Where will the non-agricultural land use tax for residential land in Vietnam be paid?

Where will the non-agricultural land use tax for residential land in Vietnam be paid?

Under Clause 1, Article 16 of Circular 153/2011/TT-BTC, the regulations are as follows:

Tax declaration

1. Tax declaration principles:

1.1. Taxpayers shall accurately declare their personal information such as name, identity card number, tax identification number, address for receiving tax notices; and information on the taxable land plot such as area and use purpose in the tax declaration. For a land plot for which a certificate has been granted, information on serial number and date of issue of the certificate, serial number of the map, land area and land quota (if any) must be fully declared.

For dossiers of declaration of tax on residential land of households and individuals, commune-level People's Committees shall fill in the declaration forms' items reserved for functional agencies and transfer these declarations to district-level Tax Departments for use as a basis for tax calculation.

When necessary to clarify some items in tax declaration dossiers of organizations which serve as tax bases at the request of lax agencies, natural resources and environment agencies shall make and send certifications to tax agencies.

1.2. Annually, taxpayers are not required to make re-declaration if there is no change in taxpayers and elements that lead to changes in payable tax amounts.

Upon occurrence of an event that leads to a change in the taxpayer, the new taxpayer shall declare and submit a tax declaration dossier under this Circular within 30 (thirty) days after the date when such event .occurs. In case of arising elements leading to a change in the payable tax amount (except change of the price of a square meter of taxable land), the taxpayer shall declare and submit tax declaration dossier within 30 (thirty) days after the date when such elements arise.

1.3. General declaration of non-agricultural land use tax is required only for residential land.

Taxpayers who are required to make general declarations under this Circular shall make and submit general declarations to the district-level Tax Departments they have chosen and registered.

Thus, taxpayers shall make general declarations and pay tax to the district-level Tax Departments they have chosen and registered.

Where will the non-agricultural land use tax for residential land in Vietnam be paid? (Image from the Internet)

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

According to Article 7 of the Law on Non-agricultural Land Use Tax 2010, the non-agricultural land use tax rate is regulated as follows:

- Tax rates for residential land, including land used for commercial purposes, to be applied according to the Partially Progressive Tariff are specified as follows:

-The residential land quota used as a basis for tax calculation is the new quota of residential land allocation set by provincial-level People’s Committees from the effective date of this Law.

When residential land quotas have been set before the effective date of this Law, the following provisions shall be applied:

+ When the residential land quota set before the effective date of this Law is lower than the new quota of residential land allocation, the new quota will be used as a basis for tax calculation;

+ When the residential land quota set before the effective date of this Law is higher than the new quota of residential land allocation, the old quota will be used as a basis for tax calculation.

- Residential land of multi-story buildings with many households, condominiums or underground construction works is subject to the tax rate of 0.03%.

What is the determination of taxable price of land in Vietnam?

Under Article 6 of the Law on Non-Agricultural Land Use Tax 2010, the taxable price of land is defined as follows:

- Taxable price of land is the taxable land area multiplied by the price of one square meter of land.

- The taxable land area is specified as follows: a/ The taxable land area is the actually used land area.

When a person has the right to use many residential land plots, the taxable land area is the total area of taxable land plots.

When land is allocated or leased by the State for the construction of an industrial park, the taxable land area is exclusive of the land area for the construction of infrastructure facilities under common use;

+ For residential land of a multi-story building with many users or a condominium with areas for both dwelling and commercial purposes, the taxable land area is the allocation coefficient multiplied by the area of the apartment of each user.

The allocation coefficient is the land area for the construction of a multistory building with many users or a condominium divided by the total area of apartments of users.

If a multi-story building with many users or a condominium has a basement, 50% of the basement area used by organizations, households and individuals shall be added to the total area of their apartments for calculating the allocation coefficient;

+ For underground construction works, the applicable allocation coefficient is 0.5 of the constructed land area divided by the total area of works used by organizations, households and individuals.

- The price of a square meter of land is the price of land based on its use purpose which is set by the provincial-level People’s Committee for a 5 year stabilization period from the effective date of this Law.