How to calculate non-agricultural land use tax in Vietnam? How to register, declare, calculate and pay non-agricultural land use tax?
How to register, declare, calculate and pay non-agricultural land use tax in Vietnam?
The registration, declaration, calculation and payment of non-agricultural land use tax is prescribed in Article 8 of the 2010 Law on Non-agricultural Land Use Tax of Vietnam as follows:
- Taxpayers shall register, declare, calculate and pay tax under the law on tax administration.
- Taxpayers shall register, declare, calculate and pay tax at tax offices of rural districts, urban districts, towns or provincial cities in which they have land use rights.
Taxpayers in deep-lying or remote areas difficult to access may register, declare, calculate and pay tax at commune-level People’s Committees. Tax offices shall create conditions for taxpayers to fulfill their obligations.
- When a taxpayer has the right to use many residential land plots, the taxable area is the total area of taxable residential-land plots within a province or centrally run city. Tax registration, declaration, calculation and payment are specified as follows:
+ Taxpayers shall register, declare, calculate and pay tax at tax offices of rural districts, urban districts, towns or provincial cities in which they have land use rights;
+ Taxpayers may choose the residential land quota applicable in a rural district, urban district, town or provincial city in which they have land use rights. A taxpayer who has one or more than one residential land plot in excess of the set quota may choose one place in which he/she has a residential land plot in excess of the set quota for determining the land plots’ area in excess of the set quota.
The applicable taxable price is the land price applied in each rural district, urban district, town or provincial city in which the land plot exists.
Taxpayers shall make general declarations according to a set form for determining the total area of residential land plots for which they have use rights and the paid tax amount, and send them to the tax office of the locality they have chosen for determining the residential land quota in order to pay the difference between the tax amount payable under this Law and the paid tax amount.
How to calculate non-agricultural land use tax in Vietnam? How to register, declare, calculate and pay non-agricultural land use tax?
How much is the current non-agricultural land use tax rates?
According to the provisions of Article 7 of the 2010 Law on Non-agricultural Land Use Tax of Vietnam, the tax rates for non-agricultural land are as follows:
(1) Tax rates for residential land, including land used for commercial purposes, to be applied according to the Partially Progressive Tariff are specified as follows:
Tax grade | Taxable land area (m2) | Tax rate (%) |
1 | Area within the set quota | 0.03 |
2 | Area in excess of up to 3 times the set quota | 0.07 |
3 | Area in excess of over 3 times the set quota | 0.15 |
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.
(2) Residential land of multi-story buildings with many households, condominiums or underground construction works is subject to the tax rate of 0.03%.
(3) Non-agricultural production and business land is subject to the tax rate of 0.03%.
(4) Non-agricultural land specified in Article 3 of this Law which is used for commercial purposes is subject to the tax rate of 0.03%.
(5) Land used for improper purposes or land not yet used under regulations is subject to the tax rate of 0.15%.
Land of a phased investment project as registered by the investor and approved by a competent state agency will not be regarded as unused land and is subject to the tax rate of 0.03%.
(6) Encroached or appropriated land is subject to the tax rate of 0.2% and has no applicable quota. Tax payment does not serve as a basis for recognizing taxpayers’ lawful land use rights for the encroached or appropriated land area.
How to calculate non-agricultural land use tax in Vietnam?
Pursuant to Article 5 of the 2010 Law on Non-agricultural Land Use Tax, Article 6 of the 2010 Law on Non-agricultural Land Use Tax, Article 7 of the 2010 Law on Non-agricultural Land Use Tax and Article 4 of Circular 153/2011/TT-BTC, Article 5 of Circular 153/2011/TT-BTC, the calculation of non-agricultural land use tax is as follows:
Non-agricultural land use tax = Taxable land area x Price of 1m2 of taxed land x Tax rate
In which:
(1) The taxable land area is specified in Clause 2, Article 6 of the 2010 Law on Non-agricultural Land Use Tax of Vietnam as follows:
- Taxable land area is 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.
(2) The price of 1m2 of taxable land is specified in Clause 3, Article 6 of the 2010 Law on Non-agricultural Land Use Tax of Vietnam and Article 5 of Decree 153/2011/ND-CP:
- 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 January 1, 2012.
- In case there is a change in taxpayers during the stable cycle or there are factors that lead to a change in the price of 1 m2 of taxable land, the price of 1 m2 of taxed land is not required to be re-determined for the remaining period of the cycle.
- In case land is allocated or leased by the State, in case the land use purpose is changed from agricultural land to non-agricultural land or from non-agricultural production and business land to residential land in a stable cycle, the price of 1 m2 of taxed land is the land price according to the use purpose set by the provincial-level People's Committee at the time of land allocation, land lease or the time of change of land use purpose and is stable for the remaining period of the cycle.
(3) Tax rates as prescribed in Article 7 of the 2010 Law on Non-agricultural Land Use Tax of Vietnam.
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