Hi LSX, due to insufficient funds to maintain, the owner of the church transferred it to me. After buying the temple, I received a notice of non-agricultural land use tax payment. So about the matter “Non-agricultural land use tax under Vietnam law” Let’s find out with LSX in the article below.
Legal grounds
- Land Law 2013
- Law on Non-Agricultural Tax 2010
What is non-agricultural land?
Non-agricultural land is a group of land that is not used for agricultural purposes and does not belong to the types of land with unspecified uses.
Pursuant to Clause 2, Article 10 of the 2013 Land Law, the group of non-agricultural land includes the following types of land:
• Residential land includes residential land in rural areas, residential land in urban areas (also known as residential land);
• Land for building the office of the agency;
• Land used for defense and security purposes;
• Land for construction of non-business works, including land for construction of headquarters of non-business organizations; land for construction of cultural, social, medical, educational and training facilities, physical training and sports, science and technology, diplomacy and other non-business works;
• Land for non-agricultural production and business, including land in industrial parks, industrial clusters, and export processing zones; commercial and service land; land for non-agricultural production establishments; land used for mineral activities; land for production of building materials and pottery;
• Land used for public purposes, including land for traffic (including airports, airfields, inland waterway ports, seaports, railway systems, road systems and other traffic works); irrigation; land with historical – cultural relics and scenic spots; land for community activities, public amusement and entertainment areas; land for energy works; land for post and telecommunications works; market land; land for disposal, waste treatment and other public works;
• Land for religious and belief establishments;
• Land for cemeteries, graveyards, funeral homes, crematoriums;
• Land for rivers, streams, canals, canals, streams and specialized water surface;
• Other non-agricultural land, including land for rest houses, shacks and camps for workers in production establishments; land for construction of warehouses and houses to store agricultural products, pesticides, fertilizers, machinery and tools in service of agricultural production and land for other construction works of land users for non-business purposes that the building is not attached to residential land.
Non-agricultural land use tax under Vietnam law
Non-agricultural land tax is probably a concept that is no longer strange to individuals, organizations and units using non-agricultural land subject to tax. However, not everyone understands in detail what Non-Agricultural Land Tax is.
Non-agricultural land is land that individuals, units, organizations and households use for the main purpose of building houses or constructing non-agricultural works. According to the law, there will be cases of non-agricultural land use that will have to pay tax to the state budget and some cases will not have to pay tax. So why split the two cases like that? First of all, individuals, families and organizations using non-agricultural land must understand what non-agricultural land tax is?
Similar to other taxes, non-agricultural land tax is a potential amount that individuals, organizations and households must pay into the state budget. Land subject to non-agricultural land tax is specified in the 2013 Land Law. When having land subject to non-agricultural land tax, the subject must pay tax at a competent authority and pay the tax rate. will depend on the amount of land they use. Land prices and tax rates for each piece of land also vary from region to region.
Bases for calculating non-agricultural land tax?
Subjects subject to non-agricultural land tax
The first basis for calculating tax on non-agricultural land is that the land must be subject to tax according to the provisions of law. The subjects subject to non-agricultural land tax are now clearly defined in Article 2 of the Law on Non-Agricultural Tax as follows:
“first. Residential land in rural areas, residential land in urban areas.
2. Non-agricultural production and business land, including: land for construction of industrial parks; land for construction of production and business establishments; land for mining and mineral processing; land for production of building materials and pottery.
3. Non-agricultural land specified in Article 3 of this Law is used for business purposes”.
Taxable price of non-agricultural land
The taxable price used as a tax base is determined on the basis of the price of the taxable land area, which is specified in Article 6 of the 2010 Law on Non-Agricultural Tax. Accordingly:
“1. The taxable price for land is determined by the taxable land area multiplied by the price of 1m2 of land.
2. Taxable land area is prescribed as follows:
a) Taxable land area is actually used land area.
In case they have the right to use more than one residential land plot, the taxable land area is the total area of the taxable land plots.
In case the State is allocated or leased land for the construction of an industrial park by the State, the taxable land area does not include the land area for construction of public infrastructure;
b) For residential land in multi-storey houses with many households and apartment buildings, including both residential and business cases, the taxable land area is determined by the allocation coefficient multiplied by the house area of each house. organizations, households and individuals use.
The distribution coefficient is determined by the area of land for construction of multi-storey houses with many households and apartments divided by the total area of houses used by organizations, households and individuals.
In the case of multi-storey multi-family houses or apartment buildings with basements, 50% of the basement area used by organizations, households and individuals in the basement shall be added to the total house area of organizations, households and individuals. households and individuals use to calculate the distribution coefficient;
c) For underground construction works, an allocation coefficient equal to 0.5 of the construction land area divided by the total area of the works used by organizations, households and individuals shall be applied.
The price of 1m2 of land is the price of land according to the purpose of use, set by the People’s Committees of the provinces and centrally-run cities, and shall be stabilized on a 5-year cycle from the effective date of this Law.
Non-agricultural land tax rate
Non-agricultural land tax rates are specified in Article 7, Law on Non-Agricultural Land Tax, according to which:
+ Tax rates used to determine taxes for residential land types based on land use quotas issued by the provincial People’s Committees of localities where the land is located:
i. Tier 1: 0.03% tax rate – applied to the land use area within the prescribed limit.
ii. Tier 2 tax rate: 0.07% – Applicable to the case where the land is used in excess of the quota but not more than 3 times.
iii. If the leased land area exceeds the quota by more than 3 times, the tax rate of 0.15% will be applied to level 3.
iv. For residential land types such as multi-storey residential land, underground works, production and business land or production, business or business purposes, the investment project land is phased out by the housing authority. Approving country also applies a tax rate of 0.03
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Please see more
- Regulations on land valuation of banks in Vietnam
- Time for district-level land use planning in Vietnam
- Procedure for partial transfer of land use rights in Vietnam
Frequently asked questions
When it comes to the conversion of non-agricultural land to residential land, we are actually referring to cases where non-agricultural land is transferred from non-residential land to residential land.
Pursuant to Point e, Clause 1, Article 57 of the 2013 Land Law, when converting non-agricultural land which is not residential land to residential land, permission must be obtained from a competent state agency. In other words, the land can only be converted to residential land when there is a decision to allow the change of land use purpose by a competent state agency (households and individuals who want to move must have a decision of the People’s Committee of the district where the land is located). , the organization that wants to transfer must have a decision of the People’s Committee of the province where the land is located).
According to Article 1 of Circular 153/2011/TT-BTC, the following types of non-agricultural land are subject to land use tax, including:
Residential land in rural areas, residential land in urban areas;
Non-agricultural production and business land, including:
Land used as ground for construction of production and business establishments, including land for construction of industrial and handicraft production establishments; building commercial and service establishments and other works in service of production and business;
Land for mineral extraction, land used as ground for mineral processing, except for mining without affecting the topsoil or ground surface;
Land for production of building materials and pottery, including land for raw material exploitation and ground for processing, producing building materials, making ceramics, etc.
As such, not all non-agricultural land is subject to tax. Organizations, households and individuals must pay tax when using residential and non-agricultural land for production and business purposes.
Taxpayers being organizations, households and individuals with land use rights are subject to non-agricultural land use tax.
In case organizations, households or individuals have not yet been granted a certificate of land use rights and ownership of houses and other land-attached assets, the current land user is the taxpayer.
Conclusion: So the above is Non-agricultural land use tax under Vietnam law. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
