Decree No. 53/2011/ND-CP detailing and guiding the implementation of certain provisions of the Law on Tax for Non-Agricultural Land Use

 

DECREE

DETAILING AND GUIDING THE IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LAW ON LAND USE TAX FOR NON-AGRICULTURAL PURPOSES

THE GOVERNMENT

On the basis of Law on Government Organization dated December 25, 2001;

On the basis of The Law on Land Use Tax for Non-Agricultural Purposes dated June 17, 2010;

Considering the proposal of the Minister of Finance,

DECREE:

Chapter 1.
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree details and guides the implementation of certain provisions of the Law on Land Use Tax for Non-Agricultural Purposes.

Article 2. Taxable Objects

The subjects liable to pay land use tax for non-agricultural purposes shall comply with the provisions of Article 2 of the Law on Land Use Tax for Non-Agricultural Purposes. Specifically as follows:

1. Residential land in rural areas, residential land in urban areas:

2. Non-agricultural production and business land as stipulated in Clause 2 of Article 2 of the Law on Land Use Tax for Non-Agricultural Purposes, including:

a) Industrial zone construction land, including land for constructing industrial clusters, industrial zones, export processing zones, and other centralized production and business areas with the same land use regime;

b) Construction land for production and business bases, including land for constructing industrial production bases, small-scale industrial production bases; commercial and service facilities and other construction works serving production and business (including construction land for production and business bases within high-tech parks, economic zones);

c) Mining land, mineral processing land, except in cases where mining does not affect the surface layer or the surface land;

d) Construction material production and ceramic product manufacturing land, including land for raw material extraction and land for processing and producing construction materials and ceramic products.

3. Non-agricultural land as stipulated in Article 3 of this Decree is used by organizations, households, and individuals for business purposes.

1. For imported goods exempt from special consumption tax as specified in Point a, Clause 2, Article 3 of the Special Consumption Tax Law, including:

Non-agricultural land used for non-business purposes as stipulated in Article 3 of the Law on Land Use Tax for Non-Agricultural Purposes is exempt from taxation, specifically:

1. Public purpose land includes:

a) Transportation and irrigation land, including land for constructing transportation infrastructure, bridges, culverts, sidewalks, railways, airport infrastructure, including land within the planning area of airports that have not yet been constructed due to phased investment according to approved development stages by competent state authorities, land for constructing water supply systems (excluding water production plants), drainage systems, irrigation works, dikes, dams, and land within traffic safety protection zones and irrigation safety protection zones;

b) Cultural, health, education, and training land, sports and recreation land serving public interests, including land for kindergartens, schools, hospitals, markets, parks, flower gardens, children's playgrounds, squares, cultural facilities, village post and culture houses, memorials, museums, rehabilitation centers for persons with disabilities, vocational training centers, drug rehabilitation centers, correctional facilities, rehabilitation centers, nursing homes, and orphanages;

c) Historical and cultural relic land, scenic spot land that has been classified or decided to be protected by provincial People's Committees;

d) Other public facility land, including land for public purposes in urban and rural residential areas; land for constructing shared infrastructure in industrial zones, high-tech parks, and economic zones according to approved planning; land for constructing power transmission lines, communication networks, oil, gas, and pipeline systems, and land within the safety protection zones of these facilities; power substation land; hydroelectric reservoir and dam land; funeral home and crematorium land; waste disposal and landfill land permitted by competent state authorities;

2. Religious institution land, including land belonging to temples, churches, mosques, synagogues, religious training institutions, headquarters of religious organizations, and other religious facilities permitted by the State;

3. Cemetery land;

4. River, stream, canal, creek, and specialized water body land;

5. Land with communal house, temple, shrine, hermitage, ancestral hall, family temple buildings, including the land area for constructing such buildings within the plot boundaries;

6. Government office construction land, public service construction land includes:

a) Land for constructing government offices, political organization headquarters, social-political organization headquarters, public service institutions; foreign diplomatic and consular mission premises and international intergovernmental organizations enjoying equivalent privileges and immunities as foreign diplomatic missions in Vietnam;

b) Land for constructing public service works in economic, cultural, social, scientific, and technological fields, diplomacy of government agencies, political organizations, social-political organizations, and public service institutions;

7. National defense and security purpose land includes:

a) Military camp and garrison headquarters land;

b) Military base land;

c) National defense and security special construction land, defense阵地翻译如下：

d) Military port and airfield land;

đ) Land for industrial, scientific, and technological constructions directly serving national defense and security;

e) Military warehouse land;

g) Shooting range, training ground, weapons testing site, and weapons destruction site land;

h) Guesthouse, official residence, sports venue, physical training center land within military camp and garrison headquarters premises;

i) Detention center, temporary detention center, holding center, educational facility, juvenile correctional school land managed by the Ministry of National Defense and the Ministry of Public Security;

k) Combat and other national defense and security operation construction land as prescribed by the Government.

