Circular No. 03-TC/TCT guides the amendment and supplementation of Circular No. 89-TC/TCT dated November 9, 1993 on the reduction and exemption of agricultural land use tax when affected by natural disasters or enemy actions.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 03 TC/TCT DATED JANUARY 21, 1997 GUIDING AMENDMENTS AND SUPPLEMENTS TO CIRCULAR NO. 89 TC/TCT DATED NOVEMBER 9, 1993 ON CALCULATING TAX REDUCTIONS AND EXEMPTIONS FOR AGRICULTURAL LAND USE TAX IN CASES OF NATURAL DISASTERS OR PLAGUES

To facilitate the implementation of tax reductions and exemptions for agricultural land use (ALUT) for taxpayers in a timely manner to meet the requirements of the Law on ALUT and Decree No. 74/CP dated October 25, 1993 of the Government in cases where natural disasters or plagues cause crop losses; the Ministry of Finance guides amendments and supplements to the method of calculating tax reductions and exemptions for ALUT specified in Point 2c, Section V, Circular No. 89 TC/TCT dated November 9, 1993 as follows:

Loss rate                      Actual yield harvested     

of the crop                      of the damaged area   

(or year)                     of the crop (or year) of the taxpayer   

considered for reduction    =   1        -                                                                        X   100%

exemption                       Yield calculated based on reference productivity   

of the taxpayer                            when classifying land for taxation purposes  

for taxation                         tax on the damaged area

                                       of the crop (or year) of the taxpayer   

Based on the loss rate determined according to the formula above and referring to the tax reduction and exemption ratio corresponding to the loss rate prescribed in Article 17 of Decree No. 74/CP dated October 25, 1993 of the Government, the amount of tax considered for reduction and exemption for the taxpayer shall be calculated according to the following formula:

Tax amount considered                     Recorded tax of                     Reduction and exemption tax rate

reduction and exemption                     of the damaged area corresponding               to the loss rate

by crop (or       =        by crop (or        X         by crop (or year)

year) of the taxpayer                   year) of the taxpayer subject                     to reduction and exemption

for taxation                         tax of the taxpayer                              for taxation

This Circular takes effect from January 1, 1997. All previous regulations contrary to this Circular are abolished. Any difficulties encountered during the implementation of this Circular should be promptly reported to the Ministry of Finance (General Department of Taxation) for guidance and resolution.