Circular No. 09/2002/TT-BTC guides the exemption and reduction of agricultural land use tax from 2002 according to Decision No. 199/2001/QD-TTg. This document specifies the levels and subjects eligible for tax exemption and reduction, as well as the procedures for reviewing and approving such exemptions and reductions.
Scope of application
Agricultural production households, enterprises, cooperatives, and socio-economic organizations that utilize land for agricultural production.
Key points
- are exempted from agricultural land use tax including poor households and communes under the Government's Program 135. The level of exemption is the entire area of agricultural production land.
- are granted a 50% reduction in agricultural land use tax including all agricultural production households not falling within the category of those exempted, with the reduction based on the remaining tax payable after deducting the amounts already exempted or reduced.
- War-wounded families and disaster-affected households may be granted additional reductions as stipulated in Decision No. 199/2001/QD-TTg.
- Tax authorities at commune, district, and provincial levels cooperate with People's Committees to compile lists of subjects eligible for exemption and reduction and to notify decisions regarding tax exemption and reduction.
- Provincial People's Committees are responsible for announcing lists of particularly difficult communes and poor households, as well as decisions on tax exemption and reduction.
🌐 Social impact of this document
- Positive impact: Reducing financial burdens on farmers, encouraging agricultural production.
- Negative impact: May cause difficulties in managing and supervising subjects eligible for tax exemption and reduction.
❓ Frequently asked questions
Which households are exempted from agricultural land use tax?
Poor households and agricultural production households located in communes under the Government's Program 135 (if not poor households) are exempted from the entire area of agricultural production land.
Which households are granted a 50% reduction in agricultural land use tax?
All agricultural production households utilizing land for agricultural production that do not fall within the category of those exempted, with the reduction based on the remaining tax payable after deducting the amounts already exempted or reduced.
How much can war-wounded families and disaster-affected households be reduced?
War-wounded families are granted a 50% reduction under social policy. Disaster-affected households losing agricultural production land may have their taxes reduced based on the extent of damage.
Which agencies are responsible for reviewing and approving tax exemptions and reductions?
Commune, district, and provincial People's Committees cooperate with tax authorities to compile lists and notify decisions on tax exemptions and reductions. Provincial People's Committees decide on tax exemptions and reductions.
When does this circular take effect?
This circular takes effect fifteen days after its issuance and is implemented to review and grant exemptions and reductions in agricultural land use tax from 2002 onwards.
Full text
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MINISTRY OF TRANSPORTATION |
SOCIALIST REPUBLIC OF VIETNAM |
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Number: 09/2002/TT-BTC |
Hanoi, January 23, 2002 |
CIRCULAR
Guidelines on the exemption and reduction of agricultural land use tax from 2002 pursuant to Decision No. 199/2001/QĐ-TTg dated December 28, 2001 of the Prime Minister.
Pursuant to the Law on Agricultural Land Use Tax; Decree No. 74/CP dated October 25, 1993 of the Government detailing the implementation of the Law on Agricultural Land Use Tax;
Pursuant to Decision No. 199/2001/QĐ-TTg dated December 28, 2001 of the Prime Minister on the exemption and reduction of agricultural land use tax;
The Ministry of Finance guides the implementation of the examination for exemption and reduction of agricultural land use tax (ALUT) from 2002 onwards as follows:
I. OBJECTS AND LEVELS OF EXEMPTION AND REDUCTION OF AGRICULTURAL LAND USE TAX:
2. Objects eligible for a 50% reduction in ALUT include all households engaged in agricultural production using land for agricultural production that do not fall under the objects eligible for exemption from ALUT mentioned above. The level of 50% reduction in ALUT is determined based on the remaining tax payable after deducting the exempted and reduced ALUT according to social policies and due to natural disasters (if any). For households with agricultural production land exceeding the quota, they are only entitled to a 50% reduction in ALUT calculated on the area within the quota, while the excess area must be taxed according to regulations. 3. Specific cases where the amount of tax exempted or reduced is determined as follows:
- Households, individuals, cooperatives, enterprises, and economic-social organizations (hereinafter referred to as agricultural production households) having agricultural production land in communes under the Program 135 of the Government.
- Agricultural production households classified as poor households (Poor households are defined according to the poverty standard set out in Decision No. 1143/2000/QĐ-LĐTBXH dated November 1, 2000 of the Ministry of Labor, Invalids and Social Affairs and specific provisions of each province and centrally-administered city).
