Joint Circular No. 92/TTLB 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 MINISTERIAL GUIDELINE

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

detailing land classification for agricultural land tax purposes

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Pursuant to the Law on Land Tax for Agricultural Land; pursuant to Decree No. 73/CP dated October 25, 1993 of the Government detailing land classification for agricultural land 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 EACH TAX CLASSIFICATION OF LAND

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 saline and moderately saline lands, slightly brackish and moderately brackish lands in 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 transformed due to rice cultivation, slightly saline and moderately saline lands, slightly brackish and moderately brackish lands not in the Red River Delta and the Mekong Delta.

- Very infertile land (2 points) includes highly saline lands, highly brackish lands, swampy lands, sea sand lands, depleted soils... these types of land require improvement before they can be cultivated.

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 saline soils with low nutrient content.

- Less fertile land (5 points) includes moderately saline soils that need improvement before they can be used for aquaculture.

- Very infertile land (2 points) includes highly saline soils, muddy soils, very nutrient-poor sandy soils that require 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 of more than 2.5%.

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

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

2. Location factor:

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

b. For perennial crop land (excluding planted forests) and brackish water areas for aquaculture: The location factor is determined from the center of the village (hamlet), ward, or commune 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 for land classification for 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 crops and perennial fruit trees, the scale of points is: 8, 6, 4.

4. Climate and weather conditions factor: Includes average annual temperature; average annual rainfall; amount of wind, typhoons, floods in a year; number of dry months, number of hot months (Lao wind); amount of salt fog. 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 on the land as follows:

a. For paddy fields:

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

- 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 crops, perennial fruit trees, and planted forests, it is 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, it is divided into four levels according to the standard table of each factor for land classification for agricultural land 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 crops and perennial fruit trees, it is 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. LAND CLASSIFICATION FOR TAX PURPOSES FOR MAJOR CROPS

1. For annual crop land: land classification for paddy fields should be carried out first; based on this, land classification for other types of crops should be conducted.

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 classification of land 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 higher in the tax category if they have a higher score from the five factors, and lower if they have a lower score.

The yield used for reference and verification of land classification for taxation purposes is the yield achieved under normal weather conditions with average farming techniques and medium-level intensification at the local level.

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

2. For land with water bodies for aquaculture:

Land with water bodies used for both 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 with brackish water dedicated solely to 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 (excluding timber trees and other perennial crops harvested once), land classification shall be carried out as follows:

- For perennial crop cultivation in specialized or widespread planting areas or within residential land plots, the classification standards of the five factors shall determine the tax category for land used for perennial crops such as rubber, tea, fruit trees (citrus), coconut, and cashew.

- For perennial crop cultivation interspersed with annual crop cultivation, the land shall be classified as if it were for annual crop cultivation.

- For mixed perennial crop cultivation or various types of perennial crops, the land shall be classified as if it were for specialized perennial crop cultivation; in cases where there are no specialized perennial crop cultivation areas nearby, it shall be classified as if it were for adjacent annual crop cultivation. Timber trees and other perennial crops harvested once include wood, bamboo, rattan, acacia, pine, and other types of trees whose trunks are not reusable or capable of producing products after the first harvest.

Land for these crops shall not be classified but taxed based on the volume of production harvested 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 to implement:

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

- Submit to the People's Committees of provinces and centrally-administered cities for decision on the maximum and minimum points of each factor for each type of major crop, for each district, town, city, and province to establish the land categories for taxation of agricultural land use for communes.

2. At the district level:

Based on the land classification standards and guidance provided in this Circular, and based on provincial directives, and the proposed land category structure allocated 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 for each commune, ward, town, and the tax revenue to be recorded, thereby 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, and 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 shall assist the Commune People's Committee in classifying land for taxation down to each plot of land used by each household.

Classify major crop cultivation lands first according to village, hamlet, and mountainous area; based on that, classify land for other types of crop cultivation. Land classification must be conducted according to each field based on actual land conditions, number of crop cycles, and referencing the average yield achieved under normal farming conditions and medium-level intensification at the local level as detailed in Decree No. 73/CP dated October 25, 1993 issued by the Government. Pay attention to determining the terrain, location, and yield 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 shall assist the Commune People's Committee in compiling the results of land classification.

The results of land classification before reporting to the District People's Committee must be publicly announced for the people to participate for a period of twenty 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 the 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 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 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 the land classification for tax purposes for localities.

V. IMPLEMENTATION

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

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.