How to calculate the non-agricultural land use tax in Vietnam for 2025?
How to calculate the non-agricultural land use tax in Vietnam for 2025?
Pursuant to Articles 5, 6, and 7 of the 2010 Law on Non-Agricultural Land Use Tax as amended by Article 249 of the 2024 Land Law, governing the basis for tax calculation, tax base, and tax rates for non-agricultural land use tax.
Simultaneously, based on Article 8 of Circular 153/2011/TT-BTC which stipulates that the amount of non-agricultural land use tax payable is calculated by the following formula:
| (1) For homestead land, business land, non-agricultural land used for business purposes: Tax payable (VND) = Evolving tax (VND) - Exempt or reduced tax (if any) (VND) Where the evolving tax is determined as follows: Evolving tax (VND) = Taxable land area (m²) x Price of land per m² (VND/m²) x Tax rate (%) (2) For homestead land of multi-storey buildings, multi-family residential buildings, apartment buildings (including those with basements) and underground constructions: Tax payable = Evolving tax - Exempt or reduced tax (if any) Where the evolving tax is determined as follows: Evolving tax = Floor area used by each organization, household, individual x Allocation factor x Equivalent land price per m² x Tax rate In the case of underground constructions: Evolving tax = Usable area of the facility by organization, household, individual x Allocation factor x Equivalent land price per m² x Tax rate (3) In cases where non-agricultural land is used for business purposes and the business-used land area cannot be determined: Evolving tax = Business-used land area (m²) x Price of land per m² (VND) x Tax rate (%) Business-used land area (m²) = Total land area used x (Business activity revenue: Total annual revenue) |
The tax base, taxable land area, price of land per m², and tax rates are determined as follows:
(1) Tax base for land = Taxable land area x Land price per m².
- The taxable land area is the actual land area used.
+ If there are rights to use multiple parcels, the taxable land area is the total area of taxable parcels.
+ If land is allocated or leased by the State for industrial zone construction, the taxable land area does not include the area for common infrastructure construction.
+ For homestead land of multi-storey, multi-family buildings, and apartments used both for living and business, the taxable land area is determined by multiplying the allocation factor with the area used by each organization, household, or individual.
+ The allocation factor is the area of land built for multi-storey buildings divided by the total area used by organizations, households, individuals.
+ If multi-storey buildings have basements, 50% of the basement area used by organizations, households, individuals in the basement is added to their residential area to calculate the allocation factor.
+ For underground constructions, the allocation factor is 0.5 of the built area divided by the total area used by organizations, households, individuals.
- The price of 1 m² of land is the land price according to the land price list corresponding to the usage purpose, stabilized for a period of 5 years.
(2) Tax rates:
- The tax rate for homestead land, including business use, applies the progressive tax schedule as follows:
| Tax Bracket | Taxable Land Area (m²) | Tax Rate (%) |
| 1 | Area within the limit | 0.03 |
| 2 | Area exceeding no more than 3 times the limit | 0.07 |
| 3 | Area exceeding more than 3 times the limit | 0.15 |
Note: The homestead land limit as a basis for tax calculation is the new homestead land allocation limit according to the regulations of the Provincial or Central City People's Committee.
- Land for multi-storey residential, apartment buildings, and underground constructions: 0.03%.
- Non-agricultural business land: 0.03%.
- Non-agricultural land stipulated in Article 3 of the 2010 Law on Non-Agricultural Land Use Tax used for business: 0.03%.
- Land used for incorrect purposes, unused land according to conformable: 0.15%.
- Land of phased investment projects as registered by the investor approved by competent state agencies is not considered unused land and applies a tax rate of 0.03%.
- Encroached, occupied land: 0.2% and no limit applies.
How to calculate the non-agricultural land use tax in Vietnam for 2025? (Image from the Internet)
What are regulations on taxpayer of non-agricultural land use tax in Vietnam?
Pursuant to Article 4 of the 2010 Law on Non-Agricultural Land Use Tax regulating the taxpayer of non-agricultural land use tax as follows:
- The taxpayer is an organization, household, or individual with the right to use land subject to tax as stipulated in Article 2 of the 2010 Law on Non-Agricultural Land Use Tax.
- If an organization, household, or individual has not been issued a Certificate of Land Use Rights, House Ownership, and other Assets attached to Land (hereinafter collectively referred to as the Certificate), the land user is the taxpayer.
- The taxpayer in specific cases is regulated as follows:
+ When the State leases land for investment projects, the tenant of homestead land is the taxpayer.
+ If the land holder leases land according to a contract, the taxpayer is determined according to the agreement in the contract. If the contract does not specify the taxpayer, the landholder is the taxpayer.
+ If the land has been issued a Certificate but is under dispute, prior to a dispute resolution, the land user is the taxpayer. Tax payment is not a basis for resolving disputes over land use rights.
+ If multiple people have the right to use a parcel, the taxpayer is the legal representative of those co-using the parcel.
+ If the landholder contributes land use rights as capital to a business forming a new legal entity with land use rights subject to tax as stipulated in Article 2 of the 2010 Law on Non-Agricultural Land Use Tax, the new legal entity is the taxpayer.
What is the principle for calculating the non-agricultural land use tax in Vietnam?
Pursuant to Clause 1, Article 8 of Circular 153/2011/TT-BTC regulating the principle for calculating the non-agricultural land use tax as follows:
- The tax payable by each taxpayer is determined within the scope of one (01) province.
- If a taxpayer has taxable land in many districts within one (01) province, the tax payable is determined for each parcel at the Tax Office where the taxable land is located; If the taxpayer has parcels exceeding their limit or the total taxable land area exceeds the limit at the place of land use rights, they must file a combined declaration at the Tax Office chosen by the taxpayer as stipulated in Article 16 of Circular 153/2011/TT-BTC.
- If there is a change in the taxpayer within the year, the tax payable by each taxpayer is calculated from the month of the change.
In case factors arise during the year that change the tax calculation bases (except for changes in the price of 1 m² of taxable land), the tax payable is determined from the month of the change.
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