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THE
NATIONAL ASSEMBLY
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
35-L/CTN
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Hanoi,
June 22, 1994
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LAW
GOVERNING TAXES ON LAND USE RIGHT ASSIGNMENT.
With a view to strengthening
the State management of the land, encouraging efficient land use, ensuring
equity in tax obligations and supplementing the State budget with part of the
income of the land user who assigns his/her land use rights.
Pursuant to Articles 80 and 84 of the 1992 Constitution of the Socialist
Republic of Vietnam, and
Pursuant to Articles 3,73 and 79 of the Land Law; This Law provides the tax
regulation on the assignment of the land-use rights;
Chapter I
GENERAL PROVISIONS
Article 1
Organizations,
family households or individuals that have the right to use land, including the
land on which there is a house or an architectural object, shall pay a tax on
the assignment of land-use rights when they assign such rights in accordance
with law, except for cases provided for in Article 2 of this Law.
Article 2
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1. Land assigned by the State to
an organization, a family household or an individual for use in accordance with
law;
2. Land returned to, or
recovered by, the State from an organization, a family household or an
individual in accordance with law;
3. The land-use right is
assigned to an inheritor accordance with law;
4. The land-use right is
assigned among members of the same family when a household is detached from the
family or between spouses when they divorce;
5. An organization or an
individual that is licensed to trade in immovable assets and is subject to
turn-over and profit taxes;
6. An organization, a family
household or an individual that leases land and is subject to turn-over and
profit taxes.
Article 3
All State
agencies, political and social organizations, units of the People's Armed
Forces and citizens have the responsibility to assist the tax agency and
the tax collectors in implementing the Law on Tax on Land-Use Right Assignment.
Article 4
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1. A "land-use right
assignment" is a change of hand, a transfer or a hand-over to another
person, of the right to use land in accordance with law.
2. The "taxable
entity" is an organization, a family household, or an individual that
assigns the right to use land in accordance with law.
Chapter II
BASES FOR TAX
CALCULATION
Article 5
The bases
for calculating the tax on land-use right assignments are the acreage of the
land, the value of land and the tax rate.
Article 6
The value
of the land use for calculating the tax on the assignment of land-use rights is
set by the People's Committee of provinces and cities directly under to the
Central Government, which is within the value range set by the Government in
accordance with the practical situation in each locality.
Article 7
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1. For an organization, a family
household or an individual who has right to use land but who has not paid for
its use, or is required to pay for it under the Land Law, the tax rate is as
follows :
a. Land for agriculture,
forestry, aquaculture and salt production : 10% (ten percent)
b. Land for residence,
construction and other uses : 20% (twenty percent)
2. In case an organization, a
family household or an individual that has the right to use land and has paid
for the use under the Land Law, and in case the assignment of the land-use
right is made for the second or more time and for which tax has been paid in
the previous assignment in accordance with the provision of Item 1 of this
Article, they shall, when permitted to make the assignment, pay a tax of 5%
(five percent).
3. In case organizations, family
households or individuals exchange their assigned land plots which have
different values due to the difference in acreage, location or the type of
land, the tax is 5% (five percent) of the difference in value.
Article 8
When the
authorized State agency allows a change in the purpose of the land use, the
assignment of the land-use right is to be carried out as follows :
1. If the purpose of the land
use is to change from agriculture, especially long-terms rice cultivation, to
non-agriculture undertakings, the tax shall be at least 40% (forty percent). If
the change is from an agricultural project to an industrial project, the tax
shall be below 40% (forty percent). The detailed tax rates shall be submitted
by the Government to the National Assembly Standing Committee for approval.
2. If the change is from
non-agricultural to an agricultural purpose, the tax shall be 0% (Zero
percent).
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When
necessary, the Government may propose that the National Assembly Standing
Committee amend or supplement the tax rates, provided for in Article 7 and 8 of
this Law, and submit a report on the matter for approval at the next meeting of
the National Assembly.
Chapter III
DECLARING AND PAYING TAX
Article 10
An
organization, family household or individual that assigns the land-use right
has the responsibility to :
1. Declare to the tax agency the
type of land, its acreage, location and value, along with the permit for change
of land-use purpose (if any) and other papers related to the processing of the
assignment of the land-use right;
2. Supply the necessary
documents related to tax calculating as requested by the tax agency; and
3. Pay the tax in full and on
time as specified by the tax agency.
Article 11
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Article 12
The tax
on land - use right assignment shall be paid to the tax agency at the locality
where the land use right is assigned.
Article 13
The tax
agency has the following tasks and powers :
1. To guide the taxpayer in
making a proper declaration and full payment of his/her tax on the assignment
of land-use rights;
2. To examine and verity
documents to be used as the bases for calculating tax to determine the tax
rates;
3. Within 30 (thirty) days from
receipt of the declaration, the tax agency shall notify the taxpayer the tax
amount and the terms for payment; upon collecting the tax, the tax agency shall
issue a receipt released by the Ministry of Finance;
4. To record violations and to
determine the administrative penalties for the violation within its
jurisdiction or, depending on the extent of the violation propose an
investigation for criminal responsibility as provided for by the law concerning
the violation of the Law on Tax on Land-Use Right Assignment; and
5. To examine and address
protests related to tax on land-use right assignments within its jurisdiction.
