Procedures and dossiers for exemption and reduction of agricultural land use tax in 2024 in Vietnam

Hello, Lawnet would like to respond as follows:

1. Cases of exemption or reduction of agricultural land use tax in Vietnam

According to Article 19 of the Law on Agricultural Land Use Tax dated July 10, 1993, by the National Assembly of Vietnam, there are four cases of exemption and reduction of agricultural land use tax:

(1) Tax exemption for barren hills and mountains used for agricultural and forestry production, protective forests, and special-use forests.

(2) Tax exemption for reclaimed land not specified in Clause 1 Article 19 of the Law on Agricultural Land Use Tax used for production:

- Annual crops: 5 years; for reclaimed land in mountainous areas, swamps, and reclaimed sea areas: 7 years;

- Perennial crops: tax exemption during the basic construction period and an additional 3 years from the time of harvest. For homestead land in mountainous areas, swamps, and reclaimed sea areas, add an additional 6 years.

- For timber trees and perennial trees harvested once, tax payment is only required upon harvest as stipulated in Clause 4, Article 9 of the Law on Agricultural Land Use Tax.

(3) Tax exemption for perennial crops replanted and annual crops converted to perennial or fruit trees: during the basic construction period and an additional 3 years from the time of harvest.

(4) The Government of Vietnam regulates the reduction or exemption of taxes on reclaimed land funded by the state budget.

Thus, there are four cases eligible for tax exemption or reduction in agricultural land use according to the tax law currently in effect in Vietnam, including: barren hills, protective forest land, newly reclaimed land, newly planted perennial crops, and land funded by the state budget...

At the same time, the tax exemption period depends on the type of crop, geographical conditions, and can last up to 7 years for newly reclaimed land.

2. Exemption or reduction procedures for agricultural land use tax in Vietnam

According to Article 58 of Circular 80/2021/TT-BTC promulgated by the Ministry of Finance of Vietnam on procedures for tax exemption and reduction for agricultural land use tax:

- In case the taxpayer faces difficulties due to natural disasters or fires, the exemption file includes:

+ Proposal document according to Form No. 01/MGTH issued with Appendix I of Circular 80/2021/TT-BTC;

+ Minutes determining the extent and value of asset damage by a competent authority, confirmed by the local government at the commune level where the natural disaster or fire occurred according to Form No. 02/MGTH issued with Appendix I of Circular 80/2021/TT-BTC;

+ Financial report (if it is an enterprise) accompanied by an explanatory analysis determining the damage and the loss due to the damage.

- In case the taxpayer faces difficulties due to unexpected accidents, the exemption or reduction file includes:

+ Proposal document according to Form No. 01/MGTH issued with Appendix I of Circular 80/2021/TT-BTC;

+ Document or minutes confirming the accident, confirmed by the police or confirming the extent of injury by a medical authority;

+ Documents determining the compensation by the insurance agency or the compensation agreement of the person causing the accident (if any);

+ Expenses directly relating to overcoming the accident.

- For cases of tax exemption and reduction for agricultural land use tax as prescribed by the Law on Agricultural Land Use Tax and guiding documents, follow the regulations of the Law on Agricultural Land Use Tax and guiding documents.

- For cases of agricultural land use tax exemption according to the National Assembly's Resolution for each period, follow the regulations in the Resolution of the National Assembly and guiding documents.

Sincerely!

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