What taxes are applicable to homestead land in rural areas in Vietnam? Which cases are exempt from tax?

What taxes are applicable to homestead land in rural areas in Vietnam?

Based on Article 2 of the 2010 Law on Non-Agricultural Land Use Tax regarding taxable objects as follows:

Taxable Objects

1. homestead land in rural areas and homestead land in urban areas.

2. Non-agricultural production and business land includes: land for industrial zone construction; land for construction of production and business facilities; land for mineral extraction and processing; land for building materials production, and ceramic production.

3. Non-agricultural land stipulated in Article 3 of this Law used for business purposes.

Thus, pursuant to the above regulations, rural homestead land is one of the objects subject to non-agricultural land use tax.

What taxes are applicable to homestead land in rural areas in Vietnam? Which cases are exempt from tax? (Image from the Internet)

Is homestead land in rural areas in Vietnam within the limit of poor households exempt from tax?

Based on Article 9 of the 2010 Law on Non-Agricultural Land Use Tax regarding tax exemptions as follows:

Tax Exemptions

1. Land of investment projects in sectors particularly encouraged for investment; investment projects in areas with exceptional socio-economic difficulties; investment projects in encouraged sectors in areas with socio-economic difficulties; land of enterprises using over 50% of the workers who are war invalids, sick soldiers.

2. Land of facilities carrying out private investment in the fields of education, vocational training, health care, culture, sports, environment.

3. Land for building charity houses, unity houses, facilities for the elderly, persons with disabilities, orphans; social disease treatment facilities.

4. Residential land within the limit in areas with exceptional socio-economic difficulties.

5. Residential land within the limit of people who engaged in revolutionary activities before August 19, 1945; war invalids rated as 1/4, 2/4; people with policies equivalent to war invalids rated as 1/4, 2/4; sick soldiers rated as 1/3; heroes of the People's Armed Forces; Heroic Vietnamese Mothers; biological parents, foster parents of martyrs; spouses of martyrs, children of martyrs receiving monthly subsidies; revolutionary activists affected by toxic chemicals; people affected by toxic chemicals with difficult family circumstances.

6. Residential land within the limit of poor households as defined by the Government of Vietnam.

7. Households and individuals whose homestead land was recovered within the year according to the planning approved by competent state agencies are exempt from tax during the year of the actual recovery for land at the recovered place and new residence place.

8. Land with garden houses recognized by competent state agencies as historical-cultural monuments.

9. Taxpayers facing difficulties due to force majeure events if the damage to land and houses on the land exceeds 50% of the taxable value.

The following types of homestead land are exempt from non-agricultural land use tax:

- Residential land within the limit in areas with exceptional socio-economic difficulties.

- Land for building charity houses, unity houses, facilities for the elderly, persons with disabilities, orphans; social disease treatment facilities.

- Residential land within the limit of the following people:

+ Revolutionary activists before August 19, 1945;

+ War invalids rated as 1/4, 2/4;

+ People with policies equivalent to war invalids rated as 1/4, 2/4;

+ Sick soldiers rated as 1/3;

+ Heroes of the People's Armed Forces;

+ Heroic Vietnamese Mothers;

+ Biological parents, foster parents of martyrs;

+ Spouses of martyrs

+ Children of martyrs receiving monthly subsidies;+ Revolutionary activists affected by toxic chemicals;

+ People affected by toxic chemicals with difficult family circumstances.

- Residential land within the limit of poor households as defined by the Government of Vietnam.

- Residential land of households and individuals whose homestead land was recovered within the year according to the planning approved by competent state agencies are exempt from tax during the year of the actual recovery for land at the recovered place and new residence place.

- Land with garden houses recognized by competent state agencies as historical-cultural monuments.

- Taxpayers facing difficulties due to force majeure events if the damage to land and houses on the land exceeds 50% of the taxable value.

Thus, it can be seen that homestead land within the limit of poor households as defined by the Government of Vietnam is one of the cases exempt from tax.

What are regulations on homestead land in rural areas in Vietnam according to the 2024 Land Law?

Based on Article 195 of the 2024 Land Law regarding homestead land in rural areas as follows:

- homestead land in rural areas is land used for building houses and other purposes serving daily life within one parcel in rural areas.

- Based on land funds and the actual situation of the locality, the provincial People's Committee stipulates the limit for allocating homestead land to individuals in rural areas.

- homestead land in rural areas must be arranged in harmony with land used for public works, ensuring convenience for production, daily life, environmental sanitation, and following the trend of rural modernization.

- The State has policies to create conditions for rural residents to have housing based on utilizing land in existing residential areas, limiting the expansion of residential areas on agricultural land.