The level of exemption from ALUT for the aforementioned objects is determined as follows:
+ For poor households: Exemption from tax for the entire area of land used for agricultural production.
+ For households in communes under the Program 135 of the Government, if not classified as poor households, they are only exempted from tax for the area of land within the quota (quota land as stipulated by the Land Law), while the excess area must be taxed according to regulations.
Agricultural production household A in the Red River Delta has 30,000 square meters of land for annual crop cultivation; the recorded tax is 1,500 kilograms, of which the area within the quota is 20,000 square meters, and the corresponding ALUT payable for the area within the quota is 1,000 kilograms.
Example 1:
Assuming the household does not qualify for social policy reductions, the amount of tax reduction according to Decision No. 199/2001/QĐ-TTg dated December 28, 2001 of the Prime Minister is: 1,000 kilograms x 50% = 500 kilograms.2 The amount of tax still payable in the year is: 1,500 kilograms - 500 kilograms = 1,000 kilograms.2With the same example, assuming the household qualifies for a 50% reduction in recorded tax based on the disabled veteran standard, the amount of tax reduction for Household A is:
Reduction based on the disabled veteran standard is:
1,000 x 50% = 500 kilograms.
The additional tax reduction according to Decision No. 199 is:
(1,000 kilograms - 500 kilograms) x 50% = 250 kilograms.
The total tax reduction is: 500 kilograms + 250 kilograms = 750 kilograms.
The amount of tax still payable is: 1,500 kilograms - 750 kilograms = 750 kilograms.
3.1. Agricultural production households using land with water bodies for aquaculture, or planting perennial crops harvested once or annually without determining the taxable land category, currently paying ALUT at 4% of the value of products sold in the year, are also eligible for exemption or a 50% reduction in ALUT payable annually as stipulated in Points 1 and 2 above.
3.2. Agricultural production households that are economic-social organizations or enterprises without headquarters in communes under Program 135 but have agricultural production land in these communes and file their ALUT returns with the Tax Revenue Office shall also be exempted from ALUT for the area of agricultural production land in those communes. Economic-social organizations and enterprises must submit applications for exemption from ALUT for the area of agricultural production land in those communes to the Tax Revenue Office.
3.3. For poor households registered as permanent residents in one commune but having agricultural production land in other communes (including communes in different districts or provinces), if they declare the area of agricultural production land in other communes for income calculation and are recognized as poor households at their place of permanent residence registration, then the area of agricultural production land in other places is also eligible for exemption from tax. To determine the area of agricultural production land declared for tax exemption, poor households must clearly declare the area of agricultural production land used for income calculation when recognized as poor households, with confirmation from the People's Committee of the commune where they are registered as permanent residents regarding the declared area. Based on this confirmation, the household requesting tax exemption must submit an application along with a declaration of the area of agricultural production land confirmed by the People's Committee of the commune where they are registered to the commune where the household has agricultural production land to implement the exemption from ALUT for the declared area in other places.
If an agricultural production household classified as a poor household has agricultural production land in another place but did not declare it for income calculation to be recognized as a poor household, the undeclared area is not eligible for tax exemption.
3.4. Determination of exemptions and reductions due to natural disasters when calculating the 50% reduction in ALUT: Damage caused by natural disasters leading to tax reduction is determined and deducted before calculating the 50% reduction in ALUT; In cases where natural disasters have not been identified or there is a decision to reduce 50% of the remaining tax payable in the year for taxpayers, but natural disasters occur later, the tax exemption and reduction will be recalculated as follows:
3.3. For households registered as residents in one commune but possessing agricultural production land areas in other communes (including communes in different districts or provinces), if they have declared the area of agricultural production land in other communes to calculate income and have been identified as poor households at their place of permanent residence registration, then the area of agricultural production land in other localities also falls within the scope of tax exemption. To establish the basis for determining the exempted area of agricultural production land, poor households must clearly declare the area of agricultural production land used to calculate income when identified as poor households, with confirmation from the People's Committee of the commune where they are registered as residents regarding the declared area. Based on this confirmation, the exempted household submits an application along with the declaration of the agricultural production land area confirmed by the People's Committee of the commune to the commune where the household has agricultural production land as the basis for implementing the tax exemption for the declared agricultural production land area in another locality.
If agricultural production households classified as poor possess agricultural production land in other places but do not declare it to determine their income to be recognized as poor households, the undeclared area does not fall within the scope of tax exemption.
