China Approves New Farmland Use Tax Law

On 29 December 2018, China passed a new Law on Farmland Use Tax (FUT) that will become effective on 1 September 2019 and replaces existing interim regulations. The FUT is a one-off tax that applies for both entities and individuals that use farmland to construct building or structures or other non-agricultural constructions and is based on the area of farmland used. The tax is applied per square meter at rates based on the population density of the area in terms of mu (亩) per capita (1 mu is …