Which types of land of investment projects be exempt from non-agricultural land use tax in Vietnam?

Which types of land of investment projects be exempt from non-agricultural land use tax in Vietnam?

Based on the provisions of Article 9 of the 2010 Law on Non-Agricultural Land Use Tax concerning tax exemption for non-agricultural land use as follows:

Tax Exemption

1. Land of an investment project in the field of special investment encouragement; an investment project in areas with particularly difficult socio-economic conditions; an investment project in fields encouraged for investment in areas with difficult socio-economic conditions; land of enterprises using more than 50% of the workforce consisting of war invalids and patients with war injuries.

2. Land of a facility implementing private investment in the fields of education, vocational training, health, culture, sports, and environment.

3. Land for building gratitude houses, great unity houses, facilities for caring for lonely elderly people, people with disabilities, orphans; social treatment facilities.

4. Residential land within the limits in areas with particularly difficult socio-economic conditions.

5. Residential land within the limits for those engaged in revolutionary activities before August 19, 1945; war invalids in categories 1/4, 2/4; people entitled to policies like war invalids categories 1/4, 2/4; sickness invalids category 1/3; heroes of the people's armed forces; Vietnamese heroic mothers; biological fathers, mothers, or those who have nurtured martyrs from a young age; spouses of martyrs; children of martyrs receiving monthly allowances; people engaged in revolutionary activities affected by Agent Orange; people affected by Agent Orange under difficult family circumstances.

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

7. Families and individuals who have their residential land acquired during the year according to an approved plan or project will be exempt from taxes in the actual year of land acquisition regarding the land in the acquired location and the land in the new residential lot.

8. Land with garden houses verified by a competent state agency as historical - cultural relics.

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

Thus, the land of an investment project exempt from non-agricultural land use tax includes:

- Investment projects in fields of special investment encouragement;

- Investment projects in areas with particularly difficult socio-economic conditions;

- Investment projects in fields encouraged for investment in areas with difficult socio-economic conditions;

- Land of enterprises employing more than 50% of the workforce as wounded and sick soldiers.

Will the investor who have many investment projects be exempt from non-agricultural land use tax for all investment projects in Vietnam?

Based on the provisions of Article 11 of the 2010 Law on Non-Agricultural Land Use Tax regarding principles of tax exemption and reduction as follows:

Principles of Tax Exemption and Reduction

1. Taxpayers eligible for both tax exemption and reduction on the same parcel will be exempted; taxpayers eligible for two or more cases of tax reduction specified in Article 10 of this Law will also be exempted.

2. Taxpayers of residential land only qualify for tax exemption or reduction at one location as chosen by the taxpayer, except for the cases specified in Clause 9 of Article 9 and Clause 4 of Article 10 of this Law.

3. Taxpayers with multiple investment projects eligible for tax exemption or reduction will implement exemptions or reductions according to each investment project.

4. Tax exemptions and reductions apply directly to the taxpayer and are calculated based only on the tax amount payable as prescribed by this Law.

Based on these provisions, taxpayers with multiple investment projects eligible for tax exemption will implement exemptions for each investment project.

Therefore, if all investment projects of the investor qualify for non-agricultural land use tax exemption, then tax exemption will apply to all those projects.

Which types of land of investment projects be exempt from non-agricultural land use tax in Vietnam? (Image from the Internet)

Who has the authority to decide on the exemption of non-agricultural land use tax for the tax-exempt land of an investment project in Vietnam?

The authority to decide on exemption from non-agricultural land use tax is prescribed in Clause 1, Article 12 of Circular 153/2011/TT-BTC. Specifically:

Authority to Decide on Tax Exemption and Reduction.

1. The tax authority directly managing, based on the tax declaration dossier as stipulated in Article 15 of this Circular, determines the amount of non-agricultural land use tax exempted or reduced and decides on tax exemption or reduction for taxpayers according to the tax calculation period.

...

Thus, the tax authority directly managing, based on the tax declaration dossier stipulated in Article 15 of Circular 153/2011/TT-BTC, determines the amount of non-agricultural land use tax exempted and decides on the exemption for taxpayers according to the tax calculation period.