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TAX EXEMPTION AND
REDUCTION
Article 14
1 Tax
shall be exempt for family households and individuals who assign their land-use
rights to move to new economic zones, mountainous areas and islands by decision
of the authorized State agency;
2. The tax on land-use right
assignments shall be inapplicable or reduced for public employees who move to
new places of residence due to changes in their jobs or due to their retirement
by decision of the authorized agency.
The Government shall define
detailed provisions for tax exemption and reduction for the taxable subjects
stipulated in Item 2 of this Article.
Article 15
Tax on
land-use right assignment shall be reduced by 50% (fifty percent) for the
following cases :
1. War disabled of 1/4 and 2/4
degrees, and diseased army men of 1/3 and 2/3 degrees;
2. Family members of the fallen
combatants, who are entitled to State subsidies; and
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Article 16
Each of
the taxable entities identified in Article 14 and 15 of this Law shall be
considered for exemption or reduction from the tax on land-use right assignment
only in the first assignment.
The power for decision and the
procedure for consideration of exemption or reduction from the tax on land-use
right assignment shall be stipulated by the Government.
Chapter V
THE HANDLING OF
VIOLATIONS AND REWARDS.
Article 17
The
taxable subjects who violate the Law on Tax on Land-Use Right Assignments shall
be penalized as follows :
1. For a false declaration or
tax evasion, apart from paying in full the tax provided for by this Law, the
taxable subject shall pay a fine equivalent to one to three times the evaded
tax.
2. For an untimely payment of
the tax or a fine in the amount written in the tax notification or penalty
decision, apart from paying in full the tax or fine as provided for by this
Law, the taxable subject shall pay for each day of delay by way of a fine equal
to 0,2% (two thousandths) of the amount of delayed payment;
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Article 18
The
jurisdiction for dealing with tax violations is defined as follows :
1. For a taxable subject whose
violation is stipulated in Item 1, Article 17 :
a. The head of a tax bureau is
authorized to levy a cash fine which is equal to the evaded tax;
b. The director of the Tax
Department is authorized to levy a cash fine which may amount to three times the
evaded tax;
2. The heads of tax bureaus at
all levels shall manage the collection of the tax on land-use right
assignments, and are authorized to levy a fine on delayed tax payments and
other fines, as provided for in Item 2 of Article 17 of this Law, and decide
other penalties in accordance with the legal provisions for administrative
fines.
Article 19
Individuals
who hinder, or incite others to hinder, investigations into and the handling of
violations, of the Law on Tax on Land-Use Right Assignment shall, depending on
the extent of their violations, be given an administrative fine or investigated
for penal liability in accordance with the law.
Article 20
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Tax collectors and other
individuals who, taking advantage of their power and competence, shield the
violators, intentionally break rules or show a lack of responsibility in the
execution of this Law shall, depending on the extent of their violations, be
disciplined or investigated for penal liability in accordance with the law.
The tax agency which mishandles
its work and causes losses to taxpayers and those who are subject to its
handling shall have to compensate for the losses. The tax collectors who are
connected to this mishandling shall, depending on the extent of their mistakes,
be disciplined or investigated for penal liability.
Article 21
The tax
agency and collectors that fulfill their assigned duties well, and those who
are credited with discovering violations of this Law, shall be rewarded in
accordance with the State reward regime.
Chapter VI
PROTEST AND TIME LIMIT
Article 22
Organizations,
family households and individuals have the right to protest against improper
implementation of the Law on Tax on Land-Use Right Assignment. The tax bureaus
at all levels are responsible for handling protests against acts concerning the
implementation of the Law on Tax on Land-Use Right Assignment.
Written protests shall be sent
to the tax bureau which issue the tax notification or the penalty decision
within 30 (thirty) days from the receipt of the notification or decision.
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Article 23
In case
the protester does not agree with the decision made by the executing office of
his/her protest, or his/her protest has not been handled within the set time
frames, he/she may lodge a protest with the tax agency immediately above the
executing office. The decision taken by this next higher tax agency shall take
effect. The decision taken by the Minister of Finance is final.
Article 24
The tax
agency shall have to return the tax or fine money which it has taken improperly
and pay the compensation (if any) within 15 (fifteen) days from the receipt of
the decision.
Article 25
In case a
discovery is proved right on a false declaration or tax evasion, within three
years from the date the false declaration or tax evasion is made, the tax
agency is authorized to recover the evaded tax handle the violation in
accordance with Article 17 of this Law.
Chapter VII
PROVISION OF
IMPLEMENTATION
Article 26
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Article 27
The
Chairman of the People's Committee at all levels shall organize the
implementation and inspection of the collection of tax under this Law within
his locality.
Article 28
This Law
on the Tax on Land-Use Right Assignment shall take effect as of the 1st of July
1994
Any previous provisions contrary
to this Law shall be annulled.
Article 29
The
Government shall establish detailed provisions for the implementation of this
Law.
This Law war passed by the
Nationals Assembly of the Socialist Republic of Vietnam, Ninth Legislature
Fifth Session, on June 22, 1994
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CHAIRMAN
OF THE NATIONAL ASSEMBLY
Nong Duc Manh