Circular No. 03/TC-TCT guiding amendments and supplements to Circular No. 89-TC/TCT dated November 9, 1993 on the reduction and exemption of agricultural land use tax when natural disasters or enemy activities occur.

CIRCULAR

Guidance for Amending and Supplementing Circular No. 89-TC/TCT dated November 9, 1993

on reducing and exempting land use tax for agricultural land when natural disasters or enemy activities occur

To facilitate and timely implement the reduction and exemption of land use tax for agricultural land (LUTAL) for taxpayers in response to the requirements of the Law on LUTAL and Decree No. 74/CP dated October 25, 1993 of the Government when natural disasters or enemy activities cause crop damage, the Ministry of Finance provides guidance for amending and supplementing the method of calculating tax reductions and exemptions for LUTAL as stipulated in Point 2c, Section V, Circular No. 89 TC/TCT dated November 9, 1993 as follows:

Loss rate Actual harvest yield

of the crop of the damaged area of

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

considered for reduction = 1 X 100%

tax exemption Yield based on reference productivity

of the taxpayer when classifying land for taxation

of the taxpayer of the damaged area of

the crop (or year) of the taxpayer

Based on the loss rate determined according to the above formula and the tax reduction and exemption rate 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 reduction and exemption for the taxpayer shall be calculated according to the following formula:

Amount of tax Reduction and Exemption Tax recorded for Area with Damage Tax Reduction and Exemption Rate

reduction and exemption of the crop (or year) of the taxpayer = of the crop (or year) of the taxpayer X corresponding to the loss rate of the crop (or year)

of the taxpayer of the taxpayer recorded for reduction and exemption of tax

of the taxpayer

This Circular takes effect from January 1, 1997. All previous provisions contrary to this Circular are hereby abolished. In case difficulties arise during the implementation of this Circular, please promptly report to the Ministry of Finance (General Department of Taxation) for guidance and resolution.

This Circular takes effect from January 1, 1997. All previous provisions contrary to this Circular are abolished. In the process of implementing this Circular, if there are difficulties or obstacles, it is recommended that relevant sectors and localities promptly reflect them to the Ministry of Finance (General Department of Taxation) for guidance on resolution.