China Issues Farmland Occupation Tax Implementation Guidelines

In order to streamline the national implementation of the Farmland Occupation Tax Law, the government has issued a series of guidelines clarifying its application and calculation:

• The tax is to be levied on the area of farmland a taxpayer actually occupies and is payable on a one-off basis in line with the following formula:

Tax Payable = Area of Taxable Land x Tax Amount Applicable

• In the case of land covered by Article 6 of the Farmland Occupation Tax Law, the below formula is applicable:

Tax Payable = Area of Taxable Land x Tax Amount Applicable x 150%

Full details can be found in Measures for the Implementation of the Farmland Occupation Tax (Announcement No. 30 (2019)) as issued by the State Administration of Taxation.

The Farmland Occupation Tax came into effect as of 1 September this year.

Source: State Administration of Taxation