Which entities are receivers of annual land rent payment notice sent by tax authorities in Vietnam?

What are the procedures for declaring land rent in Vietnam?

Pursuant to the guidance of the Ministry of Finance of Vietnam in Subsection 13 Section 1 of administrative procedures issued with Decision 1462/QD-BTC 2022 as follows:

Step 1: For cases of leasing land where the dossier determines the financial obligation for land rent according to the one-stop-shop mechanism and is also a tax declaration dossier: The deadline for submitting the dossier is no later than 30 days from the date a competent state authority signs the decision to lease land or water surface. In cases where there is no decision but there is a land or water surface lease contract, the deadline for submitting the dossier is no later than 30 days from the date the contract is signed.

In cases where the one-stop-shop mechanism does not stipulate, the dossier shall be submitted to the tax authority where the land subject to taxation is located.

For cases of leasing land without a leasing decision or leasing contract: The deadline for submitting the land rent declaration dossier is no later than 30 days from the date of using the land for the purpose subject to lease.

The deadline for submitting the land rent declaration dossier in cases where there are changes in the elements to determine the financial obligation for land rent within the year is no later than 30 days from the date a competent authority issues a document recording the change.

Taxpayers who do not have changes in the elements leading to a change in the payable land rent amount within the year do not need to declare for the subsequent year.

Step 2: The tax authority receives:

The tax authority shall receive and process the dossier according to regulations, whether the dossier is submitted directly at the tax office or sent via postal services. If the dossier is submitted to the tax office through electronic transactions, the reception, inspection, acceptance, and processing of the dossier shall be through the tax authority's electronic data processing system.

Which entities are receivers of annual land rent payment notice sent by tax authorities in Vietnam? (Image from the Internet)

How to prepare the land rent declaration dossier in Vietnam?

The land rent declaration dossier is issued with Appendix 1 of the list of tax declaration dossiers in Decree 126/2020/ND-CP, includes:

Case with a land lease decision or without a decision but with a land lease contract

- The declaration dossier to determine financial obligations on land rent according to the one-stop-shop mechanism;

- The written request for exemption, reduction of financial obligations on land use by the land user (original) according to form 01/MGTH in Appendix 1 issued with Circular 80/2021/TT-BTC dated September 29, 2021, of the Minister of Finance providing guidance on several articles of the Law on Tax Administration 2019 and Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam detailing several articles of the Tax Administration Law and copies of documents evidencing eligibility for exemption, reduction as prescribed by law (if any);

- Documents, papers related to amounts deductible from the payable land rent according to law provisions (if any).

Case without a land lease decision or contract

- Land rent declaration form 01/TMDN in Appendix 2 issued with Circular 80/2021/TT-BTC dated September 29, 2021, of the Minister of Finance providing guidance on several articles of the Law on Tax Administration 2019 and Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam detailing several articles of the Law on Tax Administration 2019.

- Other relevant documents (if any)

Which entities are receivers of annual land rent payment notice sent by tax authorities in Vietnam?

According to Article 43 of Decree 103/2024/ND-CP, the following provisions apply:

Collection and payment of land rent

1. Land rent is paid into the state budget in Vietnamese Dong (VND); in cases where foreign organizations, individuals, and overseas Vietnamese pay land rent in foreign currency, it shall be converted into VND according to the law at the time of payment.

2. The payment of land rent is regulated as follows:

a) The tax authority sends a land rent payment notice to the lessee; simultaneously, it sends it to the Land Registration Office or the land management agency and the State Treasury at the same level (for monitoring and accounting according to regulations).

b) The lessee shall pay land rent into the state budget according to the tax authority's notice as per tax management law.

c) For cases of leasing land with a one-time land rent payment for the whole leasing term, after collecting the full one-time land rent, the state budget revenue collection agency shall transfer the information on the state budget collection to the tax authority according to tax management law to transfer to the land management agency as a basis for handing over the land to the lessee as prescribed. Land handing over shall only be carried out when the lessee has fully paid the one-time land rent for the entire leasing term as per regulations.

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Thus, the tax authority sends the annual land rent payment notice to the lessee; simultaneously, it sends it to the Land Registration Office or the land management agency and the State Treasury at the same level (for monitoring and accounting).