Learn Chinese - Overseas enterprises must pay land use tax

BIZCHINA / Center

Overseas enterprises must pay land use tax

By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-06-18 13:45

A newly-revised land regulation means that foreign-backed enterprises
using land in Beijing must pay a land-use tax, according to a report by
Beijing Business Today.

According to the revised standard, the land use tax now has been tripled,
and ranges from 1.5 yuan to 30 yuan per square meter for large cities;
from 1.2 yuan to 24 yuan for medium-sized cities; from 0.9 yuan to 18
yuan for small cities; and from 0.6 yuan to 12 yuan for small towns and
mining regions.

Related readings:
Land use tax raised to stop resource abuse
Shanghai levies individual land VAT Foreign investment in real estate
regulations issued
Special campaign to rein in real estate sector

The new regulation is part of an effort to control the excessive
expansion of construction, together with serious land resource abuses in
some regions and industries.

Liu Huan, a professor with the Central University of Finance and
Economics, commented that the tax hike may boost housing prices if no
efficient control measures are implemented.

Statistics show that the total amount of land use tax collected in 2006
in Beijing was only 400 million yuan (US$52.29 million).

According to the regulation, land meeting one of seven criteria is exempt
from the tax, including land for use by government organs and the
military; and land for use by institutions funded by government financial
departments; land for public space like roads, squares and grasslands;
land reserved for temples, parks and historical sites; and land for
production use in agriculture, forestry, hunting and fishery sectors.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Learn mandarin