Is within-quota residential land of a martyr's child eligible for a reduction in non-agricultural land use tax in Vietnam?

Is within-quota residential land of a martyr's child eligible for a reduction in non-agricultural land use tax in Vietnam?

Based on Clause 3, Article 11 of Circular 153/2011/TT-BTC, which provides regulations on the reduction of non-agricultural land use tax as follows:

Tax Reduction

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

1. Land of investment projects in sectors eligible for investment incentives; investment projects in areas with difficult socio-economic conditions; land of enterprises that employ 20% to 50% of their workforce as war invalids and sick soldiers.

The list of sectors encouraged for investment (investment incentives), specially encouraged for investment (special investment incentives), areas with difficult socio-economic conditions, or areas with exceptionally difficult socio-economic conditions shall be implemented in accordance with the law on investment.

The workforce of war invalids and sick soldiers must be regular average employees per year as prescribed in Circular No. 40/2009/TT-LDTBXH dated December 3, 2009, by the Ministry of Labor, War Invalids and Social Affairs and its amendments and supplements.

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

3. Residential land within the limit of war invalids of category 3/4, 4/4; individuals enjoying policies similar to war invalids of category 3/4, 4/4; sick soldiers of category 2/3, 3/3; children of martyrs not entitled to monthly benefits.

...

Accordingly, within-quota residential land of a martyr's child is eligible for a 50% reduction in non-agricultural land use tax only if the child is not entitled to monthly benefits.

Additionally, Section 6 of Official Dispatch 14452/BTC–TCT in 2012 also provides guidance on the implementation of the non-agricultural land use tax policy as follows:

- If the taxpayer (household head) is not eligible for exemption/reduction, but the household has a member eligible for tax exemption/reduction as prescribed in Clause 5, Article 10, Clause 3, Article 11 of Circular 153/2011/TT-BTC, they will benefit from the exemption/reduction policies accordingly.

- If a household member is a war invalid cared for by the state at convalescent centers (whether currently living with the family or not) but not listed in the family household registration, the household is still entitled to tax exemption/reduction according to regulations.

- In the above cases, the taxable plot of the household must be land that has been granted a Land Use Rights Certificate, and the member eligible for exemption/reduction must have legitimate rights to use the plot.

>>> See also: Is it possible to get land use tax reduction for non-agricultural land but end up being exempted?

Is within-quota residential land of a martyr's child eligible for a reduction in non-agricultural land use tax in Vietnam? (Image from the Internet)

How is it resolved when a taxpayer is eligible for both tax exemption and reduction for a single land plot in Vietnam?

Based on Article 9 of Circular 153/2011/TT-BTC:

Principles of Tax Exemption and Reduction.

1. Tax exemption and reduction shall only directly apply to taxpayers and be calculated on the tax amount stipulated in the Law on Non-Agricultural Land Use Tax and this Circular's guidance.

2. Tax exemption or reduction for homestead land only applies to homestead land at one location chosen and named by the taxpayer, except as prescribed in Clause 9, Article 10, and Clause 4, Article 11 of this Circular.

3. If a taxpayer is eligible for both tax exemption and reduction for a single land plot, they will be exempted from tax; If they are eligible for tax reduction under two (2) or more conditions defined in Article 11 of this Circular, they will be exempted from tax.

If a taxpayer is eligible for a 50% tax reduction and the household has one (01) or more additional members eligible for a 50% tax reduction, the household will be exempted from tax. These members must have family relations such as grandparents, parents, children, or grandchildren and must be listed in the family's permanent household registration.

4. A taxpayer with multiple investment projects eligible for tax exemption or reduction will be granted tax exemption or reduction for each investment project.

In cases where a taxpayer is eligible for both tax exemption and reduction for a single land plot, they shall receive a tax exemption.

Which entities are the taxpayers of non-agricultural land use tax in Vietnam?

Based on Article 4 of the Law on Non-Agricultural Land Use Tax 2010, concerning taxpayers of non-agricultural land use tax:

- Taxpayers are organizations, households, and individuals with land use rights subject to tax as prescribed in Article 2 of the Law on Non-Agricultural Land Use Tax 2010.

- If organizations, households, or individuals have not yet been granted a Land Use Rights Certificate, House Ownership, and other assets attached to land (hereinafter referred to as Certificates), the users of the land are the taxpayers.

- Taxpayers in certain specific cases are defined as follows:

+ If the State leases land to implement an investment project, the renter of homestead land is the taxpayer;

+ If a land user leases land according to a contract, the taxpayer is determined based on the agreement in the contract. If the contract does not specify the taxpayer, the land user is the taxpayer;

+ If the land has been granted a Certificate but is under dispute, until the dispute is resolved, the current land user is the taxpayer. Tax payment is not a basis for resolving land use right disputes;

+ If multiple people have rights to use a plot, the taxpayer is the legal representative of those who share the right to use the plot;

+ If a land user contributes business capital using land rights that form a new legal entity with land use rights subject to tax as prescribed in Article 2 of the Law on Non-Agricultural Land Use Tax 2010, the new entity is the taxpayer.