Key practical points:
• The taxpayer is whoever occupies farmland for construction or non-agricultural use.
• The tax is paid once, based on the area occupied in square metres.
• The rate varies by region and population density, higher where farmland is scarcer.
• Exemptions exist for certain projects such as schools, hospitals and some infrastructure.
• Later changing the use to one taxed at a higher rate may require paying the difference.
💰 Tax
Farmland Occupation Tax Law · Yalla China
中华人民共和国耕地占用税法 / Farmland Occupation Tax Law
Enacted: 2018-12-29 ✅ Effective: 2019-09-01
📝 Overview
A one-time tax on converting farmland to construction (non-agricultural) uses in China, at a fixed amount per square metre. It aims to protect arable land and rationalise its use.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
If your project needs to build on land that was farmland in China, expect a one-time farmland occupation tax by area. Check the local rate and exemptions before you plan construction. General orientation, not legal advice.
📎 Official source
npc.gov.cn
🕒 Updated: 16 March 2026