Responsibility for paying non-agricultural land use tax

In recent times, there have been a number of cases where organizations and individuals have rented land for production and business purposes. have questions when the Tax Department notifies taxpayers to pay non- agricultural land use tax on leased land area . To help taxpayers better understand the regulations on land rent and non-agricultural land use tax, the Quang Ninh Provincial Tax Department provides the following instructions:

Article 53 of the 2013 Constitution stipulates: “ Land, water resources, mineral resources, resources in the sea, airspace, other natural resources and assets invested and managed by the State are public assets owned by the entire people, represented by the State as owner and uniformly managed . ”

In Article 56 Land Law No. 45/2013/QH13 dated November 29, 2013 stipulates cases where the State leases land and subjects required to pay land rent as follows:

“1. The State leases land and collects annual land rent or collects land rent at one time for the entire lease term in the following cases:

a) Households and individuals using land for agricultural production, forestry, aquaculture, and salt production;

b) Households and individuals who need to continue using agricultural land in excess of the allocated limit prescribed in Article 129 of this Law ;

c) Households and individuals using commercial and service land; land used for mineral activities; land for production of construction materials and pottery; land for non-agricultural production facilities;

d) Households and individuals using land to build public works for business purposes;

d) Economic organizations, Vietnamese people residing abroad, and foreign-invested enterprises using land to implement investment projects in agricultural, forestry, aquaculture, and salt production; land for non-agricultural production and business; land for construction of public works for business purposes; land for implementing housing investment projects for rent;

e) Economic organizations, self-financed public service organizations, overseas Vietnamese, and foreign-invested enterprises using land to build public works;

g) Foreign organizations with diplomatic functions use land to build offices .

2. The State leases land and collects annual land rent from people's armed forces units using land for agricultural, forestry, aquaculture, salt production or agricultural, forestry, aquaculture, salt production combined with national defense and security tasks .

Article 2 of the Law on Non-agricultural Land Use Tax No. 48/2010/QH12 dated June 17, 2010 stipulates that the subjects subject to non-agricultural land use tax include:

“1. Rural residential land, urban residential land.

2. Land for non-agricultural production and business includes: Land for construction of industrial parks; land for construction of production and business facilities; land for mineral exploitation and processing; land for production of construction materials and pottery.

3. Non-agricultural land specified in Article 3 of this Law used for business purposes" .

Article 4 of the Law on Non-agricultural Land Use Tax stipulates the subjects paying non-agricultural land use tax according to regulations. including :

“ 1. Taxpayers are organizations, households and individuals with the right to use taxable land as prescribed in Article 2 of this Law.

2. In case an organization, household or individual has not been granted a certificate of land use rights, house ownership rights and other assets attached to land (hereinafter referred to as the certificate), the person currently using the land is the taxpayer.

3. Taxpayers in some specific cases are regulated as follows:

a) In case the State leases land to carry out an investment project, the land lessee is the taxpayer;

b) In case the person with the right to use the land leases the land under a contract, the taxpayer is determined according to the agreement in the contract. In case the contract does not have an agreement on the taxpayer, the person with the right to use the land is the taxpayer …”

Based on the above regulations, land rent is the money that organizations and individuals must pay for the rented land area . The State is the representative for leasing assets and collecting land rent into the state budget. Non-agricultural land use tax is a tax applied to all entities using non-agricultural land, including organizations , households, and individuals using residential land, non-agricultural production and business land, including cases where the State leases land.

Thus, organizations and individuals who are leased by the State land types subject to tax as prescribed in Article 2 of the Law on Non-agricultural Land Use Tax must pay land rent and non-agricultural land use tax as prescribed.