Is there an exemption from non-agricultural land use tax for homestead land within the quota in extremely disadvantaged areas in Vietnam?

Is there an exemption from non-agricultural land use tax for homestead land within the quota in extremely disadvantaged areas in Vietnam?

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

Tax Exemption

1. Land of investment projects in the field of special investment incentives; 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 of enterprises using more than 50% of the workforce who are war invalids and sick soldiers.

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

3. Land used for building houses of gratitude, great unity, facilities nurturing 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 revolutionary activists before August 19, 1945; war invalids rated 1/4, 2/4; persons entitled to preferential treatment like war invalids rated 1/4, 2/4; sick soldiers rated 1/3; heroes of the people's armed forces; Vietnamese heroic mothers; biological parents, foster parents who raised martyrs while they were young; spouses of martyrs; children of martyrs receiving monthly benefits; revolutionary activists exposed to Agent Orange; individuals exposed to Agent Orange with difficult family circumstances.

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

7. Households and individuals whose residential land is reclaimed according to the plan approved by the competent state authority are exempt from tax in the year of actual land reclamation for the reclaimed land and land at a new place of residence.

8. Land with gardens recognized by the competent state authority as historical-cultural relics.

9. Taxpayers facing difficulties due to force majeure events if the damage value of land and buildings on land is over 50% of the taxable value.

Pursuant to Article 10 of the Law on Non-Agricultural Land Use Tax 2010 stipulated as follows:

Tax Reduction

A 50% tax reduction is applied to the following cases:

1. Land of investment projects encouraged for investment; investment projects in areas with difficult socio-economic conditions; land of enterprises using from 20% to 50% of the workforce who are war invalids and sick soldiers;

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

3. Residential land within the limit of war invalids rated 3/4, 4/4; persons entitled to preferential treatment like war invalids rated 3/4, 4/4; sick soldiers rated 2/3, 3/3; children of martyrs not receiving monthly benefits;

4. Taxpayers facing difficulties due to force majeure events if the damage value of land and buildings on land is from 20% to 50% of the taxable value.

Residential land within the limit in areas with difficult socio-economic conditions is not exempt from land use tax; however, this type of land will be subject to a 50% tax reduction.

Is there an exemption from non-agricultural land use tax for homestead land within the quota in extremely disadvantaged areas in Vietnam? (Image from the Internet)

Vietnam: Is the reduction of non-agricultural land use tax only calculated on the payable tax amount?

Pursuant to Article 11 of the Law on Non-Agricultural Land Use Tax 2010 stipulated as follows:

Principles of tax exemption and reduction

1. Taxpayers entitled to both tax exemption and reduction for the same parcel are exempted from tax; taxpayers falling into two or more cases for tax reduction as stipulated in Article 10 of this Law are exempted from tax.

2. Taxpayers with residential land are exempted or reduced from tax only at one place as chosen by the taxpayer, except for the cases specified in Clause 9, Article 9, and Clause 4, Article 10 of this Law.

3. Taxpayers having multiple investment projects entitled to tax exemption and reduction shall implement exemption and reduction based on each investment project.

4. Tax exemption and reduction only apply directly to taxpayers and only calculate on the payable tax amount as prescribed by this Law.

The reduction in non-agricultural land use tax is only calculated on the payable tax amount and directly applies to taxpayers.

What are regulations on taxable value of non-agricultural land use tax in Vietnam?

According to Article 6 of the Law on Non-Agricultural Land Use Tax 2010 as follows, the taxable value of non-agricultural land use tax is regulated as follows:

- The taxable value of land is determined by multiplying the taxable land area by the price of 1m2 of land.

- The taxable land area is stipulated as follows:

+ The taxable land area is the actual land area in use.

+ In the case of ownership of multiple residential parcels, the taxable land area is the total area of the taxable parcels.

+ If the state allocates or leases land for industrial park construction, the taxable land area does not include common infrastructure construction land.

+ For multi-story houses with multiple households and apartment buildings, including those for both residential and business purposes, the taxable land area is determined by the allocation coefficient multiplied by the area of the house used by each organization, household, or individual.

+ The allocation coefficient is determined by dividing the land area for multi-story houses with multiple households or apartment buildings by the total area used by organizations, households, or individuals.

+ If multi-story houses with multiple households or apartment buildings have basements, 50% of the basement area used by organizations, households, or individuals is added to the house area to calculate the allocation coefficient.

+ For underground construction works, the allocation coefficient applied is 0.5, calculated by dividing the construction land area by the total area of the construction used by organizations, households, or individuals.

- The price of 1m2 of land corresponds to the price in the land price table for the intended use and remains stable for a 5-year cycle.