Is land used for building private schools in urban areas subject to non-agricultural land use tax in Vietnam?

Is land used for building private schools in urban areas subject to non-agricultural land use tax in Vietnam?

According to Article 3 of the Law on Non-Agricultural Land Use Tax 2010, the provisions are as follows:

Objects not subject to tax

Non-agricultural land used for non-business purposes includes:

1. Land used for public purposes includes: land for transportation, irrigation; land for building cultural, medical, educational, and training, sports facilities serving public benefits; land having historical-cultural relics, scenic spots; land for building other public facilities as specified by the Government of Vietnam;

2. Land used by religious establishments;

3. Land for cemeteries and graveyards;

4. Land of rivers, canals, ditches, streams, and specialized water surfaces;

5. Land with structures such as communal houses, temples, shrines, common, ancestral temples, family churches;

6. Land for building headquarters, building career facilities, land used for national defense, security purposes;

7. Other non-agricultural land as prescribed by law.

Therefore, the above regulation only mentions non-agricultural land used for non-business purposes, including land used for public purposes serving education and training, which is not subject to non-agricultural land use tax, regardless of whether it is rural or urban, public or private schools.

Is land used for building private schools in urban areas subject to non-agricultural land use tax in Vietnam? (Image from the Internet)

When individuals have not yet been granted land use right certificates in Vietnam, who shall pay the non-agricultural land use tax?

According to Article 4 of the Law on Non-Agricultural Land Use Tax 2010, it is stipulated as follows:

Taxpayers

1. Taxpayers are organizations, households, individuals with land use rights subject to tax as stipulated in Article 2 of this Law.

2. In cases where organizations, households, individuals have not been granted the Certificate of Land Use Rights, Ownership of Residential Houses, and Other Assets Attached to Land (hereinafter referred to as the Certificate), the person currently using the land is the taxpayer.

3. Taxpayers in some specific cases are regulated as follows:

a) In cases where the State leases land for investment projects, the lessee is the taxpayer;

b) In cases where the land user leases land under a contract, the taxpayer is determined based on the agreement in the contract. If the contract does not specify the taxpayer, the land user is the taxpayer;

c) In cases where the land has been granted a Certificate but is under dispute, until the dispute is resolved, the current land user is the taxpayer. Paying taxes is not a basis for resolving land use right disputes;

d) In cases where multiple individuals jointly have the right to use a parcel, the taxpayer is the legal representative of those who jointly use that parcel;

đ) In cases where a land user contributes land use rights as capital to form a new legal entity with the land subject to tax as stipulated in Article 2 of this Law, the new legal entity is the taxpayer.

Therefore, following this regulation, in cases where organizations, households, individuals have not been granted the Certificate of Land Use Rights, Ownership of Residential Houses, and Other Assets Attached to Land (hereinafter referred to as the Certificate), the person currently using the land is the taxpayer.

What are regulations on the area for calculating non-agricultural land use tax in Vietnam?

According to Clause 2, Article 6 of the Law on Non-Agricultural Land Use Tax 2010, the area for tax calculation is stipulated as follows:

- The area of land for tax calculation is the actual land area used.

In cases where there are multiple residential land parcels, the area for tax calculation is the total area of tax-calculated parcels.

In cases where the State allocates or leases land for the construction of industrial zones, the area for tax calculation does not include areas of infrastructure used in common;

- For homestead land of multi-storey, multi-household houses, and apartment buildings, including those used both for living and for business, the tax area is determined by the allocation coefficient multiplied by the floor area of each organization, household, or individual's use.

The allocation coefficient is determined by the area of land for building multi-storey, multi-household houses, or apartment buildings divided by the total floor area used by the organizations, households, or individuals.

In the case of multi-storey, multi-household houses, or apartments with basements, 50% of the basement area used by organizations, households, or individuals is added to the floor area of entities using it for calculating the allocation coefficient;

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