Legal News

[Taxation] General Directorate of Taxation on Non-Farmland Use Tax Policy

2024/05/30

The General Department of Taxation issued Official Letter No. 1980/TCT-CS dated May 10, 2024, guiding the tax policy of Non-Agricultural Land Use Tax.

In accordance with Article 3.3 of Circular No. 153/2011/TT-BTC, if an enterprise leases land from the State to implement an investment project, the enterprise is considered as the owner of land use right and is liable to pay non-agricultural land use tax.
If the enterprise enters into a land sublease agreement, the taxpayer of the non-agricultural land use tax is determined by contractual arrangements.
If there is no contractual arrangement regarding the taxpayer, the enterprise (the owner of the land use right) is the taxpayer.

In accordance with Article 17, paragraph 2 of Circular No. 153/2011/TT-BTC and Article 18, paragraph 2d of Circular No. 156/2013/TT-BTC, enterprises are required to calculate the amount of payment and declare and pay the non-farmland use tax by the due date.
In addition, in accordance with Article 18, paragraph 2dd of Circular No. 156/2013/TT-BTC and Article 18, paragraph 1 of Decree No. 126/2020/ND-CP, the deadline for payment of non-agricultural land use tax is as follows
◆ First time: within 30 days from the date of issuance of the tax notice by the tax agency.
◆ Second and subsequent years: Once a year and no later than October 31.

References:
Official Letter No. 1980/TCT-CS dated May 10, 2024 of General Directorate General of Taxation
Circular No. 153/2011/TT-BTC
Circular No. 156/2013/TT-BTC
Decree No. 126/2020/ND-CP