be implemented as of January 1, 2008.

Premier: Wen Jiabao

Appendix: Interim Regulations of the People's Republic of China on Occupation Tax for Cultivated Land (2007)

Article 1 These Regulations has been formulated in order to guarantee the rational use of land resources, strengthen land management, and protect cultivated lands.

Article 2 The term "cultivated lands" as used in these Regulations shall refer to those lands used for crop planting.

Article 3 Those units and individuals who build houses on cultivated lands or engage in non-agricultural construction on cultivated lands are required to become taxpayers of the occupation tax for cultivated land, and must pay those taxes in accordance with these Regulations.
The term units as mentioned above shall include state-owned enterprises, collective enterprises, private enterprises, joint-stock enterprises, foreign-invested enterprises, foreign enterprises and other types of enterprises, institutions, social groups, state departments, armed forces, and other units. The term "individuals" as mentioned above shall include individual businesses and other kinds of individuals.

Article 4 The occupation tax for cultivated land shall be calculated based on the actual area occupied by the taxpayer and shall be subject to a one-time levy in the amount regulated.

Article 5 The amount of the occupation tax for cultivated land shall be:
1. CNY10 to 50 per square meter in places where the per capita area of cultivated land is not more than 1 acre (a county-level administrative region shall be hereinafter regarded as a unit).
2. CNY8 to 40 per square meter in places where the per capita area of cultivated land is between 1 and 2 acres.
3. CNY6 to 30 per square meter in places where the per capita area of cultivated land is between 2 and 3 acres.
4. CNY5 to 25 per square meter in places where the per capita area of cultivated land is more than 3 acres.
The average tax amount for provinces, autonomous regions, and municipalities shall be determined by the State Council and authorities of finance and taxation based on the area of cultivated land per capita and the status of economic development in the area.
The tax amount applicable in the various provinces, autonomous regions, municipalities shall be verified and determined by the government of that area in accordance with the actual situation. That amount shall be within the scale as stated in the first paragraph of this article and no less than the average tax amount as defined in the second paragraph of this article.

Article 6 The amount of the occupation tax for cultivated land may be increased in special economic zones, economic and technological development zones and those areas with sound economic development and small area cultivated land per capita. However, the increased portion may not exceed 50% of the applicable amount as defined in the third paragraph of Article 5.

Article 7 The occupation tax for amount of for basic cultivated lands shall be increased by 50% based on the applicable amount as defined in the third paragraph of Articles 5 and 6.

Article 8 Cultivated land occupied for the following purposes shall not be subject to land occupation tax:
1. To build military facilities.
2. To build schools, kindergartens, nursing homes, or hospitals.


Article 9 In regard to cultivated land used to build railways, roads, airport runways, aprons, ports, and waterways, the land occupation tax for of RMB 2 per square meter shall be applied.
The State Council and the authorities of finance and taxation may exempt or reduce the land occupation tax as regulated in the above paragraph according to actual needs and upon approval from the State Council after consultation with the relevant departments of the State Council.

Article 10 Where rural residents use cultivated land to build new houses, they shall be subject to tax on cultivated land occupation at the half local rate.
In regard to cultivated land used to build new residences by the rural families of martyrs, disabled soldiers, widowed, or lonely persons as well as rural residents living in revolutionary bases, areas of ethnic minority groups, remote and poverty-stricken mountainous areas who have difficulty to live and to pay the land occupation tax, the land occupation tax may be exempted or reduced upon approval from the county-level government of the area after being verified by the township-level (town) government.

Article 11 In the event that the taxpayer changes the use of the occupied cultivated land and reduction or exemption is no longer applicable due to that change, he must pay the amount reduced or exempted in accordance with Articles 8 and 9 hereafter.

Article 12 The occupation tax for cultivated land shall be collected by the local taxation authorities.
The land management authorities shall notify those local taxation authorities at the same level when notifying the relevant units or individuals to complete the land use procedures. Those units or individuals must pay off the land occupation tax within 30 days upon receipt of the notice sent by the land management authorities. The management authorities shall issue a permit of land use for construction purposes when the duty-paid voucher or tax exemption certificate and other relevant documents are presented.

Article 13 Those taxpayers temporarily occupying cultivated land must pay the land occupation tax according to these Regulations. That tax may be refunded in full if the cultivated land is restored within the approved period for temporary occupation.

Article 14 The land occupation tax shall be levied in accordance with provisions of these Regulations in regard to woodlands, grasslands water conservancy lands, fishing waters, beach fishing waters, and other types of cultivated lands occupied for building or non-agricultural construction purposes.
No land occupation tax shall be levied in regard to cultivated land occupied to build production facilities directly supporting agricultural production.

Article 15 The collection of the occupation tax for cultivated land shall be managed in accordance with the Law of the People's Republic of China on the Administration of Tax Levying and the provisions of these Regulations.

Article 16 This Regulations shall be implemented as of January 1, 2008 and the Interim Regulations of the People's Republic of China on Occupation Tax for Cultivated Land as promulgated on April 1, 1987 shall be simultaneously repealed.