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

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.

What are the cases of agricultural land use tax exemption or reduction in Vietnam? (Image from the Internet)

What is the power to issue decisions on agricultural land use tax exemption or reduction in Vietnam?

According to Article 18 of Decree 74-CP 1993, the power to issue decisions on agricultural land use tax exemption or reduction is as follows:

- The Chairman of the People's Committee of the province or municipality decides on agricultural land use tax exemption or reduction following the proposal of the Director of the Tax Department.

- Tax reduction and exemption decisions must be notified to each household eligible for the tax reduction or exemption.

- The Minister of Finance is responsible for guiding and inspecting the implementation of tax reduction and exemption by localities; has the authority to annul decisions on tax reduction and exemption that are contrary to this Decree, and report to the Prime Minister of the Government of Vietnam.

Will the list of households proposed for agricultural land use tax exemption or reduction of the commune in Vietnam be publicized?

According to Article 24 of the Agricultural Land Use Tax Law 1993:

Article 24

The list of households proposed for tax reduction or exemption by the commune must be posted for public comments within 20 days before submission to the superior People's Committee for approval.

Decisions on tax reduction and exemption by competent State agencies must be promptly notified to tax-paying households and publicly posted.

Thus, the list of households proposed for tax reduction or exemption by the commune must be posted for public comments within 20 days before submission to the superior People's Committee for approval.

What are the regulations on agricultural land use tax collection and payment in Vietnam?

According to Chapter 4 of the Agricultural Land Use Tax Law 1993, the collection and payment of agricultural land use tax are as follows:

- The approved tax register is the basis for tax collection. Tax is paid yearly from 1 to 2 times, according to the main harvest season of each type of crop in each locality. The tax payment deadline is determined by the Provincial People's Committee or Centrally Administered City. At least 10 days before the tax payment deadline, the direct tax collection agency must send a notice specifying the location, time, and tax amount to be paid by each taxpayer.

- Agricultural land use tax is calculated in paddy and collected in cash. The price of paddy for tax collection is decided by the Provincial People's Committee or Centrally Administered City, not exceeding 10% below the local market price during the tax collection season.

In special cases, tax may be collected in paddy as decided by the Chairman of the Provincial People's Committee or Centrally Administered City.

- At the end of the tax year, the direct tax collection agency must settle the tax collection results for each household and report the tax settlement in writing to the superior tax authority and the People's Committee at the same level, and simultaneously publicly announce it to the public.