What are the principles for calculation of non-agricultural land use tax in Vietnam?

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

According to Article 4 of the 2010 Non-Agricultural Land Use Tax Law, the non-agricultural land use tax payers are specified as follows:

- Taxpayers are organizations, households and individuals that have the right to use tax-liable land specified in Article 2 of the 2010 Non-Agricultural Land Use Tax Law.

- When organizations, households or indivi-duals have not yet been granted land use right certi-ficates or house and land-attached asset ownership certificates (below collectively referred to as certificates), current land users will be taxpayers.

- Taxpayers in some cases are specified as follows:

+ When land is leased by the State for the implementation of investment projects, lessees will be taxpayers;

+ When persons having land use rights lease land under contracts, taxpayers shall be identified as agreed upon in these contracts. When no agreement on taxpayers is made in contracts, persons having land use rights will be taxpayers;

+ When land has been granted a certificate but is currently under dispute, pending the dispute settlement, current land users will be taxpayers. Tax payment does not serve as a ground for the settlement of disputes over land use rights;

+ When many persons have the right to co-use a land plot, the lawful representative of these co-users will be the taxpayer;

+ When a person having land use rights contributes his/her land use rights as business capital, thereby forming a new legal entity that has the right to use tax-liable land specified in Article 2 of the 2010 Non-Agricultural Land Use Tax Law, the new legal entity will be the taxpayer.

What are the principles for calculation of non-agricultural land use tax in Vietnam? (Image from the Internet)

What are the principles for calculation of non-agricultural land use tax in Vietnam?

Under Clause 1, Article 8 of Circular 153/2011/TT-BTC, the calculation of non-agricultural land use tax must adhere to the following principles:

(1) The payable tax amount of each individual taxpayer shall be determined within one province.

(2) In case a taxpayer has taxable land in different districts within one province, the payable tax amount shall be determined for each land plot at the tax agency of the locality where exists his/her taxable land. A taxpayer who has a land plot or the total land area in excess of the quota applicable in the locality in which the taxpayer has land use rights shall make a general declaration at the tax agency chosen by the taxpayer under Article 16 of Circular 153/2011/TT-BTC.

(3) In case of changing taxpayers in a year, the payable tax amount of each taxpayer shall be determined from the month when such change occurs.

In case of appearing elements that lead to a change in tax bases (except change of the price of a square meter of taxable land), the payable tax amount shall be determined from the month when such change occurs.

What are the instructions for determination of the tax amount payable for each land plot in Vietnam?

According to Article 8 of Circular 153/2011/TT-BTC, the tax amount payable for each land plot is calculated using the following formulas:

(1) The non-agricultural land use tax amount payable for residential land, production and business land and non-agricultural land which are used for commercial purposes shall be determined according to the following formula:

The arising tax amount is determined as follows:

(2) For land of apartment buildings with many users or condominiums (including those with basements) and underground works, the payable tax amount shall be determined as follows:

The arising tax amount is determined as follows:

For underground works:

(3) In case of using non-agricultural land for commercial purposes but the area of land used for commercial purposes cannot be determined, the arising tax amount shall be determined as follows: