Joint Circular No. 92/TT-LB guiding the implementation of Decree No. 73-CP dated October 25, 1993 of the Government detailing the classification of agricultural land for land use tax purposes.

JOINT CIRCULAR

OF THE MINISTRY OF FINANCE, THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT, THE GENERAL DEPARTMENT OF LAND MANAGEMENT

Decree No. 73/CP dated October 25, 1993 of the Government

Implementation guidance

detailing the classification of land for agricultural land use tax purposes

Pursuant to the Law on Land Use Tax for Agricultural Land; pursuant to Decree No. 73/CP dated October 25, 1993 of the Government detailing the classification of land for agricultural land use tax purposes; the Ministry of Agriculture and Rural Development, the Ministry of Finance, and the General Department of Land Management hereby provide guidance as follows:

I. DETERMINATION OF STANDARDS FOR EACH FACTOR OF CLASSIFIED LAND FOR TAX PURPOSES

1. Soil factor: The soil factor refers to the fertility of the land (type of soil, depth of cultivation or depth of soil layer, humus content...) suitable for each type of crop; for land with brackish water for aquaculture, it also includes salinity and nutrient content of the water. The specific soil factors for major crops are as follows:

a. For paddy fields:

- Highly fertile land (10 points) includes alluvial soils from the Red River system, the Mekong Delta system, the Thai Binh River system, the lower Thu Bon River, and the lower Ba River.

- Moderately fertile land (7 points) includes alluvial soils from other rivers; slightly and moderately acid sulfate soils, slightly and moderately saline soils of the Red River Delta and the Mekong Delta.

- Less fertile land (5 points) includes alluvial soils that are waterlogged, gray soils, hillside soils, yellow-red soils altered by rice cultivation, slightly and moderately acid sulfate soils, slightly and moderately saline soils not belonging to the Red River Delta and the Mekong Delta.

- Very infertile land (2 points) includes heavily acid sulfate soils, heavily saline soils, swampy soils, beach sand soils, depleted soils... these types of land require improvement before they can be used for production.

b. For brackish water areas for aquaculture:

- Highly fertile land (10 points) includes alluvial soils and clay-silt soils rich in nutrients.

- Moderately fertile land (7 points) includes slightly acid sulfate soils with low nutrient content.

- Less fertile land (5 points) includes moderately acid sulfate soils requiring improvement before they can be used for aquaculture.

- Very infertile land (2 points) includes heavily acid sulfate soils, muddy soils, very nutrient-poor sandy soils requiring long-term improvement before they can be used for aquaculture.

c. For perennial industrial crops and perennial fruit trees:

- Highly fertile land (10 points) includes soils suitable for each type of crop in each locality, with a depth greater than 100 cm, and a humus content above 2.5%.

- Moderately fertile land (8 points) includes relatively suitable soils for each type of crop in each locality, with a depth between 70 cm and 100 cm, and a humus content between 1% and 2.5%.

- Very infertile land (6 points) includes soils with a depth less than 70 cm mixed with much sand and gravel, with a humus content below 1%, requiring significant investment for improvement before they can be used for perennial crops.

2. Location factor:

a. For annual crop land, grassland, and planted forest land: The location factor is determined from the place of production to the residence of the land user household. The residence of the land user household is defined as the center of the village (hamlet), ấp, bản where the land is located, with a scale of points: 7, 5, 3, 1.

b. For perennial crop land (excluding planted forest land) and brackish water areas for aquaculture: The location factor is determined from the center of the village (hamlet), ấp, bản where the land is located to the nearest city or town. For enterprises, it is calculated from the enterprise headquarters to the nearest commune or town, with a scale of points: 6, 4, 2 for perennial crop land and a scale of points: 7, 5, 3, 1 for brackish water areas for aquaculture.

3. Topography factor: as stipulated in Article 1 of Decree No. 73/CP dated October 25, 1993, and detailed in the table of standards for each factor to classify land for tax purposes of major crops attached hereto.

For annual crop land and brackish water areas for aquaculture, the scale of points is: 8, 6, 4, 2.

For perennial industrial crop land and perennial fruit tree land, the scale of points is: 8, 6, 4.

