What is the time for initial payment of non-agricultural land use tax in Vietnam?

What is the time for initial payment of non-agricultural land use tax in Vietnam?

Based on Clause 1, Article 18 of Decree 126/2020/ND-CP:

Deadline for paying taxes for state budget revenues from land, fees for the right to exploit water resources, mineral resources, sea area usage fees, registration fees, license fees.

1. Non-agricultural land use tax

a) First tax payment deadline: No later than 30 days from the date the tax authority issues the non-agricultural land use tax payment notice.

From the second year onwards, taxpayers must pay the non-agricultural land use tax once a year, no later than October 31.

b) Deadline for paying the tax difference as determined by the taxpayer in the general declaration is no later than March 31 of the following calendar year.

c) Deadline for tax payment with the adjusted declaration dossier is no later than 30 days from the date of issuance of the non-agricultural land use tax payment notice.

2. Agricultural land use tax

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Taxpayers of non-agricultural land use tax must pay the first tax no later than 30 days from the date the tax authority issues the notice of non-agricultural land use tax payment.

What is the time for initial payment of non-agricultural land use tax in Vietnam? (Image from the Internet)

Who are the taxpayers of non-agricultural land use tax in Vietnam?

Based on Article 4 of the 2010 Law on Non-Agricultural Land Use Tax, taxpayers of non-agricultural land use tax include:

- Taxpayers are organizations, households, and individuals who have land use rights subject to tax as stipulated in Article 2 of the 2010 Law on Non-Agricultural Land Use Tax.

- For cases where organizations, households, and individuals have not been granted Land Use Rights Certificates, House Ownership, and Other Properties Attached to the Land (commonly referred to as Certificates), the current land users are the taxpayers.

- Taxpayers in specific cases are determined as follows:

+ If the State leases land for project investment, the lessee is the taxpayer;

+ If the person with land use rights leases the land according to a contract, the taxpayer is determined based on the agreement in the contract. If the contract does not specify the taxpayer, the person with land use rights is the taxpayer;

+ For land granted Certificates but under dispute, the current land user is the taxpayer until the dispute is resolved. Tax payment is not the basis for resolving the land use rights dispute;

+ For land jointly held, the legal representative of all joint holders is the taxpayer;

+ If land use rights are contributed as capital for business, forming a new legal entity with land use rights subject to tax as stipulated in Article 2 of the 2010 Law on Non-Agricultural Land Use Tax, the new legal entity is the taxpayer.

What is the tax rate for non-agricultural land use tax in Vietnam?

According to Article 7 of the 2010 Law on Non-Agricultural Land Use Tax, the tax rates for non-agricultural land use tax are as follows:

- The tax rate for homestead land, including land used for business, applies a progressive tax schedule as follows:

- The homestead land limit for tax calculation is based on the new homestead land allocation limit as regulated by the People's Committee of provinces and centrally run cities from January 1, 2012.

For homestead land that has been allocated prior to January 1, 2012, the following applies:

+ If the previous limit is lower than the new homestead land allocation limit, the new limit is used for tax calculation;

+ If the previous limit is higher than the new allocation limit, the old limit is used for tax calculation.

- For multi-story, multi-household residential buildings, apartment buildings, and underground constructions, a tax rate of 0.03% applies.

- Non-agricultural land used for production and business applies a tax rate of 0.03%.

- Non-agricultural land regulated in Article 3 of the 2010 Law on Non-Agricultural Land Use Tax used for business purposes applies a tax rate of 0.03%.

- Land used not according to its intended purpose and unused land applies a tax rate of 0.15%. For phased investment projects as registered by investors and approved by competent state authorities, the land is not considered unused and a rate of 0.03% applies.

- Land encroachment or occupation applies a tax rate of 0.2% and no allocation limit is applied. Tax payment is not the basis for recognizing legal land use rights for encroached or occupied land areas.