Administration on the Use of Land

For use of land by enterprises with foreign investment, the enterprise concerned shall apply to the Administration Department of the Municipal Bureau of Land within one month of the approval of the project on the strength of the approval project report and the document for use of land to complete formalities of registration and obtain the Certificate of Land Use for the land use right. The use of land by enterprises with foreign investment shall be in accord with the requirements of city planning and no unauthorized changes in usage or range are permitted. Only the right of use is accorded to land approval for use, which is not allowed to be transferred, borrowed, leased, sold(whether overtly or covertly) and all surface or underground or other resources are not to be drawn on or damaged.

In case an enterprise with foreign investment failed to make use of the land approved for use within 2 years from the date of approval without any justifiable reasons, the certificate of land-use may be revoked and the right to use the land withdrawn by the Department of Land Administration of the Municipal Bureau of Land and in which case the land-use fees already paid shall not be returned.

• 　Use of Collectively Owned Land

1.All enterprises with foreign investment using collectively owned land shall be subject to the collection of land-use fees by the Municipal Bureau of Land in accordance with the regulations governing the use of state owned land as contained in the document No. JZF 18(1987).

2.For all special funds deposited in accordance with the provisions of the said Document, the land-use fees so deposited shall be paid to the Municipal Bureau of Land by the party responsible for making such deposits within the time limit for payment. In case no special funds have been deposited but the moneys have been drawn by the Chinese partner of a joint venture, payment shall be effected retrospectively by the Chinese partner. In case no land-use fees have drawn from the joint venture, then the joint venture shall effect payment retrospectively within the time limit set in the notice calling for payment, failing which the case shall be dealt with in accordance with the stipulations under Article 17 of the Document No.JZF18(1987).

3.Of the land-use fees collected, 10% shall be left with the Municipal Bureau of Land to be used in land administration, the remaining 90% shall be returned to the department in land administration, in the Districts and Counties where the land is situated, to be deposited in special accounts for specific uses in improvements of the environment of foreign-funded enterprise in land development and land administration.

• Administration of Real Estate Relating to Foreigners

Foreigners are allowed to purchase and construct residential houses, to manage real estate business in the form of equity, contractual joint ventures or exclusively foreign-owned ventures, to purchase and construct factory and commercial buildings, warehouses, parking lots, and other house and constructions.

Residential and non-residential houses owned by foreigners may be purchased, sold, leased, donated, swapped, inherited, mortgaged, invested, or engaged in other commercial activities.

• Administration on Development and Management of Tracts of Land

The term "tract development" refers to comprehensive development and construction in accordance with city planning of land after obtaining the right to use state-owned land according to law, including leveling the ground and constructing such public utilities as water supply and drainage systems, power and heat supply systems, roads and communications networks and telecommunications facilities, so that conditions shall be created for the land to be used for industrial of other construction purposes. The investor shall then transfer the right to the use of the land for operating public utilities, or proceed to construct such buildings as industrial houses for general use and the supporting facilities for production and everyday life services and engage in the business activities of transferring or leasing these buildings.

Definite development targets shall be specified for tract development and there shall be definite construction projects that intended to make use of developed land.

• Preferential Treatment for Projects of Reconstructing Dilapidated Houses

1.Land used in reconstruction projects of dilapidated houses shall be completely appropriated by executive allotment. In case the investors require the right to the use of land so assigned, they may go through the formalities for the assignment of land use rights and apply for payment of assignment fee by installments.

2.House needed on the original site or on the other sites to relocate households removed in the reconstruction of dilapidated houses, relief dwellings provided in accordance with regulations, non-profit welfare and service facilities, municipal works and public utilities constructed during the reconstruction could all be taken into the costs of reconstruction.

3.Adminitrative and institutional fees in connection with the reconstruction shall be kept to the minimum or exempted. All deposits and guaranties shall be eliminated. The preferential policies for the reconstruction of single-stored buildings in the municipality shall also apply.

Land-use right in projects of reconstruction of dilapidated houses may be transferred as soon as the input of investment has reached 20% of the total investment for reconstruction.

• Assignment and Transfer of the Right to Use the State-Owned Land
  
  

The assignment of the right to the use of land refers to the act of the Municipal People's Government as the owner of the land who within the term of a certain number of years, assign the right to the use of the land to land users, who shall in turn pay fees for the assignment thereof to the Municipal People's Government.

The power of approval for the assignment of land use right rests with the State Council, for 1,00 mu and more of arable land and 2,000 mu and more or other lands. The Municipal People's Government, for less than 1,000 mu of arable land and less than 2,000 mu of other lands.

The maximum term with respect to the assigned right to the use of land shall be determined in the light of uses listed below:

• 70 years for residential purposes;
• 50 years for industrial purposes;
• 50 years for uses in facilities of education, science, culture, public health and physical education;
• 40 years for commercial, tourist and recreational purposes;
• 50 years comprehensive utilization or other purposes.

The assignment of the right to the use of land may be carried out in the following ways:

• By reaching an agreement through consultation;
• By tender
• By auction

The transfer of the right to the use of land refers to the land user's act of reassigning the right to the use of land, including the sales, exchange, and donation thereof.

The land user who has acquired the right to the use of land by means of the transfer thereof shall have a term of use equivalent to the remainder of the term specified in the contract for assigning the right to the use of land minus the number of years in which the original land user has used the land.

In the following instances, transfers of the land use right is not allowed:

• The land that has not been invested, developed and used according to the time limit and the terms specified in the land use right assignment contract;
• Land use right acquired by allocation but formalities pertaining to the assignment of land use right have not been completed and payment of assignment fees has not been made up;
• The land user has not acquired by law the certificates of land use right, the ownership of the above-ground building and other attached objects;
• Land use right and property rights of above-ground building and other attached objects are not clear or are disputable;

*　Land use right that the Municipal People's Government decides not suitable for Transfer.

　Preferential Treatment for Land Use in Projects of Foreign Investment

1.The Hi-Tech projects set up in Tianjin Economic-Technological Development Area, Tianjin Port Free Trade Zone, Tianjin Hi-Tech Industry Park and Tianjin Export-oriented Hi-Tech Agricultural Modernization Model Area shall pay half of the land assignment fee for obtaining land use right directly.

2.The high profit-making enterprises, newly established in the areas covered by the above mentioned Article, shall enjoy a refund of half of the total assignment fees, if their annual total amount of taxes paid for value-added tax(excluding the value added tax at the import link), business tax & income tax are not less than RMB 500 per Sq.m in three consecutive years running from the year of productive operation.