Land price for calculating non-agricultural land use tax is stable for 5 years

(Baonghean.vn) On July 1, 2011, the Government issued Decree No. 53/2011/ND-CP detailing and guiding the implementation of a number of articles of the Law on Non-agricultural Land Use Tax. The tax law takes effect from January 1, 2012.

According to Decree 53, the taxable land area is the actual non-agricultural land area in use.

In case a taxpayer has the right to use many plots of land within a province or centrally-run city, the taxable land area is the total area of ​​the taxable land plots.

For land used for multi-storey houses, multi-household houses, apartment buildings, including those used for both residential and business purposes, the taxable land area of ​​each organization, household, or individual is determined by multiplying the allocation coefficient (x) by the house (construction) area of ​​each organization, household, or individual.

The house (construction) area used by each organization, household, or individual is the actual floor area used by the organization, household, or individual according to the sales contract or according to the Certificate of land use rights, house ownership rights, and other assets attached to land (collectively referred to as the Certificate).

Price of 1m2 of land subject to tax

The price of 1 m2 of taxable land is the land price according to the purpose of use of the taxable land plot as prescribed by the provincial People's Committee and is stabilized for a 5-year cycle, starting from January 1, 2012. In case there is a change in the taxpayer during the stabilization cycle or factors arise leading to a change in the price of 1 m2 of taxable land, it is not necessary to re-determine the price of 1 m2 of taxable land for the remaining time of the cycle.

In cases where the State allocates or leases land, or changes the land use purpose from agricultural land to non-agricultural land or from non-agricultural production and business land to residential land during a stable cycle, the price of 1 square meter of land for tax calculation is the land price according to the purpose of use as prescribed by the Provincial People's Committee at the time of land allocation, land lease or change of land use purpose and is stable for the remaining period of the cycle.

Land tax limit

Also according to Decree 53/2011/ND-CP, the residential land limit used as the basis for calculating tax for cases of new residential land allocation from January 1, 2012 onwards is the residential land allocation limit prescribed by the Provincial People's Committee at the time of new residential land allocation.

For the residential land limit used as the basis for tax calculation in case of residential land in use before January 1, 2012, it is determined as follows:

In case at the time of granting the Certificate, the Provincial People's Committee has regulations on the residential land allocation limit, the residential land recognition limit and the residential land area in the Certificate is determined according to the residential land recognition limit, the residential land recognition limit shall be applied as the basis for tax calculation. In case the residential land recognition limit is lower than the current residential land allocation limit, the current residential land allocation limit shall be applied as the basis for tax calculation.

In case at the time of granting the Certificate, the Provincial People's Committee has regulations on the residential land allocation limit, the residential land recognition limit and the residential land area in the Certificate is determined according to the residential land allocation limit, the residential land allocation limit shall be applied as the basis for tax calculation. In case the residential land allocation limit is lower than the current residential land allocation limit, the current residential land allocation limit shall be applied as the basis for tax calculation;

In case at the time of granting the Certificate, the Provincial People's Committee has not yet prescribed the residential land allocation limit or the residential land recognition limit, the entire residential land area stated on the Certificate is determined to be the residential land area within the limit.

In case of change of taxpayer, the taxable residential land limit is the current residential land allocation limit prescribed by the provincial People's Committee and is applied from the next tax year, except for the case of change of taxpayer due to inheritance, gift, or donation between: husband and wife; biological father, biological mother and biological child; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; paternal grandfather, paternal grandmother and grandson; maternal grandfather, maternal grandmother and grandchild; siblings, the taxable residential land limit is implemented according to the prescribed residential land limit and applied to the transferor.

The Decree also notes that the residential land limit does not apply to encroached land, land used for the wrong purpose, and land not used in accordance with regulations.

Duong Hong Quang