THE
GOVERNMENT
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SOCIALIST REPUBLIC
OF VIET NAM
Independence -
Freedom – Happiness
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No.
94-CP
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Hanoi, August
25, 1994
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DECREE
DETAILING
THE IMPLEMENTATION OF THE ORDINANCE ON HOUSE AND LAND TAX AND THE ORDINANCE
AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE ORDINANCE ON HOUSE AND
LAND TAX
THE GOVERNMENT
Pursuant to the September 30,
1992 Law on Organization of the Government;
Pursuant to the Ordinance on House and Land Tax, adopted by the State Council
of the Socialist Republic of Vietnam on July 31, 1992, and the Ordinance
Amending and Supplementing a Number of Articles of the Ordinance on House and
Land Tax adopted by the National Assembly Standing Committee on May 19, 1994;
At the proposal of the Minister of Finance,
DECREES
Chapter I
SCOPE OF APPLICATION
Article 1.- Taxable
objects shall be all residential land and construction land in the Vietnamese
territory, except for cases prescribed in Article 2 of this Decree.
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1. Land which is permitted by
competent State agencies for use for public interests, social welfare and
charity without commercial or residential purposes such as: land for building
roads, bridges, sluices, parks, cultural houses, stadiums, dykes, irrigation
works, schools (including nurseries and kindergartens), hospitals (including
dispensaries, health stations, clinics…), cemeteries, grave-yards.
2. Land which is permitted by
competent State agencies for use for public worship by religious organizations
and other organizations for non-commercial or non- residential purposes such
as: historical relics, communal houses, temples, pagodas, shrines and worship
houses (private temples, shrines and worship houses are still liable to land
tax).
Article 3.-
Vietnamese as well as foreign organizations and individuals that lease land
shall not have to pay land tax. Land lessors shall have to pay land tax
according to the provisions of the Ordinance on House and Land Tax.
Foreign-invested factories
(including factories with 100% foreign capital and joint-venture factories)
using land, which have paid land rentals according to the State’s regulations
shall not have to pay land tax until the expiry of land-lease contracts.
Chapter II
TAX CALCULATION BASES AND TAX RATES
Article 4.-
Tax calculation bases include land acreage, land grade and tax rate on an
acreage unit.
Article 5.-
Land acreage for
calculation of tax on residential land and construction land shall cover the
acreage of the grounds for construction of dwelling houses, works and other
areas within the premises of residential land; for construction land, such
areas shall cover paths, yards, areas surrounding houses and architectural
works, greenery areas, ponds and unused areas.
Article 6.- Land
grades and tax rates are prescribed as follows:
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The tax rate shall be prescribed
for an acreage unit at each position, in each kind of streets of each type of
urban centers.
The classification of urban
centers, streets and positions for determination of land tax rates shall be
based on the current regulations of the Government.
Land tax rates shall be
determined as follows:
- For grade-I urban centers, the
land tax rates shall be between 9 and 32 times that on the use of agricultural
land of the highest grade in the regions.
- For grade-II urban centers,
the land tax rates shall be between 8 and 30 times that on the use of
agricultural land of the highest grade in the regions.
- For grade-III urban centers,
the land tax rates shall be between 7 and 26 times that on the use of
agricultural land of the highest grade in the regions.
- For grade-IV urban centers,
the land tax rates shall be between 5 and 19 times that on the use of
agricultural land of the highest grade in the regions.
- For grade-V urban centers, the
land tax rates shall be between 5 and 13 times that on the use of agricultural
land of the highest grade in the regions.
- For townships, the land tax
rates shall be between 3 and 13 times that on the use of agricultural land of
the highest grade in the regions.
