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URBAN AND TOWNSHIP LAND USE TAX

(1) Taxpayers
The taxpayers of Urban and Township Land Use Tax include all enterprises, units, individual household businesses and other individuals (excluding enterprises with foreign investment, foreign enterprises and foreigners).

(2) Tax payable per unit
The tax payable per unit is differentiated with different ranges for different regions, i.e., the annual amount of tax payable per square meter is: 0.5-10 yuan for large cities, 0.4-8 yuan for medium-size cities, 0.3-6 yuan for small cities, or 0.2-4 yuan for mining districts. Upon approval, the tax payable per unit for poor area may be lowered or that for developed area may be raised to some extent.

(3) Computation
The amount of tax payable is computed on the basis of the actual size of the land occupied by the taxpayers and by applying the specified applicable tax payable per unit. The formula is:
Tax payable = Size of land occupied ×Tax payable per unit

(4) Major exemptions
Tax exemptions may be given on land occupied by governmental organs, people's organizations and military units for their own use; land occupied by units for their own use which are financed by the institutional allocation of funds from financial departments of the State; land occupied by religious temples, parks and historic scenic spots for their own use; land for public use occupied by Municipal Administration, squares and green land; land directly utilized for production in the fields of agriculture, forestry, animal husbandry and fishery industries; land used for water reservation and protection; and land occupied for energy and transportation development upon approval of the State.

CITY MAINTENANCE AND CONSTRUCTION TAX

(1) Taxpayers
The enterprises of any nature, units, individual household businesses and other individuals (excluding enterprises with foreign investment, foreign enterprises and foreigners) who are obliged to pay Value Added Tax, consumption Tax and/or Business Tax are the taxpayers of City Maintenance and Construction Tax.

(2) Tax rates and computation of tax payable
Differential rates are adopted: 7% rate for city area, 5% rate for county and township area and 1% rate for other area. The tax is based on the actual amount of VAT, Consumption Tax and/or Business Tax paid by the taxpayers, and paid together with the three taxes mentioned above. The formula for calculating the amount of the tax payable:
Tax payable = Tax base × tax rate Applicable

FARM LAND OCCUPATION TAX

(1) Taxpayers
Taxpayers are enterprises, units, individual household businesses and other individuals (except enterprises with foreign investment, foreign enterprises and foreigners) who occupy farm land for building construction or for other non-farm purposes.

(2) Scope and tax payable per unit
This tax is imposed on all State owned and collectively owned crop-planting land, and also on newly developed wasteland, fallow land, land for rotation of crops, land for rotation of grass and crops.

Different ranges of tax per unit are specified for different regions in consideration of the average size of farmland occupied per person and the local economic situation. The annual amount of tax payable per square meter is: taking county as the administrative region for calculation (hereinafter the same), 2-10 yuan for county with one mu or less of farmland per person; 1. 6-8 yuan for county with 1-2 mu farmland per person; 1.3-6.5 yuan for county with 2-3 mu farmland per person; and 1-5 yuan for county with more than 3 mu farmland per person. The amount of tax payable per unit may be raised for Special Economic Zones, Economic and Technological Development Areas and regions of developed economy and tiny average size of farmland per person.

In order to avoid the big gap between neighboring regions, the Ministry of Finance has assessed the average tax per unit for provinces, autonomous regions and municipalities at provincial level, which ranges from 2.5 to 9 yuan.

(3) Computation
This tax is based on the area of farm land actually occupied by taxpayers and by applying the specific applicable tax per unit, and paid in lump-sum. The formula for computing the tax payable is:

Tax payable - Area of farm land actually occupied by taxpayer × Applicable amount of tax per square meter

(4) Major exemptions and reductions

a. Exemptions may be given on land for military facilities; land for railroads and airports; land for schools and hospitals; land for farm irrigation facilities; no larger land for construction of new houses than the old house in countryside, where the land has been turned into farm planting; land for settling immigrants due to reservoir construction, victims of calamity or refugees.

b. Tax reductions or exemptions may be given on land for construction of new houses for countryside residents; revolutionary martyr's family, handicapped revolutionary military servants, widows and orphans in countryside and peasants living a difficult life in old revolutionary base areas, minority nationality areas and far remote mountain regions who build new houses within the stipulated standards of land use and who have real difficulty in paying the tax; welfare factories set up by Civil Affairs Department for settling the employment of the handicapped; and land for construction of motor roads.

FIXED ASSETS INVESTMENT ORIENTATION REGULATION TAX

(1) Taxpayers
This tax is imposed on enterprises, units, individual household businesses and other individuals who invest into fixed assets within the territory of the People's Republic of China (excluding enterprises with foreign investment, foreign enterprises and foreigners).

(2) Taxable items and tax rates
Table of Taxable Items and Tax Rates

(* For some residential building investment projects, the rate is 5%.)

(3) Computation of tax payable
This tax is based on the total investment actually put into fixed assets. For renewal and transformation projects, the tax is imposed on the investment of the completed part of the construction project. The formula for calculating the tax payable is:
Tax payable - Amount of investment completed or amount of investment in construction project × Applicable rate