Land use tax and taxable objects in Vietnam

What is a land lease? Subjects subject to land use tax. Land is closely related to the lives of all people, therefore, land use tax is a matter of concern to many people. However, not everyone understands what is land use tax, who has to pay land use tax? In the following article, LSX Lawfirm will give you an article about: “Land use tax and taxable objects in Vietnam”, as follows:

Legal grounds

– Law on Non-agricultural Land Use Tax 2010

– Law on Agricultural Land Use Tax 1993

What is land use tax?

Land use tax is an indirect tax that land users must pay to the State every year.

Land use tax includes agricultural land use tax and non-agricultural land use tax.

Agricultural land use tax

Subjects subject to agricultural land use tax

According to the provisions of Article 2 of the Law on Agricultural Land Use Tax 1993, subjects subject to agricultural land use tax include:

• Farmyard;
• Then Land with water surface for aquaculture;
• Planted forest land.

You can also refer to the article related to Regulations on apartment ownership or In case the company’s head office address is located in an apartment building in Vietnam or Transfer of investment projects associated with the transfer of land use rights in Vietnam

Related artice: Procedures for foreigners to buy apartments in Vietnam

Foreigners buy apartments of Vietnamese individuals

Objects not subject to agricultural land use tax

Land is not subject to agricultural land use tax but is subject to other taxes or is not subject to tax as prescribed by law, including:

• Land with natural forests;
• Then Natural pasture land;
• Land used for living;
• Then Specialized land.

Taxpayers using agricultural land

Organizations and individuals that use land for agricultural production must pay agricultural land use tax.

Households assigned the right to use agricultural land but do not use it still have to pay agricultural land use tax.

So, foreign organizations and individuals investing in Vietnam and using agricultural land must pay land rent according to regulations, and do not require to pay agricultural land use tax according to the provisions of the Law on Taxation

Non-agricultural land use tax

Subject to non-agricultural land use tax

So, according to the provisions of Article 2 of the Law on Non-agricultural Land Use Tax 2010, subjects subject to non-agricultural land use tax include:

• Residential land in rural areas, residential land in urban areas.
• Then Land for non-agricultural production and business, including: land for construction of industrial parks; land for construction of production and business establishments; and land for mining and mineral processing; land for the production of building materials and pottery.
• Types of land not subject to non-agricultural land use tax mentioned in Section 2 used for business purposes.

Objects not subject to non-agricultural land use tax

The subjects not subject to non-agricultural land use tax are non-agricultural land used for non-business purposes, including:

• Land used for public purposes, including: land for traffic and irrigation; land for construction of cultural, medical, educational and training works, physical training and sports in service of public interests; and land with historical – cultural relics and scenic spots; land for construction of other public works according to the Government’s regulations;
• Then Land used by a religious establishment;
• Land for cemeteries and graveyards;
• Then Land of rivers, streams, canals, canals, streams and specialized water surface;
• Land where the works are communal houses, temples, shrines, temples, houses of worship, family houses;
• Then Land for construction of offices of agencies, construction of non-business works, land used for defense and security purposes;
• Finally Other non-agricultural land as prescribed by law.

Non-agricultural land use tax payers

Taxpayers are organizations, households and individuals with the right to use the land subject to the above tax.

If an organization, household or individual do not grant a certificate of land use rights and ownership of houses and other land-attached assets, the current land user is the taxpayer.

Taxpayers in some specific cases are prescribed as follows:

• In case the State leases land to implement an investment project, the tenant of residential land is the taxpayer;
• In case the person with the land use right leases land under the contract, the taxpayer shall be determined according to the agreement in the contract. If there is no agreement on taxpayers in the contract, the person with the land use right is the taxpayer;
• In case the land has been granted a certificate but there is a dispute, before the dispute is resolved, the current land user is the tax payer.
• In case more than one person has the same right to use a land plot, the taxpayer is the legal representative of the people who have the same right to use that land parcel;
• Finally, in case the person with the land use right contributes as a business capital with the land use right and forms a new legal entity with the right to use the land subject to tax, the new legal entity is the taxpayer.

Related questions about Land use tax and taxable objects in Vietnam

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