Legal Counselling

Principles of non-agricultural land use tax exemption and reduction in Vietnam

Kim Linh

14:10, 08/08/2014

The Law on Non-Agricultural Land Use Tax of Vietnam was promulgated on June 17, 2020, of which one of the fundamental contents is the regulation on tax exemption and reduction principles.

Specifically, according to Article 11 of the Law on Non-Agricultural Land Use Tax 2010 of Vietnam and Article 9 of Circular No. 153/2011/TT-BTC, tax exemption and reduction must comply with the following principles:

One, tax exemption and reduction will only apply directly to taxpayers and be calculated based on the lax amounts payable under the Law on Non-Agricultural Land Use Tax 2010 and Circular No. 153/2011/TT-BTC.

Two, tax exemption and reduction for residential land shall apply only to residential land registered under the name of taxpayers in a locality chosen by themselves, except the cases specified in Clause 9, Article 10, and Clause 4, Article 11 of Circular No. 153/2011/TT-BTC.

Three, a taxpayer that is eligible for both tax exemption and reduction for a single land plot may enjoy tax exemption.

A taxpayer eligible for tax reduction under two or more conditions specified in Article 11 of Circular No. 153/2011/TT-BTC may enjoy tax exemption.

In case both the taxpayer and at least one member of his/her household are eligible for a 50% reduction of tax each, the taxpayer's household may enjoy tax exemption. These persons must have grandparent-grandchild or parent-child relations and be named in the household's permanent residence registration book.

Four, a taxpayer that has many investment projects eligible for tax exemption or reduction may enjoy tax exemption or reduction for each investment project.

View more details at: The Law on Non-Agricultural Land Use Tax 2010 of Vietnam and Circular No. 153/2011/TT-BTC officially take effect from January 01, 2012.

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