Decree No. 73/CP detailing the classification of land for Agricultural Land Use Tax

DECREE

Regulations on the detailed classification of agricultural land for land use tax purposes

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Law on Agricultural Land Use Tax adopted by the National Assembly of the Socialist Republic of Vietnam at its Ninth Session on July 10, 1993;

At the proposal of the Minister of Finance, the Minister of Agriculture and Rural Development, and the Director General of the Land Management Department.

DECREE:

Article 1. - The criteria for classifying agricultural land for land use tax purposes include soil quality, location, topography, climate, weather conditions, and irrigation and drainage conditions. The standards for each criterion are determined as follows:

1. Soil quality refers to the fertility of the soil suitable for each type of crop; for land with water surfaces for aquaculture, it also includes salinity levels and nutrient sources in the water.

2. Location refers to the distance from the place of residence of the land user and the distance from the market for agricultural products, depending on specific cases.

3. Topography refers to the flatness, slope, depression, or flooding of the land.

4. Climate and weather conditions refer to the average annual temperature and monthly temperatures; the average annual rainfall and monthly rainfall; the number of dry months in a year; the frequency of floods, typhoons, salt fog, and hot dry winds in a year and each month; humidity affecting the growth of crops.

5. Irrigation and drainage conditions for annual crop land refer to the level of active irrigation; for perennial crop land, it refers to proximity to water sources or lack thereof and drainage conditions.

Specific standards for each criterion for classifying land for tax purposes for major crops are issued together with this Decree.

Article 2- The classification of land for tax purposes for major crops is specified as follows:

1. For land used for annual crops, the classification of land for tax purposes is based on rice-growing land; it relies on the standards of the five factors stipulated in Article 1 of this Decree, taking into account the average yield achieved under normal cultivation conditions over five years (1986-1990).

For land with water surfaces for aquaculture within the area designated for annual crops, the classification of land for tax purposes shall be carried out as if it were land for annual crops.

For land with saline or brackish water specifically used for aquaculture, the classification must be based on soil quality, climate and weather conditions, location, topography, and irrigation and drainage conditions, taking into account the average yield achieved under normal cultivation conditions during the period (1986-1990) or the most recent years.

2. For land used for grass for livestock feed, the classification of land is based on land for annual crops.

3. For land used for perennial crops (excluding land for perennial crops harvested once such as timber, bamboo, rattan, etc.), the classification of land for tax purposes is based on the standards of the relevant factors.

For land used for perennial crops harvested once, there is no classification of land; when harvesting occurs, a 4% tax on the value of the harvest will be levied.

Article 3.- Based on the land tax classification standards, the Ministry of Finance, in coordination with the Ministry of Agriculture and Rural Development and the Land Management Department, determines the land tax classification standards down to the district, county, town, and city level within provinces as a basis for the land tax classification of each locality.

Article 4.- Based on the land tax classification standards, actual land conditions, and production results in the locality, the People's Committee of the province or centrally-administered city directs and guides the land tax classification work in the locality.

Article 5.- Following the guidance of the People's Committee of the district, county, town, or city within a province, the People's Committee of the commune, ward, or town implements the land tax classification.

The commune tax advisory council assists the People's Committee of the commune in classifying land in the commune.

Before reporting the results of the land tax classification to the higher-level People's Committee, the People's Committee of the commune, ward, or town must publicly display the results of the land tax classification in the commune for a period of twenty days to allow citizens to provide feedback, make timely necessary adjustments, and for taxpayers to confirm their land tax classification.

Article 6.- The Tax Office assists the People's Committee of the district, county, town, or city within a province in directing and guiding communes, wards, and towns in classifying land for tax purposes, reviewing and consolidating the land tax classification results of the locality, and reporting to the Provincial Tax Bureau to submit to the People's Committee of the province or centrally-administered city for approval.

Article 7.- The Provincial Tax Bureau assists the People's Committee of the province or centrally-administered city in checking and approving the consolidated land tax classification results of the locality, reporting to the Ministry of Finance to submit to the Prime Minister for approval.

The land tax classification approved by the Prime Minister serves as the basis for calculating taxes and establishing tax records.

The land tax classification remains stable for ten years.

During the period of stability of the land tax classification, for areas where the State has made significant investments in transportation, irrigation, land improvement, and other measures that have produced economic benefits higher than the average level of the five-year period (1986-1990), the People's Committee of the province or centrally-administered city may adjust the land tax classification and report to the Prime Minister for approval.

Article 8.- This Decree takes effect from October 25, 1993.

Previous regulations on the classification of land for tax purposes are hereby abolished.

The Minister of Finance is responsible for providing detailed guidance on the implementation of this Decree.

Article 9.- The Minister, Head of a ministry equivalent to a ministry, Head of a government agency, and Chairman of the People's Committee of a province or centrally-administered city are responsible for implementing this Decree./.

STANDARDS FOR EACH CRITERION FOR CLASSIFYING LAND FOR TAX PURPOSES

OF MAJOR CROPS

(Issued together with Decree No. 73-CP dated October 25, 1993 of the Government).

1. For rice-growing land

The total points of various factors are used to determine the tax category of paddy land, divided into six categories as follows:

Rice yield for reference when categorizing land

For land with brackish water suitable for aquaculture

(*) The number of points for each category of aquaculture land is similar to the points specified for each category of paddy land.

3. For perennial industrial crop land

4. Land for perennial fruit trees