Vietnam: What are the sub-sections for agricultural land use tax payment in 2024?

What are the sub-sections for agricultural land use tax payment in 2024 in Vietnam?

According to point b clause 1 Article 4 Circular 324/2016/TT-BTC, the sub-section (also known as the economic content code - NDKT) is a detailed classification of the section, used to categorize the detailed state budget revenues and expenditures according to management subjects in each section.

Appendix 3 - List of sections and sub-sections issued along with Circular 324/2016/TT-BTC specifies the sub-section for agricultural land use tax payment for 2024 as follows:

See the complete chapter code list: Here

What are the sub-sections for agricultural land use tax payment in 2024 in Vietnam? (Image from the Internet)

Which entities are required to pay agricultural land use tax in Vietnam?

According to Article 1 of the Agricultural Land Use Tax Law 1993 and Article 1 of Decree 74-CP 1993, the following entities are required to pay agricultural land use tax in Vietnam:

- Organizations and individuals using land for agricultural production must pay agricultural land use tax, including:

+ Farmer households, private households, and individuals;

+ Organizations and individuals using agricultural land belonging to the land reserved for public needs of the commune;

+ Agricultural, forestry, and fishery enterprises including farms, forestry farms, enterprises, stations, and other enterprises, state agencies, public service providers, armed forces units, social organizations, and other units using land for agricultural, forestry and aquaculture production.

- Households granted agricultural land use rights that do not use the land still have to pay agricultural land use tax.

What types of land are subject to agricultural land use tax in Vietnam?

According to Article 2 of the Agricultural Land Use Tax Law 1993 and Article 2 of Decree 74-CP of 1993, the types of land subject to agricultural land use tax include:

- Croplands: lands for annual crops, perennial crops, and grasslands.

- Land for annual crops: land for crops with a growth period (from planting to harvest) not exceeding 365 days such as rice, corn, vegetables, peanuts, or crops harvested multiple times without undergoing a basic construction period like sugarcane, banana, reed, sisal, lemongrass, pineapple.

- Land for perennial crops: land for crops with a growth cycle exceeding 365 days, planted once but harvested over many years and requiring a basic construction period like rubber, tea, coffee, oranges, tangerines, longans, oil palms, coconuts.

- Grassland: lands already utilized for growing grass to raise livestock.

- Aquaculture areas: lands specifically used for aquaculture or both aquaculture and cropping, but not used for any other purposes.

- Plantation land: lands that have been forested and assigned to organizations or individuals for management, care, and exploitation, excluding bare hills and mountains.

Owners of tax-liable lands under this provision are required to pay taxes even if the land is not currently in use.

What are the cases of agricultural land use tax exemption or reduction in Vietnam?

According to Chapter 5 of the Agricultural Land Use Tax Law 1993, the cases of agricultural land use tax exemption or reduction include:

- Tax exemption for bare hills and mountains used for agricultural and forestry production, protection forest, and special-use forest land.

- Tax exemption for reclaimed land not covered by the above, used for production purposes:

+ Annual crops: 5 years; for reclaimed land in mountainous areas, swamps, and coastal land: 7 years;

+ Perennial crops: tax exemption during the basic construction period plus 3 years from the date of the first harvest. For perennial crops in mountainous areas, swamps, and coastal land, an additional 6 years.

- For timber and perennial crops harvested once, tax is only payable at harvest in accordance with regulations.

- Tax exemption for perennial crops replanted and land previously used for annual crops replanted with perennial crops and fruit trees: during the basic construction period plus 3 years from the first harvest.

- Households relocating to new economic zones for agricultural production are exempt from taxes for the prescribed period plus an additional 2 years.

- If the land allocated is already being used for agricultural production, a tax exemption is granted for 3 years from the date of receipt.

- In the event of natural disasters or enemy-caused damage to crops, agricultural land use tax will be reduced or exempted for each taxable household per production season as follows:

+ Damage from 10% to less than 20%, tax reduction corresponding to the level of damage;

+ Damage from 20% to less than 30%, tax reduction by 60%;

+ Damage from 30% to less than 40%, tax reduction by 80%;

+ Damage 40% or more, tax exemption 100%.

- Tax exemption or reduction for farmer households producing in high, mountainous, border, and island areas facing many difficulties in production and livelihood;

- Tax exemption or reduction for farmer households of ethnic minorities with difficult production and livelihood conditions;

- Tax exemption for farmer households with disabled, elderly members having no support device.

- Tax exemption for tax-paying households with Category 1/4 and 2/4 war invalids and Category 1/3 and 2/3 sick soldiers;

- Tax exemption or reduction for tax-paying households that are martyr families;

- Tax reduction for tax-paying households with war invalids and sick soldiers not eligible for tax exemptions.