Decree No. 94-CP detailing the implementation of the Ordinance on land and house tax and the Ordinance amending and supplementing certain provisions of the Ordinance on land and house tax.

DECREE

Detailed regulations for implementation of the Ordinance on Land and House Tax and the Ordinance amending and supplementing certain provisions of the Ordinance on Land and House Tax.

THE GOVERNMENT

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

Pursuant to the Ordinance on Land and House Tax adopted by the State Council of the Socialist Republic of Vietnam on July 31, 1992, and the Ordinance amending and supplementing certain Articles of the Ordinance on Land and House Tax adopted by the Standing Committee of the National Assembly on May 19, 1994;

At the proposal of the Minister of Finance;

DECREE

PART I

SCOPE OF APPLICATION

Article 1. The taxable object includes all residential land and construction land within the territory of the Socialist Republic of Vietnam, except for cases specified in Article 2 of this Decree.

Article 2. Land tax shall not be levied in the following cases:

1. Land permitted by competent state agencies for use for public interest, social welfare, or charitable purposes without commercial objectives and not for residence such as: roads, bridges, parks, cultural houses, sports fields, dikes, water conservancy works, schools (including kindergartens and nurseries), hospitals (including clinics, health stations, medical rooms, outpatient departments...), cemeteries, burial grounds.

2. Land permitted by competent state agencies for use for public worship by religious organizations or other organizations that do not use it for commercial purposes or for residence, such as: historical sites, communal houses, pagodas, temples, shrines, churches (shrines, temples, churches for private worship must pay land tax).

Article 3. Domestic or foreign individuals or organizations leasing land are exempt from paying land tax. The lessor must pay land tax according to the provisions of the Ordinance on Land and House Tax.

Foreign-invested enterprises (including wholly foreign-owned enterprises and joint ventures) using land that have paid rent according to state regulations are exempt from paying land tax until the end of the lease contract period.

PART II

BASIS FOR TAX CALCULATION AND TAX RATE

Article 4. The basis for calculating land tax is the area of land, land category, and tax rate per unit area.

Article 5. The area of land for calculating residential land tax and construction land includes: the ground area for building residences and structures, and other areas within the residential land plot; construction land includes the area for walking paths, courtyards, areas around buildings, architectural structures, planting areas, pond areas, and vacant areas.

Article 6. Land categories and tax rates are defined as follows:

1. For residential land and construction land in cities, towns, and townships, the entire area within the administrative boundaries of the inner city or town is included.

The land tax rate is determined for each unit area at different locations and types of streets in each type of urban area.

Classification of urban areas, street types, and locations to determine land tax rates is based on current government regulations.

The land tax rate is determined as follows:

For Class I cities, the land tax rate ranges from 9 to 32 times the agricultural land use tax rate of the highest land category in the region.

For Class II cities, the land tax rate ranges from 8 to 30 times the agricultural land use tax rate of the highest land category in the region.

For Class III cities, the land tax rate ranges from 7 to 26 times the agricultural land use tax rate of the highest land category in the region.

For Class IV cities, the land tax rate ranges from 5 to 19 times the agricultural land use tax rate of the highest land category in the region.

For Class V cities, the land tax rate ranges from 5 to 13 times the agricultural land use tax rate of the highest land category in the region.

For towns, the land tax rate ranges from 3 to 13 times the agricultural land use tax rate of the highest land category in the region.

2. For residential land and construction land in suburban areas adjacent to cities, transportation hubs, and main traffic routes, the tax rate is defined as follows:

a. For residential land and construction land in suburban areas of Class I cities, which include the total area of outer-city communes directly bordering the inner city. The land tax rate is 2.5 times the agricultural land use tax rate of the highest land category in the commune.

b. For residential land and construction land in suburban areas of Class II, III, IV, and V cities, which include the total area of villages directly bordering the inner city, the land tax rate is 2 times the agricultural land use tax rate of the highest land category in the village.

c. For residential land and construction land in suburban areas adjacent to transportation hubs and main traffic routes such as national highways, provincial roads, and connecting roads between cities and towns, industrial zones, tourist areas, and commercial areas outside urban land areas, the land tax rate is 1.5 times the agricultural land use tax rate of the highest land category in the region.

3. For residential land and construction land in rural, delta, midland, and mountainous regions, the land tax rate is equal to the average agricultural land use tax rate collected in the commune.

CHAPTER III

DECLARATION AND PAYMENT OF TAX

Article 7. The Ministry of Finance provides detailed guidance to taxpayers on declaration and payment of taxes in accordance with Articles 9, 10, and 11 of the Ordinance on Land and House Tax; provides detailed guidance on the tasks and powers of tax authorities in managing and collecting land tax in accordance with Article 11 of the Ordinance on Land and House Tax; provides detailed guidance on handling violations and the authority to handle violations related to land tax in accordance with Articles 15, 16, 17, and 18 of the Ordinance on Land and House Tax and Clause 2 of Article 1 of the Ordinance amending and supplementing certain provisions of the Ordinance on Land and House Tax.

PART IV

EXEMPTION FROM TAX, REDUCTION OF TAX

Article 8. Temporary exemption from land tax applies to the following cases:

1. Land for constructing offices of administrative and public service agencies, social organizations, cultural facilities, and land used for defense and security purposes.

If the land mentioned in this clause is used for commercial purposes or for residence, it must be subject to land tax.

2. Land in mountainous and highland areas eligible for exemption from agricultural land use tax, designated areas for settlement of ethnic minorities.

New economic settlers' residential land is exempt from tax for the first five years from the date of settlement.

3. Residential land of families of war invalids classified as 1/4 and 2/4 and families of martyrs receiving state allowances, and land for building benevolent houses for social policy beneficiaries. These beneficiaries are only exempt from tax for one place of residence with an area not exceeding the limit set by the Government.

4. Land for residence of disabled persons unable to work, minors, and single elderly individuals without support, who are unable to pay taxes, shall only be exempted from tax for one place of residence registered under their own name with an area not exceeding the limit set by the Government.

Article 9. Taxpayers encountering difficulties due to natural disasters or unexpected accidents, making them unable to pay taxes, may be considered for tax exemption or reduction.

The People's Committee of districts, towns, and equivalent levels is the authority responsible for deciding on land tax exemptions and reductions based on the proposal of the Director of the Tax Revenue Office.

Article 10. The Ministry of Finance shall provide guidance on procedures, principles for considering land tax exemptions and reductions as stipulated in Article 8 and Article 9 of this Decree.

CHAPTER V

IMPLEMENTING PROVISIONS

Article 11. Land tax is collected by the state tax collection system directly under the Ministry of Finance. In necessary cases, the tax authority may delegate the People's Committee of wards, communes, and towns to collect land tax.

The delegated tax collection agency shall receive a commission of 5% to 8% of the total land tax actually collected and deposited into the State Treasury.

The Ministry of Finance shall provide detailed guidance on the specific rate, procedures for deduction, and principles for distribution and use of the aforementioned commission.

Article 12. This Decree replaces Decree No. 339-HĐBT dated September 22, 1992, issued by the Council of Ministers, and takes effect from January 1, 1994.

All previous regulations contrary to this Decree are hereby abolished.

Article 13. The Minister of Finance shall guide the implementation of this Decree.

Article 14. The Minister, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree./.