The Ministry of Finance ("MOF") and the State Administration of Taxation ("SAT") have recently issued the Circular on Renewing the Preferential Policy for Real Estate Tax and Urban Land Use Tax for Wholesale Markets of Agricultural Products and Farmers Markets (the "Circular").
According to the Circular, during the period from January 1, 2019 till December 31, 2021, the real property and land used by wholesale markets of agricultural products and farmers markets (either self-owned or rented, the same below), exclusively for marketing agricultural products, will be temporarily exempt from real estate tax and urban land use tax. For real property and land used by other wholesale markets of agricultural products and farmers' markets, where other types of products are marketed, the exemptions of real estate tax and urban land use tax shall be determined based on the ratio of the area of business places for agricultural products to that for other products. Additionally, the Circular notes that real property and land used as office areas and residential areas and for any purposes other than directly serving the marketing of agricultural products, such as for commercial catering, beverage and recreational services, within wholesale markets of agricultural products and farmers markets, are not eligible for the preferential tax policy offered in this Circular, and shall be subject to real estate tax and urban land use tax in accordance with relevant provisions.