What is the application form for non-agricultural land use tax exemption or reduction - Form 01/MGTH in Vietnam?

What is the application form for non-agricultural land use tax exemption or reduction - Form 01/MGTH in Vietnam?

The application form for non-agricultural land use tax exemption or reduction is Form 01/MGTH issued together with Appendix 1 of Circular 80/2021/TT-BTC:

Download the application form for non-agricultural land use tax exemption or reduction - Form 01/MGTH: Here

What is the application form for non-agricultural land use tax exemption or reduction - Form 01/MGTH in Vietnam? (Image from the Internet)

What are the principles of non-agricultural land use tax exemption or reduction in Vietnam?

According to Article 9 of Circular 153/2011/TT-BTC, the principles of non-agricultural land use tax exemption or reduction in Vietnam are as follows:

- Tax exemption and reduction will only apply directly to taxpayers and be calculated based on the lax amounts payable under the Law on Non-Agricultural Land Use Tax 2010 and guided in Circular 153/2011/TT-BTC.

- Tax exemption and reduction for residential land shall apply only to residential land registered under the name of taxpayers in a locality chosen by themselves, except the cases specified in Clause 9, Article 10, and Clause 4, Article 11 of this Circular.

- A taxpayer that is eligible for both tax exemption and reduction for a single land plot may enjoy tax exemption. A taxpayer eligible for tax reduction under two or more conditions specified in Article 11 of this Circular may enjoy tax exemption.

In case both the taxpayer and at least one member of his/her household are eligible for a 50% reduction of tax each, the taxpayer's household may enjoy tax exemption. These persons must have grandparent-grandchild or parent-child relations and be named in the household's permanent residence registration book.

- A taxpayer that has many investment projects eligible for tax exemption or reduction may enjoy tax exemption or reduction for each investment project.

What are the cases of non-agricultural land use tax exemption in Vietnam?

According to Article 10 of Circular 153/2011/TT-BTC, supplemented by Article 4 of Circular 130/2016/TT-BTC, the  eligible for non-agricultural land use tax exemption include:

(1) Land of investment projects in the sectors eligible for special investment promotion (special investment incentives); investment projects in geographical areas with extreme socio-economic difficulties; investment projects in the sectors eligible for investment promotion (investment incentives) in geographical areas with socio-economic difficulties; and land of enterprises with over 50% of their employees being war invalids or diseased soldiers.

Lists of sectors eligible for investment promotion; sectors eligible for special investment promotion; areas with socio­economic difficulties; and areas with extreme socio-economic difficulties comply with the investment law.

Employees being war invalids and diseased soldiers must be regularly employed in the year as specified in the Ministry of Labor, War Invalids and Social Affairs' Circular No. 40/ 2009/TT-BLDTBXH of December 3, 2009, and its amending documents.

(2) Land of establishments carrying out socialized activities in education, vocational training, health, culture, sports and environmental protection. These establishments include:

- Non-public establishments set up and qualified for carrying out socialized activities under regulations of competent state agencies;

- Organizations and individuals operating under the Enterprises Law that have investment projects, joint-venture or associated activities or establish establishments qualified for carrying out socialized activities under regulations of competent state agencies;

- Public non-business establishments that contribute capital to, or raise capital for jointly setting up independent cost-accounting units or enterprises carrying out socialized activities under decisions of competent slate agencies;

- Tax exemption for foreign-investment projects carrying out socialized activities shall be decided by the Prime Minister at the proposal of the Ministry of Planning and Investment and relevant line ministries.

Establishments carrying out socialized education, vocational training, healthcare, cultural, sports and environmental activities must satisfy the requirements on operation scope and standards under the Prime Minister's decisions.

(3) Land for construction of gratitude houses, great-unity houses and nursing homes for lonely elderly people, people with disabilities or orphans, and social disease- treatment establishments.

(4) Within-quota residential land in geographical areas with extreme socio-economic difficulties.

(5) Within quota residential land of persons engaged in revolutionary activities before August 19, 1945; war invalids of 1/4 or 2/4 grade; persons entitled to policies like war invalids of 1/4 or 2/4 grade; diseased soldiers of grade 1/3; heroes of people's armed forces; heroic Vietnamese mothers; natural parents and nurturing persons of martyrs during their childhood; spouses of martyrs; martyrs' children eligible for monthly allowances; Agent Orange victims who are revolutionary activists; and disadvantaged Agent Orange victims.

(6) Within-quota residential land of poor households identified under the Prime Minister's decision on poverty line. In case provincial-level People's Committees have specified a poverty line applicable in their localities according to law, poor households shall be identified under the poverty line promulgated by provincial-level People's Committees.

(7) Households and individuals whose residential land is recovered by the State in a year under approved master plans or plans will be exempt from tax on recovered land and the land in the new place of residence in that year.

(8) Land with garden houses certified by a competent state agency as historical-cultural relics.

(9) Taxpayers facing difficulties due to force majeure circumstances, if the value of damage related to land and houses on land accounts for over 50% of the taxable price.

In this cases, certification of commune-level People's Committees of the localities where exists such land is required.

(10) A household or individual shall be exempted from the annual tax on non-agricultural land use if the tax payable, after reduced owing to any tax exemption or deduction as per the Law on taxation of non-agricultural land use and guiding documents, is fifty thousand Vietnam dongs or less. If such household or individual has several land parcels in a province, the exemption of the tax on non-agricultural land use, according to this Article, shall be based on the total tax payable on all land parcels. The procedure for exemption of non-agricultural land use tax, according to this Article, is governed by Circular 153/2011/TT-BTC.

A household or individual who has paid the tax on non-agricultural land use to the state budget though being eligible for exemption of such tax as per this Circular, shall receive a refund of the tax from tax authorities according to the Law on tax administration and guiding documents."