Is residential land the sole asset of spouses exempt from non-agricultural land use tax in Vietnam?

Is residential land the sole asset of spouses exempt from non-agricultural land use tax in Vietnam?

Based on Article 9 of the 2010 Law on Non-Agricultural Land Use Tax, it is stipulated as follows:

Exemption from Tax

1. Land belonging to investment projects in fields especially encouraged for investment; investment projects in areas with extremely difficult socio-economic conditions; investment projects in fields encouraged for investment in areas with difficult socio-economic conditions; land used by enterprises employing more than 50% of the workforce as wounded soldiers or sick soldiers.

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

3. Land for building houses of gratitude, unity houses, facilities for nursing lonely elderly, people with disabilities, orphans; social treatment facilities.

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

5. Residential land within the limit of people involved in revolutionary activities before August 19, 1945; war veterans classified as 1/4, 2/4; beneficiaries of policies like war veterans classified as 1/4, 2/4; sick soldiers classified as 1/3; heroes of the people's armed forces; Vietnamese heroic mothers; biological fathers, mothers, or caretakers of martyrs during childhood; spouses of martyrs; children of martyrs receiving monthly allowances; people involved in revolutionary activities affected by Agent Orange; people affected by Agent Orange with difficult family circumstances.

6. Residential land within the limit of poor households according to the Government of Vietnam.

7. Families or individuals having their homestead land reclaimed during the year based on approved planning by competent state authorities will be exempt from tax in the year of actual reclamation for land at both the place of reclamation and the new residence.

8. Land with garden houses recognized by competent state authorities as historical-cultural relics.

9. Taxpayers experiencing hardship due to force majeure events if the damage value to land and houses on the land exceeds 50% of the taxable value.

Therefore, the regulation does not provide conditions for exempting non-agricultural land tax specifically for homestead land as the sole asset of spouses.

However, if falling into the aforementioned cases, one may receive an exemption, such as: Residential land within the limit of poor households as per the Government's regulations; Residential land within the limit in areas with extremely difficult socio-economic conditions; or other remaining cases.

Is residential land the sole asset of spouses exempt from non-agricultural land use tax in Vietnam? (Image from Internet)

Does reducing non-agricultural land tax due to force majeure require confirmation from local authorities in Vietnam?

According to Clause 4, Article 11 of Circular 153/2011/TT-BTC, guiding the non-agricultural land use tax issued by the Ministry of Finance, the tax reduction is stipulated:

Tax Reduction

A 50% reduction in taxable amount in the following cases:

1. Land of investment projects in fields entitled to investment incentives; investment projects in areas with difficult socio-economic conditions; land of enterprises utilizing between 20% and 50% of the workforce as wounded soldiers or sick soldiers.

The list of fields encouraged for investment (investment incentives), fields especially encouraged for investment (special investment incentives), areas with difficult socio-economic conditions, and areas with extremely difficult socio-economic conditions are implemented according to the law on investment.

The workforce of wounded soldiers and sick soldiers must be regular year-round workers as per the regulations in Circular No. 40/2009/TT-LDTBXH dated December 03, 2009, of the Ministry of Labor - War Invalids and Social Affairs and subsequent amendments.

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

3. Residential land within the limit of veterans classified as 3/4, 4/4; individuals eligible for policies as veterans classified as 3/4, 4/4; sick soldiers classified as 2/3, 3/3; children of martyrs not receiving monthly allowances.

4. Taxpayers encountering difficulties due to force majeure events if the damage value to land and houses on the land ranges from 20% to 50% of the taxable value.

In this case, taxpayers must have certification from the People's Committee of the commune where the affected land is located.

Thus, according to the above regulations, when taxpayers encounter difficulties due to force majeure situations that qualify for a tax reduction, they must obtain certification from the commune-level People's Committee where the affected land is situated to meet the conditions.

What are regulations on the price of a square meter of taxable land for non-agricultural land tax in Vietnam?

Based on Article 6 of Circular 153/2011/TT-BTC, guiding the non-agricultural land use tax issued by the Ministry of Finance, the price of a square meter of taxable land of land for taxation is the land price according to the usage purpose of the taxed parcel determined by the provincial People's Committee and is stable in a 5-year cycle from January 01, 2012.

- In cases of changes in taxpayers or factors altering the price of a square meter of taxable land of taxable land during the stability cycle, there is no need to determine the price anew for the remaining duration of the cycle.

- In cases where the State allocates, leases, or changes land use purposes from agricultural to non-agricultural land, or from non-agricultural production and business land to homestead land during the stability cycle, the price of a square meter of taxable land of land for taxation is the land price according to the usage purpose determined by the provincial People's Committee at the time of allocation, leasing, or use change, and remains stable for the remaining time of the cycle.

- In cases of land use for improper purposes or encroachment, the price of a square meter of taxable land for taxation is the land price according to the current use purpose determined by the provincial People's Committee applicable at the locality.