Paying taxes is a very familiar job for Vietnamese people. There are many different types of taxes in which, residential land tax is the most concerned tax. Because this type of land is used the most and must pay taxes in accordance with the law. Therefore, to know how much residential land tax must be paid, please follow the article below. Lawyer X will guide you on how to calculate residential land tax in Vietnam.
Type of residential land subject to tax
Landscape
Residential land is land for construction of houses and other works serving people’s lives.
Residential land is divided into two types:
Rural residential land: is land within the administrative boundaries of the commune, except for land in a new urban area still under the management of the commune but in the development planning of districts, towns and cities.
Residential land in urban areas: is land within the administrative boundaries of a ward or township, including residential land in a new urban area that has been developed according to the prescribed development planning but is still under the management of the commune.
House
Housing is a construction work to serve the living needs of households and individuals. Housing is usually divided into basic types such as:
Separate house: is a house built on a separate residential land plot but still under the legal ownership and use rights of individuals, organizations or households.
Apartment house: is a house built with 2 floors or more, with many apartments, common stairs, common paths, part of private and shared space to serve the needs of individuals and organizations. family
Commercial housing: is a house invested and built for commercial purposes
Official housing: housing exclusively for those subject to rent in official residences during the time they hold their positions or work.
Resettlement housing: individuals and households that are eligible for resettlement support when the State recovers their residential land or is cleared will be housed here.
Social housing: the beneficiaries of the State’s housing support policy will be arranged here
Guidance on how to calculate residential land tax
Pursuant to Circular 153/2011/TT-BTC, residential land tax calculation is calculated according to the formula:
Amount of tax payable (VND) = Amount of tax incurred (VND) – Amount of tax exempted or reduced (if any)
Amount of tax incurred = Taxable land area (m2) x Price of 1m2 of land (VND/m2) x Tax rate (%)
To calculate residential land tax, you must determine 3 factors in the above formula:
Taxable land area
Taxable land area will depend on the following 4 cases:
If a taxpayer owns many land plots within a province, the taxable land area is the total area of all taxable land plots in that province.
For a land plot that has been granted a red book, the taxable land area is the area on the red book. If the area on the red book and the actual land is different, the taxable land area is the actual used land area
If an individual, organization or household uses the same land plot but does not have a red book, the taxable land area of each person shall be based on the actual area used by that person.
If an individual, organization or household uses the same land plot with a red book, the taxable land area is the area written on the red book.
Price of 1m2
The price of 1m2 of land will depend on each case as follows:
If in a 5-year cycle there is a change in taxpayers or there are additional factors that may change the price of 1m2 of taxable land, the remaining period of the cycle does not need to be re-determined.
In case the State allocates, leases or changes the purpose of land use or residential land in a stable cycle, the price of 1m2 of land is the land price set by the Provincial People’s Committee at the time of allocation, lease or conversion of land use purpose.
For land used for improper purposes, encroaching or occupying, the price of 1m2 of land shall be regulated by the Provincial People’s Committee
Tax
The tax rates applied according to the progressive tariff for each part can be calculated and applied as follows:
| Tax bracket | Taxable land area (m2) | Tax (%) |
| Level 1 | Area within limits | 0.03 |
| Level 2 | The area not exceeding 3 times the limit | 0.07 |
| Level 3 | The area is more than 3 times the limit | 0.15 |
Land use levy when moving to residential areas for households and individuals?
According to current law, the rate of land use levy when moving to residential land for households and individuals is prescribed as follows:
Converting from garden or pond land in the same parcel of land with houses in a residential area that is not recognized as residential land as prescribed in Clause 6, Article 103 of the 2013 Land Law to residential land; moved from land that originated as garden land, ponds attached to houses but the land users separated to transfer rights or because the measurement unit, when measuring and drawing cadastral maps before July 1, 2004 measured by themselves divided into separate parcels into residential land, the land use levy shall be equal to 50% of the difference between the land use levy calculated at the residential land price and the land use levy calculated at the agricultural land price at the time of the decision to change the purpose of the residential land competent state agency.
When converting from agricultural land allocated by the State without land use levy to residential land, the land use levy shall be equal to the difference between the land use levy calculated at the residential land price and the land use levy calculated at the agricultural land price in the province. the time of having the decision to change the purpose of the competent state agency.
If the purpose is changed from non-agricultural land which is not residential land to residential land, the land use levy shall be collected as follows:
In case of being using non-agricultural land which has been recognized by the State with land use rights with a stable and long-term use term before July 1, 2004 which is not land allocated or leased by the State, when If the purpose is changed to residential land, land use levy is not required;
In case of using non-agricultural land in the form of land allocation by the State with the collection of land use levy before July 1, 2014, when the purpose is changed to residential land, the land use levy shall be equal to the difference between the land use fee and the land use fee. use land calculated at the residential land price with land use levy calculated at the non-agricultural land price of the remaining land use term at the time of issuance of a decision on change of purpose issued by a competent state agency;
In case non-agricultural land other than residential land is leased by the State in the form of one-off payment of land rental for the entire lease period, when the purpose is changed to residential land and concurrently changes from land lease to land allocation, pay the land use levy equal to the difference between the land use levy calculated at the residential land price minus the one-time payment of the land rent calculated at the non-agricultural land price of the remaining land use term at the time of the decision to change the land area. purposes of competent state agencies;
In case of using non-agricultural land other than residential land in the form of land leased by the State with annual rental payment, land use levy equal to 100% of land use levy calculated at the price of residential land at the time of acquisition shall be collected. a competent state agency’s decision on change of purpose.
Change of land use purpose derived from the receipt of a lawful transfer of land use rights according to the land law of the land user to residential land shall, based on the origin of the transferred land, collect land use levy at the rate of specified at Point a, Point b, Point c of this Clause.
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Frequently asked questions
According to the provisions of current law, taxpayers can choose to pay residential land tax 1 or 2 times a year but must ensure to complete it by December 31 every year.
According to regulations, you can pay residential land tax at the tax office of the province or city. In addition, in order to facilitate the working process, the tax department may authorize the commune-level People’s Committee to collect residential land tax.
Conclusion: So the above is Guidance on how to calculate residential land tax in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
