Thông tư 120/2011/TT-BTC

CIRCULAR

GUIDING DECREE NO.20/2011/ND-CP DATED 23/03/2011 OF THE GOVERNMENT DETAILING AND GUIDING THE IMPLEMENTATION OF THE RESOLUTION NO.55/2010/QH12 DATED 24/11/2010 OF THE NATIONAL ASSEMBLY OF THE EXEMPTION FROM, REDUCTION OF TAX OF AGRICULTURAL LAND USE

Pursuant to the 1993 Law on Agricultural Land Use Tax;

Pursuant to the 2003 Land Law;

Pursuant to the Tax Administration Law No.78/2006/QH11;

Pursuant to the Resolution No.55/2010/QH12 dated 24/11/2010 of the National Assembly of Socialist Republic of Vietnam of XII session on the exemption from, reduction of agricultural land use tax;

Pursuant to the Decree No.20/2011/ND-CP dated 23/03/2011 of the Government detailing and guiding the implementation of the Resolution No.55/2010/QH12 dated 24/11/2010 of the National Assembly on the exemption from, reduction of agricultural land use tax;

Pursuant to the Decree No.118/2008/ND-CP dated 27/11/2008 of the Government regulating functions, duties, powers and organizational structure of Ministry of Finance,

The Ministry of Finance guides the implementation as follows:

Chapter I

CONTENTS OF EXEMPTION FROM AND REDUCTION OF AGRICULTURAL LAND USE TAX

Article 1. Objects of exemption from, reduction of agricultural land use tax

Objects of exemption from, reduction of agricultural land use tax shall comply with the provisions of Article 1 of Decree No.20/2011/ND-CP specifically:

1. Exemption from agricultural land use tax for the whole area of agricultural land for research, trial production; land area for annual crop with at least one rice crop in a year; land area for salt making.

Land area for annual crop with at least one crop per year include land area planned, with plan to plant at least one crop per year or land area planned, with plan to plant annual crop but there is at least one crop per year in reality.

2. Exemption from agricultural land use tax for the whole agricultural land area assigned by the State or recognized for the poor.

The identification of poor households is based on the standards of poor households issued by decision of the Prime Minister from time to time.

For the period of 2011-2015, the identification of poor households is in accordance with provisions of the Decision No.09/2011/QD-TTg dated 30/01/2011 of the Prime Minister promulgating the standards of poor households, nearly-poor households for the period of 2011-2015, and the amended, supplemented documents (if any).

Where the People's Committees of provinces and cities directly under the Central Government specify the standards of poor households according to the law provisions applied at the localities, based on standards of poor households defined by the People's Committees of provinces and cities centrally to identify the poor households.

3. Exemption from agricultural land use tax for agricultural land area within the limits of agricultural land for the following objects:

a) Households and farmers assigned or accredited land to produce agriculture by the State, including land from inheritance, donation, and receipt of land use right transfer.

Households and farmers including those who have permanent residence in the locality; people with the main living source by agriculture, forestry, aquaculture and salt production certified as long-term residence in the locality but having no number of inhabitants by the People's Committee of commune, ward and townships (hereinafter referred to as the commune-level People's Committee); the households and individuals previously operated in the non-agriculture sector and having number of inhabitants in the locality but unemployed in present; state officers and civil servants, public employee, workers and soldiers left their jobs due to health loss or due to rearrangement of production, down- staffing enjoyed lump-sum allowance or allowance for some years and permanently residing in the locality; children of officers and civil servants, public employee, workers living in the locality at the working age but having no jobs.

b) Households and individuals who are members of cooperatives in agricultural production received stable allotment land of cooperatives, state farms, state forestry farms for agricultural production in accordance with the law provisions.

The land allotment of cooperatives and state farms, state forestry farms for agricultural production is made under the provisions of the Decree No.135/2005/ND-CP dated 8/11/2005 of the Government and the guiding documents.

c) Households and individuals who are farm members, forestry farm members have received stable allotment land of state farms, state forestry farms for agricultural production in accordance with the law provisions.

Farm members, forestry farm members including officials, workers and public employees working for state farms, state forestry farms; households with people who are working for state farms, state forestry farms or retired, left their jobs due to labor health loss and enjoy allowance as prescribed by law, residing in the locality; households with need for direct agricultural production, forestry production, aquaculture and residing in the area.

d) Households and individuals of agricultural production are entitled to use their agricultural land to contribute for the establishment of cooperatives of agricultural production in accordance with provisions of the Law on Cooperatives.

