Is non-agricultural land use tax exempt for land used for building gratitude houses in Vietnam?

Is non-agricultural land use tax exempt for land used for building gratitude houses in Vietnam?

Pursuant to Article 9 of the Law on Non-Agricultural Land Use Tax 2010 regulating tax exemptions as follows:

Tax Exemption

1. Land of investment projects in fields particularly encouraged for investment; investment projects in areas with extremely difficult socio-economic conditions; investment projects in encouraged investment fields in areas with difficult socio-economic conditions; land of enterprises employing over 50% of the workforce who are war invalids or sick soldiers.

2. Land of facilities implementing private investment for activities in the fields of education, vocational training, healthcare, culture, sports, environment.

3. Land used for building gratitude houses, great solidarity houses, facilities for the elderly without family, disabled persons, orphans; facilities for social recovery treatment.

4. Residential land within the limit in areas with extremely difficult socio-economic conditions.

5. Residential land within the limit for individuals who engaged in revolutionary activities before August 19, 1945; war invalids of category 1/4, 2/4; individuals benefiting from policies like war invalids of category 1/4, 2/4; sick soldiers of category 1/3; heroes of the people's armed forces; Vietnamese heroic mothers; parents, individuals who took care of martyrs during childhood; spouses of martyrs; children of martyrs receiving monthly allowances; individuals affected by Agent Orange involved in revolutionary activities; individuals affected by Agent Orange with difficult family conditions.

6. Residential land within the limit for poor households as defined by the Government of Vietnam.

7. Households and individuals whose homestead land is reclaimed according to the approved plan within the year are exempt from tax for the actual year of land recovery and the land at the new place.

8. Garden land with houses recognized by the state as historical-cultural relics.

9. Taxpayers facing difficulties due to force majeure if the value of land and house damage exceeds 50% of the tax calculation value.

Thus, according to regulations, land used for building gratitude houses is exempt from non-agricultural land use tax.

Is non-agricultural land use tax exempt for land used for building gratitude houses in Vietnam? (Image from the Internet)

What are the principles of non-agricultural land use tax exemption and reduction?

Pursuant to Article 11 of the Law on Non-Agricultural Land Use Tax 2010, the principles of non-agricultural land use tax exemption and reduction are as follows:

- Taxpayers eligible for both exemption and reduction on the same parcel will be exempt from tax; taxpayers eligible for more than one reduction as stipulated in Article 10 of the Law on Non-Agricultural Land Use Tax 2010 will be exempt from tax.

- Taxpayers with multiple homestead land properties can only be exempt or reduced at one location chosen by the taxpayer, except as stipulated in Clause 9, Article 9, and Clause 4, Article 10 of the Law on Non-Agricultural Land Use Tax 2010.

- Taxpayers with multiple investment projects eligible for tax exemption or reduction will have it applied to each project individually.

- Tax exemptions and reductions apply directly to taxpayers and are calculated only on the tax amount due as stipulated by the Law on Non-Agricultural Land Use Tax 2010.

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

According to Article 2 of the Law on Non-Agricultural Land Use Tax 2010, subjects to non-agricultural land use tax include:

- Rural residential land, homestead land in urban areas.

- Non-agricultural land used for production and business, including industrial land; land used for building production and business facilities; land for mineral extraction and processing; land for producing building materials and ceramics.

- Non-agricultural land not used for business purposes as stipulated in Article 3 of the Law on Non-Agricultural Land Use Tax 2010, which is used for business purposes.

Who is not subject to non-agricultural land use tax in Vietnam?

In accordance with Article 3 of the Law on Non-Agricultural Land Use Tax 2010, non-taxable subjects include non-agricultural land not used for business purposes, such as:

- Land used for public purposes, including transport, irrigation; land for cultural, healthcare, education and training, sports facilities serving public interests; land with historical-cultural relics and scenic spots; land for other public works as stipulated by the Government of Vietnam.

- Land used by religious facilities.

- Land for cemeteries and graveyards.

- Rivers, canals, streams, and specialized water surfaces.

- Land with pagodas, temples, shrines, hermitages, family ancestral worship sites.

- Land for office buildings, career work constructions, land used for national defense and security purposes.

- Other non-agricultural land as stipulated by law.