Cases of non-agricultural land use tax exemption in Vietnam

Cases of non-agricultural land use tax exemption in Vietnam (Internet image) 

1. Objects liable to non-agricultural land use tax in Vietnam

Pursuant to Article 2 of Decree 53/2011/ND-CP, objects liable to non-agricultural land use tax in Vietnam are defined in Article 2 of the Law on Non-Agricultural Land Use Tax, specifically as follows:

- Residential land in rural and urban areas.

- Non-agricultural production and business land specified in Clause 2 of Article 2 of the Law on Non-Agricultural Land Use Tax. including:

+ Land for construction of industrial parks, including industrial clusters, industrial parks. export-processing zones and other production and business /ones, to which a common land use regime is applied:

+ Land for construction of production and business establishments, including industrial production, collage industry and handicraft businesses, service and trade establishments and other facilities in support of production and business operations (including also land for construction of production and business establishments in hi-tech parks and economic zones):

+ Land for mineral mining and land used as mineral processing sites, except cases in which mineral mining activities do not affect the top soil layer or the land surface;

+ Land for production of construction materials or pottery, including land used as raw materials and land used as construction material processing and production sites or sites for making pottery.

- Non-agricultural land defined in Article 3 of this Decree which is used by organizations, households or individuals for commercial purposes.

2. Cases of non-agricultural land use tax exemption in Vietnam

Article 9 of the Law on Non-agricultural Land Use Tax 2010 stipulates the cases of non-agricultural land use tax exemption in Vietnam as follows:

- Land of investment projects in domains eligible for special investment promotion; investment projects in areas with extreme 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.

- Land of establishments carrying out socialized educational, vocational training, healthcare, cultural, sports or environmental activities.

- 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.

- Residential land within the set quota in areas with extreme socioeconomic difficulties.

- 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;

+ Agent orange victims with difficult family circumstances.

- Poor households’ land within the set quota under the Government’s regulations.

- Households and individuals whose residential land is actually recovered in a year under the approved planning or plan will be exempt from tax on the recovered land and the land in the new place of residence in that year.

- Land with garden houses certified by a competent state agency as historical-cultural relics.

- 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.

- A household or individual shall be exempted from the annual tax on non-agricultural land use if the tax payable, after reduced owing to any tax exemption or deduction as per the Law on taxation of non-agricultural land use and guiding documents, is fifty thousand Vietnam dongs or less.

If such household or individual has several land parcels in a province, the exemption of the tax on non-agricultural land use, according to this Article, shall be based on the total tax payable on all land parcels. The procedure for exemption of non-agricultural land use tax, according to this Article, is governed by the Circular 153/2011/TT-BTC.

A household or individual who has paid the tax on non-agricultural land use to the state budget though being eligible for exemption of such tax as per this Circular, shall receive a refund of the tax from tax authorities according to the Law on tax administration and guiding documents.

(Article 9 of the  Law on Non-agricultural Land Use Tax 2010; Article 10 of Circular 153/2011/TT-BTC amended by Circular 130/2016/TT-BTC)

Ngoc Nhi

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