Article 2. Objects to reduction of agricultural land use tax

Objects of reduction of agricultural land use tax shall comply with the provisions of Article 2 of the Decree No.20/2011/ND-CP specifically:

1. To reduce 50% of agricultural land use tax records recorded annual revenue for the area of agricultural land in excess of quota of agricultural land allotted but not exceeding the limit of receipt of agricultural land use right transfer for households, individuals defined at Clause 3, Article 1 of the Decree No.20/2011/ND-CP.

Agricultural land area beyond the limit of receipt of agricultural land use right transfer must be paid 100% of agricultural land use tax.

2. Agricultural land area allotted by the State to the economic organizations, political organizations, political - social organizations, social - professional organizations, non-business units, and other units are specified as follows:

a) To reduce 50% of agricultural land use tax recorded annual revenue for the area of ​​agricultural land which the State allotted to the economic organizations, political organizations, political - social organizations, social - professional organizations, non-business units, and other units that are directly using land for agricultural production.

b) Agricultural land area which are being managed by the economic organizations, political organizations, political - social organizations, social - professional organizations, non-business units and other units allotted by the State but not directly used for agricultural production and assigned to other organizations or individuals under contract to undertake agricultural production shall be recovered under the provisions of the Land Law. During the un-recovered time by the State, 100% of agricultural land use tax shall be paid.

3. To reduce 50% of agricultural land use tax recorded annual revenue for the area of ​​agricultural land which the State allotted to the people's armed units for management and use.

Chapter II

LAND LIMIT AND LAND GRADE

Article 3. Limit of agricultural land, limit received the agricultural land use right transfer

1. The limit of allotment of agricultural land shall comply with the provisions of Article 70 of the Land Law, Article 69 of the Decree No.181/2004/ND-CP dated 29/10/2004 of the Government on the implementation of the Land Law and the specific levels defined by People's Committees of provinces and cities directly under the Central Government for application in the localities.

Where the People's Committees of provinces and cities directly under the Central Government have not issued yet the specific levels on the limit of allotment of agricultural land, then shall apply the maximum level specified in Article 70 of the Land Law, Article 69 of the Decree No.181/2004/ND-CP dated 29/10/2004 of the Government.

2. Limit for receipt of agricultural land use right transfer shall comply with the provisions of Article 71 of the Land Law, the Resolution No.1126/2007/NQ-UBTVQH11 dated 21/6/2007 of the National Assembly Standing Committee and the specific levels defined by People's Committees of provinces and cities directly under the Central Government for application in the localities.

Where the People's Committees of provinces and cities directly under the Central Government have not issued yet the specific levels on the limit of receipt of agricultural land use right transfer, then shall apply the maximum level specified in the Resolution No.1126/2007/NQ-UBTVQH11 dated 21/6/2007 of the National Assembly Standing Committee.

3. Limits of agricultural land are determined for each soil type:

3.1. Where taxpayers for agricultural land use have both area of ​​agricultural land for annual crop (excluding rice land) and land area for perennial crops, the land area limit of agricultural production used as basis of tax exemption is calculated separately for each type of land for planting annual crops, perennial tree planting land.

Example 1: Mr. A’s household of farmers living in the northern delta has two types of agricultural production land including land for planting annual crops being 6 ha (agricultural land allotment limit as prescribed is 2 ha, limit of receipt of agricultural land use right transfer under the provisions is 4 ha); perennial tree planting land being 15 ha (agricultural land allotment limit prescribed is 10 ha, limit of receipt of agricultural land use right transfer under the provisions is 20 ha).

Mr. A’s household is exempted from tax of agricultural land use as follows:

- For land area for planting annual crops:

▪ Being exempted from tax for the area in the agricultural land allotment limit is 2 ha;

▪ Being reduced 50% for the area in excess of the agricultural land allotment limit but not exceeding limit of receipt of agricultural land use right transfer being 2 ha (4 ha- 2 ha = 2 ha).

▪ Mr. A must pay 100% of the agricultural land tax for the area exceeding limit of receipt of agricultural land use right transfer being 2 ha (6 ha - 4 ha = 2 ha).

- For land area for planting perennial trees:

▪ Being exempted from tax for the area in the limit being 10 ha

▪ Being reduced 50% of tax recorded revenue for the area in excess of the agricultural land allotment limit but not exceeding limit of receipt of agricultural land use right transfer being 5 ha.

