What does the application for agricultural land tax exemption or reduction in Vietnam include?

Will agricultural land users in Vietnam be eligible for tax exemption and reduction?

Under Article 52 of Circular 80/2021/TT-BTC:

Procedures, documentation and the cases in which tax authorities issue notices and decisions on tax exemption or tax reduction

1. The tax authority shall issue a notice or decision on tax exemption or tax reduction in the following cases:

a) Exemption of PIT on the incomes prescribed in Clauses 1, 2, 3, 4, 5, 6 Article 4 of the Law on Personal Income Tax;

b) Reduction of tax payable by individuals, household businesses and individual businesses facing difficulties due to natural disasters, conflagrations, accidents, fatal diseases that affect their ability to pay tax;

c) Reduction of excise tax payable by taxpayers that produce goods subject to excise tax and are facing difficulties due to natural disasters, conflagrations, accidents according to regulations of law on excise tax;

d) Exemption, reduction of resource royalty payable by taxpayers that are affected by natural disasters, conflagration or accidents that cause damage to the resources on which resource royalty is paid;

dd) Exemption and reduction of non-agricultural land use tax:

e) Exemption and reduction of non-agricultural land use tax shall be granted in accordance with regulations of the Law on Use of Non-agricultural Land and the National Assembly’s Resolutions;

g) Exemption, reduction of land rents, water surface rents and land levies;

h) Exemption of registration fees.

2. Procedures and documentation of tax exemption and tax reduction in the cases specified in Clause 1 of this Article shall comply with Articles 53 through 61 of this Circular

Thus, agricultural land users are eligible for tax exemption and reduction.

What does the application for agricultural land tax exemption or reduction in Vietnam include? (Image from the Internet)

What does the application for agricultural land tax exemption or reduction in Vietnam include?

According to Article 58 of Circular 80/2021/TT-BTC, the application for agricultural land tax exemption or reduction in Vietnam includes:

- In case the taxpayer is facing difficulties due to a natural disaster or conflagration, the application shall contain:

+ The application form No. 01/MGTH in Appendix I hereof;

+ The damage assessment record issued by a competent authority and confirmed by the authority of the commune where the natural disaster or conflagration occurred according to Form No. 02/MGTH in Appendix I hereof;

+ The financial statement (if the taxpayer is an enterprise) enclosed with the analysis of damage and loss.

- In case the taxpayer is facing difficulties due to an accident, the application shall contain:

+ The application form No. 01/MGTH in Appendix I hereof;

+ A document confirming the accident issued by a police authority, or a document confirming the taxpayer's injuries issued a health authority;

+ Documents about provision of indemnity by the insurer or compensation agreement with the person that caused the conflagration (if any);

+ Documents on payments for the costs of the accident.

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

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

- Tax exemption for barren hill and mountain land used for agricultural, forest production, protective forest, and special-use forest planting.

- Tax exemption for newly reclaimed land used for production:

+ Annual crop planting: 5 years; for newly reclaimed land in mountainous areas, marshes, and coastal encroachments: 7 years;

+ Perennial crop planting: tax exemption during the basic construction period plus 3 years from the time of harvesting. For special-use forest land in mountainous areas, marshes, and coastal encroachments, an additional 6 years.

- For timber trees and perennial crops harvested once, tax is only paid upon harvesting according to regulations.

- Tax exemption for perennial crop land replanted or annual crop land converted to perennial crops or fruit trees: during the basic construction period plus 3 years from the time of harvesting.

- Households relocating to new economic zones and reclaiming land for agricultural production are tax-exempt for the prescribed period plus an additional 2 years.

- If the land allocated is already under agricultural production, tax exemption is granted for 3 years from the date of land allocation.

- In cases of natural disasters or pest outbreaks causing crop damage, agricultural land use tax is reduced or exempted for each household based on each production cycle as follows:

+ Damage from 10% to under 20%, tax reduction proportional to the damage level;

+ Damage from 20% to under 30%, 60% tax reduction;

+ Damage from 30% to under 40%, 80% tax reduction;

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

- Tax exemption or reduction for households in highland, mountainous, border, and island areas facing significant production and living difficulties.

- Tax exemption or reduction for ethnic minority households with significant production and living difficulties.

- Tax exemption for households with disabled, elderly people with no support.

- Tax exemption for tax-paying households with first-class and second-class disabled soldiers, first-grade and second-grade war invalids.

- Tax exemption or reduction for households of martyrs.

- Tax reduction for tax-paying households with disabled soldiers and war invalids not eligible for tax exemption.