Residential land is a very common type of land in daily life. But not everyone knows whether to pay taxes on this type of land or not. So about the matter “Do you have to pay residential land tax every year in Vietnam?” Let’s find out with LSX in the article below.
Legal grounds
- Land Law 2013
What is residential land?
Residential land is understood in the simplest way that is land built to live in or used to build houses. According to the provisions of the Land Law, residential land belongs to the group of non-agricultural land. This is also the common name that people often use. In particular, individuals, organizations or households using residential land must pay tax according to the provisions of law. This is a mandatory rule that most people must follow.
Who is subject to residential land tax?
Residential land in this case is not simply land used for “residential” but also includes residential land and land used for business purposes. These are the subjects subject to residential land tax, paying residential land tax according to the latest regulations in accordance with current tax laws.
Specifically in each case will be as follows:
Landscape
Residential land is land used to build houses and build other works in service of one’s life. Residential land includes garden and pond land attached to houses in the same land plot in residential areas or attached to separate houses (only cases recognized as residential land by competent authorities).
Residential land is usually divided into two groups: residential land in rural areas and residential land in urban areas.
Residential land in rural areas is the land within the administrative boundaries of the commune, except for the land in the new urban area which is still under the management of the commune but is included in the development planning of districts, towns and cities.
Residential land in rural areas currently being used by individuals and families includes land for construction of houses, works in service of life, gardens and ponds in the same land plot. In line with policies on land use planning and construction planning approved by state agencies.
Urban residential land means land within the administrative boundaries of a ward or township. Especially, unlike residential land in rural areas, residential land in urban areas, including residential land in new urban areas, has implemented the development planning according to regulations, but is still under the management of the commune.
In addition, residential land in urban areas also includes land for construction of houses, works in service of life, gardens and ponds in the same land plot in accordance with approved planning policies.
House
Housing is a building built for the main purpose of living and serving the daily life of individuals and households as well as meeting other basic practical needs.
Housing is divided into many different types, specifically as follows:
Separate house: is understood as a house built on a separate residential land plot but still under the legal ownership and right of use of organizations, individuals or households. For example, villas, townhouses, independent houses, etc.
Apartment building: is a house built with 2 floors or more, with many apartments, common stairs, common walkways, part of private and shared space to serve the needs of organizations, individuals and households.
Apartment buildings are divided into two main types based on the purpose of use: apartment buildings for living and apartment buildings for living in combination with business (mixed use).
So, do condominiums have to pay land tax? Surely you already have the answer right from this part.
• Commercial housing: is a house invested and built for commercial purposes. For example, for sale, for rent, etc.
• Official residences: houses reserved for those subject to rent in official residences during the time they hold their positions or work.
• Housing for resettlement: individuals and households that are eligible for resettlement assistance when the State recovers residential land or is cleared will be arranged here.
• Social housing: beneficiaries of the State’s housing support policy will be housed here.
Do you have to pay residential land tax every year in Vietnam?
Residential land is subject to annual tax, and land users with lawful ownership rights must fulfill the tax obligation in accordance with the State’s regulations.
The time to pay residential land tax will depend on the decision of the taxpayer. Can be paid twice a year or once a year or required to pay tax in installments. The mandatory time for taxpayers to pay in full is on December 31 of each year.
Who is subject to residential land tax?
Who must pay this residential land tax, in this case not only refers to the land used for residential purposes but also represents the cases of land use for business purposes such as construction of apartment projects. , House. All of these subjects must pay residential land tax according to regulations and specifically shown in these cases as follows:
Land used for living
Land used to build houses or some other works to serve their lives. This type of land also includes pond land and garden land if it is attached to houses on that land parcel. But note that land is only counted if it is recognized by a State agency.
This type of land is divided into two main groups of land: residential land in rural areas and residential land in urban areas.
Residential land, residential land in rural areas is the type of land that is determined to be within the administrative boundaries of the local commune. Except for some land, which is under the management of the town, but is located in a new urban area, under the State’s planning for the development of districts, cities and towns. This land is used by individuals or families, including land for construction of houses or land for constructions in service of life. Land used in accordance with the planning of the State, approved by the competent authority.
