How to pay non-agricultural land use tax in Vietnam?

How to pay non-agricultural land use tax in Vietnam?

According to Article 8 of the 2010 Law on Non-Agricultural Land Use Tax, the registration, declaration, calculation, and payment of non-agricultural land use tax is specified as follows:

- Taxpayers register, declare, calculate, and pay tax according to the laws on tax management.

- Taxpayers register, declare, calculate, and pay tax at the district-level tax authority of the district, district-level town, or city under the province where the land use right is located.

In remote areas with difficult travel conditions, taxpayers can register, declare, calculate, and pay tax at the Commune People's Committee. The tax authority facilitates taxpayers in fulfilling their obligations.

- In cases where taxpayers have the right to use multiple parcels, the taxable area is the total taxable area of all parcels within the province or centrally-run city. The registration, declaration, calculation, and payment of tax is specified as follows:

+ Taxpayers register, declare, calculate, and pay tax at the district-level tax authority of the district, district-level town, or city under the province where the land use right is located;

+ Taxpayers can choose the homestead land limit in one district, district-level town, or city under the province where the land use right is located. In cases of one or more parcels exceeding the limit, taxpayers can choose one place with parcels exceeding the limit to determine the excess area of the parcels.

The taxable price is applied according to the land price in each district, district-level town, or city under the province where the parcel is located.

Taxpayers prepare a consolidated declaration according to the prescribed form to determine the total area of parcels they have the right to use and the tax already paid, sending it to the tax authority where taxpayers have chosen to determine the homestead land limit to pay the difference between the payable tax under the 2010 Law on Non-Agricultural Land Use Tax and the tax already paid.

How to pay non-agricultural land use tax in Vietnam? (Picture from the Internet)

Which land is subject to non-agricultural land use tax in Vietnam?

According to Article 2 of the 2010 Law on Non-Agricultural Land Use Tax specifying the land subject to non-agricultural land use tax includes:

- Rural land, homestead land in urban areas.

- Non-agricultural production and business land, including land for industrial zone construction; land for establishing production and business premises; land for mining and mineral processing; land for building materials production, ceramics making.

- Non-agricultural land as specified in Article 3 of the 2010 Law on Non-Agricultural Land Use Tax used for business purposes.

What is the current tax rate for non-agricultural land use tax in Vietnam?

According to Article 7 of the 2010 Law on Non-Agricultural Land Use Tax specifying the tax rates for non-agricultural land use tax as follows:

- The tax rate for homestead land, including cases of Business use, is applied according to the progressive tax rate schedule specified as follows:

- The homestead land limit used as the basis for tax calculation is the newly allocated homestead land limit as regulated by the provincial or centrally-run city People's Committee effective from January 01, 2012.

For homestead land with limits regulated before January 01, 2012, the application is as follows:

+ Where the homestead land limit regulated before January 01, 2012 is lower than the newly allocated homestead land limit, the newly allocated homestead land limit is applied as the basis for tax calculation;

+ Where the homestead land limit regulated before January 01, 2012 is higher than the newly allocated homestead land limit, the old homestead land limit is applied as the basis for tax calculation.

- Land in multi-story houses with multiple households, apartment buildings, constructions below ground applies a tax rate of 0.03%.

- Non-agricultural production and business land applies a tax rate of 0.03%.

- Non-agricultural land as specified in Article 3 of the 2010 Law on Non-Agricultural Land Use Tax used for business purposes applies a tax rate of 0.03%.

- Land used for purposes not in conformance, unused land applies a tax rate of 0.15%. For projects with phased investment as registered by investors and approved by the competent state authority, it is not considered unused land and applies a tax rate of 0.03%.

- Encroached or seized land applies a tax rate of 0.2% and does not apply the limit. Tax payment is not a basis for recognizing the legitimate land use right of taxpayers for the encroached or seized land area.