What are the penalties imposed for violations against the regulations of the Agricultural Land Use Tax Law in Vietnam?

What are the penalties imposed for violations against the regulations of the Agricultural Land Use Tax Law in Vietnam?

Under Article 26 of the Agricultural Land Use Tax Law 1993, penalties imposed for violations against the regulations of the Agricultural Land Use Tax Law 1993 are as follows:

- Organizations and individuals who commit tax evasion, underdeclaration, or tax fraud must pay back the evaded tax according to the provisions of the Agricultural Land Use Tax Law 1993 and face a fine ranging from 0.2 to 0.5 times the evaded tax amount.

- Organizations and individuals who do not declare land use as required by Article 11 of the Agricultural Land Use Tax Law 1993 must not only pay back taxes but are also fined from 0.5 to 1.0 times the undeclared tax amount.

- Organizations and individuals who delay tax payment or fines beyond 30 days from the due date specified in the tax collection order or fine decision without reasonable justification must pay the full tax or fines owed, plus a penalty of 0.1% of the tax or fine amount for each day late.

Additionally, individuals who evade a large amount of tax or have been administratively sanctioned multiple times as described above but continue to offend may face criminal prosecution.

What is the power to impose penalties for violations against the regulations of the Agricultural Land Use Tax Law in Vietnam?

Under Article 27 of the Agricultural Land Use Tax Law 1993, the power to impose penalties is as follows:

- Heads of district-level tax departments including district, town, and provincial city tax departments will impose administrative penalties and fines up to 0.5 times the evaded tax amount.

- Heads of provincial and municipal tax departments will impose administrative penalties and fines up to 1 time for the evaded tax amount.

What are the penalties imposed for violations against the regulations of the Agricultural Land Use Tax Law in Vietnam? (Image from the Internet)

What does agricultural land in Vietnam include?

Under Article 9 of the Land Law 2024, the provisions are as follows:

Land classification

1. Depending on use purposes, land is classified into three main categories: agricultural land, non-agricultural land and vacant land.

2. The category of agricultural land is classified into the following sub-categories/types:

a) Land for annual production, including land for rice cultivation/ paddy cultivation and another annual crop land;

b) Perennial crop land;

c) Forestry land, including dedicated forest land, protective forest land, and production forest land;

d) Land for aquaculture;

dd) Land for intensive farming;

e) Land for salt production;

g) Other agricultural land.

3. The category of non-agricultural land includes:

a) Homestead land including rural homestead land and urban homestead land;

b) Land for construction of head offices/offices;

c) Land used for national defense and security purposes (hereinafter referred to “national defense land and security land”);

d) Land for construction of public works, including land for construction of cultural facilities, social facilities, health facilities, education and training institutes, physical training and sports centers, science and technology facilities, environmental facilities, hydro-meteorological centers, diplomacy centers and other public works or land for construction of head offices/offices of other public service providers;

dd) Land used for non-agricultural business and production purposes, including land for industrial parks and industrial clusters; land used for trading or service purposes/commercial land; non-agricultural production establishment land; land used for mineral-related activities;

e) Land used in the public interest, including land used for transport; land used for irrigation; land for water supply and drainage works; land for natural disaster prevention and management works; land with historical-cultural monuments, famous landscape, sights, natural heritage; land for waste treatment works; land for energy and public lighting projects; land for post, telecommunications and information technology infrastructure; land for residential markets and wholesale markets; land for public entertainment, recreation and community activities;

g) Land used for religious exercise/used by religious organizations (religious land); land used by belief organizations (belief land);

h) Land used for cemeteries, funeral service centers and cremation centers; land for ashes storage facilities;

i) Dedicated water-covered land;

k) Other non-agricultural land.

4. The category of vacant land includes unallocated/unleased land for which use purposes have not been determined yet.

5. The Government of Vietnam elaborates land categories in this Article

Agricultural land includes the following types:

- Land for annual production, including land for rice cultivation/ paddy cultivation and another annual crop land;

- Perennial crop land;

- Forestry land, including dedicated forest land, protective forest land, and production forest land;

- Land for aquaculture;

- Land for intensive farming;

- Land for salt production;

- Other agricultural land.

Additionally, based on Article 10 of the Land Law 2024, the determination of land types shall be based on:

- Certificate of LUR, certificate of home ownership and LURs of homestead land, certificate of LURs, ownership of housing and other property affixed to land; or certificate of title;

- Documents on LURs prescribed in Article 137 of this Law in case the certificates mentioned in point a of this clause have not yet been granted;

- Decision on land allocation, land lease or permission for land repurposing issued by a competent regulatory agency in case where the certificates mentioned in point a of this clause have not yet been granted.