Circular No. 71/2002/TT-BTC amends and supplements Circular No. 83TC/TCT dated October 7, 1994 of the Ministry of Finance guiding the implementation of Decree No. 94/CP dated August 25, 1994 of the Government detailing the implementation of the Land Tax Ordinance.

CIRCULAR

Amending and supplementing Circular No. 83TC/TCT dated October 7, 1994 of the Ministry of Finance guiding the implementation of Decree No. 94/CP dated August 25, 1994 of the Government

detailing the implementation of the Land Tax Ordinance

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On the basis of the Land Tax Ordinance dated July 31, 1992, the Ordinance amending and supplementing the Land Tax Ordinance dated May 19, 1994;

On the basis of Decree No. 94/CP dated August 25, 1994 of the Government detailing the implementation of the Land Tax Ordinance and the Ordinance amending and supplementing certain articles of the Land Tax Ordinance;

On the basis of Circular No. 83TC/TCT dated October 7, 1994 of the Ministry of Finance guiding the implementation of Decree No. 94/CP dated August 25, 1994 of the Government detailing the implementation of the Land Tax Ordinance.

To implement tax exemptions and reductions for land and houses in accordance with reality, the Ministry of Finance supplements some provisions on land and house taxes in Circular No. 83TC/TCT as follows:

1. Amend and supplement some points in Section IV of Circular No. 83 TC/TCT regarding reduction and exemption of land and house taxes as follows:

a. Replace Point 1.b with new Point 1.b as follows:

"Land for residential purposes of households in particularly difficult communes under Program 135 of the Government; land for residential purposes of households classified as poor nationwide (poor households are determined according to the poverty standard at Decision No. 1143/2000/QĐ-LĐTBXH dated November 1, 2000 of the Ministry of Labor, Invalids and Social Affairs and specific regulations of each province and centrally-administered city); land for residential purposes in areas of planned settlement of ethnic minorities.

Land for residential purposes of households building new economic zones shall be exempt from land tax for the first five years from the date of residence (if residing in the first six months of the year, it counts as a full year, if residing in the last six months of the year, it counts as half a year). From the sixth year onwards, land tax must be paid."

b. Replace Point 1.c with new Point 1.c as follows:

Land for residential purposes of households of war invalids of Class 1/4 and Class 2/4; households of martyrs where relatives of martyrs are currently receiving monthly state allowances (as stipulated in Decree No. 5/CP dated January 26, 1994 and Decree No. 6/CP dated January 21, 1997 of the Government); land for constructing benevolent houses for social policy beneficiaries; land for residential purposes of single individuals with disabilities, minors, and elderly people without support who are unable to pay taxes. These subjects are only exempt from tax for a single place of residence registered in their name. The area of land for residential purposes exempt from tax is based on the actual area used by the household for housing, ancillary structures, livestock sheds, paths, drying yards, etc., but not exceeding the limits specified in Articles 54 and 57 of the Law on Land Tax.

Land for residential purposes of households of seriously disabled war invalids of Class 1/4 and other war invalids and sick soldiers required to stay long-term in rehabilitation centers under the management of the Ministry of Labor, Invalids and Social Affairs without permanent residence registration at home with Father, Mother, Wife, Husband, or Children shall be exempt from land tax for that household. Households exempt from land tax must submit an application with confirmation from the People's Committee of the commune or ward where the household resides about the relationship between the household and the war invalid, and simultaneously have the opinion of the war invalid to allow the household to be exempt from tax.

c. Supplement Point 1.d as follows:

"Households paying land and house taxes in the year when the State requisitions land and houses for planning purposes to move to a new residence shall be exempt from land tax for that year for the area of land requisitioned and the area of the new residence.

In cases where households have already paid land and house taxes for the area of land requisitioned and the area of the new residence, the amount of tax exempted shall be deducted from the tax payable in subsequent years. The tax authority directly managing tax collection at the new location has the responsibility to determine the amount of tax reduction due to the exemption and to notify the tax payable for subsequent years."

2. This Circular takes effect 15 days from the date of signature. Provisions on tax exemptions and reductions stipulated in this Circular shall apply from 2003, while other regimes continue to be implemented according to current regulations; During the implementation process, if there are difficulties, localities are requested to report to the Ministry of Finance for resolution.