Circular No. 41/2001/TT-BTC guiding additional tax exemption and reduction for agricultural land use tax in 2001 pursuant to Resolution No. 05/2001/NQ-CP

CIRCULAR

Supplementary Guidance on Exemption and Reduction of Agricultural Land Use Tax for the Year 2001

pursuant to Resolution No. 05/2001/NQ-CP

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Pursuant to Resolution No. 05/2001/NQ-CP dated May 24, 2001, of the Government on supplementing certain measures for managing the economic plan in 2001;

The Ministry of Finance provides supplementary guidance on the reduction and exemption of agricultural land use tax for the year 2001 as follows:

I. OBJECTS, AMOUNTS OF EXEMPTION AND REDUCTION, AND REFUND OF AGRICULTURAL LAND USE TAX FOR THE YEAR 2001:

1. Exempt from the agricultural land use tax payable in 2001 all households engaged in agricultural production located in particularly difficult mountainous and remote areas under the Program 135 of the Government and households engaged in agricultural production classified as poor throughout the country (Poor households are determined according to the poverty standard at Decision No. 1143/2000/QD-LDTBXH dated November 1, 2000 of the Ministry of Labor - Invalids and Social Affairs and specific regulations of each province and centrally-run city).

2. Reduce by 50% the agricultural land use tax payable for the entire actual area planted with rice and coffee nationwide in 2001. The amount of agricultural land use tax payable is the remaining tax due on the area planted with rice and coffee in 2001 (excluding any excess or deficiency tax from previous years carried over) after applying current exemptions and reductions, excluding reductions based on price decreases for areas planted with rice and coffee as stipulated in Point 2c - Section II - Circular No. 79/2000/TT-BTC dated July 28, 2000 of the Ministry of Finance.

The objects eligible for a 50% tax reduction under this provision are all rural household farmers, cooperatives, enterprises, and economic-social organizations that used agricultural land for planting rice (including two-crop rice or one main crop rice, seedling fields) and coffee subject to agricultural land use tax in 2001.

3. Refund: Households, individuals, cooperatives, enterprises, and economic-social organizations (referred to as subjects) who have paid excess agricultural land use tax for the 2001 crop or year will be refunded the excess tax paid. The excess tax paid is determined by subtracting the tax payable for 2001 (by crop or year) after applying current exemptions and reductions and the provisions in Points 1 and 2, Section I of this Circular from the actual tax paid by crop or year.

II. PROCEDURES, FORMALITIES, AND AUTHORITY TO RESOLVE EXEMPTIONS, REDUCTIONS, AND REFUNDS:

1. Prepare lists of objects eligible for tax exemptions and reductions:

1.1. For objects paying agricultural land use tax managed by communes, wards, towns:

* The tax team of the commune, ward, town shall coordinate with the tax advisory council of the commune, ward, town to be responsible for:

- Based on the list of particularly difficult mountainous and remote areas issued together with Decision No. 135/1998/QD-TTg dated July 31, 1998, Decision No. 1232/1999/QD-TTg dated December 24, 1999, Decision No. 647/2000/QD-TTg dated July 12, 2000, and Decision No. 42/2001/QD-TTg dated March 26, 2001 of the Prime Minister, prepare a list of households eligible for tax exemption on the village and commune level according to Model No. 01/MT attached to this Circular.

- Based on the regulations of the provincial People's Committee and the list of poor households approved by the competent authority according to Decision No. 1143/2000/QD-LDTBXH dated November 1, 2000 of the Ministry of Labor - Invalids and Social Affairs, prepare a list of poor households eligible for tax exemption on agricultural land use in 2001 according to Model No. 02/MT attached to this Circular.

- Based on the agricultural land use tax rate for 2001 for the actual area planted with rice and coffee, prepare a list of each object eligible for a 50% tax reduction on the remaining tax payable according to Point 2, Section I of this Circular (prepared according to Model No. 03/GT attached).

- The list of objects eligible for tax exemption and reduction 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 compiles the list of households paying tax eligible for tax exemption and reduction mentioned above and submits it to the commune People's Committee.

- When preparing the list of objects requesting tax exemption and reduction, clearly distinguish between objects paying tax as enterprises, cooperatives, and economic-social organizations.

* The commune, ward, town People's Committee is responsible for:

- Prepare a report on the number of objects and the amount of tax requested for exemption and reduction (according to detailed forms attached) to submit to the district People's Committee for approval.

- Notify the decision on tax exemption and reduction to each household eligible for tax exemption and reduction on agricultural land use after receiving the decision of the competent authority as stipulated in Point 2.2, Section II, of this Circular.

