In 2024, what are cases of exemption from non-agricultural land use tax in Vietnam?
In 2024, what are cases of exemption from non-agricultural land use tax in Vietnam?
Based on Article 9 of the 2010 Law on Non-Agricultural Land Use Tax, the cases exempt from non-agricultural land use tax include:
[1] Land of investment projects in sectors specially encouraged for investment; investment projects in areas with exceptionally difficult socio-economic conditions; investment projects in sectors encouraged for investment in areas with difficult socio-economic conditions; land of enterprises using more than 50% of their workforce as war invalids and sick soldiers.
[2] Land of facilities conducting private investment activities in the fields of education, vocational training, healthcare, culture, sports, environment.
[3] Land used for building charity housing, unity houses, facilities for nurturing lonely elderly people, persons with disabilities, orphans; social treatment facilities.
[4] Residential land within the land quota in areas with exceptionally difficult socio-economic conditions.
[5] Residential land within the land quota of:
- Revolutionaries active before August 19, 1945
- First-class and second-class war invalids
- Persons entitled to policies equivalent to first-class and second-class war invalids
- First-class sick soldiers
- Heroes of the people's armed forces
- Heroic Vietnamese Mothers
- Biological parents, foster parents of martyrs
- Spouses of martyrs
- Children of martyrs receiving monthly allowances
- Revolutionaries affected by toxic chemicals
- Persons affected by toxic chemicals with difficult family circumstances.
[6] Residential land within the land quota of poor households as defined by the Government of Vietnam.
[7] Households or individuals whose homestead land is reclaimed during the year according to plans approved by competent state authorities are exempt from tax for the year in which the land is reclaimed, both at the reclaimed site and the new residence site.
[8] Land with garden houses recognized as historical-cultural relics by competent state authorities.
[9] Taxpayers facing difficulties due to force majeure events if the damage to the land and buildings on it exceeds 50% of the taxable value.
In 2024, what are cases of exemption from non-agricultural land use tax in Vietnam? (Image from the Internet)
What are types of non-agricultural land in Vietnam?
Based on Article 9 of the 2024 Land Law, land is classified as follows:
Article 9. Land Classification
1. Based on the purpose of use, land is classified into agricultural land, non-agricultural land, and unused land.
2. The agricultural land group includes the following types:
a) Land for annual crops, including rice cultivation land and other annual crops land;
b) Land for perennial crops;
c) Forestry land, including special-use forest land, protection forest land, production forest land;
d) Land for aquaculture;
dd) Land for concentrated livestock breeding;
e) Land for salt production;
g) Other agricultural land.
3. The non-agricultural land group includes the following types:
a) Residential land, including homestead land in rural and urban areas;
b) Land for constructing office buildings;
c) Land used for national defense and security purposes (hereinafter referred to as national defense and security land);
d) Land for constructing public utility structures, including land for cultural, social, healthcare, education and training, physical training and sports, science and technology, environment, hydrometeorology, diplomacy, and other public utility structures, or land for constructing offices of other public service providers;[...]
Thus, non-agricultural land includes the following types:
- Residential land, including homestead land in rural and urban areas;
- Land for constructing office buildings;
- Land used for national defense and security purposes;
- Land for constructing public utility structures, including:
+ Land for cultural, social, healthcare, education and training, physical training and sports, science and technology, environment, hydrometeorology, diplomacy, and other public utility structures;
+ Land for constructing offices of other public service providers;
- Land for non-agricultural production and business, including:
+ Industrial land, industrial cluster land;
+ Commercial and service land;
+ Land for non-agricultural production establishments;
+ Land for mining activities;
- Land for public purposes, including:
+ Land for transport structures;
+ Land for irrigation structures;
+ Land for water supply and drainage structures;
+ Land for disaster prevention structures;
+ Land with historical and cultural relics, scenic spots, and natural heritage;
+ Land for waste treatment structures;
+ Land for energy structures and public lighting;
+ Land for postal, telecommunications, and information technology infrastructure;
+ Land for marketplaces and wholesale markets;
+ Land for public amusement and recreation areas and community activities;
- Land used for religious activities; land used for belief activities;
- Land for cemeteries, funeral homes, cremation facilities;
- Land for storing ashes and bones;
- Land with specialized water surfaces;
- Other non-agricultural land.
How will the state of Vietnam compensate for the expropriation of non-agricultural land?
Based on Article 99 of the 2024 Land Law, land-related recompense when the State expropriates non-agricultural land which is not homestead land of households/individuals is regulated as follows:
Article 99. Land-related recompense when the State expropriates non-agricultural land which is not homestead land of households/individuals
- Households and individuals using non-agricultural land that is not homestead land when reclaimed by the state, if eligible for compensation under Article 95 of this Law, are compensated with land of the same purpose as the reclaimed land or with money based on the remaining land use term for land with a fixed term, or with land of a different purpose from the reclaimed land, or with housing.
- Households and individuals using non-agricultural land that is not homestead land leased by the state with land rent paid one time for the entire lease term but exempt from land rent when reclaimed by the state, if eligible for compensation under Article 95 of this Law, are compensated for the land.
- The Government of Vietnam provides detailed regulations for this Article.
Thus, if non-agricultural land that is not homestead land is expropriated by the state and is eligible for compensation, compensation is provided in the form of land with the same purpose as the expropriated land or with money based on the remaining use term of the land, or with land of a different purpose from the expropriated land, or with housing.
