Which entities are subject to the reduction of 50% in non-agricultural land use tax in Vietnam?

What is the deadline for paying non-agricultural land use tax in Vietnam?

According to Clause 1, Article 18 of Decree 126/2020/ND-CP, the regulations are as follows:

Deadlines for payment of tax-related amounts, fees for grant of right to extraction of water resources and minerals, fees for grant of sea area usage, registration fees and licensing fees

1. Non-agricultural land use tax

a) Deadline for making first tax payment: Within 30 days from the day on which the tax notice is issued by the tax authority.

From the second year, non-agricultural land use tax shall be paid annually by October 31.

b) The difference in tax according to the consolidated declaration shall be paid by the 31st of March of the calendar year succeeding the year in which tax is incurred.

c) In case the declaration is revised, tax shall be paid within 30 days from the day on which the tax notice is issued.

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Thus, the deadlines for paying non-agricultural land use tax are as follows:

- Deadline for making first tax payment: Within 30 days from the day on which the tax notice is issued by the tax authority.

From the second year, non-agricultural land use tax shall be paid annually by October 31.

- The difference in tax according to the consolidated declaration shall be paid by the 31st of March of the calendar year succeeding the year in which tax is incurred.

- In case the declaration is revised, tax shall be paid within 30 days from the day on which the tax notice is issued.

Which entities are subject to the reduction of 50% in non-agricultural land use tax in Vietnam? (Image from the Internet)

Which entities are subject to the reduction of 50% in non-agricultural land use tax in Vietnam?

According to the provisions in Article 11 of Circular 153/2011/TT-BTC, the entities eligible for a 50% reduction in non-agricultural land use tax include:

(1)  Land of investment projects in the sectors eligible for investment promotion; investment projects in geographical areas with socio­economic difficulties; land of enterprises with between 20% and 50% of their employees being war invalids or diseased soldiers.

(2) Within-quota residential land in geographical areas with socio-economic difficulties.

( 3) Within-quota residential land of war invalids of 3/4 or 4/4 grade; persons enjoying policies like war invalids of 3/4 or 4/4 grade; martyrs' children enjoying monthly allowances,

(4) Taxpayers facing difficulties due to force majeure circumstances, provided the value of damage related to their land and houses on land accounts for between 20% and 50% of the taxable price.

In this cases, certification of commune-level People's Committees of the localities where exists such land is required.

Which authority has the competence to decide on the reduction of non-agricultural land use tax in Vietnam?

According to Article 12 of Circular 153/2011/TT-BTC, the regulations are as follows:

Competence to decide on tax exemption and reduction

1. Managing tax agencies shall base on tax declaration dossiers specified in Article 15 of this Circular to determine non-agricultural land use tax amounts to be exempted or reduced and decide on tax exemption or reduction for taxpayers according to each tax period.

2. Some specific cases:

a/ For households and individuals eligible for tax exemption or reduction under Clauses 4, 5 and 6, Article 10, and Clauses 2 and 3, Article 11 of this Circular, directors of district-level Tax Departments shall, based on the list proposed by commune-level People's Committees, issue common decisions on non-agricultural land use tax exemption or reduction.

Annually, commune-level People's Committees shall revise and send a list of entities eligible for tax exemption or reduction to tax agencies for the latter to effect tax exemption or reduction according to their competence.

b/ For taxpayers eligible for tax exemption or reduction under Clause 9, Article 10, and Clause 4, Article 11 of this Circular, heads of their managing tax agencies shall issue tax exemption or reduction decisions on the basis of taxpayers' applications and certification of commune-level People's Committees of localities where exists the damaged land.

c/ For other cases, taxpayers shall send their dossiers, enclosed with papers proving their eligibility for tax exemption or reduction as required or certification of commune-level People's Committees of localities where exists the taxable land, to their managing tax agencies for settlement.

Thus, the competence to decide on the reduction of non-agricultural land use tax is as follows:

- For households and individuals eligible for tax exemption or reduction under Clauses 4, 5 and 6, Article 10, and Clauses 2 and 3, Article 11 of Circular 153/2011/TT-BTC, directors of district-level Tax Departments shall, based on the list proposed by commune-level People's Committees, issue common decisions on non-agricultural land use tax exemption or reduction.

Annually, commune-level People's Committees shall revise and send a list of entities eligible for tax exemption or reduction to tax agencies for the latter to effect tax exemption or reduction according to their competence.

- For taxpayers eligible for tax exemption or reduction under Clause 9, Article 10, and Clause 4, Article 11 of Circular 153/2011/TT-BTC, heads of their managing tax agencies shall issue tax exemption or reduction decisions on the basis of taxpayers' applications and certification of commune-level People's Committees of localities where exists the damaged land.

- For other cases, taxpayers shall send their dossiers, enclosed with papers proving their eligibility for tax exemption or reduction as required or certification of commune-level People's Committees of localities where exists the taxable land, to their managing tax agencies for settlement.