8. Non-agricultural land for constructing cooperative works serving agricultural production, forestry, aquaculture, salt-making; urban land used to construct greenhouses and other types of buildings serving crop cultivation including non-traditional cultivation methods not directly on the ground; construction of livestock and poultry sheds and other animals permitted by law; construction of agricultural, forestry, and aquatic research stations; construction of nurseries for plant and animal seedlings; construction of storage facilities for households and individuals to store agricultural products, plant protection chemicals, fertilizers, agricultural machinery, and tools.

Chapter II.
BASIS FOR TAXATION, REGISTRATION, DECLARATION, CALCULATION, PAYMENT OF TAXES AND EXEMPTIONS FROM TAXES, TAX REDUCTIONS

Article 4. Taxable Land Area

The taxable land area is the actual non-agricultural land area being utilized.

1. In cases where the taxpayer has rights to use multiple plots of residential land within the province or centrally governed city, the taxable land area is the total area of all taxable residential plots.

2. For multi-story residential buildings with multiple households, apartment buildings, including cases where they are used both for residence and business, the taxable land area for each organization, household, or individual is determined by multiplying the allocation coefficient with the area of the building (structure) used by each organization, household, or individual.

 

 

The area of the building (structure) used by each organization, household, or individual is the actual floor area used by the organization, household, or individual according to the purchase contract or the Certificate of Land Use Right, House Ownership, and Other Assets Attached to the Land (hereinafter referred to as the Certificate).

Article 5. Price of 1 m² of Taxable Land² taxable land

1. The price of 1 m² of taxable land is the land price based on the purpose of the taxable plot of land as prescribed by the Provincial People's Committee and remains stable for a five-year cycle, starting from January 1, 2012.² The taxable land value is the land price according to the purpose of use of the taxable plot of land as prescribed by the Provincial People's Committee and is stabilized for a five-year cycle, starting from January 1, 2012.

2. In cases where there is a change in the taxpayer or factors arise during the stability period leading to a change in the price of 1 m² of taxable land, it is not necessary to re-determine the price of 1 m² of taxable land for the remaining period of the cycle.² Once the land is subject to taxation, there is no need to re-determine the price of 1 square meter² 3. In cases where the State allocates land, leases land, or changes the purpose of land use from agricultural land to non-agricultural land or from non-agricultural production and business land to residential land during the stability period, the price of 1 m² of taxable land is the land price based on the purpose of use as prescribed by the Provincial People's Committee at the time of land allocation, leasing, or change in land use purpose, and remains stable for the remainder of the cycle.

3. In cases where the State grants land, leases land, or changes the purpose of land use from agricultural land to non-agricultural land or from non-agricultural production and business land to residential land during the stabilization period, the price of 1 square meter² of taxable land is the land price according to its purpose of use as prescribed by the Provincial People's Committee at the time of granting land, leasing land, or changing the purpose of land use and is stabilized for the remainder of the cycle.

Article 6. Taxable residential land area limit

1. The residential land area limit serving as the basis for tax calculation for cases where new residential land is allocated from January 1, 2012 onwards shall be the residential land allocation limit prescribed by the Provincial People's Committee at the time of allocating new residential land.

2. The residential land area limit serving as the basis for tax calculation for cases where residential land was being used before January 1, 2012 shall be determined as follows:

a) In cases where, at the time of issuing the Land Use Right Certificate, the Provincial People's Committee has regulations on the residential land allocation limit, the recognized residential land limit, and the residential land area recorded in the Land Use Right Certificate is determined based on the recognized residential land limit, then the recognized residential land limit shall be applied as the basis for tax calculation. If the recognized residential land limit is lower than the current residential land allocation limit, then the current residential land allocation limit shall be applied as the basis for tax calculation;

b) In cases where, at the time of issuing the Land Use Right Certificate, the Provincial People's Committee has regulations on the residential land allocation limit, the recognized residential land limit, and the residential land area recorded in the Land Use Right Certificate is determined based on the residential land allocation limit, then the residential land allocation limit shall be applied as the basis for tax calculation. If the residential land allocation limit is lower than the current residential land allocation limit, then the current residential land allocation limit shall be applied as the basis for tax calculation;

c) In cases where, at the time of issuing the Land Use Right Certificate, the Provincial People's Committee has not yet prescribed the residential land allocation limit or the recognized residential land limit, the entire residential land area recorded in the Land Use Right Certificate shall be considered within the residential land area limit;

d) In cases where the Land Use Right Certificate has not yet been issued, the residential land area limit shall not be applied. When the land user has been issued the Land Use Right Certificate, the residential land area limit for tax calculation shall be applied according to the principles stipulated in points a, b, and c of this clause;

3. In cases of change in the taxpayer, the taxable residential land area limit shall be the current residential land allocation limit prescribed by the Provincial People's Committee and shall be applied from the next tax year, except in cases of change in the taxpayer due to inheritance, gift, or donation between: husband and wife; father and mother with their biological children; adoptive father and mother with their adopted children; father-in-law and mother-in-law with their daughter-in-law; father-in-law and mother-in-law with their son-in-law; grandfather and grandmother with their grandson; grandfather and grandmother with their granddaughter; brothers, sisters, and siblings. In such cases, the taxable residential land area limit shall be implemented according to the prescribed residential land area limit and applied to the person transferring rights;

4. The residential land area limit shall not be applied to encroached land, occupied land, land used for purposes other than intended, and unused land as prescribed.

