What types of land are subject to non-agricultural land use tax?
Pursuant to Article 2 of the Law on Non-Agricultural Land Use Tax 2010, the types of land subject to non-agricultural land use tax include: rural residential land, urban residential land; non-agricultural production and business land including: land for construction of industrial parks; land for construction of production and business facilities; land for mineral exploitation and processing; land for production of construction materials and pottery. Non-agricultural land specified in Article 3 of the Law on Non-agricultural Land Use Tax 2010 is used for business purposes.
What types of land are not subject to non-agricultural land use tax?
Pursuant to Article 3 of the Law on Non-Agricultural Land Use Tax 2010, the types of land 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 transportation and irrigation; land for construction of cultural, medical, educational and training, and sports facilities serving public interests; land with historical and cultural relics and scenic spots; land for construction of other public works as prescribed by the Government; land used by religious establishments; land for cemeteries; land for rivers, streams, canals, ditches, streams and specialized water surfaces; land with works such as communal houses, temples, shrines, hermitages, ancestral halls, and family churches; land for construction of agency headquarters, construction of public works, land used for national defense and security purposes; other non-agricultural land as prescribed by law.
How to calculate non-agricultural land use tax in 2023
According to the guidance in Circular 153/2011/TT-BTC, the amount of non-agricultural land use tax payable will be calculated according to the following formula:
- Firstly, for residential land, land for production and business, non-agricultural land used for business purposes, the amount of tax payable (VND) is equal to the tax incurred (VND) minus the tax exempted or reduced (if any). In which, the tax incurred is determined by taking the tax incurred (VND) equal to the taxable land area (m2) multiplied by the price of 1m2 of land (VND/m2) multiplied by the tax rate (%).
- Second, for land in multi-storey houses, multi-household houses, apartment buildings (including cases with basements) and underground construction works, the amount of tax payable is equal to the tax incurred minus the tax exempted or reduced (if any). In which, the tax incurred is determined by taking the tax incurred on the housing area of each organization, household, or individual multiplied by the allocated number multiplied by the price of 1m2 of corresponding land multiplied by the tax rate.
In case there is only underground construction, the tax incurred is equal to the area of construction used by the organization, household or individual multiplied by the allocation coefficient multiplied by the price of 1m2 of corresponding land multiplied by the tax rate.
Third, in case non-agricultural land is used for business purposes but the land area used for business purposes cannot be determined, the tax incurred is equal to the land area used for business (m2) multiplied by the price of 1m2 of land (VND) multiplied by the tax rate (%).
How is the price of 1 square meter of land used for non-agricultural land use tax determined?
The price of 1 m2 of taxable land is the land price according to the purpose of use of the taxable land plot as prescribed by the Provincial People's Committee and is stabilized for a 5-year cycle, starting from January 1, 2012. In case there is a change in the taxpayer during the stabilization cycle or factors arise that change the price of 1 m2 of taxable land, it is not necessary to re-determine the price of 1 m2 of land for the remaining time of the cycle.
In case the State allocates land, leases land, or changes the land use purpose from agricultural land to non-agricultural land or from non-agricultural production and business land to residential land during a stable cycle, the price of 1 square meter of land for tax calculation is the land price according to the purpose of use as prescribed by the Provincial People's Committee at the time of land allocation, land lease, or change of land use purpose and is stable for the remaining period of the cycle.
In case the land is used for the wrong purpose or encroached upon, the taxable price of 1 square meter is the land price according to the current purpose of use as prescribed by the Provincial People's Committee and applied locally.
What is the tax rate for non-agricultural land use?
- Residential land, including land used for business purposes, is subject to a progressive tax schedule, accordingly, the area within the limit is 0.03; the area exceeding the limit is no more than 3 times the limit is 0.07; the area exceeding the limit is 3 times the limit is 0.15. Specifically, land for multi-storey houses with many households, apartment buildings, underground construction works is subject to a tax rate of 0.03%. Land for non-agricultural production and business, non-agricultural land used for business purposes is subject to a tax rate of 0.03%. Land used for improper purposes, land not used in accordance with regulations is subject to a tax rate of 0.15%. Land of investment projects in phases according to the investor's registration approved by a competent state agency is subject to a tax rate of 0.03%. Encroached and occupied land is subject to a tax rate of 0.2%.
Details include instructions for declaring non-agricultural land use tax according to the form prescribed by this Circular./
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