Residential land, residential land in urban areas is land considered to be within the administrative boundaries of a town or ward. Unlike land for construction of rural houses, land here includes land for living in new urban areas that have been planned by the State. Urban residential land also includes land used to build houses or other structures for other living purposes.
Residential projects
Housing is considered a construction project with the main purpose of being used for living. These buildings are built to serve the lives of households or individuals. In addition, housing is also a place where people can meet other basic and necessary needs. Housing works are divided into other different types, namely:
House built separately: A house built separately on a lot of land owned by an individual or a household. This type of house can be named as independent house, villa house, etc.
Housing built in the style of an apartment: A house built with 3 or more floors, including many other apartments. The type of housing has a common passageway and stairs to serve the needs of users.
Housing built for commercial purposes such as building houses for sale or rent, etc.
Housing built for official use. The house is built for the object of being rented during the time the individual or organization performs the work.
Housing built to serve the resettlement process: This type of house is built for the purpose of individuals or households who are eligible to receive resettlement assistance from the State upon land acquisition or resettlement.
Construction of social housing: A type of house built with the purpose of being used for objects under the support of the State.
How to calculate residential land tax?
Residential land tax is regulated in accordance with Circular 153/2011/TT-BTC and is calculated as follows:
Amount to pay residential land tax = Amount of tax incurred – Tax amount if eligible for exemption or reduction. Unit is VND
In which, the formula for the amount of tax incurred is calculated as follows:
Amount of tax incurred = Area of taxable land plot x Price of land plot per m2 of area x Tax rate.
The unit for calculating the land area is m2, the price of the land lot is VND/m2, the tax rate is %.
Services of LSX
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, LSX’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all brand information of client LSX will be 100% confidential.
Please contact us immediately if you have any questions about “Do you have to pay residential land tax every year in Vietnam?”
Contact LSX
Finally, hope this article is useful for you to answer the question about “Do you have to pay residential land tax every year in Vietnam?” If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected]
Please see more
- Contributing capital with land use rights in Vietnam
- Sequence of recovering encroached land in Vietnam
- Guidance on how to calculate residential land tax in Vietnam
Frequently asked questions
Residential land, if you want to conduct the sale and purchase, must fully meet the following conditions:
Residential land must have a red book or a certificate of land use right.
The land is not in dispute or in the State’s planning
The land is not on the list of distraints for judgment enforcement
The land is within the use period.
Pursuant to Decree 45/2014/ND-CP and Circular 76/2014/TT-BTC, in case of request for change of land use purpose from agricultural land to residential land, the owner must perform the obligation financial regulations.
As such, this case will be subject to tax when changing the use purpose.
Individuals and households are obliged to pay land use levy equal to the difference between land use levy calculated according to residential land prices and land use levies calculated according to agricultural land prices at the time of issuance of the decision according to the following formula:
Payable land use fee = Land use fee calculated according to residential land price – Land use fee calculated according to agricultural land price
Residential land needs to be taxed. The process of paying residential land tax according to the latest regulations takes place as follows:
Preparation of land use tax declaration dossiers
Non-agricultural land use tax declaration for each taxable land plot, made according to form No. 01/TK-SDDPNN applicable to households and individuals or form No. 02/TKSDDPNN applicable to organizations.
Photocopies of documents related to the taxable land plot such as the certificate of land use rights, the decision on land allocation, the decision or contract on land lease, the decision on permission to change the land use purpose.
Photocopies of papers proving eligibility for tax exemption or reduction (if any).
Fill full the information
Taxpayers are responsible for accurately declaring in the tax return relevant information such as: name, ID number, tax code, address.
Other important information such as area, purpose of use. In case there is a certificate, it is required to fully declare all information on the certificate such as number, date of issue, number of map sheets, land area, limit (if any).
Every year, taxpayers do not have to make a re-declaration if there is no change in the taxpayer or there are no other factors that cause changes. In case there is a problem, the declaration shall be re-declared within 30 days and carry out the same procedures as before.
For land in apartment buildings, fill in the type of house, area, and allocation coefficient based on the actual area in use.
In case of tax exemption or reduction, the case must be clearly filled in item 05.
Note that choosing a tax payment period depends on the decision of each different tax payment case. Payment can be made once a year, twice a year or in a stable period.
Conclusion: So the above is Do you have to pay residential land tax every year in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
