How to handle if a taxpayer is eligible for both tax exemption and reduction for a single non-agricultural land plot in Vietnam?

How to handle if a taxpayer is eligible for both tax exemption and reduction for a single non-agricultural land plot in Vietnam?

According to Article 9 Circular 153/2011/TT-BTC it is regulated as follows:

Principles of tax exemption and reduction.

1. Tax exemption and reduction are directly applied to taxpayers and are calculated on the tax amount as prescribed in the Law on Non-Agricultural Land Use Tax and guided by this Circular.

2. Tax exemption or reduction for homestead land is only applicable to homestead land in one place named and chosen by the taxpayer, except for cases specified in Clause 9 of Article 10 and Clause 4 of Article 11 of this Circular.

3. In cases where taxpayers enjoy both tax exemption and reduction for the same parcel, they shall be exempt from tax. If taxpayers are eligible for tax reduction under two (2) or more conditions specified in Article 11 of this Circular, they shall be exempt from tax.

If a taxpayer is eligible for a 50% tax reduction and has additional household members who are eligible for a 50% tax reduction, that household will be exempt from tax. These members must have a family relationship as grandfather, grandmother, father, mother, child, grandchild, and must be listed in the household registration book of the family.

4. Taxpayers with multiple investment projects eligible for tax exemption and reduction shall enjoy exemption and reduction for each investment project.

In cases where non-agricultural land taxpayers enjoy both tax exemption and reduction for the same parcel, they shall be exempt from tax.

How to handle if a taxpayer is eligible for both tax exemption and reduction for a single non-agricultural land plot in Vietnam? (Image from the Internet)

What are the principles for declaring non-agricultural land use tax in Vietnam?

According to Clause 1, Article 16 Circular 153/2011/TT-BTC, the declaration of non-agricultural land use tax must ensure the following principles:

- Taxpayers are responsible for accurately declaring information related to the taxpayer on the Tax Declaration Form such as: name, ID card/Citizen identification number, tax code, address for receiving tax notifications; Information related to the taxable parcel such as area, usage purpose. If the land has been issued a Certificate, all the information on the Certificate must be fully declared, such as number, issuance date, map page number, land area, limit (if any).

For the declaration of homestead land tax of households or individuals, the commune-level People's Committee identifies the criteria in the functional agency's section on the declaration form and transfers it to the Tax Office for tax calculation.

For the tax declaration of organizations, if it is necessary to clarify certain criteria for tax calculation as requested by the Tax Office, the Natural Resources and Environment Department is responsible for confirming and sending it to the Tax Office.

- Annually, taxpayers do not have to re-declare if there is no change in the taxpayer and the factors affecting the tax amount.

If events occur that lead to changes in the taxpayer, the new taxpayer must declare and submit tax declaration dossiers as prescribed in Circular 153/2011/TT-BTC within 30 (thirty) days from the date of occurrence of such events.

If factors causing changes in the tax amount occur (except for changes in the tax calculation price per square meter of land), the taxpayer must declare and submit tax declaration dossiers within 30 (thirty) days from the date of occurrence of the factors causing the changes in the tax amount.

- The comprehensive declaration of non-agricultural land use tax is only applied to homestead land.

Taxpayers who are subject to comprehensive declaration under this Circular must compile a comprehensive declaration and submit it to the Tax Office where the taxpayer has chosen and registered.

What documents are required for declaring non-agricultural land use tax in Vietnam?

According to Article 15 Circular 153/2011/TT-BTC, the tax declaration dossier for non-agricultural land use tax includes the following documents:

(1) For annual non-agricultural land use tax declarations, the dossier includes:

- Non-agricultural land use tax declaration form for each taxable parcel according to form No. 01/TK-SDDPNN applicable to households or individuals or form No. 02/TK-SDDPNN applicable to organizations, issued together with Circular 153/2011/TT-BTC;

- Copies of documents related to the taxable parcel such as: Land use right certificate, Land allocation decision, Land lease decision or contract, Decision permitting land use purpose change;

- Copies of documents proving eligibility for tax exemption or reduction (if any).

(2) For comprehensive non-agricultural land use tax declarations, the dossier includes:

- Comprehensive non-agricultural land use tax declaration form No. 03/TKTH-SDDPNN issued together with Circular 153/2011/TT-BTC.