When using non-agricultural land, organizations, individuals or households must pay land use tax. The following are taxable subjects and how to calculate non-agricultural land use tax.
Article table of contents
1. Tax-liable non-agricultural land
According to Article 1 of Circular No. 153/2011/TT-BTC of the Ministry of Finance of Vietnam, the following types of non-agricultural land are subject to land use tax, including:
- Residential land in rural and urban areas.
- 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;
+ 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;
+ 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.
Thus, not all types of non-agricultural land are subject to tax. Organizations, households, and individuals do not have to pay tax on non-agricultural land use when this use is not for production or business purposes.
2. Calculation of non-agricultural land use tax
The non-agricultural land use tax amount payable for residential land, production and business land and non-agricultural land which are used for commercial purposes shall be determined according to the following formula:
In which:
To calculate the amount of tax incurred, taxable land area, the price of a square meter of land and tax rate must be determined. To be specific:
Taxable land area: According to Article 5 of Circular No. 153/2011/TT-BTC, taxable land area is the actual used area of non-agricultural land.
The price of a square meter of land: The price of land based on its use purpose which is set by the provincial-level People's Committee and kept stable for a 5-year period.
Note:
- In case of changing taxpayers or arising any elements that lead to the change of the price of a square meter of taxable land during a stabilization period, it is not required to re-determine the price of a square meter of taxable land for the remainder of the period.
- In case land is allocated or leased by the State or converted from agricultural to non-agricultural or from non-agricultural production and business to residential during a stabilization period, the price of a square meter of taxable land is the price of land based on its use purpose, which is set by the provincial-level People's Committee at the time of land allocation or lease or at the time of converting the land use purpose and kept unchanged for the remainder of the period.
- For improperly used land or encroached or appropriated land, the price of a square meter of taxable land is the price of land based on its current use purpose which is set by the provincial-level People's Committee for application in the locality.
Tax rate:
Residential land, including residential land used for commercial purposes, is subject to the partially progressive tariff as follows:
Other types of land:
Above are the types of non-agricultural land subject to land use tax and how to calculate non-agricultural land use tax.
Legal basis: Circular No. 153/2011/TT-BTC.
Ngoc Tai
- Key word:
- Non-agricultural land
.png)
