Table of Contents
Chapter I: General Provisions
Article 1 This Law is enacted for the purposes of rationally utilizing land resources, strengthening land administration, and protecting farmland.
Article 2 Entities and individuals that occupy farmland within the territory of the People’s Republic of China for the construction of buildings or structures or for engaging in non-agricultural construction shall be taxpayers of farmland occupation tax and shall pay farmland occupation tax in accordance with the provisions of this Law. For the purposes of this Law, “farmland” means land used for planting crops, including cultivated land, garden land, forest land, grassland, aquaculture water surface, and other agricultural land. Where farmland is occupied for the construction of farmland water conservancy facilities, no farmland occupation tax shall be levied.
Article 3 The tax amount of farmland occupation tax shall be calculated based on the actual area of farmland occupied by the taxpayer multiplied by the applicable tax amount, and shall be paid in a lump sum. The tax base for farmland occupation tax shall be the area of farmland actually occupied by the taxpayer.
Chapter II: Tax Rates and Calculation
Article 4 The tax amount of farmland occupation tax shall be as follows: (1) for counties with a per capita farmland area of not more than 1 mu, the tax amount shall be RMB 10 to 50 per square meter; (2) for counties with a per capita farmland area of more than 1 mu but not more than 2 mu, the tax amount shall be RMB 8 to 40 per square meter; (3) for counties with a per capita farmland area of more than 2 mu but not more than 3 mu, the tax amount shall be RMB 6 to 30 per square meter; and (4) for counties with a per capita farmland area of more than 3 mu, the tax amount shall be RMB 5 to 25 per square meter. The specific applicable tax amount for each county shall be proposed by the people’s government of the province, autonomous region, or municipality directly under the Central Government within the range of tax amounts prescribed in the preceding paragraph based on the actual conditions of each county, and shall be submitted to the standing committee of the people’s congress at the same level for decision, and filed with the Standing Committee of the National People’s Congress and the State Council.
Article 5 The applicable tax amount for farmland occupation shall be increased by not more than 50% for farmland occupied in areas where the per capita farmland area is less than 0.5 mu, based on the local applicable tax amount. The applicable tax amount for farmland occupation shall be increased for the occupation of basic farmland to protect it, based on the local applicable tax amount.
Article 6 Where farmland is occupied for construction of highways, railways, airports, ports, waterways, and other public transportation infrastructure, the farmland occupation tax shall be levied at a reduced rate of RMB 2 per square meter. Where the applicable local tax amount is lower than the reduced tax amount, the tax shall be levied at the applicable local tax amount.
Chapter III: Tax Reductions and Exemptions
Article 7 Farmland occupation tax shall be exempted for any of the following circumstances: (1) farmland occupied for the construction of military facilities; (2) farmland occupied for the construction of schools, kindergartens, social welfare institutions, and medical institutions; and (3) farmland occupied for the construction of farmland water conservancy facilities.
Article 8 Where rural residents occupy farmland within the prescribed area standard to build their own residential housing, the farmland occupation tax may be levied at a reduced rate in accordance with regulations. Where rural residents who have been approved to relocate occupy farmland within the prescribed area standard to build their own residential housing, the farmland occupation tax shall be exempted. Where a rural martyred service member’s family, a soldier entitled to preferential treatment who is disabled in the line of duty, an elderly, disabled, or sick person who is a rural resident, or a rural resident living below the minimum subsistence guarantee level occupies farmland to build his own residential housing, the farmland occupation tax shall be exempted.
Chapter IV: Collection Administration
Article 9 The tax liability for farmland occupation tax shall arise on the date when the taxpayer receives a notice from the natural resources department for going through the formalities for occupying farmland. The taxpayer shall, within 30 days from the date when the farmland occupation tax liability arises, declare and pay the farmland occupation tax.
Article 10 The farmland occupation tax shall be levied by the tax authorities at the place where the farmland is occupied. The tax authorities and the departments of natural resources, agriculture and rural affairs, water resources, and ecology and environment shall establish a working mechanism for sharing information related to farmland occupation tax.
Article 11 The natural resources department shall, at the time of issuing a construction land approval document, notify the taxpayer and the tax authorities at the same level. The natural resources department shall verify the farmland occupation tax payment certificate or tax exemption certificate. Where the farmland occupation tax has not been paid in accordance with regulations, the natural resources department shall not issue the construction land approval document.
Chapter V: Supplementary Provisions
Article 12 The tax authorities shall levy farmland occupation tax in accordance with the provisions of this Law and the Law on the Administration of Tax Collection. Where any provisions of this Law are violated, the tax authorities shall pursue liability in accordance with law.
Article 13 This Law shall come into force on September 1, 2019. The Provisional Regulations of the People’s Republic of China on Farmland Occupation Tax promulgated by the State Council on December 1, 2007, shall be repealed simultaneously.
Translation note: This is an unofficial English translation for reference purposes. The original Chinese text shall prevail in all legal matters.
