The Law on Non-Agricultural Land Use Tax of Vietnam consists of 4 chapters, 13 articles, provides for objects liable or not liable to, payers of, bases for, registration, declaration, calculation and payment of, exemption from and reduction of, non-agricultural land use tax. Primary contents of this Law are as follows:
Article table of contents
Tax-liable objects: According to the Law on Non-Agricultural Land Use Tax of Vietnam, tax-liable objects include: residential land in rural and urban areas; non-agricultural production and business land; and non-agricultural land specified in Article 3 of this Law which is used for commercial purposes.
Taxpayers: This Law stipulates that taxpayers are organizations, households and individuals that have the right to use tax-liable land specified in Article 2 of this Law. When organizations, households or indivi-duals have not yet been granted land use right certi-ficates or house and land-attached asset ownership certificates (below collectively referred to as certificates), current land users will be taxpayers.
Tax bases: According to the Ordinance on Land and Property Tax, the basis for calculating taxes is determined by the agricultural land tax valuation (land area, land classification, and tax rate). The land tax rate is determined as a multiple of 1 to 32 times the agricultural land tax valuation. To align with the Land Law 2003 and practical requirements, the law clearly specifies that the basis for calculating taxes is the tax assessment value and the tax rate.
Taxable price: Taxable price of land is the taxable land area multiplied by the price of one square meter of land. The taxable land area is the actually used land area.; when a person has the right to use many residential land plots, the taxable land area is the total area of taxable land plots. The price of a square meter of land is the price of land based on its use purpose which is set by the provincial-level People’s Committee for a 5 year stabilization period from the effective date of this Law.
Tax rates: Tax rates for residential land, including land used for commercial purposes, to be applied according to the Partially Progressive Tariff are specified as follows:
The residential land quota used as a basis for tax calculation is the new quota of residential land allocation set by provincial-level People’s Committees from the effective date of this Law.
Residential land of multi-story buildings with many households, condominiums or underground construction works is subject to the tax rate of 0.03%.
Non-agricultural production and business land is subject to the tax rate of 0.03%.
Non-agricultural land specified in Article 3 of this Law which is used for commercial purposes is subject to the tax rate of 0.03%.
Land used for improper purposes or land not yet used under regulations is subject to the tax rate of 0.15%.
Encroached or appropriated land is subject to the tax rate of 0.2% and has no applicable quota. Tax payment does not serve as a basis for recognizing taxpayers’ lawful land use rights for the encroached or appropriated land area.
Tax exemption and tax reduction: The law provides exemptions and reductions in taxes based on the inheritance of the Ordinance on Land and Property Tax, while also supplementing provisions for tax exemptions for certain entities, such as investment incentive recipients, in accordance with the provisions of the Investment Law; land of establishments carrying out socialized educational, vocational training, healthcare, cultural, sports or environmental activities; residential land within the set quota of revolutionary activists; households and individuals whose residential land is actually recovered in a year under the approved planning or plan to alleviate difficulties for these entities.
The Law on Non-Agricultural Land Use Tax of Vietnam comes into force from January 01, 2012.
Source: Bao dien tu Dai bieu nhan dan
