Do Vietnam's state budget revenues from land include land use tax?

Do Vietnam's state budget revenues from land include land use tax?

Based on point e of clause 1, Article 153 of the Land Law 2024, it is stipulated as follows:

State budget revenues from land

1. State budget revenues from land include:

a) Land use levy;

b) Land rent;

c) Revenues from administrative penalties related to land;

d) Compensation to the State for damages caused in land management and use;

dd) Additional land use levy, additional land rent for projects that fail to utilize or delay land use;

e) Land use tax;

g) Income tax from the transfer of land use rights;

h) Fees and charges in land management and use;

i) Other revenues as stipulated by law.

2. Annual land rent is applied consistently for a 5-year cycle from the date the State decides to lease the land, permits change in land use purposes in association with the transition to annual land rent. The rent for the next cycle is calculated based on the land price list of the year determining the subsequent land rent. If the rent increases compared to the previous cycle, the payable rent is adjusted but cannot exceed the rate set by the Government of Vietnam for each period.

The adjustment rate set by the Government of Vietnam for each period cannot exceed the total annual consumer price index (CPI) of the previous 5-year period.

3. The Government of Vietnam provides detailed regulations on points a, b, c, d, đ of clause 1 and clause 2 of this Article.

Therefore, comparing the above regulation, the state budget revenues from land do include land use tax.

Do Vietnam's state budget revenues from land include land use tax? (Image from the Internet)

When is the land price list applied for calculating land use tax in Vietnam?

Pursuant to point c of clause 1, Article 159 of the Land Law 2024, the cases in which the land price list is applied for calculating land use tax include:

Case 1: Calculating land levy when the State recognizes the land use rights for homestead land by households or individuals; changing the land use purpose by households or individuals;

Case 2: Calculating land rent when the State leases land and collects annual land rent;

Case 3: Calculating land use tax;

Case 4: Calculating income tax from land use rights transfer for households and individuals;

Case 5: Calculating management and usage fees for land;

Case 6: Calculating penalties for administrative violations in the land sector;

Case 7: Calculating compensation to the State for damages caused in land management and use;

Case 8: Calculating land levy, land rent when the State recognizes land use rights in forms of land allocation with land levy, leasing land with one-time land rent payment for the whole lease period for households and individuals;

Case 9: Calculating the starting price for land use rights auction when the State allocates land or leases land for a land parcel or land zone with technical infrastructure investment as per the detailed construction plan;

Case 10: Calculating land levy in cases of allocating land without auction for land use rights for households and individuals;

Case 11: Calculating land levy in cases of selling state-owned housing to current tenants.

- The land price list is constructed according to areas and positions. For areas with digital cadastral maps and land price databases, the land price list is built based on value ranges, standard parcels.

How is the base for calculation of non-agricultural land use tax in Vietnam?

Pursuant to Article 6 of the Non-Agricultural Land Use Tax Law 2010, the tax base for non-agricultural land use is stipulated as follows:

- The tax base for land is determined by multiplying the taxable land area by the price of 1m² of land.

- The taxable land area is specified as follows:

+ The taxable land area is the actual area used.

In cases of multiple parcels for residence, the taxable land area is the total area of taxable parcels.

In cases where the State allocates land or leases land for industrial zone construction, the taxable area excludes the land area designated for shared infrastructure;

+ For multi-storey residential buildings, apartments used for both living and business purposes, the taxable land area is determined by multiplying the allocation coefficient by the area of the unit used by each organization, household, or individual.

The allocation coefficient is determined by dividing the area of the multi-storey residential building or apartment by the total floor area used by organizations, households, or individuals.

In cases where the multi-storey residential building or apartment has a basement, 50% of the basement area used by organizations, households, or individuals is added to the unit area used for determining the allocation coefficient;

+ For underground construction, the allocation coefficient is 0.5 times the construction area divided by the total floor area used by organizations, households, or individuals.

- The price of 1 m² of land is the land price based on the land price list corresponding to the usage purpose and is stable for a 5-year cycle.