Shall enterprises with 30% of their employees being diseased soldiers in Vietnam be entitled to a reduction in non-agricultural land use tax?

Shall enterprises with 30% of their employees being diseased soldiers in Vietnam be entitled to a reduction in non-agricultural land use tax?

Pursuant to Article 11 of Circular 153/2011/TT-BTC, the subjects eligible for a 50% reduction in non-agricultural land use tax include:

Tax Reduction

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

1. Land of investment projects in the fields of investment incentives; investment projects in areas with difficult socio-economic conditions; land of enterprises using from 20% to 50% of labor as war invalids or convalescents.

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 especially difficult socio-economic conditions shall be implemented according to the provisions of investment law.

The number of war invalids and convalescents employed must be calculated on an average annual basis as stipulated in Circular No. 40/2009/TT-LĐTBXH dated December 3, 2009, of the Ministry of Labor, Invalids and Social Affairs and the amending and supplementary documents.

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

3. Residential land within the limit of war invalids ranked 3/4, 4/4; people enjoying policies like war invalids ranked 3/4, 4/4; convalescents ranked 2/3, 3/3; children of martyrs who do not receive monthly allowances.

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

In this case, the taxpayer must have a confirmation from the People's Committee of the commune where the damaged land is located.

Thus, according to the above regulations, a reduction in non-agricultural land use tax is applicable for the land of enterprises with 30% of their employees being diseased soldiers.

Shall enterprises with 30% of their employees being diseased soldiers in Vietnam be entitled to a reduction in non-agricultural land use tax? (Image from the Internet)

Who has the authority to decide on the tax reduction for land of enterprises with 30% of their employees being diseased soldiers in Vietnam?

According to Article 12 of Circular 153/2011/TT-BTC, the provisions are as follows:

Authority to decide on tax exemption, reduction.

1. The tax authority directly managing, based on the tax filing documents stipulated in Article 15 of this Circular, determines the amount of non-agricultural land use tax (SDĐPNN) to be exempted or reduced and decides on tax exemption, reduction for the taxpayer according to the tax settlement period.

2. Some specific cases are implemented as follows:

a) In cases of exemption, reduction of SDĐPNN tax for households or individuals according to Clauses 4, 5, 6 of Article 10 and Clauses 2, 3 of Article 11 of this Circular, the Head of the Tax Department issues a general decision based on the proposal list of the commune-level People's Committee.

Annually, the commune-level People's Committee is responsible for reviewing and sending a list of tax exemption, reduction subjects to the tax authority for the implementation of tax exemption, reduction according to authority.

b) In cases of exemption, reduction according to Clause 9 of Article 10 and Clause 4 of Article 11 of this Circular, the Head of the Directly Managing Tax Authority issues a decision based on the taxpayer's application and confirmation from the commune-level People's Committee where the land is damaged.

c) In other cases, the taxpayer must send documents attached with evidence proving the tax exemption, reduction subject according to regulations or confirmation from the commune-level People's Committee where the taxable land is located to the direct tax managing authority for resolution.

Thus, according to the above regulations, for land of enterprises with 30% of their employees being diseased soldiers to be eligible for a tax reduction, the direct tax managing authority at the location of the land will have the authority to decide.

What are cases of exemption from non-agricultural land use tax in Vietnam?

Based on Article 10 of Circular 153/2011/TT-BTC, supplemented by Article 4 of Circular 130/2016/TT-BTC, the provisions are as follows:

Case 1. Land of investment projects in fields especially encouraged for investment (special investment incentives); investment projects in areas with especially difficult socio-economic conditions; investment projects in fields encouraged for investment (investment incentives) in areas with difficult socio-economic conditions; land of enterprises using over 50% of labor as war invalids and convalescents.

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 especially difficult socio-economic conditions shall be implemented according to the provisions of investment law.

The number of war invalids and convalescents employed must be calculated on an average annual basis as stipulated in Circular No. 40/2009/TT-LĐTBXH dated December 3, 2009, of the Ministry of Labor, Invalids, and Social Affairs and the amending and supplementary documents.

Case 2. Land of establishments implementing socialization for activities in the fields of education, vocational training, healthcare, culture, sports, and environment including:

- Non-public establishments established and qualified for operation according to the regulations of competent state agencies in fields of private investment in;

- Organizations, individuals operating according to the Enterprise Law having investment projects, joint ventures, or establishing entities operating in fields of private investment in qualified for operation according to the regulations of competent state agencies;

- Public career establishments implementing capital contribution, capital mobilization, joint ventures, and links according to the provisions of the law establishing independent accounting establishments or enterprises operating in fields of private investment in according to the decision of competent state agencies;

- For foreign investment projects in fields of private investment in, decided by the Prime Minister of Vietnam, based on the proposal of the Ministry of Planning and Investment and relevant managing ministries.

Establishments implementing private investment in the fields of education, vocational training, healthcare, culture, sports, and environment must meet the criteria and standards specified by the Decision of the Prime Minister of Vietnam.

Case 3. Land used for building gratitude houses, solidarity houses, facilities for nurturing lonely elderly, disabled people, or orphans, and social rehabilitation facilities.

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

Case 5. Residential land within the limit of those engaged in revolutionary activities before August 19, 1945; war invalids ranked 1/4, 2/4; those entitled to policies like war invalids ranked 1/4, 2/4; convalescents ranked 1/3; heroes of the people's armed forces; Vietnamese heroic mothers; father, mother, guardian of martyrs during childhood; spouse of martyrs; children of martyrs receiving monthly allowances; revolutionary activists affected by toxic chemicals; those affected by toxic chemicals in difficult family circumstances.

Case 6. Residential land within the limit of poor households as per the Decision of the Prime Minister of Vietnam on the poverty line. In cases where the provincial People’s Committee specifies a poverty line applicable locally as per the law, the poverty line set by the locality is used to determine poor households.

Case 7. Households or individuals in a year their homestead land is recovered according to a plan approved by a competent state agency are exempted from tax in the year the recovery occurs for the land at both the recovered site and the new residence.

Case 8. Land with garden houses recognized as historical-cultural monuments by competent state agencies.

Case 9. Taxpayers facing difficulties due to force majeure events if the damage value of land and houses on the land exceeds 50% of the tax calculation value.

In this case, the taxpayer must have a confirmation from the People's Committee of the commune where the damaged land is located. Supplemental information

Case 10. Exemption from non-agricultural land use tax for households and individuals with annual tax payable (after deducting exempted or reduced amounts, if any, as per the Law on Non-Agricultural Land Use Tax and the guiding documents) amounting to fifty thousand dong or less.

In cases where households or individuals have multiple parcels within a province or centrally-run city, the exemption from non-agricultural land use tax as prescribed in this Article is calculated on the total tax payable for all parcels. The procedure and process for tax exemption are guided by Circular No. 153/2011/TT-BTC.

For households and individuals eligible for non-agricultural land use tax exemption according to the guidance in this Circular but have already paid tax to the state budget, the tax authority shall process refunds according to the provisions of the Tax Administration Law and guiding documents.