3.4. Determining exemptions and reductions due to natural disasters when calculating reduction of SDĐNN tax: Damage caused by natural disasters that qualify for SDĐNN tax reduction shall be determined and calculated before reducing 50% of the SDĐNN tax; In cases where natural disasters have not yet been identified or there has already been a decision to reduce 50% of the remaining SDĐNN tax payable in the year for taxpayers, but a natural disaster occurs afterwards, the calculation of the tax exemption and reduction shall be redone as follows:
For households without excess land area beyond the quota: Based on the damaged agricultural land area and the extent of damage to calculate the total amount of disaster relief tax exemptions for that area. On this basis, recalculate the amount of tax exempted at 50% according to Decision 199/2001/QĐ-TTg and the amount of tax payable as follows:
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Amount of tax reduction |
= |
Total tax before reduction and exemption |
- |
Tax reduction under social welfare policy (if applicable) |
- |
Reduction and exemption due to natural disasters |
x |
50% |
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Remaining tax payable |
= |
Total tax before reduction and exemption |
- |
Amounts reduced and exempted |
||||||||
To simplify the calculation method, apply the method of subtracting the reduction due to natural disasters from the tax already determined to be reduced by 50% as follows:
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Remaining tax payable after further subtracting the reduction due to natural disasters |
= |
Tax already determined to be reduced by 50%, not yet accounting for disaster reduction |
- |
50% of the tax reduction due to natural disasters |
For households with agricultural land exceeding the quota and eligible for reduction and exemption under social policies and disaster relief, the tax reduction under social policies and the 50% reduction only apply to the taxable land area within the quota.
The tax reduction due to natural disasters is calculated first before calculating the 50% reduction corresponding to the land area within the quota that is subject to tax reduction. On this basis, recalculate the 50% tax reduction according to Decision No. 199/2001/QĐ-TTg and the remaining tax payable.
Example 2:
According to example 1: Mr. A's household, a war invalid household, is entitled to a 50% tax reduction under social policies.
Assuming Mr. A's household suffered natural disasters resulting in a loss of 20,000 m²2 with a damage rate of 15%, the recorded tax revenue for the affected area is 1,000 kg. Determine the tax reduction for Mr. A's household as follows:
The tax reduction for the war invalid household under social policies (only reducing the tax for the area within the quota) is: 1,000 kg x 50% = 500 kg
The tax reduction due to natural disasters to determine the remaining tax payable is:
1,000 kg x 15% = 150 kg.
The tax reduction due to natural disasters corresponding to the land area within the quota serving as the basis for calculating the 50% reduction is:
150 kg / 30,000 m²2 x 20,000 m²2 = 100 kg.
The 50% tax reduction according to Decision No. 199/2001/QĐ-TTg for the portion of land within the quota is:
(1,000 kg - 500 kg - 100 kg) x 50% = 200 kg
The total tax payable after deducting the amounts exempted and reduced is:
1,500 kg - 500 kg social reduction - 150 kg disaster reduction - 200 kg reduction according to Decision No. 199/2001/QĐ-TTg = 650 kg.
In this case, if the 50% reduction according to Decision No. 199/2001/QĐ-TTg was calculated before the occurrence of natural disasters, it must be recalculated and supplemented with a decision.
The total amount of tax exemptions and reductions for households eligible for social policy, disaster relief, and 50% reduction according to Decision No. 199/2001/QĐ-TTg in a year shall not exceed the recorded tax revenue for the land area subject to agricultural land tax.
1. At commune level (referred to as commune level): Prepare a list of subjects eligible for tax exemptions and reductions on agricultural land use:
a/ The commune tax team works together with the commune tax advisory board to have the responsibility:
b/ The People's Committee of the commune has the responsibility:
2. At district level:
3. At provincial level:
1.1. Subjects paying agricultural land use tax managed by communes:
Based on the list of particularly difficult mountainous and remote areas issued with Decision No. 135/1998/QĐ-TTg dated July 31, 1998, Decision No. 1232/1999/QĐ-TTg dated December 24, 1999, Decision No. 647/2000/QĐ-TTg dated July 12, 2000, and Decision No. 42/2001/QĐ-TTg dated March 26, 2001 of the Prime Minister, prepare a list of households eligible for tax exemption on agricultural land use in villages and communes according to Model No. 01/MT attached to this Circular.
