Vietnam: What does the land rent declaration include?

Vietnam: What does the land rent declaration include?

The dossier for land rent declaration issued in conjunction with Appendix 1 of the tax declaration dossier list according to Decree 126/2020/ND-CP, includes:

In case there is a land lease decision or not yet a decision but there is a land lease contract

- Dossier for determining financial obligations regarding land rent according to the inter-agency one-stop mechanism;

- A document from the land user requesting exemption or reduction of financial obligations regarding land (original) according to Form 01/MGTH in Appendix 1 issued with Circular 80/2021/TT-BTC dated September 29, 2021, by the Minister of Finance guiding the implementation of some articles of the 2019 Tax Administration Law and Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam detailing some articles of the Tax Administration Law and a copy of documents proving eligibility for exemption or reduction according to legal provisions (if any);

- Documents and papers related to amounts deductible from the payable land rent according to legal provisions (if any).

In case there is no land lease decision or contract

- Land rent declaration form 01/TMDN in Appendix 2 issued with Circular 80/2021/TT-BTC dated September 29, 2021, by the Minister of Finance guiding the implementation of some articles of the 2019 Tax Administration Law and Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam detailing some articles of the 2019 Tax Administration Law.

- Other related documents (if any).

Vietnam: What does the land rent declaration include? (Image from Internet)

Who shall receive the annual notice of land rent payment in Vietnam?

Based on Article 43 of Decree 103/2024/ND-CP, the regulation states:

Collection and Payment of Land Rent

1. Land rent is paid into the state budget in Vietnamese Dong (VND); for organizations, individuals from abroad, and overseas Vietnamese who pay land rent in foreign currency, it is converted to VND according to legal regulations at the time of payment.

2. The payment of land rent is regulated as follows:

a) The tax authority sends the notice of land rent payment to the lessee; simultaneously, it is sent to the Land Registration Office or an agency with land management functions and the equivalent level State Treasury (for monitoring and accounting as regulated).

b) The lessee implements the payment of land rent into the state budget according to the notification from the tax authority as per the legal regulations on tax management.

c) For cases where the land is leased with a one-time land rent payment for the entire lease period, after collecting the one-time land rent for the entire lease duration, the state budget collecting agency transfers the revenue information to the tax authority as per the legal regulations on tax management for the tax authority to transfer to the agency with land management functions as a basis for land allocation to the lessee according to regulations. Land allocation is only carried out when the lessee has fully paid the one-time land rent for the entire lease duration as per regulations.

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Thus, the tax authority sends the annual notice of land rent payment to the lessee; simultaneously, it is sent to the Land Registration Office or an agency with land management functions and the equivalent level State Treasury (for monitoring and accounting).

What is the procedure for land rent declaration in Vietnam?

Based on the guidance of the Ministry of Finance in sub-section 13, Section 1 of Procedures for Administrative Procedures issued with Decision 1462/QD-BTC in 2022 as follows:

Step 1: For land lease cases with dossiers determining financial obligations on land rent under the inter-agency one-stop mechanism, which also serves as a tax declaration dossier: The deadline for submitting the dossier is no later than 30 days from the date the competent state agency signs the decision on land lease. In cases where there is no decision but there is a land lease contract, the deadline for submitting the dossier is no later than 30 days from the date of contract signing.

In cases where the inter-agency one-stop mechanism does not have provisions, submit the dossier to the tax authority where the land subject to tax is located.

For land lease cases without a lease decision or land lease contract: The deadline for submitting the land rent declaration dossier is no later than 30 days from the date of using the land for purposes that require renting land.

The deadline for submitting the land rent declaration dossier for cases where, within the year, there are changes in factors determining the financial obligations on land rent is no later than 30 days from the date the competent authority issues a document noting the change.

Taxpayers who do not have changes in factors leading to changes in the payable land rent amount within the year are not required to declare for the following year.

Step 2: Tax Authority Reception:

The tax authority receives and processes the dossier according to regulations, whether the dossier is submitted directly at the tax authority or sent via postal service. In cases where the dossier is submitted to the tax authority through electronic transactions, the reception, checking, acceptance, and processing of the dossier are conducted through the tax authority's electronic data processing system.