Decree No. 20/2011/NĐ-CP detailing and guiding the implementation of Resolution No. 55/2010/QH12 dated November 24, 2010 of the National Assembly on exemption and reduction of agricultural land use tax.

DECREE

Detailed regulations and guidance on implementing Resolution No. 55/2010/QH12 dated November 24, 2010 of the National Assembly regarding exemption and reduction of agricultural land use tax

 of the National Assembly on exemption and reduction of agricultural land use tax

 _____________________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Extend the period of exemption from agricultural land use tax as stipulated in Resolution No. 55/2010/QH12 dated November 24, 2010 of the National Assembly on the exemption and reduction of agricultural land use tax which has been amended and supplemented with some articles pursuant to Resolution No. 28/2016/QH14 dated November 11, 2016 of the National Assembly until December 31, 2025.

Pursuant to Resolution No. 55/2010/QH12 dated November 24, 2010 of the National Assembly, Session XII, on exemption and reduction of agricultural land use tax;

Considering the proposal of the Minister of Finance,

DECREE DECIDES:

The subjects exempted from agricultural land use tax shall be implemented according to Article 1 of Resolution No. 55/2010/QH12 dated November 24, 2010 of the National Assembly, specifically as follows:

1. Exemption from agricultural land use tax for the entire area of agricultural land used for research and experimental production; the area of annual crop land that has at least one rice crop in a year; the area of salt-making land. The area of annual crop land that has at least one rice crop in a year includes the area of land with planning and plans to plant at least one rice crop in a year or the area of land with planning and plans to plant annual crops but actually has planted at least one rice crop in a year.

2. Exemption from agricultural land use tax for the entire area of agricultural land assigned or recognized by the State for poor households. The determination of poor households is based on the poverty standard issued pursuant to the Decision of

a) Households and individuals engaged in agriculture that have been assigned or recognized land by the State for agricultural production, including inherited, donated, or transferred land. Households and individuals engaged in agriculture include: those who have permanent residence registration in the locality; those whose main source of livelihood is agricultural, forestry, aquaculture, or salt production, confirmed by the People's Committee of the commune, ward, or town as having resided long-term in the locality but without permanent residence registration; households and individuals previously engaged in non-agricultural industries and have permanent residence registration in the locality now unemployed; state officials, civil servants, employees, workers, and soldiers who have retired due to loss of working capacity or reorganization and downsizing and are receiving one-time or several-year allowances living permanently in the locality; children of state officials, civil servants, employees, and workers residing in the locality who have reached working age but are unemployed.

b) Households and individuals who are members of agricultural cooperatives that have received stable land allocation from cooperatives, state-owned farms, or state-owned forest farms for agricultural production as prescribed by law. The allocation of land by cooperatives and state-owned farms or state-owned forest farms for agricultural production is carried out in accordance with Decree No. 135/2005/NĐ-CP dated November 8, 2005 of the Government.

c) Households and individuals who are state farm workers or forest farm workers that have received stable land allocation from state-owned farms or state-owned forest farms for agricultural production as prescribed by law. State farm workers or forest farm workers include: officials, workers, and employees currently working for state-owned farms or state-owned forest farms; households with members currently working for state-owned farms or state-owned forest farms or who have retired or lost their ability to work and are receiving benefits while residing in the locality; households with the need to directly engage in agricultural, forestry, or aquaculture production residing in the locality.

d) Households and individuals engaged in agricultural production that have the right to contribute their agricultural land to establish agricultural production cooperatives in accordance with the Law on Cooperatives.

The subjects eligible for agricultural land use tax reduction shall be implemented in accordance with Article 2 of Resolution No. 55/2010/QH12 dated November 24, 2010 of the National Assembly, specifically:

1. A 50% reduction in the annual recorded agricultural land use tax for the area of agricultural land exceeding the allocated agricultural land quota but not more than the limit for receiving transferred rights to use agricultural land for households and individuals as stipulated in Clause 3, Article 1 of this Decree. For the area of agricultural land exceeding the limit for receiving transferred rights to use agricultural land, 100% of the agricultural land use tax must be paid.

2. As for the area of agricultural land that the State allocates to economic organizations, political organizations, socio-political organizations, social-professional organizations, public service units, and other units, it is regulated as follows:

a) A 50% reduction in the annual recorded agricultural land use tax for the area of agricultural land that the State allocates to economic organizations, political organizations, socio-political organizations, social-professional organizations, public service units, and other units which are directly using the land for agricultural production.

b) For the area of agricultural land that the State allocates to economic organizations, political organizations, socio-political organizations, social-professional organizations, public service units, and other units which are managing but not directly using the land for agricultural production and have leased it to other organizations or individuals under contracts for agricultural production, the land shall be reclaimed according to the provisions of the Land Law. During the period when the State has not reclaimed the land, 100% of the agricultural land use tax must be paid.

3. A 50% reduction in the annual recorded agricultural land use tax for the area of agricultural land that the State allocates to people's armed forces units for management and use.

1. The limits on allocation of agricultural land shall be implemented in accordance with Article 70 of the Land Law, Article 69 of Government Decree No. 181/2004/NĐ-CP dated October 29, 2004 on the Implementation of the Land Law, and specific levels set by the People's Committees of provinces and centrally-administered cities for application at the local level. In cases where the People's Committees of provinces and centrally-administered cities have not issued specific levels regarding the limits on allocation of agricultural land, the maximum level prescribed in Article 70 of the Land Law and Article 69 of Government Decree No. 181/2004/NĐ-CP dated October 29, 2004 shall be applied.

2. The limits on receiving transferred rights to use agricultural land shall be implemented in accordance with Article 71 of the Land Law, Resolution No. 1126/2007/NQ-UBTVQH11 dated June 21, 2007 of the Standing Committee of the National Assembly, and specific levels set by the People's Committees of provinces and centrally-administered cities for application at the local level. In cases where the People's Committees of provinces and centrally-administered cities have not specified specific levels regarding the limits on receiving transferred rights to use agricultural land, the maximum level prescribed in Resolution No. 1126/2007/NQ-UBTVQH11 dated June 21, 2007 of the Standing Committee of the National Assembly shall be applied.

The Ministry of Finance shall specify in detail the procedures for tax declaration, adjustment, and supplementation of land use tax registers for agricultural land in cases where there are changes in the content of tax exemptions and reductions as prescribed in this Decree compared to the provisions of laws on tax exemptions and reductions for agricultural land use that were implemented from 2003 to 2010.

The taxable land categories for agricultural land use tax shall be stable for ten years, starting from January 1, 2011 to December 31, 2020, based on the land categories that have been defined and implemented from 2003 to 2010.

Agricultural land fund used for public welfare purposes of communes, wards, and towns, which leases to households and individuals, falls within the category exempt from agricultural land use tax according to the provisions of the Law on Agricultural Land Use Tax and guiding documents, and does not fall under the category eligible for tax exemptions and reductions for agricultural land use tax as prescribed in this Decree.

The period for exemption and reduction of agricultural land use tax as prescribed in this Decree shall be implemented from January 1, 2011 to December 31, 2020.

Article 8. Implementation clause

1. This Decree takes effect from May 15, 2011.

2. The Ministry of Finance shall provide guidance on the implementation of this Decree.

Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial and municipal People's Committees directly under the Central Government, and related organizations and individuals are responsible for implementing this Decree.