GOVERNMENT
OFFICE OF VIETNAM |
SOCIALIST
REPUBLIC OF VIETNAM |
No. 05/VBHN-VPQH |
Hanoi, September 16, 2024 |
ON NON-AGRICULTURAL LAND USE TAX
Law on Non-Agricultural Land Use Tax No. 48/2010/QH12 dated November 14, 2008 of the National Assembly, which comes into force from June 17, 2010, is amended by:
1. Land Law No. 31/2024/QH15 dated January 18, 2024 of the National Assembly, which comes into force from August 01, 2024 [1];
2. Law No. 43/2024/QH15 dated June 29, 2024 of the National Assembly on amendments to certain Articles of Land Law No. 31/2024/QH15, Housing Law No. 27/2023/QH15, Law on Real Estate Business No. 29/2023/QH15 and Law on Credit Institutions No. 32/2024/QH15, which comes into force from August 01, 2024.
Pursuant to 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10;
The National Assembly hereby promulgates the Law on Non-Agricultural Land Use Tax [2].
This Law provides for objects liable or not liable to, payers of, bases for, registration, declaration, calculation and payment of, exemption from and reduction of, non-agricultural land use tax.
1. Residential land in rural and urban areas.
2. Non-agricultural production and business land, including land for the construction of industrial parks; land for the construction of production and business establishments; land for mineral exploitation and processing; and land for the production of construction materials and pottery articles.
3. Non-agricultural land specified in Article 3 of this Law which is used for commercial purposes.
Article 3. Objects not liable to tax
Non-agricultural land used for purposes other than commercial ones, including:
1. Land used for public purposes, including traffic and irrigation land, land for the construction of cultural, healthcare, education and training, and physical training and sports works for public interests; land with historical-cultural monuments or scenic places; and land for the construction of other public works under the Government’s regulations;
2. Land used by religious institutions;
3. Land used for cemeteries and graveyards;
4. Land covered by rivers, streams, canals, creeks and streams and dedicated water-covered land;
5. Land with communal houses, temples, worship halls or clans’ worship houses;
6. Land for construction of office buildings and public service providers' building or for national defense and security purposes;
7. Other non-agricultural land provided for by law.
1. Taxpayers are organizations, households and individuals that have the right to use tax-liable land specified in Article 2 of this Law.
2. When organizations, households or individuals have not yet been granted certificates of LURs and ownership of housing and other property affixed to land (below collectively referred to as certificates), current land users will be taxpayers.
3. Taxpayers in some specific cases are identified as follows:
a) When land is leased by the State for the implementation of investment projects, lessees will be taxpayers;
b) When persons having land use rights lease land under contracts, taxpayers shall be identified as agreed upon in these contracts. When no agreement on taxpayers is made in contracts, persons having land use rights will be taxpayers;
c) When land has been granted a certificate but is currently under dispute, pending the dispute settlement, current land users will be taxpayers. Tax payment does not serve as a ground for the settlement of disputes over land use rights;
d) When many persons have the right to co-use a land parcel, the lawful representative of these co-users will be the taxpayer;
dd) When a person having land use rights contributes his/her land use rights as business capital, thereby forming a new legal entity that has the right to use tax-liable land specified in Article 2 of this Law, the new legal entity will be the taxpayer.
TAX BASES, REGISTRATION, DECLARATION, CALCULATION AND PAYMENT
Tax bases are taxable price and tax rate.
1. Taxable price of land is the taxable land area multiplied by the price of one square meter of land.
2. 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 parcels, the taxable land area is the total area of taxable land parcels.
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;
b) 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 multi-storey 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;
c) 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.
3. [3] The price of a square meter of land is the land price according to the land price list corresponding to the purpose of use and is set for a 5-year stabilization period.
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 |
2. 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:
a) 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;
b) 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.
3. Residential land of multi-story buildings with many households, condominiums or underground construction works is subject to the tax rate of 0.03%.
4. Non-agricultural production and business land is subject to the tax rate of 0.03%.
5. 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%.
6. 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%.
