What are the types of land subject to non-agricultural land use tax in Vietnam?

Non-agricultural land use tax-liable objects in Vietnam

Pursuant to Article 1 of Circular 153/2011/TT-BTC, the following types of land are subject to non-agricultural land use tax:

- Residential land in rural and urban areas defined in the Land Law 2003 and its guiding documents.

- Non-agricultural production and business land, including:

= Land for construction of industrial parks, including industrial clusters, industrial parks, export-processing zones and other consolidated production and business zones subject to a common land use regime;

= Land for construction of production and business establishments, including industrial production, cottage industry and handicraft businesses; service and trade establishments and other facilities serving 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 land surface;

Example 1: Company A is leased land by the State for coal mining. Of the total leased area of 2,000 m2, forest land occupies 1,000 m2, and the remaining land area is used as coal mining and processing sites. If coal mining does not affect the forest land, the forest land area is not liable to tax.

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

- Non-agricultural land which is used by organizations, households or individuals for commercial purposes.

What are the types of land subject to non-agricultural land use tax in Vietnam? (Internet image)

Types of land not subject to non-agricultural land use tax in Vietnam

Pursuant to Article 2 of Circular 153/2011/TT-BTC, non-agricultural land used for non­commercial purposes which is not liable to tax includes:

(1) Land used for public utilities, including:

- Traffic and irrigation land, including land for construction of roads, bridges, sluices, pavements, railways, airport and airfield infrastructure, including also land planned for construction of airports or airfields under phased investment projects which have been approved but not yet implemented, land for construction of water supply systems (excluding water plants), water drainage systems, irrigation work systems, dikes and dams, and land within traffic and irrigation safety corridors;

Land for construction of airport and airfield infrastructure shall be determined under the Government's Decree No. 83/2007/ND-CP of May 25, 2007, on management and operation of airports and airfields, and its guiding and amending documents (if any).

- Land for construction of cultural, healthcare, education and training, physical training and sport facilities for public interests, including crèches, schools, hospitals, marketplaces, parks, flower gardens, children's recreation centers, public squares, cultural works, postal and cultural spots of communes, wards and townships, monuments, commemorative stelae, museums, functional rehabilitation institutions for persons with disabilities, vocational training schools, drug detoxification institutions, reformatories, dignity restoration camps and nursing homes for elderly persons and disadvantaged children;

- Land with historical and cultural relics or scenic places which have been ranked or placed under protection under decisions of People's Committees of provinces and centrally run cities (below referred to as provincial-level People's Committees):

Land for construction of other public works, including land used for public-utility purposes in urban centers and rural residential areas; land for construction of common-utility infrastructure facilities in industrial parks, hi-tech parks and economic zones under approved plans;

Land for construction of power transmission lines, communication networks, petrol, oil and gas pipelines and their safety corridors; land of power stations, irrigation reservoirs and dams;

Land of funeral homes and crematories; land of landfills, garbage dumping grounds and waste treatment complexes approved by competent state agencies.

Land used for public-utility purposes in urban centers and rural residential areas shall be determined under Circular No. 06/ 2007/TT-BTNMT and its amending documents (if any).

(2) Land used by religious bodies, including land of pagodas- churches, oratories, chancels, monasteries, religious training institutions, offices of religious organizations and other religious bodies permitted by the State.

(3) Land used as cemeteries and graveyards.

(4) Land under rivers, canals, ditches, streams and special-use water surface.

(5) Land with communal houses, temples, hermitages, clans' worship halls, including land areas for building these works and their premises;

In this case, land must meet all the conditions for the grant of land use right certificates prescribed in Clause 8, Article 50 of the 2003 Land Law and its guiding documents.

(6) Land for construction of working offices and non-business works, including:

- Land of working offices of state agencies, political organizations, socio-political organizations and public non-business organizations; offices of Vietnam-based foreign diplomatic representative missions and consulates and international intergovernmental organizations entitled to privileges and immunities like foreign diplomatic representative missions in Vietnam;

In case state organizations and agencies, people's armed forces units, public non-business units, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, and socio-professional organizations use land allocated by the State for construction of their working offices or non-business establishments for other purposes, they shall comply with the Law on Management and Use of State Assets and its guiding documents;

- Land for construction of economic, cultural, social, scientific and technological and diplomatic non-business works of state agencies, political organizations, socio-political organizations and public non-business organizations.

(7) Land used for defense and security purposes, including:

- Land of barracks and army camps;

- Land of military bases;

- Land of national defense works, battlefields and other special defense and security works;

- Land of military stations and ports;

- Land of industrial and science and technology works to directly serve national defense and security;

- Land of warehouses of people's armed forces units;

- Land of firing ranges, drill grounds, weapon testing grounds and weapon disposal sites;

- Land of guest houses, public-duty houses, competition halls, gyms and other facilities within barracks and camps of people's armed forces units;

- Land of prisons, detention houses, educational institutions and reformatories managed by the Ministry of National Defense or the Ministry of Public Security;

- Land of other combat works and defense and security works specified by the Government.

(8) Non-agricultural land for construction of works of agricultural, forestry, aquaculture or salt-making cooperatives; land in urban areas which is used for construction of glasshouses and other buildings for farming purposes, including cases in which crops are not planted directly on land; land for construction of stables and farms for raising livestock, poultry and other animals as permitted by law; land for construction of agricultural, forestry and fishery research and testing farms and stations; land for construction of seedling plant and breeding animal nurseries; land for construction of households' and individuals' warehouses to store farm produce, plant protection drugs, fertilizers and agricultural machines and tools.

Mai Thanh Loi

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