What is the time limit for paying agricultural land use tax in Vietnam?

What is the time limit for paying agricultural land use tax in Vietnam?

Based on Clause 2, Article 18 of Decree 126/2020/ND-CP, the time limits for paying agricultural land use tax are as follows:

- For the first tax payment: No later than 30 days from the date of issuance of the tax notification by the tax authority.

- From the second year onwards, taxpayers can choose to pay the agricultural land use tax once or twice a year. If taxpayers choose to pay the tax once a year, the deadline is May 31.

If taxpayers choose to pay the tax twice a year, the deadlines for each period are: for the first period, pay 50% no later than May 31; for the second period, pay the remaining amount no later than October 31.

- For adjusted tax declaration dossiers, the deadline is no later than 30 days from the date of issuance of the tax notification for agricultural land use tax.

- In the case of localities with agricultural product harvest seasons that do not coincide with the tax payment deadlines, the tax authority may extend the tax payment deadline by no more than 60 days from the prescribed deadline.

What is the time limit for paying agricultural land use tax in Vietnam? (Image from the Internet)

Which types of land are subject to agricultural land use tax in Vietnam?

Based on Article 2 of Decree 74-CP of 1993, the types of land subject to agricultural land use tax include:

(1). Cultivation land, which includes annual crops land, perennial crops land, and grassland.

Annual crops land is used for planting crops with a growth cycle (from planting to harvest) not exceeding 365 days, such as rice, corn, vegetables, peanuts... or crops planted once but harvested over several years without undergoing a basic construction period, such as sugarcane, banana, rush, hemp, citronella, pineapple...

Perennial crops land is used for planting crops with a growth cycle exceeding 365 days, planted once but harvested over many years, and requiring a basic construction period before harvesting, such as rubber, tea, coffee, oranges, mandarins, lychees, palm, coconut...

Grassland is land used for planting grass to raise livestock.

(2). Land with water surfaces used for aquaculture which is specifically utilized for aquaculture or both aquaculture and cultivation, but fundamentally not used for other purposes.

(3). Afforested land which has been planted with forests and is assigned to organizations or individuals for management, care, and exploitation, excluding barren hills and mountains.

In cases of not using land subject to tax as stipulated in Article 2 of Decree 74-CP of 1993, land users still have to pay tax in accordance with the 1993 Agricultural Land Use Tax Law.

Which types of land are not subject to agricultural land use tax in Vietnam?

Based on Article 3 of Decree 74-CP of 1993, the types of land not subject to agricultural land use tax include:

- Natural forest land;

- Natural grassland not allocated to any organization or individual;

- Residential land, land for construction of structures subject to house and land tax;

- Land for transportation, irrigation used commonly for fields;

- Special-use land as stipulated in Article 62 of the Land Law, defined as land used for non-agricultural, non-forestry production, and non-residential purposes;

- Land leased to organizations, households, individuals by the Government of Vietnam, and the People’s Committees at all levels per Article 29 of the Land Law.

What are cases of exemption and reduction of agricultural land use tax in Vietnam?

Based on Chapter 5 of the 1993 Agricultural Land Use Tax Law, cases eligible for exemption or reduction of agricultural land use tax include:

(1). Tax exemption for barren hills and mountains used for agricultural or forestry production, protective forests, and special-use forests.

(2). Tax exemption for newly reclaimed land not covered by Clause 1, Article 19 of the 1993 Agricultural Land Use Tax Law used for production:

- Annual crops: 5 years; for newly reclaimed land in mountainous, swampy, and tidal areas: 7 years;

- Perennial crops: tax exemption during the basic construction period and an additional 3 years from the first harvest. For land in mountainous, swampy, and tidal areas: an additional 6 years.

- Timber and other perennial crops harvested once are only taxed upon exploitation per Clause 4, Article 9 of the 1993 Agricultural Land Use Tax Law.

(3). Tax exemption for newly replanted perennial crops land and annual crops land converted to perennial crops or fruit trees: during the basic construction period and an additional 3 years from the first harvest.

(4). Households relocating to new economic zones for agricultural production are exempted from tax for the duration stipulated in Article 19 of the 1993 Agricultural Land Use Tax Law and an additional 2 years. If the transferred land is used for agricultural production, tax exemption applies for 3 years from the date of land receipt.

(5). In the event of natural disasters, enemy sabotage causing crop damage, agricultural land use tax is reduced or exempted for each tax-paying household per production season as follows:

- Damage from 10% to less than 20%, tax reduction corresponding to damage level;

- Damage from 20% to less than 30%, tax reduction by 60%;

- Damage from 30% to less than 40%, tax reduction by 80%;

- Damage from 40% or more, tax exemption of 100%.

(6). Tax exemption or reduction for peasant households in highland, mountainous, border, and island areas where production and livelihood are difficult;

(7). Tax exemption or reduction for peasant households of ethnic minorities where production and livelihood are difficult;

(7). Tax exemption for peasant households with disabled, elderly people with no source of support.

(8). Tax exemption for households with grade 1/4 and 2/4 war invalids, grade 1/3 and 2/3 sick soldiers;

(9). Tax exemption or reduction for households of martyrs;

(10). Tax reduction for households of war invalids, sick soldiers not eligible for tax exemption as per Clause 1, Article 23 of the 1993 Agricultural Land Use Tax Law facing difficult livelihoods.