Article 7. Registration, declaration, calculation, and payment of tax

1. Taxpayers shall register, declare, calculate, and pay taxes in accordance with the laws on tax administration.

2. Taxpayers shall register, declare, calculate, and pay taxes at the district-level tax authority or declare and pay taxes at organizations or individuals authorized by the tax authority as prescribed by law (hereinafter referred to collectively as the district-level tax authority) where they have land use rights.

In remote areas with difficult travel conditions, taxpayers may register, declare, calculate, and pay taxes at the People's Committee of the commune.

3. The registration, declaration, calculation, and payment of tax for cases where taxpayers have land use rights over multiple residential plots within a province or centrally-administered city shall be regulated as follows:

a) Taxpayers shall register, declare, calculate, and pay taxes for each residential plot they have land use rights over at the district-level tax authority where the land is located, as if they had land use rights over only one plot;

b) In cases where none of the residential plots exceed the residential land area limit at the location of the plot, taxpayers may choose the residential land area limit at one location with a plot to determine the amount of tax payable. The excess residential land area shall be determined by subtracting the chosen residential land area limit from the total area of all residential plots they have land use rights over;

c) In cases where one residential plot exceeds the residential land area limit at its location, taxpayers may choose the residential land area limit at the location of the plot that exceeds the limit to determine the amount of tax payable. The excess residential land area shall be determined by adding the excess area of the chosen plot to the total area of all other residential plots they have land use rights over;

d) In cases where two or more residential plots exceed the residential land area limit at their locations, taxpayers may only choose the residential land area limit at one location with a plot that exceeds the limit to determine the amount of tax payable. The excess residential land area shall be determined by adding the excess area of the chosen plot to the total area of all other residential plots they have land use rights over;

đ) Taxpayers shall prepare a consolidated declaration form as prescribed by the Ministry of Finance to determine the total area of all residential plots they have land use rights over and the amount of tax already paid, and submit it to the tax authority where they have chosen the residential land area limit as the basis for tax calculation to pay the difference between the tax payable under this Decree and the tax already paid at the district-level tax authorities where they have land use rights;

4. The Ministry of Finance shall provide detailed regulations on the registration, declaration, calculation, and payment of tax as stipulated in this Article.

Article 8. Tax Exemption, Tax Reduction, and Principles for Tax Exemption and Reduction

The objects of tax exemption, tax reduction, and principles for tax exemption and reduction for non-agricultural land use shall be implemented in accordance with the provisions of Articles 9, 10, and 11 of the Law on Land Rent Tax for Non-Agricultural Land. Some specific contents are stipulated as follows:

1. The list of sectors encouraged to invest, sectors particularly encouraged to invest, areas with difficult socio-economic conditions, and areas with extremely difficult socio-economic conditions as prescribed in Clause 1 and Clause 4 of Article 9 and Clause 1 and Clause 2 of Article 10 of the Law on Land Rent Tax for Non-Agricultural Land shall be implemented in accordance with the laws on investment.

2. Socialized facilities exempted from tax as prescribed in Clause 2 of Article 9 of the Law on Land Rent Tax for Non-Agricultural Land must comply with the regulations on types, scale criteria, and standards of socialized facilities for activities in education, vocational training, healthcare, culture, sports, and environment as decided by the Prime Minister.

3. The determination of poor households exempted from tax as prescribed in Clause 6 of Article 9 of the Law on Land Rent Tax for Non-Agricultural Land shall be based on the Prime Minister's Decision on the poverty standard. In cases where the provincial People's Committee has specifically defined the poverty standard applicable in the locality according to the law, the poverty standard issued by the locality shall be used as the basis for determining poor households.

Chapter III.
IMPLEMENTING PROVISIONS

Article 9. Responsibilities of Certain Ministries and Provincial People's Committees

1. By the third quarter of 2011, the Ministry of Natural Resources and Environment shall be responsible for issuing and guiding local natural resources and environmental agencies on the determination of land area used for purposes other than intended, encroached land area, and unused land area in accordance with the regulations to serve as the basis for calculating taxes under the Law on Land Rent Tax for Non-Agricultural Land.

2. The Ministry of Finance shall be responsible for:

a) Direct the construction of a database for tax collection management based on the land management database provided by the natural resources and environmental agency;

b) Guide and direct tax agencies to organize and manage the collection of non-agricultural land rent tax in accordance with this Decree and tax management laws.

3. Provincial People's Committees shall be responsible for:

a) Specify and announce land prices and residential land limits in each area and period at the local level to serve as the basis for calculating taxes as stipulated in this Decree.

b) Direct organizations and units within the locality to effectively implement the Law on Land Rent Tax for Non-Agricultural Land and the provisions of this Decree.

Article 10. Effectiveness and Implementation Guidance

1. This Decree shall take effect from January 1, 2012, and replace Decree No. 94-CP dated August 25, 1994, of the Government detailing the implementation of the Ordinance on House and Land Tax and the Ordinance amending and supplementing certain articles of the Ordinance on House and Land Tax.

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

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-run city People's Committees, and related organizations and individuals are responsible for implementing this Decree./.