Circular No. 82-TC/TCT guides the implementation of Decree No. 84/CP dated August 8, 1994 of the Government detailing the implementation of the Supplementary Tax Ordinance for households using agricultural land exceeding the prescribed area limit.

CIRCULAR

OF THE MINISTRY OF FINANCE

GUIDELINES FOR IMPLEMENTING DECREE NO. 84/CP DATED AUGUST 8, 1994 OF THE GOVERNMENT PROVIDING DETAILED REGULATIONS ON THE IMPLEMENTATION OF THE ORDINANCE ON ADDITIONAL TAXES ON HOUSEHOLDS USING AGRICULTURAL LAND IN EXCESS OF THE ALLOWABLE AREA

IMPLEMENTING THE ORDINANCE ON ADDITIONAL TAXES ON HOUSEHOLDS USING AGRICULTURAL LAND IN EXCESS OF THE ALLOWABLE AREA APPROVED BY THE NATIONAL ASSEMBLY’S STANDING COMMITTEE ON MARCH 15, 1994 AND DECREE NO. 84/CP DATED AUGUST 8, 1994 OF THE GOVERNMENT PROVIDING DETAILED REGULATIONS ON THE IMPLEMENTATION OF THE ORDINANCE, THE MINISTRY OF FINANCE GUIDES AS FOLLOWS:

I - TAXPAYERS, TAX SUBJECTS.

Households of farmers, private households, individual households listed in the land tax register, if using agricultural land for growing annual crops or perennial crops exceeding the allowable area specified below, shall have the obligation to pay additional taxes in addition to the agricultural land use tax as prescribed in Article 9 of the Law on Taxation of Agricultural Land Use:

1. For agricultural land used for growing annual crops:

- In the provinces of Minh Hai, Kien Giang, Soc Trang, Can Tho, An Giang, Vinh Long, Tra Vinh, Dong Thap, Tien Giang, Long An, Ben Tre, Tay Ninh, Song Be, Dong Nai, Ba Ria-Vung Tau and Ho Chi Minh City, not more than 3 hectares.

- In other centrally governed cities and provinces, not more than 2 hectares.

2. For perennial crop cultivation land:

- In plain area communes, not more than 10 hectares.

- In mountainous and midland communes, not more than 30 hectares.

II - BASIS FOR CALCULATING TAX.

The basis for calculating additional taxes shall be implemented according to the provisions of Article 3 of Decree No. 84/CP dated August 8, 1994 of the Government, including:

1. The excess area of agricultural land used over the allowable limit for each type of land for growing annual crops or perennial crops shall be determined according to the following formula:

Excess area over allowable limit Total area Area of agricultural land = used for growing annual crops (or perennial crops) - allowable limit for growing annual crops (or perennial crops) (or for growing perennial crops)

2. The average recorded tax rate for each type of agricultural land shall be determined as follows:

Average recorded tax rate for Total recorded tax amount for land for growing annual crops of households paying tax land for growing annual crops = of households paying tax Total recorded taxable area for land for growing annual crops of households paying tax

Total recorded tax amount for Average recorded tax rate for land for growing perennial crops of households paying tax land for growing perennial crops = of households paying tax Total recorded taxable area for land for growing perennial crops of households paying tax

 3. The tax rate for additional taxes is 20% (twenty percent) of the agricultural land use tax rate on the excess area of each type of agricultural land over the allowable limit for households paying taxes, as determined in Point 1, Part II of this Circular:

The agricultural land use tax rate on the excess area of each type of agricultural land over the allowable limit is determined as follows:

Agricultural land use tax rate on Excess area over allowable limit Recorded tax rate of land for growing annual crops (or perennial crops) of households paying tax = of land for growing annual crops (or perennial crops) of households paying tax

III - DECLARATION, CALCULATION, PAYMENT OF TAX.

The declaration, calculation, and payment of additional taxes for households using agricultural land in excess of the allowable area shall be carried out concurrently with the declaration, calculation, and payment of agricultural land use tax as prescribed by the Law and sub-Legal documents guiding the taxation of agricultural land use; additional guidance is provided as follows:

1. In cases where the taxpayer only uses agricultural land at one location:

If the taxpayer only uses agricultural land within the territory of one commune (ward or town), the tax authority will base the calculation of additional taxes on the taxable area and the tax register on the declaration form of the taxpayer.

2. In cases where the taxpayer uses agricultural land at multiple locations:

If the taxpayer uses land across multiple communes, wards, towns within one district, city, or province, or uses land across multiple districts, towns, cities within one province, or has land across multiple provinces or cities, then the taxpayer must declare the taxable area and the tax amount for each type of land to be paid in each locality to the tax authority where they reside for the calculation of additional taxes.

In cases where the taxpayer does not have agricultural land and is not listed in the tax register at their place of residence, the taxpayer must agree with one of the tax authorities where they are listed in the tax register to declare, calculate, and pay additional taxes at the place where the tax register was established.

IV - REDUCTION, EXEMPTION FROM TAX.

Reductions and exemptions from additional taxes shall be carried out concurrently with reductions and exemptions from agricultural land use taxes in accordance with the provisions of the Law and sub-Legal documents guiding the taxation of agricultural land use. Specifically, the actual cultivated area that may be considered for reduction or exemption for taxpayers as stipulated in the last paragraph of Clause 6, Article 16 of Decree No. 74/CP dated October 25, 1993 of the Government shall not exceed the allowable limit specified in Article 2 of Decree No. 84/CP dated August 8, 1994 of the Government.

V - ORGANIZATION AND IMPLEMENTATION.

This Circular takes effect from January 1, 1994./.