When is the land price list applied in Vietnam? How to determine the taxable price of non-agricultural land use tax in Vietnam?
When is the land price list applied in Vietnam?
Pursuant to Clause 1, Article 159 of the Land Law 2024 (amended by point d, Clause 2, Article 57 of the Urban and Rural Planning Law 2024), the land price list is applied in the following cases:
- Calculating land levy when the State recognizes the right to use homestead land for households, individuals; converting land use purposes for households, individuals;
- Calculating land rent when the State leases land with annual land rent collection;
- Calculating land use tax;
- Calculating income tax from transferring land use rights for households, individuals;
- Calculating fees in land management and use;
- Calculating fines for administrative violations in the field of land;
- Calculating compensation to the State for damages caused in land management and use;
- Calculating land levy, land rent when the State recognizes land use rights by allocating land with levy, leasing land with a one-time rent payment to households, individuals;
- Determining the starting price for auctioning land use rights when the State allocates or leases land for a land parcel or land zone with completed technical infrastructure according to detailed planning pursuant to urban and rural planning law;
- Charging land levy for land allocation without auctioning land use rights to households, individuals;
- Charging land levy for selling state-owned houses to tenants.
>>> See more: Latest land price list for Main Road - Area 1 - Tay Giang Commune, Tien Hai District, Thai Binh?
How to determine the taxable price of non-agricultural land use tax in Vietnam?
Pursuant to Article 6 of the Non-agricultural Land Use Tax Law 2010 (amended by Article 249 of the Land Law 2024), the taxable price for non-agricultural land use is prescribed as follows:
(1) The taxable price for land is determined by multiplying the taxable land area by the price of 1m2 of land.
(2) The taxable land area is prescribed as follows:
- The taxable land area is the actual land area used.
In cases of having the right to use multiple residential parcels, the taxable land area is the total area of taxable parcels.
In cases where the State allocates or leases land for constructing industrial zones, the taxable land area does not include the area used for common infrastructure;
- For multi-story, multi-apartment residential buildings, including those used for both residential and business purposes, the taxable land area is calculated by multiplying the allocation coefficient by the housing area of each organization, household, individual using it.
The allocation coefficient is determined by dividing the land area for constructing multi-story, multi-apartment residential buildings by the total housing area used by organizations, households, individuals.
If there is a basement in the multi-story residential buildings, 50% of the basement area used by organizations, households, individuals in the basement is added to the housing area used to determine the allocation coefficient;
- For underground constructions, an allocation coefficient of 0.5 is applied by dividing the underground land area by the total area of the structures used by organizations, households, individuals.
(3) The price of 1m2 of land is the land price according to the land price list corresponding to the land use purpose and is stabilized every 5 years.
Which entities are the non-agricultural land use taxpayers in Vietnam?
Pursuant to Article 4 of the Non-agricultural Land Use Tax Law 2010, the subjects required to pay non-agricultural land use tax are as follows:
- Tax payers are organizations, households, individuals with land use rights subject to taxation as stipulated in Article 2 of the Non-agricultural Land Use Tax Law 2010.
- In cases where organizations, households, individuals have not been issued a Land Use Rights Certificate, house ownership, and related assets (hereafter called Certificate), the person using the land is the taxpayer.
- Taxpayer in certain specific cases is prescribed as follows:
+ In cases where the State leases land to implement investment projects, the land leasing holder is the taxpayer;
+ In cases where the land user leases land under a contract, the taxpayer is as determined by agreement in the contract. If the contract lacks a taxpayer agreement, the land use right holder is the taxpayer;
+ In cases of land granted a Certificate but under dispute, until resolved, the current land user is the taxpayer. Tax payment is not the basis for resolving land use right disputes;
+ In cases where multiple individuals share the use of a parcel, the legal representative of all land use rights holders is the taxpayer;
+ In cases where the land use right is a capital contribution in business forming a new legal entity with land use rights subject to taxation as prescribed in Article 2 of the Non-agricultural Land Use Tax Law 2010, the new legal entity is the taxpayer.
