Under the urban and township land usage tax (“UTLUT”) regulations, UTLUT on newly expropriated farmlands accrues one year after the expropriation is approved.

Announcement [2014] No. 74 clarifies that lands obtained through bidding, auction and listing do not fall within the definition of newly expropriated farmlands, so they should not be taxed under the above rule. In these cases, taxpayers must follow article 2 of Caishui [2006] No. 186:

  • if a specific land transfer date is agreed in the contract, UTLUT will accrue from the month following that date; or
  • if a specific land transfer date is not agreed in the contract, UTLUT will accrue from the month following the date the contract is signed. 

Date of issue: December 31, 2014. Effective date: December 31, 2014.