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a/ For land in population
quarters and construction land in the suburban areas of grade-I urban centers,
tax-liable land shall be the whole land areas of the suburban communes directly
adjacent to the inner cities. The land tax rates shall be 2,5 times that on the
use of agricultural land of the highest grade in the communes.
b/ For land in population
quarters and construction land in the suburban areas of grade-II, -III, -IV and
-V urban centers, tax-liable land shall be the whole areas of the villages
directly adjacent to the inner cities, and the land tax rates therefor shall be
2 times that on the use of agricultural land of the highest grade in the
villages.
c/ For land in population
quarters and construction land in areas adjacent to traffic hubs or along main
traffic routes such as national highways, inter-provincial roads, routes
linking one city or town to others; linking to industrial parks, tourist
resorts and trade zones located outside urban centers, the land tax rates shall
be 1.5 times that on the use of agricultural land of the highest grade in the
areas.
3. For residential land and
construction land in rural, delta, midland and mountainous areas, the land tax
rates shall be equal to the average agricultural-land use tax rates in the
communes.
Chapter III
TAX DECLARATION AND PAYMENT
Article 7.- The
Ministry of Finance shall provide tax payers with specific guidance on tax
declaration and payment in strict accordance with Articles 9, 10 and 11 of the
Ordinance on House and Land Tax; guide in detail the tasks and powers of tax
offices in the management and collection of land tax according to Article 11 of
the Ordinance on House and Land Tax; the handling of, as well as the competence
to handle, land tax-related violations according to Articles 15, 16, 17 and 18
of the Ordinance on House and Land Tax and Clause 2, Article 1 of the Ordinance
Amending and Supplementing a Number of Articles of the Ordinance on House and
Land Tax.
Chapter IV
TAX EXEMPTION AND REDUCTION
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1. Land for construction of
working offices of State administrative and non-business agencies, social
organizations, cultural works and land used for defense and security purposes.
If land temporarily exempt from
land tax stated in this Clause is used for commercial or residential purposes,
land tax must be paid.
2. Land in forests and high
mountains being exempt from agricultural land use tax and sedentarization areas
of ethnic minority people.
Residential land of people
engaged in the construction of new economic zones shall be exempt from land tax
for 5 years as from the date of their arrival.
3. Residential land of families
of 1/4- or 2/4-grade war invalids and martyrs’ families, which are entitled to
the State’s allowance regimes, land for construction of gratitude houses for
social policy beneficiaries. These subjects shall be entitled to tax exemption
for one residence place with an acreage not exceeding the level prescribed by
the Government.
4. Residential land of the
disabled who lose their working capacity, juveniles and lonely and helpless
elderly persons who are incapable of paying tax, shall be exempt from tax but
for only one residence place under their respective names with an acreage not
exceeding the level prescribed by the Government.
Article 9.- Payers
of land tax who meet with difficulties due to natural disasters or unexpected
accidents, thus being incapable of paying tax shall be considered for tax
exemption or reduction.
The People’s Committees of
district or equivalent level shall be the agencies competent to decide on the
exemption and reduction of land tax at the proposals of the heads of the Tax
Sub-Departments.
Article 10.- The
Ministry of Finance shall guide the procedures and principles for the exemption
and reduction of land tax prescribed in Articles 8 and 9 of this Decree.
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IMPLEMENTATION PROVISIONS
Article 11.- Land tax shall be collected by the
State’s tax-collection system under the Finance Ministry. In necessary cases,
tax agencies may authorize the People’s Committees of wards, communes and
townships to collect land tax.
Agencies authorized to collect
land tax shall enjoy a remuneration of between 5% and 8% of the total collected
tax amounts already remitted into the State treasuries.
The Ministry of Finance shall
guide the specific deduction levels, the procedures for deduction and the
principles for distribution of the above-stated remuneration amounts.
Article 12.- This
Decree replaces Decree No. 339-HDBT of September 22, 1992 of the Council of
Ministers and takes effect as from January 1, 1994.
All previous regulations
contrary to this Decree are hereby annulled.
Article 13.- The
Minister of Finance shall guide the implementation of this Decree.
Article 14.- The
ministers, the heads of the ministerial-level agencies, the heads of the
agencies attached to the Government and the presidents of the
provincial/municipal People’s Committees shall have to implement this Decree.-