Is the land for the construction of clans’ worship houses subject to non-agricultural land use tax in Vietnam?

Is the land for the construction of clans’ worship houses subject to non-agricultural land use tax in Vietnam?

Pursuant to Article 3 of the 2010 Law on Non-Agricultural Land Use Tax, it is stipulated as follows:

Non-Taxable Objects

Non-agricultural land not used for business purposes includes:

1. Land used for public purposes, including land for transportation and irrigation; land for the construction of cultural, health, educational and training, and sports facilities serving public interests; land with historical-cultural relics, scenic spots; and other public works land as stipulated 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 special-use waters;

5. Land with works such as communal houses, temples, shrines, small temples, clan ancestral halls, and clans’ worship houses;

6. Land for the construction of agency headquarters, functional establishments, land used for national defense and security purposes;

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

Additionally, pursuant to Clause 5, Article 2 of Circular 153/2011/TT-BTC, it is stipulated as follows:

Non-Taxable Objects.

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5. Land with works such as communal houses, temples, shrines, small temples, clan ancestral halls, and clans’ worship houses includes the area of land on which these works are built according to the parcel's boundary where these works exist.

In this case, the land must meet the conditions to be eligible for the issuance of a Land Use Rights Certificate as stipulated in Clause 8, Article 50 of the 2003 Land Law and its guiding documents.

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Accordingly, land for the construction of clans’ worship houses is not subject to non-agricultural land tax.

Is the land for the construction of clans’ worship houses subject to non-agricultural land use tax in Vietnam? (Image from the Internet)

What are tax-liable objects of non-agricultural land use tax in Vietnam?

According to Article 2 of Decree 53/2011/ND-CP stipulating tax-liable objects of non-agricultural land use tax, the subjects are:

- Residential land in rural areas, homestead land in urban areas.

- Land for non-agricultural production and business purposes including:

+ Land for industrial zone construction, including land for the construction of industrial clusters, industrial zones, export processing zones, and other concentrated production and business areas with the same land use policies;

+ Land used as premises for the construction of production and business establishments, including land for the construction of industrial, handicraft production facilities; construction of commercial and service business establishments and other works serving production and business (including land used as premises within high-tech zones and economic zones);

+ Land for mineral exploitation and land for mineral processing, except in cases where mineral exploitation does not affect the soil surface or topsoil;

+ Land for the production of building materials and ceramics, including land for the extraction of raw materials and land for processing, production of building materials and ceramics.

- Non-agricultural land stipulated in Article 3 of Decree 53/2011/ND-CP used by organizations, households, or individuals for business purposes.

Where to submit non-agricultural land tax declaration?

Based on Article 8 of the 2010 Law on Non-Agricultural Land Use Tax which stipulates the registration, declaration, calculation, and payment of non-agricultural land use tax as follows:

Article 8. Registration, Declaration, Calculation, and Payment of Tax

1. Taxpayers register, declare, calculate, and pay tax according to the law on tax administration.

2. Taxpayers shall register, declare, calculate, and pay tax at the district, town-level, or provincial city tax authority where they have land use rights.

In remote and isolated areas with difficult access, taxpayers may register, declare, calculate and pay tax at the commune People's Committee. The tax authority facilitates taxpayers in fulfilling their obligations.

3. In cases where taxpayers have land use rights over multiple parcels, the taxable area is the total area of the taxable parcels within the boundary of the province or centrally run city. Tax registration, declaration, calculation and payment are prescribed as follows:

a) Taxpayers register, declare, calculate and pay tax at the district, town-level, or provincial city tax authority where they have land use rights;

b) Taxpayers may choose the homestead land limit in one district, town-level, or provincial city within the boundary where they have land use rights. In cases where one or more parcels exceed the limit, taxpayers may choose one place with parcels exceeding the limit to determine the area exceeding the limit of those parcels.

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

Taxpayers shall prepare a consolidated declaration form to determine the total area of parcels with use rights and the tax already paid, and submit it to the tax authority where the taxpayer has chosen to determine the homestead land limit to pay the difference between the tax payable as prescribed by this Law and the amount already paid.

The submission of tax declaration files for non-agricultural land use tax is determined as follows:

- In principle, taxpayers submit to the district, town-level, or provincial city tax authority where they have land use rights.

- In remote and isolated areas with difficult access, taxpayers may submit taxes at the commune People's Committee.

- In cases where taxpayers have use rights over multiple parcels, the taxable area is the total area of the parcels within the boundary of the province or centrally run city. Tax payment is regulated as follows:

+ Taxpayers at the district, town-level, or provincial city tax authority where they have land use rights.

+ Taxpayers may choose the homestead land limit at one district, town-level, or provincial city within the boundary where they have land use rights. In cases where one or more parcels exceed the limit, taxpayers may choose one place with parcels exceeding the limit to determine the area exceeding the limit of those parcels.

Taxpayers shall prepare a consolidated declaration form to determine the total area of parcels with use rights and the tax already paid, and submit it to the tax authority where the taxpayer has chosen to determine the homestead land limit to pay the difference between the tax payable and the tax already paid.