Circular of the State Administration of Taxation on the Issuance of the Supplementary Provisions on Several Specific Issues concerning Land Use Tax

Circular of the State Administration of Taxation on the Issuance of the Supplementary Provisions on Several Specific Issues concerning Land Use Tax
Circular of the State Administration of Taxation on the Issuance of the Supplementary Provisions on Several Specific Issues concerning Land Use Tax

Guo Shui Di Zi [1989] No. 140

December 21, 1989

Taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and the cities specifically designated in the state plan and sub-bureaus of the Offshore Oil Taxation Bureau,

For the purpose of facilitating various regions to further implement the Tentative Regulations of the People's Republic of China Concerning the Urban Land Use Tax, the Supplementary Provisions on Several Specific Issues Concerning Land Use Tax have been drafted by the State Administration of Taxation on the basis of questions and comments reflected by local authorities and are hereby issued to you. Please implement them accordingly based on local realities.

Annex:
Supplementary Provisions on Several Specific Issues Concerning Land Use Tax

In accordance with the provisions of the Tentative Regulations of the People's Republic of China Concerning the Urban Land Use Tax, several specific issues are hereby specified as follows:

I. Whether the gratuitous use of land between a tax-exempt entity and a taxable entity shall be subject to tax
A tax-exempt entity using land owned by a taxable entity without compensation (for example, a public security bureau or a customs house use land owned by the railway department or the civil aviation department, etc.) shall be exempt from land use tax. However, a taxable entity using land owned by a tax-exempt entity without compensation shall pay land use tax in accordance with the relevant regulations.

II. Issues concerning tax on land of a multi-story building shared by a tax-exempt entity and a taxable entity
For a multi-story building on land shared by a tax-exempt entity and a taxable entity, the taxable entity shall pay the land use tax in the proportion of the building area it uses to the total building area.

III.
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