Specific Land Prices Applied for Non-Agricultural Land Use Tax Calculation, Right?

Is the specific land price applied to calculate non-agricultural land use tax correct?

Based on the provisions of Clause 1, Article 160 of the Land Law 2024, the specific land price is applied in the following cases:

Specific Land Price

1. The specific land price is applied in the following cases:

a) Calculating land levy for organizations when the State allocates land with land levy without auctioning land use rights, without bidding to select investors to implement a project using land, allocating land with land levy to the winning investor or economic organization established by the winning investor to implement a project using land, recognizing land use rights, or allowing the change of land use purpose that requires land levy;

b) Calculating land rent when the State leases land with one-time land rent payment for the entire lease period, except in cases of auctioning land use rights;

c) Calculating the value of land use rights when equitizing state-owned enterprises in accordance with the law on equitization;

d) Determining the starting price for auctioning land use rights when the State allocates or leases land, except as stipulated in point i, Clause 1, Article 159 of this Law;

đ) Calculating land levy, land rent upon extension of land use, adjustment of land use term, adjustment of detailed construction planning; allowing conversion of land use form;

e) Calculating compensation when the State recovers land.

...

And based on the provisions at point c, Clause 1, Article 159 of the Land Law 2024, the land price table is applied in the following case:

Land Price Table

1. The land price table is applied in the following cases:

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c) Calculating land use tax;

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Therefore, according to the above provisions, it is not the specific land price but the land price table that is applied to calculate non-agricultural land use tax.

Is the specific land price applied to calculate non-agricultural land use tax correct? (Image from Internet)

How is the non-agricultural land use tax price determined?

The non-agricultural land use tax price is determined according to Article 6 of the Non-agricultural Land Use Tax Law 2010, revised by Article 249 of the Land Law 2024 as follows:

The tax price for land = Taxable land area x Price of 1 square meter of land

In which:

* The taxable land area is determined as follows:

(1) The taxable land area is the actual land used.

In cases where there are several parcels of land, the taxable land area is the total area of the taxable parcels.

In cases where the State allocates land or leases land for industrial zone construction, the taxable land area does not include the area for common-use infrastructure construction.

(2) For homestead land with multi-story multi-household buildings, apartments including cases for both residential and business purposes, the taxable land area is determined by the allocation coefficient multiplied by the area of the building used by each organization, household, and individual.

The allocation coefficient is determined by dividing the area of land for multi-story multi-household buildings and apartments by the total building area used by organizations, households, and individuals.

In cases of multi-story multi-household buildings and apartments with basements, 50% of the basement area used by organizations, households, and individuals will be added to their building area to calculate the allocation coefficient.

(3) For underground constructions, the allocation coefficient is applied as 0.5 times the area of land construction divided by the total area of structures used by organizations, households, and individuals.

* The price of 1 square meter of land is the land price according to the land price table corresponding to the purpose of use and is stabilized for a 5-year cycle.

What is the tax rate for non-agricultural land use tax?

The tax rate for non-agricultural land use tax is determined according to Article 7 of the Non-agricultural Land Use Tax Law 2010:

[1] The tax rate for homestead land, including cases for business use, is applied according to the progressive tax schedule as follows:

[2] Multi-story multi-household buildings, apartments, and underground constructions apply a tax rate of 0.03%.

[3] Land used for non-agricultural production and business applies a tax rate of 0.03%.

[4] Non-agricultural land as stipulated in Article 3 of the Non-agricultural Land Use Tax Law 2010 used for business purposes applies a tax rate of 0.03%.

[5] Land used not in accordance with its purpose, unused land according to conformable use applies a tax rate of 0.15%. In the case of investment projects phased according to the investor’s registration approved by a competent state agency, it is not considered unused land and applies a tax rate of 0.03%.

[6] Infringed or occupied land applies a tax rate of 0.2% and no limit applies. Payment of tax is not a basis for recognizing the legal right to use infringed or occupied land by the taxpayer.