7. Trespassed 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 trespassed or appropriated land area.
Article 8. Tax registration, declaration, calculation and payment
1. Taxpayers shall register, declare, calculate and pay tax under the law on tax administration.
2. Taxpayers shall register, declare, calculate and pay tax at tax authorities 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 authorities shall create conditions for taxpayers to fulfil their obligations.
3. When a taxpayer has the right to use many residential land parcels, the taxable area is the total area of taxable residential-land parcels within a province or central-affiliated city. Tax registration, declaration, calculation and payment are specified as follows:
a) Taxpayers shall register, declare, calculate and pay tax at tax authorities of rural districts, urban districts, towns or provincial cities in which they have land use rights;
b) 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 parcel in excess of the set quota may choose one place in which he/she has a residential land parcel in excess of the set quota for determining the land parcels’ 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 parcel exists.
Taxpayers shall make general declarations according to a set form for determining the total area of residential land parcels for which they have use rights and the paid tax amount, and send them to the tax authority 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.
1. Land of investment projects in domains eligible for special investment promotion; investment projects in areas with extremely socio-economic difficulties; investment projects in domains eligible for investment promotion in areas with socio-economic difficulties; and land of enterprises with over 50% of their employees being war invalids and diseased soldiers.
2. Land of establishments carrying out socialized educational, vocational training, healthcare, cultural, sports or environmental activities.
3. Land for the construction of houses of gratitude, houses of great solidarity, establishments nurturing lonely aged people, people with disabilities or orphans, and social-disease treatment establishments.
4. Residential land within the set quota in areas with extremely socio-economic difficulties.
5. Residential land within the set quota , of revolutionary activists before August 19, 1945; war invalids of 1/4 or 2/4 grade and people enjoying policies like these war invalids; diseased soldiers of 1/3 grade; people’s armed forces heroes; heroic Vietnamese mothers; natural parents of, or people nurturing, martyrs when they were minors; spouses of martyrs; martyrs’ children eligible for monthly allowances; agent orange victims who are revolutionary activists; and agent orange victims with difficult family circumstances.
6. Poor households’ residential land within the set quota under the Government’s regulations.
7. Households and individuals whose residential land is actually expropriated in a year under the approved planning or plan will be exempt from tax on the expropriated land and the land in the new place of residence in that year.
8. Land with garden houses certified by a competent state agency as historical-cultural monuments.
9. Taxpayers who face difficulties due to force
majeure circumstances if the value of damage related to land and houses on land
accounts for over 50% of the taxable price.
Fifty per cent reduction of the tax amount payable is applied in the following cases:
1. Land of investment projects in domains eligible for investment promotion; investment projects in areas with socio-economic difficulties; and land of enterprises with between 20% and 50% of their employees being war invalids and diseased soldiers;
2. Land within the set quota in areas with socio-economic difficulties;
3. Land within the set quota, of war invalids of 3/4 or 4/4 grade and people enjoying policies like these war invalids; diseased soldiers of 2/3 or 3/3 grade; and martyrs’ children ineligible for monthly allowances;
4. Taxpayers who face difficulties due to force majeure circumstances if the value of damage related to land and houses on land accounts for between 20% and 50% of the taxable price.
Article 11. Tax exemption and reduction principles
1. Taxpayers who are eligible for both tax exemption and reduction for the same land parcel will be exempt from tax. Taxpayers who concurrently fall into two or more cases eligible for tax reduction specified in Article 10 of this Law will be exempt from tax.
2. Residential land taxpayers will be eligible for tax exemption or reduction only in one place chosen by them, except the cases specified in Clause 9, Article 9 and Clause 4, Article 10 of this Law.
3. Taxpayers who have many investment projects eligible for tax exemption or reduction will enjoy tax exemption or reduction under each investment project.
4. Tax exemption or reduction will only apply directly to taxpayers and be calculated only on the tax amounts payable under this Law.
1. This Law comes into force from January 1, 2012.
2. The following legal documents will cease to be effective on the effective date of this Law:
a) The 1992 Ordinance on Housing and Land Tax;
b) The 1994 Ordinance Amending and Supplementing certain Articles of the Ordinance on Housing and Land Tax.