- Organize the refund of excess tax paid according to Point 3, Section I, and Clause 3.1, Point 3, Section III, of this Circular.

* The tax team of the commune, ward, town compares with the tax ledger by crop or year, prepares a list of households who have paid excess agricultural land use tax according to Model No. 04/HT up to the time of tax collection by crop or year for the commune People's Committee to report to the district People's Committee to request funds for refunding to objects who have paid excess agricultural land use tax.

In cases where a household agrees to transfer the excess tax payment to the next period or year, they do not need to prepare a list according to Model No. 04/HT and continue to monitor on the tax ledger to transfer the deduction to the next period or year.

1.2. For state-owned enterprises and agricultural production organizations:

The tax authority directly managing tax collection prepares the application for exemption and reduction and the application for refund of excess tax paid (if any), without offsetting against other revenues.

For provinces and centrally-run cities collecting taxes by crop (collecting twice a year), they may determine provisional collection and reduction for the current crop and finalize the tax payable and officially reduced amount for the whole year in the final crop of the year.

2. Consolidation and decision on exemptions and reductions:

2.1. At District, Urban District, Town:

The district tax bureau coordinates with the district tax advisory council to review the accuracy and legality of the list and the amount of tax exemption and reduction proposed for each household based on national regulations and the provincial People's Committee's regulations. The district People's Committee reports to the provincial People's Committee and sends a copy to the provincial tax bureau. Specifically, the list of households identified as poor must be confirmed by the district Department of Labor, Invalids, and Social Welfare.

2.2. At the provincial level:

The Tax Department is responsible for:

- Inspect and compile reports from districts; submit to the Provincial People's Committee for consideration and decision on the exemption, reduction, and refund of excess agricultural land tax paid by entities within their jurisdiction.

- Report to the General Department of Taxation on the results of exemptions, reductions, and refunds of agricultural land tax within their jurisdiction.

To ensure prompt and timely exemption and reduction of agricultural land tax as stipulated in this Circular; the Provincial People's Committee decides on the exemption, reduction, and refund of agricultural land tax or may delegate such authority to the District People's Committee. In cases where authority is delegated to the District People's Committee, the Tax Revenue Office shall coordinate with the District Tax Advisory Council to submit decisions to the District People's Committee, which will then report back to the Provincial People's Committee and the Provincial Tax Service.

III. IMPLEMENTATION:

1. The Chairperson of the Provincial People's Committee is responsible for:

- Announcing or directing competent authorities to announce lists of households engaged in agricultural production in particularly difficult mountainous and remote areas under Program 135 of the Government and lists of poor households eligible for exemption from agricultural land tax according to Resolution No. 05/2001/NQ-CP dated May 24, 2001 of the Government;

- Being responsible for granting exemptions and reductions in accordance with regulations to the correct beneficiaries;

- Directing and inspecting relevant agencies to implement the examination of exemptions and reductions of agricultural land tax and promptly informing taxpayers; Directing local information and propaganda agencies to intensify publicity and explanation of state policies on exemptions and reductions so that the public understands and complies;

2. The central budget will compensate the local budget corresponding to the amount of exemptions and reductions of agricultural land tax for the subjects specified in Points 1 and 2 of Part I of this Circular.

The Department of Finance and Prices shall coordinate with the Tax Service to compile the situation of revenue shortfalls due to the reasons stated in Part I of this Circular and submit them to the Provincial People's Committee for reporting to the Ministry of Finance (Department of State Budget) for consideration and supplementary allocation in accordance with regulations, along with Form No. 05/TH.

3. Refund of excess agricultural land tax paid:

3.1. For households that have overpaid agricultural land tax (up to the 2001 tax period), the excess tax paid will be refunded by the state budget to each household. The refund source will be transferred by the Department of Finance and Prices based on the decision on the refund of agricultural land tax to the account authorized by the Commune People's Committee. The Commune People's Committee will process withdrawal of funds from the State Treasury according to established procedures. The State Treasury will issue cash based on the decision on the refund of agricultural land tax and necessary procedures to the Commune People's Committee for payment to households of the excess agricultural land tax paid.

3.2. For state-owned enterprises and political-social organizations whose agricultural land tax was collected by the Tax Revenue Office or the Tax Service, the Department of Finance and Prices will directly refund the excess agricultural land tax paid to these units.

3.3. The Commune People's Committee is responsible for settling accounts with the Department of Finance and Prices according to the management system for authorized funds.

This Circular takes effect fifteen days from the date of signature and is implemented for the examination of exemptions and reductions of agricultural land tax for the year 2001; other disaster relief and social policy exemption and reduction systems continue to be implemented according to current regulations.