What is the applicable Law on Agricultural Land Use Tax in Vietnam?

What is the applicable Law on Agricultural Land Use Tax in Vietnam?

The applicable Law on Agricultural Land Use Tax in Vietnam is the Law on Agricultural Land Use Tax 1993 (Law No. 23-L/CTN).

What are the legislative documents on the elaboration of the Law on Agricultural Land Use Tax in Vietnam?

The legislative documents on the elaboration of the Law on Agricultural Land Use Tax 1993 include:

- Decree 74-CP of 1993 guiding the implementation of the Law on Agricultural Land Use Tax 1993.

- Decree 73-CP of 1993 guiding the classification of land for calculating agricultural land use tax.

What is the applicable Law on Agricultural Land Use Tax in Vietnam? (Image from the Internet)

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

According to Article 1 of the Law on Agricultural Land Use Tax 1993, the following entities are required to pay non-agricultural land use tax:

- Organizations and individuals using land for agricultural production must pay agricultural land use tax (collectively referred to as taxpayers).

- Households granted the right to use agricultural land but not utilizing it still have to pay agricultural land use tax.

What is the calculation of non-agricultural land use tax payable in Vietnam?

According to Articles 9 and 10 of the Law on Agricultural Land Use Tax 1993, the basis for calculating agricultural land use tax includes:

- Area;

- Land grade;

- Tax rate calculated in kilograms of paddy per unit area for each land grade.

Details are as follows:

* Area of land subject to agricultural land use tax

The taxable area for agricultural land use tax is the area allocated to the land-use household consistent with the State cadastral record. If the cadastral record is not yet established, the taxable area is the area stated in the land-use household's declaration form.

(Article 6 of the Law on Agricultural Land Use Tax 1993)

* Land grade

- land for annual crops and water surface used for aquaculture are divided into 6 grades, while perennial crop land is divided into 5 grades.

The criteria for determining land grade include factors such as:

+ Soil quality;

+ Location;

+ Topography;

+ Climatic and weather conditions;

+ Irrigation conditions.

The Government of Vietnam regulates the standards for land grades based on these factors and refers to the average yield achieved under normal farming conditions from 1986 to 1990.

- Land grades used for tax calculation are fixed for 10 years. During this period, if significant state investment leads to high economic efficiency, the Government of Vietnam will adjust the taxable land grades.

- Based on the standards for each land grade and the guidance of provincial and central city people's committees; the direction of people's committees at the district, district-level town, and provincial city levels; commune, ward, and commune-level town people's committees determine the taxable land grade for each taxpayer and submit it to the competent state authority for approval.

(Articles 7 and 8 of the Law on Agricultural Land Use Tax 1993)

* Tax rate calculated in kilograms of paddy per unit area for each land grade

The annual tax rate in kilograms of paddy per hectare for each land grade is as follows:

- For land for annual crops and water surface used for aquaculture:

- For perennial crop land:

- For perennial fruit trees planted on land for annual crops, the tax rate is as follows:

+ 1.3 times the tax on land for annual crops of the same grade for Grades 1, 2, and 3;

+ The same tax as land for annual crops of the same grade for Grades 4, 5, and 6.

- For timber trees and other perennial crops harvested once, the tax rate is 4% of the value of the extracted yield.

Note: Households using agricultural land exceeding the area limits prescribed by the Land Law must pay the tax as regulated above and an additional tax for the excess area as defined by the National Assembly Standing Committee.

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

Under Articles 16, 17, and 18 of the Law on Agricultural Land Use Tax 1993, the regulations on agricultural land use tax collection and payment in Vietnam are as follows:

- The approved tax register is the basis for tax collection. Tax is paid once or twice a year depending on the main harvest season of each crop in each locality. The tax payment schedule is determined by the provincial or central city people's committee. At least 10 days before the tax deadline, the tax collector must send a notice detailing the venue, time, and the payable tax amount to each taxpayer.

- Agricultural land use tax is calculated in paddy and collected in money. The price of paddy subject to tax is decided by the provincial or central city people's committee and can be up to 10% lower than the local market price during the tax collection period.

In exceptional cases, tax can be collected in paddy as decided by the Chairman of the provincial or central city people's committee.

- At the end of the tax year, the tax collector must finalize the results of tax collection for each household and submit a tax finalization statement to the superior tax authority and the same-level people's committee, while publicly posting the figures for public awareness.