China to Exempt Energy Lands from Urban Land Use Tax from 2026, Phase Out Previous Reductions

For lands that were previously granted a reduction or exemption from urban land use tax under the provisions of documents such as the State Taxation Bureau's Regulation on the Exemption and Reduction of Land Use Tax in the Electric Power Industry [(89) Guo Shui Di Zi No. 013], the tax will be levied at half the due amount from September 1, 2026 to August 31, 2027. From September 1, 2027, the full urban land use tax will be levied, and the above documents will be simultaneously abolished.

From September 1, 2026, lands owned by enterprises, or obtained through lease, free use, or other means, and used for specific purposes, will be exempt from urban land use tax. These purposes include: land used for fire protection, flood control, drainage, wind prevention, and sand prevention facilities within industrial and mining areas of oil and gas (including shale gas and coalbed methane) production enterprises; railway special lines and road land outside the plant area; land used for long-distance oil and gas pipeline routes and temporary construction land; reservoir inundation areas, dams (excluding power plant building land), dikes, revetments, navigation channels (including navigation facilities), fish restocking stations, fish passage facilities, irrigation facilities, and flood discharge facilities of hydropower stations; dikes and revetments of nuclear power plants; railway special lines and road land outside the plant area of thermal power plants; transmission line (including tower foundation) land and temporary construction land of power supply enterprises; safety zone land outside the explosive warehouse of coal enterprises, and railway special lines, roads, public parks, and public green belts open to society outside the plant area; and safety zone land outside the explosive warehouse of mining enterprises (including metallic and non-metallic minerals) and building materials enterprises.

The above-mentioned lands of enterprises are also exempt from urban land use tax during the construction period, in accordance with the regulations.

Taxpayers who enjoy the reduction or exemption policies under this announcement should declare the reduction or exemption in accordance with the regulations, and retain documents such as real estate ownership certificates, temporary land use approvals, project initiation planning documents, and land use certificates for future reference.