Law of the People's Republic on Cultivated Land Occupation
Presidential Decree No. 18
The Law of the People's Republic of China on Cultivated Land Occupation Tax, adopted at the 7th session of the Standing Committee of the 13th National People's Congress of the People's Republic of China on December 29, 2018, is hereby promulgated, effective September 1, 2019.
President Xi Jinping
December 29, 2018
(Adopted at the 7th session of the Standing Committee of the 13th National People's Congress on December 29, 2018)
Article 1 This Law is enacted in order to make rational use of land resources, strengthen land administration and protect cultivated land.
Article 2 Organisations and individuals that occupy arable land in the People's Republic of China to construct buildings and structures or to engage in non-agricultural development projects shall be taxpayers of arable land occupation tax, and shall pay arable land occupation tax pursuant to the provisions of this Law.
The occupation of farmland for the construction of irrigation and water conservancy facilities shall not be subject to farmland occupation tax.
For purposes of this Law, cultivated land means land used for growing crops.
Article 3 The occupation tax on cultivated land shall be calculated on the basis of the actual area occupied by the taxpayer and shall be subject to a one-time levy in the specified applicable tax amount. The payable tax amount shall be the area of the cultivated land actually occupied by the taxpayer (in square meters) multiplied by the applicable tax amount.
Article 4 The amounts of the occupation tax for cultivated land shall be as follows:
1. CNY10 to 50 per m2 in places where the per capita area of cultivated land is not more than one mu (a county, an autonomous county, a city not divided into districts or a municipal district shall be hereinafter regarded as a unit).
2. CNY8 to 40 per m2 in places where the per capita area of cultivated land is between one and two mu; and
(III) CNY6 to 30 per m2 in places where the per capita area of cultivated land is between 2 and 3 mu.
(IV) CNY5 to 25 per square meter in places where the per capita area of cultivated land is more than three mu.
The applicable tax amount for occupation of cultivated land in each region shall be proposed by the people's government of the province, autonomous region or municipality directly under the Central Government within the tax amount range as stipulated in the preceding paragraph based on the circumstances such as the per capita area of cultivated land and economic development, and shall be reported to the standing committee of the people's congress at the same level for determination and to the Standing Committee of the National People's Congress and the State Council for filing. The average of applicable amounts of the cultivated land occupation tax of a province, autonomous region or municipality directly under the Central Government shall not be lower than the average tax amount stipulated in the Average Tax Amounts of cultivated land occupation Tax of Provinces, Autonomous Regions and municipalities directly under the Central Government attached hereto.
Article 5 In regions where the per capita area of cultivated land is less than 0.5 mu, the provinces, autonomous regions and municipalities directly under the Central Government may increase the applicable tax amount for the occupation of cultivated land by an appropriate amount based on the local economic development situation; however, the increased amount shall not exceed 50% of the applicable tax amount as determined in Paragraph 2 of Article 4 of this Law. The specific applicable tax amounts shall be determined pursuant to the procedures stipulated in the second paragraph of Article 4 of this Law.
Article 6 Any unit and individual that occupy and use basic farmland shall pay an additional 150 percent of the local applicable tax as determined in the second paragraph of Article 4 or Article 5 of this Law.
Article 7 The occupation of cultivated land by military facilities, schools, kindergartens, social welfare institutions and medical institutions shall be exempted from cultivated land occupation tax.
The farmland occupied by railways, highways, airport runways, aprons, harbors, waterways and water conservancy projects shall be subject to farmland occupation tax at a reduced tax rate of CNY2 per square meter.
Where rural residents use arable land to build new residential housing for their own use within the stipulated land use standards, arable land occupation tax shall be levied at half the local applicable tax amount; in the event that rural residents have obtained approval for relocation, the portion of arable land occupied by newly built residential housing for their own use which does not exceed the area of the original residential land shall be exempted from arable land occupation tax.
The farm land occupation tax shall be exempted for the building of new houses for self-use by the dependents of rural martyrs, of military personnel who sacrificed in action, of disabled military personnel and of rural residents meeting the minimum living security conditions in rural areas within the prescribed standards for land use.
The State Council may stipulate other circumstances for exemption or reduction of arable land occupation tax based on the needs of national economic and social development and file records with the Standing Committee of National People's Congress.
Article 8 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, the taxpayer must pay the amount reduced or exempted under Paragraphs 1 and 2 of Article 7.
Article 9 Cultivated land occupation tax shall be collected by tax authorities.
Article 10 The tax payment obligation for farmland occupation tax arises on the date when a taxpayer receives a written notice on going through the formalities for farmland occupation from the competent department of natural resources. A taxpayer shall declare and pay the occupation tax on cultivated land within 30 days as of the date when the tax obligation arises.
The department in charge of natural resources shall issue an approval document for construction land use based on the receipt of farmland occupation tax or tax-free certificate and other relevant documents.
Article 11 A taxpayer temporarily occupying cultivated land due to construction projects or geological surveys shall pay cultivated land occupation tax in accordance with this Law. The farmland occupation tax already paid shall be refunded in full if the farmland is recultivated by the taxpayer in accordance with the law within one year from the date of approval for temporary occupation of the farmland.
Article 12 For the occupation of garden land, forest land, grassland, land for farmland water conservancy, aquaculture waters, tidal flats of fishery waters and other farmland for construction of buildings and structures or for non-agricultural construction, the occupation tax on cultivated land shall be paid in accordance with the provisions hereof.
For occupation and use of agricultural land stipulated in the preceding paragraph, the applicable tax amount may be reasonably lower than the applicable tax amount determined in the locality pursuant to the provisions of the second paragraph of Article 4 of this Law, provided that the reduced amount shall not exceed 50%. The specific applicable tax amounts shall be proposed by the People's Government of the province, autonomous region or centrally-administered municipality, submitted to the Standing Committee of the People's Congress at counterpart level for decision, and filed with the Standing Committee of the National People's Congress and the State Council.
Occupation of agricultural land stipulated in the first paragraph of this Article to construct production facilities which serve agricultural production directly shall not be subject to arable land occupation tax.
Article 13 The tax authorities shall establish a tax-related information sharing mechanism and work cooperation mechanism with the relevant departments for occupation tax on cultivated land. The natural resources, agricultural and rural, water conservancy and other relevant departments of the local people's governments at or above the county level shall regularly provide the taxation authorities with the information on conversion of agricultural land, temporary occupation of land and other information and assist the taxation authorities in strengthening the administration of collection of occupation tax on cultivated land.
In the event that the tax authority discovers any abnormality in the tax declaration data of a taxpayer or a taxpayer fails to file tax returns within the prescribed time limit, the tax authority may request the relevant department to review. The relevant department shall issue review opinions to the tax authority within 30 days after receiving the review application of the tax authority.
Article 14 The administration of collection of cultivated land occupation tax shall be subject to this Law and the Law of the People's Republic of China on the Administration of Tax Levying.
Article 15 Where taxpayers, tax authorities and their staff violate the provisions of this Law, they shall be held legally liable in accordance with the Law of the People's Republic of China on the Administration of Tax Levying and relevant laws and regulations.
Article 16 The Law shall come into force as of September 1, 2019. The Provisional Regulations of the People's Republic of China on Arable Land Occupation Tax promulgated by the State Council on 1 December 2007 shall be repealed simultaneously.