4. Climate and weather conditions factor: including average annual temperature; average annual rainfall; wind, typhoon, flood volume in a year; number of dry months, number of hot months (Lao wind); salt fog volume. These factors are evaluated at two levels: limited or not limited to the growth of crops. Each factor is considered limiting if it occurs regularly every year, affecting the growth of crops. These factors are summarized and evaluated according to the standards for each type of crop grown on the land as follows:

- Favorable for growing rice, with no limitations (10 points), meaning there is no worst factor.

- Highly fertile land (10 points) includes alluvial soils from the Red River system, the Mekong Delta system, the Thai Binh River system, the lower Thu Bon River, and the lower Ba River.

- Relatively favorable for growing rice, with one limiting condition (7 points), which is the worst condition as mentioned above.

- Relatively favorable for growing rice, with two worst conditions (5 points).

- Unfavorable for growing rice, with at least four limiting conditions (2 points) such as typhoons, floods, salt fog, Lao wind.

b. For brackish water areas for aquaculture, it is determined similarly to paddy fields.

c. For perennial industrial crop land, perennial fruit tree land, and planted forest land, they are divided into three levels suitable for each type of crop: favorable (10 points), relatively favorable (8 points), and less favorable (6 points).

5. Irrigation and drainage factor (water regime) includes both state investment and natural irrigation and drainage.

a. For paddy fields and brackish water areas for aquaculture, they are divided into four levels according to the standard table of each factor to classify land for tax purposes attached to Decree No. 73/CP dated October 25, 1993 of the Government. The four levels correspond to the scale of points: 10, 7, 5, 2.

b. For perennial industrial crop land and perennial fruit tree land, they are divided into three levels: favorable (10 points), relatively favorable (8 points), and less favorable (6 points) suitable for each type of crop in each locality.

II. CLASSIFICATION OF LAND FOR TAX PURPOSES FOR MAJOR CROPS

1. For annual crop land: first, classify paddy fields; then classify other types of crop land based on that.

1. For annual crop land: classify paddy fields first; based on that, classify other types of crop land.

When classifying land for rice cultivation, it must be based on the classification standards of five main factors and combined with the average yield achieved under normal farming conditions over five years (1986-1990). The achieved yield is a factor to verify the land classification according to the five factors as follows:

- Paddy fields classified into the same tax category must have the same standards of the five factors; in cases where they meet the same land classification standards of the five factors but have different yields, they will still be in the same tax category.

- Paddy fields achieving the same yield but differing in the land classification standards of the five factors will be ranked into higher tax categories if they have higher scores from the five factors, and into lower tax categories if they have lower scores from the five factors.

The yield used for reference and verification of land classification for taxation purposes is the yield achieved under normal weather conditions with medium farming techniques and intensification levels locally.

When classifying land for annual crop cultivation, it must be based on the classification standards of the five factors and the land classification results for rice, comparing the five factors of the rice cultivation land adjacent or nearest to the five factors of other annual crop cultivation lands.

2. For land with water surfaces for aquaculture:

Land with water surfaces used both for aquaculture and annual crop cultivation shall be classified for taxation as land for annual crop cultivation.

Ponds, lakes, and swamps used for aquaculture shall be classified for taxation according to the adjacent or nearest annual crop cultivation land.

Land with brackish water surfaces exclusively used for aquaculture must be based primarily on soil quality, water quality, location, climate, topography, and drainage conditions, and combined with the average yield achieved under normal farming conditions over five years (1986-1990) or the most recent years.

3. Grassland used for livestock breeding shall be classified for taxation as land for annual crop cultivation.

4. For perennial crop cultivation land (excluding timber and other perennial crops harvested once), the land classification shall be carried out as follows:

- Perennial crop cultivation land in areas of specialized cultivation or widespread cultivation, or garden land within residential areas, shall be based on the standards of the five factors to determine the tax category for perennial crop cultivation land such as rubber, tea, fruit trees (citrus), coconut, and cashew.

- Perennial crop cultivation land intercropped with annual crops shall be classified as adjacent annual crop cultivation land.

- Garden land or land planted with various perennial crops shall be classified as specialized perennial crop cultivation land adjacent to it; in cases where there are no specialized perennial crop cultivation lands nearby, it shall be classified as adjacent annual crop cultivation land.

