1.        Taxpayers

The taxpayers are enterprises, units, individual household businesses and other individuals who occupy farmland for building construction or for other non-farm purposes.

2.        Scope  

Farmland occupation tax is imposed on all state-owned or collectively owned crop-growing land, and shall apply to those who occupy garden land, forest land, grassland, land for irrigation and water conservancy, water surface for cultivation, beaches for fishery waters and other construction buildings on agricultural land or engage in non-agricultural construction.

3.        Tax Rate

Farmland occupation tax shall be levied at different amount on different regions (counties, autonomous counties, cities without districts and municipal districts). The applicable tax amount per square meter shall be as follows:

Regions	Tax Amount（yuan/sq.m）
Per-capita cultivated land is one mu or less	10-50
Per-capita cultivated land is more than one mu but less than two mu;	8-40
Per-capita cultivated land is more than two mu but less than three mu	6-30
Per-capita cultivated land is more than three mu	5-25

* The average amount of tax applicable to the farmland occupation tax of all provinces, autonomous regions and municipalities directly under the central government shall not be lower than the average amount of tax applicable stipulated in “Average Farmland Occupation Tax Amount for All Provinces, Autonomous Regions and Municipalities” (Appendix 1).
* The regions where the per capita cultivated land is less than 0.5 mu, the provinces, autonomous regions and municipalities under the central government may increase the applicable amount of the farmland occupation tax appropriately according to the local economic development, but the increase shall not exceed 50 percent of the applicable amount. For occupation of basic farmland, a 150 percent of the applicable local tax shall be levied

4.        Computation of Tax Payable

The tax is based on the amount of farmland actually occupied by the taxpayer. The specific applicable tax is levied on the basis of the unit and paid in a lump sum. The formula for calculating the tax payable is:

Tax Payable = Area of Farmland Actually Occupied by Taxpayer * Applicable Tax Amount Per Square Meter

5.       Tax Reductions and Exemptions

1)  Farmland occupied by military facilities, schools, kindergartens, social welfare institutions and medical institutions is exempted from the farmland occupation tax.
2)  Farmland occupied by railway lines, highway lines, airport runways, apron, ports, navigation channels and water conservancy projects shall be taxed at a reduced rate of 2 yuan per square meter.
3) The farmland occupation tax will be levied by half according to the applicable local tax for newly built self-use houses built by rural residents within the prescribed farmland use standards; the rural residents who are approved to move and whose area does not exceed the original homestead area shall be exempted from cultivated land occupation tax.
4)  For the revolutionary martyr's family, handicapped revolutionary military servants, widows and orphans in countryside and peasants living a difficult life in old revolutionary base areas, the newly built self-use houses within the prescribed land use standards are exempted from farmland occupation tax.
5) According to the needs of national economic and social development, the State Council may stipulate other situations in which the farmland occupation tax is exempted or reduced and report them to the Standing Committee of the National People's Congress for the record.

Appendix 1                Average Farmland Occupation Tax Amount for All Provinces,

Autonomous Regions and Municipalities

Provinces, Autonomous Regions and Municipalities	Average Tax Amount（yuan/square）
Shanghai	45
Beijing	40
Tianjin	35
Jiangsu, Zhejiang, Fujian, Guangdong	30
Liaoning, Hubei, Hunan	25
Hebei, Anhui, Jiangxi, Shandong, Henan, Chongqing, Sichuan	22.5
Guangxi, Hainan, Guizhou, Yunnan, Shannxi	20
Shanxi, Jilin, Heilongjiang	17.5
Inner Mongolia, Tibet, Gansu, Qinghai, Ningxia, Xinjiang	12.5