Vietnam: Cases of exemption from non-agricultural land use tax

According to Article 9 of the Law on Non-Agricultural Land Use Tax 2010 of Vietnam and Article 10 of Circular No. 153/2011/TT-BTC, cases of exemption from non-agricultural land use tax include:

One, land of investment projects in the sectors eligible for special investment promotion (special investment incentives); investment projects in geographical areas with extreme socio-economic difficulties; investment projects in the sectors eligible for investment promotion (investment incentives) in geographical areas with socio-economic difficulties; and land of enterprises with over 50% of their employees being war invalids or diseased soldiers.

Two, land of establishments carrying out socialized activities in education, vocational training, health, culture, sports and environmental protection. These establishments include:

- Non-public establishments set up and qualified for carrying out socialized activities under regulations of competent state agencies;

- Organizations and individuals operating under the Enterprises Law that have investment projects, joint-venture or associated activities or establish establishments qualified for carrying out socialized activities under regulations of competent state agencies;

- Public non-business establishments that contribute capital to, or raise capital for jointly setting up independent cost-accounting units or enterprises carrying out socialized activities under decisions of competent slate agencies;

- Tax exemption for foreign-investment projects carrying out socialized activities shall be decided by the Prime Minister at the proposal of the Ministry of Planning and Investment and relevant line ministries.

Establishments carrying out socialized education, vocational training, healthcare, cultural, sports and environmental activities must satisfy the requirements on operation scope and standards under the Prime Minister's decisions.

Three, land for construction of gratitude houses, great-unity houses and nursing homes for lonely elderly people, people with disabilities or orphans, and social disease- treatment establishments.

Four, within-quota residential land in geographical areas with extreme socio-economic difficulties.

Five, within quota residential land of persons engaged in revolutionary activities before August 19, 1945; war invalids of 1/4 or 2/4 grade; persons entitled to policies like war invalids of 1/4 or 2/4 grade; diseased soldiers of grade 1/3; heroes of people's armed forces; heroic Vietnamese mothers; natural parents and nurturing persons of martyrs during their childhood; spouses of martyrs; martyrs' children eligible for monthly allowances; Agent Orange victims who are revolutionary activists; and disadvantaged Agent Orange victims.

Six, within-quota residential land of poor households identified under the Prime Minister's decision on poverty line. In case provincial-level People's Committees have specified a poverty line applicable in their localities according to law, poor households shall be identified under the poverty line promulgated by provincial-level People's Committees.

Seven, households and individuals whose residential land is recovered by the State in a year under approved master plans or plans will be exempt from tax on recovered land and the land in the new place of residence in that year.

Eight, land with garden houses certified by a competent state agency as historical-cultural relics.

Nine, taxpayers facing 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.

In this case, certification of commune-level People's Committees of the localities where exists such land is required.

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

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