Land for timber and other perennial crops harvested once includes wood, bamboo, rattan, mahogany, teak, and other types of trees whose trunks are no longer usable or capable of producing products after the first harvest.

Such land is not classified but taxed based on the volume of extraction according to Clause 3, Article 2 of Decree No. 73/CP dated October 25, 1993 issued by the Government.

III. PROCEDURE FOR CLASSIFYING LAND FOR TAXATION OF AGRICULTURAL LAND USE

1. At the provincial level:

Based on Article 1 of Decree No. 73/CP dated October 25, 1993 issued by the Government, and based on the standards of each factor to classify land for taxation of major crops and guidance from the Ministry of Agriculture and Food Industry, Ministry of Finance, and Land Management; the Provincial Tax Department shall cooperate with agricultural and land management agencies at the provincial level to implement:

- Propose the structure of land categories for annual crop cultivation, perennial crop cultivation, and brackish water surfaces for aquaculture suitable for the degree of land classification factors and crop yields of each district, to be assigned by the Provincial People's Committee to districts in the first quarter of 1994;

- Propose the Provincial People's Committee, and centrally affiliated cities' People's Committees to decide the maximum and minimum points of each factor for major crops, of each district, county, town, and city within the province to build land categories for taxation of agricultural land use for communes.

2. At the district level:

Based on land classification standards and this Circular; based on provincial directives; based on the proposed land category structure assigned by the Provincial People's Committee, the District Tax Office shall cooperate with the Tax Advisory Board (related sectors) to propose the land category structure of each commune, ward, town, and the tax amount to be collected based on that, directing communes, wards, and towns to classify land for taxation.

3. At the commune level:

Based on Article 1 of Decree No. 73/CP dated October 25, 1993 issued by the Government; based on provincial and district guidance. Following the directive of the District People's Committee, the commune tax team together with the commune tax advisory board assists the Commune People's Committee in classifying land for taxation down to each plot of land used by each household.

Classify major crop cultivation land first according to village, hamlet, and village boundaries; based on that, classify land for other types of crop cultivation. Land classification must be carried out according to each field based on actual land conditions, number of cropping seasons, and referencing the average yield achieved under medium farming conditions and local intensification levels as detailed in Decree No. 73/CP dated October 25, 1993 issued by the Government. Note the determination of topographical, locational, and yield factors according to each type of crop in each area of farmland.

The tax authority together with land management and agricultural staff shall propose the land classification for taxation of the commune, put forward for discussion and review by the advisory board; based on that, the tax authority assists the Commune People's Committee in summarizing the land classification results.

The land classification results before reporting to the District People's Committee must be posted for public knowledge for participation within 20 days.

IV. REVIEW OF LAND CLASSIFICATION FOR TAXATION

1. The Tax Revenue Office shall coordinate with the County Tax Advisory Board (relevant sectors) to assist the People's Committee of the county in inspecting and reviewing the land classification for agricultural land tax of communes and units directly registered by the County Tax Revenue Office. In cases where there is no agreement between the County Tax Advisory Board and the communes, the People's Committee of the county shall instruct the communes to redo their work. The Tax Revenue Office shall assist the People's Committee of the county in compiling and reporting to the Provincial Tax Department and submitting to the People's Committee of the province for approval.

2. The Provincial Tax Department shall coordinate with the Provincial Tax Advisory Board (relevant sectors) to assist the People's Committee of the province in compiling and reviewing the land classification for agricultural land tax of counties and units directly registered by the Provincial Tax Department for submission to the People's Committee of the province for approval and reporting to the Ministry of Finance (General Department of Taxation) for submission to the Government.

3. The Ministry of Finance, together with the Ministry of Agriculture and Food Industry and the General Land Management Department, shall inspect the compilation and review of land classification for agricultural land tax of provinces and cities; prepare necessary documents for the Ministry of Finance to submit to the Government for approval of land classification for tax purposes for localities.

V. IMPLEMENTATION

1. People's Committees at all levels shall be responsible for directing the relevant sectors: tax, agriculture, land management, and lower-level People's Committees to implement the work of classifying land for agricultural land tax.

2. This Circular shall take effect from November 10, 1993. Previous regulations on land classification for agricultural land tax shall only remain effective until December 31, 1993.