Based on the criteria for poor households according to Decision No. 1143/2000/QĐ-LĐTBXH dated November 1, 2000 of the Ministry of Labor - Invalids and Social Affairs, specific regulations of the Provincial People's Committee regarding the criteria for poor households in the locality, and the list of poor households approved by the competent authority, prepare a list of poor households eligible for tax exemption on agricultural land use according to Model No. 02/MT attached to this Circular.
Based on the agricultural land use tax rates for 2002 and subsequent years (adjusted if necessary), prepare a list of subjects eligible for a 50% tax reduction on agricultural land use as stipulated in Point 2, Section I of this Circular (prepared according to Model No. 03/GT attached).
The list of subjects eligible for tax exemptions and reductions must be publicly posted at the Commune People's Committee and other convenient locations for public knowledge and supervision. After ten days of posting, if there are no objections, the tax team will compile a list of households paying taxes eligible for tax exemptions and reductions mentioned above and submit it to the Commune People's Committee.
When preparing the list of subjects applying for tax exemptions and reductions above, clearly distinguish between taxpayers who are state-owned enterprises, economic and social organizations.
After thoroughly checking all subjects eligible for tax exemptions and reductions, the Commune People's Committee prepares a report on the number of subjects and the amount of tax proposed for exemption and reduction (according to detailed forms attached) and submits it to the District People's Committee for review.
Notify the decision on tax exemptions and reductions on agricultural land use to each household paying taxes after receiving the decision on tax exemptions and reductions from the competent authority.
Coordinate with the Commune Tax Team and the District Tax Office to handle any issues and complaints about taxes in the locality.
1.2 - Taxpayers who are state-owned enterprises and economic and social organizations engaged in agriculture:
The direct tax management agency establishes and collects tax, and prepares the application for tax exemptions and reductions on agricultural land use for these units.
The District Tax Office coordinates with the District Tax Advisory Board based on national regulations and the Provincial People's Committee's regulations to recheck the accuracy and legality of the list and the amount of tax exemptions and reductions proposed for each household and consolidate the report submitted to the District People's Committee for review. The District People's Committee reports to the Provincial People's Committee and sends it to the General Tax Department for monitoring progress and consolidation. Specifically, the list of households identified as poor households must be confirmed by the District Department of Labor, Invalids, and Social Affairs.
The Tax Department is responsible for:
Checking and consolidating the reports of the districts; submitting to the Provincial People's Committee for consideration and decision on tax exemptions and reductions for the subjects in the area.
The General Department of Taxation shall report the results of tax exemptions and reductions within its jurisdiction according to the consolidated forms set out in this Circular.
To ensure timely tax exemptions and reductions for SDĐNN in accordance with this Circular, the People's Committee of provinces and centrally governed cities shall decide on tax exemptions and reductions for SDĐNN, or may delegate such decisions to the People's Committees of districts and counties. In cases where decisions are delegated to district and county People's Committees, the Tax Revenue Office shall coordinate with the District or County Tax Advisory Councils to submit these decisions to the District or County People's Committee for approval, which shall then be reported to both the Provincial Tax Service and the People's Committee of the province or centrally governed city.
III. IMPLEMENTATION:
1/ The Chairperson of the People's Committee of provinces and centrally governed cities shall be responsible for:
Announcing or directing competent authorities to announce the list of particularly difficult communes in mountainous areas and remote regions under Program 135 of the Government, and the list of poor households eligible for exemption from agricultural land use tax pursuant to Decision No. 199/2001/QĐ-TTg dated December 28, 2001 of the Prime Minister.
Deciding on tax exemptions and reductions for SDĐNN based on the recommendations of the tax authority.
Directing and inspecting relevant agencies to implement the examination of tax exemptions and reductions for agricultural land use, and promptly informing taxpayers of the results; Directing local information and propaganda agencies to intensify the dissemination and explanation of state policies on tax exemptions and reductions so that the public can understand and comply with them.
2/ When the official amount of tax exemptions and reductions has not yet been determined or when exemptions due to natural disasters have not been officially confirmed, the tax authority shall base its temporary reduction figures on the tax records and determine the amount of tax still due for collection.
3/ This Circular shall take effect fifteen days from the date of issuance and shall be applied to examine tax exemptions and reductions for agricultural land use starting from the year 2002 onwards; other disaster-related and social policy exemptions shall continue to be implemented according to current regulations. Where provisions issued by the Ministry of Finance regarding disaster-related and social policy exemptions conflict with this Circular, the provisions of this Circular shall prevail.
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Place of Receipt: |
MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT
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