Article 13. Implementation detailing and guidance
The Government shall detail and guide necessary contents of this Law to meet state management requirements./.
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CERTIFIED BY CHAIRPERSON |
[1] Land Law No. 31/2024/QH15 (previously takes effect from January 01, 2025) now comes into force from August 01, 2024 as prescribed in clause 2 Article 1 of Law No. 43/2024/QH15 on amendments to certain Articles of Land Law No. 31/2024/QH15, Housing Law No. 27/2023/QH15, Law on Real Estate Business No. 29/2023/QH15 and Law on Credit Institutions No. 32/2024/QH15, which comes into force from August 01, 2024.
[2] Land Law No. 31/2024/QH15 is pursuant to:
“The Constitution of the Socialist Republic of Vietnam;
The National Assembly hereby promulgates the Land Law.”.
Law No. 43/2024/QH15 amending certain articles of Land Law No. 31/2024/QH15, Housing Law No. 27/2023/QH15, Law on Real Estate Business No. 29/2023/QH15 and Law on Credit Institutions No. 32/2024/QH15 is pursuant to:
“The Constitution of the Socialist Republic of Vietnam;
The National Assembly hereby promulgates a Law on amendments to certain Articles of Land Law No. 31/2024/QH15, Housing Law No. 27/2023/QH15, Law on Real Estate Business No. 29/2023/QH15 and Law on Credit Institutions No. 32/2024/QH15.”.
[3] This clause is amended as prescribed in Article 249 of Land Law No. 31/2024/QH15 which comes into force from August 01, 2024 as prescribed in clause 2 Article 1 of Law No. 43/2024/QH15 on amendments to certain Articles of Land Law No. 31/2024/QH15, Housing Law No. 27/2023/QH15, Law on Real Estate Business No. 29/2023/QH15 and Law on Credit Institutions No. 32/2024/QH15, which comes into force from August 01, 2024.
[4] Article 252 and Article 253 of Land
Law No. 31/2024/QH15, which comes into force from August 01, 2024, provide for:
“Article 252. Entry into force
1. This Law comes into force from January 01, 2025, except for the cases specified in Clause 2 and Clause 3 of this Article.
2. Article 190 and Article 248 of this Law comes into force from April 01, 2024.
3. The development and approval of land use planning may continue complying with Resolution No. 61/2022/QH15 dated June 16, 2022 of the National Assembly on continuing to strengthen the effect and efficiency of policies and laws on planning and a number of solutions to remove difficulties, speed up the formulation and improve the quality of planning for the 2021-2030 period.
Clause 9 Article 60 of this Law comes into force from the date on which Resolution No. 61/2022/QH15 expires.
4. Land Law No. 45/2013/QH13 which was amended by Law No. 35/2018/QH14 (hereinafter referred to as “Land Law No. 45/2013/QH13) becomes invalid from the effective date of this Law.
Article 253. Transitional provisions on land use planning and plans when this Law comes into force
1. Land use planning and plans that have been decided and approved by competent regulatory agencies before the effective date of this Law may continue to be developed and adjusted when reviewing land use planning and plans according to Article 73 hereof.
2. A local authority that has provincial planning for the period of 2021 - 2030 approved according to planning laws before the effective date of this Law may continue using the land distribution and zoning arrangement in the provincial planning to carry out land management until the end of the planning period. The adjustment to the provincial planning shall comply with Law on Planning No. 21/2017/QH14.”.
Article 5 of Law No. 43/2024/QH15 on amendments to certain Articles of Land Law No. 31/2024/QH15, Housing Law No. 27/2023/QH15, Law on Real Estate Business No. 29/2023/QH15 and Law on Credit Institutions No. 32/2024/QH15, which comes into force from August 01, 2024, provides for:
“This Law comes into force from August 1, 2024.”.
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This translation is made by THƯ VIỆN PHÁP LUẬT, Ho Chi Minh City, Vietnam and
for reference purposes only. Its copyright is owned by THƯ VIỆN PHÁP LUẬT
and protected under Clause 2, Article 14 of the Law on Intellectual Property.Your comments are always welcomed