Is residential land within the set quota exempted from land use tax in Vietnam?

Is residential land within the set quota exempted from land use tax in Vietnam?

Pursuant to Article 9 of the 2010 Law on Non-Agricultural Land Use Tax, the regulations are as follows:

Tax Exemption

1. Land of investment projects in fields particularly encouraged for investment; investment projects in areas with specially difficult socio-economic conditions; investment projects encouraged in areas with difficult socio-economic conditions; and land of enterprises utilizing more than 50% of their workforce as war invalids and veterans.

2. Land used by facilities making private investment in activities in education, vocational training, healthcare, culture, sports, and environment.

3. Land for constructing charitable housing, unity houses, nursing homes for the elderly, facilities for the disabled, orphanages, and social disease treatment centers.

4. Residential land within the set quotas in areas with specially difficult socio-economic conditions.

5. Residential land within the set quotas of people who engaged in revolutionary activities before August 19, 1945; war invalids of category 1/4, 2/4; beneficiaries of the policies akin to category 1/4, 2/4 war invalids; category 1/3 veterans; people's armed forces heroes; Vietnamese heroic mothers; biological parents, caretakers of martyrs during childhood; the spouse of martyrs; children of martyrs enjoying monthly allowances; revolutionary activists affected by agent orange; individuals affected by agent orange with difficult family circumstances.

6. Residential land within the set quotas of poor households as defined by the Government of Vietnam.

Therefore, residential land within the set quotas is not automatically exempt from tax, but rather requires evaluation for specific cases, such as residential land within areas with specially difficult socio-economic conditions, or residential land within the set quotas of poor households as defined by the Government of Vietnam according to the above regulation.

Is residential land within the set quota exempted from land use tax in Vietnam? (Image from the Internet)

Is there a reduction in non-agricultural land use tax when facing difficulties due to force majeure circumstances in Vietnam?

According to clause 4, Article 11 of the 2010 Law on Non-Agricultural Land Use Tax, it is stipulated as follows:

Tax Reduction

A 50% reduction in the payable tax amount in the following cases:

1. Land of investment projects in preferred investment categories; investment projects in areas with difficult socio-economic conditions; land of enterprises utilizing 20% to 50% of their workforce as war invalids and veterans.

The list of fields encouraged for investment (investment incentives), fields particularly encouraged for investment (special investment incentives), areas with difficult socio-economic conditions, and areas with specially difficult socio-economic conditions shall be implemented according to investment law provisions.

The workforce of war invalids and veterans must be regular employees averaging yearly figures as per Circular No. 40/2009/TT-LDTBXH dated December 3, 2009, of the Ministry of Labor - Invalids and Social Affairs and its amending documents.

2. residential land within the set quotas in areas with difficult socio-economic conditions.

3. residential land within the set quotas of war invalids of category 3/4, 4/4; beneficiaries of policies akin to category 3/4, 4/4 war invalids; category 2/3, 3/3 veterans; children of martyrs not receiving monthly allowances.

4. Taxpayers facing difficulties due to force majeure circumstances events if the land and property damage accounts for 20% to 50% of taxable value.

For this case, taxpayers must have confirmation from the commune-level People's Committee where the damaged land is located.

Thus, taxpayers facing difficulties due to force majeure circumstances events can be granted a tax reduction if the land and property damage falls between 20% and 50% of the taxable value.

How is non-agricultural land use taxpayer registration handled when a taxpayer has the right to use many residential land plots in Vietnam?

Under clause 3, Article 8 of the 2010 Law on Non-Agricultural Land Use Tax, the provisions are as follows:

Registration, Declaration, Calculation, and Payment of Taxes

1. Taxpayers register, declare, calculate, and pay taxes according to the provisions of tax management law.

2. Taxpayers register, declare, calculate, and pay taxes at tax authorities in districts, urban districts, district-level towns, and provincial cities where they have land use rights. In remote areas where travel conditions are difficult, taxpayers may register, declare, calculate, and pay taxes at the commune-level People's Committee. The tax authorities shall facilitate taxpayers in fulfilling their obligations.

3. When taxpayers have the right to use multiple land plots, the taxable area is the total area of taxable land plots within the provincial-level city. Registration, declaration, calculation, and payment of tax are regulated as follows:

a) Taxpayers register, declare, calculate, and pay taxes at tax authorities in districts, urban districts, district-level towns, and provincial cities where they have land use rights;

b) Taxpayers may choose the homestead land limit at one district, urban district, district-level town, or provincial city where they have land use rights. If there is one or more parcels exceeding the limit, taxpayers may choose one location with parcels exceeding the limit to determine the excess area of those parcels.

The tax price is applied according to the land price of each district, urban district, district-level town, or provincial city where the parcel is located.

Taxpayers must compile a comprehensive declaration according to the prescribed form to determine the total area of all parcels they have the right to use and the paid tax amount, submitting this to the tax authority of the chosen location to determine the homestead land limit for paying the difference between the payable tax under this Law and the already paid tax.

In cases where taxpayers have the right to use multiple land plots, the taxable area is the total area of taxable land plots within the provincial-level city. Registration, declaration, calculation, and tax payment are regulated under clause 3 above.