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Notice Of The Local Taxation Administrator Of Shenzhen Municipality On The Collection Of City And Town Land Use Tax, issued by the Administrator of Local Taxation of Shenzhen Municipality on 27 November 2007 and took effective on the same day.

1.      Who shall be the taxpayers of city and town land use tax?

 As stipulated in the Notice, any unit or individual using land within the administrative region of Shenzhen Municipality will be considered a taxpayer of city and town land use tax.

2.      How will the city and town land use tax be calculated? 

The basis for calculating the tax will be the area of land actually occupied by the taxpayer. Levying rates vary depending on the divisions of the land. The annual taxable amount equals the actual area of land occupied (square meter) multiplied by the annual levying amount per square meter.

3.      When shall the city and town land use tax be paid? 

The Notice specifies that city and town land use tax is calculated on a yearly basis and is to be paid in two instalments. The declaration periods are 1-15June and 1-15December. The paying period is 1-31December. The taxation period is 1 November 2007 to 31 December 2007. The tax shall be paid to the taxation authorities of the respective regions where the land is located.  

4.      What types of land shall be exempted from the tax?  

The Notice specifies the types of land that shall be exempted from the tax. They are as follows:

1)      land used by State organs, people’s associations, and armed forces;

2)      land used by units which have their operating expenses allocated by the State’s finance department;

3)      land occupied by religious temples and shrines, parks and places of historic interest and scenic beauty;

4)      publicly used land, such as that for municipal streets, public squares and areas of greenery;

5)      land directly used in production in the agricultural, forestry, pastoral and fishery industries;

6)      in the case of land whose reclamation from the sea or transformation from wasteland was approved, land use tax shall be exempted for between 5 and 10 years, to be calculated from the month in which usage commences;

7)      land which the Ministry of Finance has exempted from tax in other legislation, such as land containing energy resources or land used for transport or water conservancy facilities and other uses.


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