3.2. Where the total land area for planting ​​annual crops of the taxpayer has both land area for ​​planting at least one rice crop per year and land area for ​​planting other annual crops, land area limit of agriculture production to review exemption or reduction of tax shall be calculated separately for the area for planting other annual crops.

Example 2: Mr. B’s household of farmers living in the northern delta has total area of agricultural production land for planting annual crops being 3 ha (agricultural land allotment limit as prescribed is 2 ha), including land area for planting at least one rice crop per year being 0.5 ha, land area for planting other annual crops being 2.5 ha.

Mr. B is exempted from agricultural land use tax for rice growing land area being 0.5 ha; exempted from agricultural land use tax for land area for planting other annual crops in the limit being 2 ha; reduced 50% of tax recorded revenue for land area exceeding the limit for other annual crop planting land being 0.5 ha.

3.3. Where taxpayer registered permanent residence in a commune, but has land area of agricultural production in other communes (including the commune of a rural district in a province) who are objects of reduction of or exemption from agricultural land use tax, the land limit of agricultural production for each soil type used as a basis for tax reduction, exemption is calculated separately for the total area of each land type in the different communes combined.

Article 4. Rank of taxable land

Taxable land rank of agricultural land use is calculated stably for 10 years, starting from January 01, 2011 till the end of December 31, 2020, on the basis of land rank which has been defined and implemented in the period from 2003 till the end of 2010.

Where a locality has been approved by the Prime Minister to adjust taxable land rank of agricultural land use from 2011, comply with that regulation stably till the end of 2020.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 5. Competence and order of tax exemption or reduction

Competence to determine and order to issue the decision on exemption and reduction of agricultural land use tax shall comply with the provisions of the law on tax administration, namely:

1. The tax agency determines and makes decision on reduction or exemption of agricultural land use tax:

Director of Department of tax decides on reduction or exemption for taxpayers which taxes are managed directly by the Department of tax.

Head of the Branch of Tax decides on reduction or exemption for taxpayers which taxes are managed directly by the Branch of Tax.

2. Order of exemption and reduction:

Based on the list of tax exemption or reduction sent by the commune-level People's Committee together with declaration records of the taxpayers and papers to prove objects of tax exemption or reduction of the taxpayers, the Branch of Tax determines the tax amount exempted or reduced of each taxpayer.

For taxpayers which taxes are managed directly by the Branch of Tax (including the case managed by the Department of Tax but the taxes collection are authorized for the Branch of Tax), the Branch of Tax shall set up its own list and amount of tax exempted or reduced of each taxpayer to submit to the Department of Tax for approval and promulgation of decisions on tax exemption or reduction for taxpayers.

For taxpayers under management of the tax collection by the Tax Branch, director of the Tax Branch shall issue the decision on tax exemption or reduction accompanied by a list of taxpayers exempted or reduced of each commune.

Pursuant to the list of taxpayers exempted or reduced agricultural land use tax that were determined by the tax agency, commune-level People's Committee announces the tax amount exempted or reduced to each taxpayer that has been approved and posts up publicly in the convenient places for taxpayers’ knowledge.

For the cases of tax exemption under the provisions of Clause 1, Article 1 of the Decree No.20/2011/ND-CP the tax agency issues a decision on lump-sum tax exemption for many years corresponding to time limit of the tax exemption of the specific cases as prescribed by law.

3. Tax Branches send reports on the tax exemption and reduction made by the Tax Branches in 2011 to the Tax Departments of provinces and cities to monitor and inspect. Every year, if having the adjustment of objects and the tax amount exempted or reduced, the Tax Branches shall send additional reports to the Tax Departments of provinces and cities. The reports must be submitted to the Tax Departments of provinces and cities within 15 days from the date of issue of decision on exemption or reduction.

The Tax Departments of provinces and centrally-run cities synthesize the reduction or exemption of agricultural land use tax of the locality and send reports to the General Department of Taxation prior to 31/12/2011. Every year, if there is any adjustment on tax calculating bases leading change of agricultural land use tax amount exempted or reduced of the provinces, cities, the Tax Departments of provinces and centrally-run cities synthesize and make additional report to the General Department of Taxation before 31/12 of the year.

Article 6. Organization of implementation

1. Establishment of tax books of each year:

Based on the tax books of agricultural land use in 2010 and the actual local situation, Tax Branches shall coordinate with commune-level People's Committees to identify objects of tax exemption, tax reduction, objects required to pay 100% of agricultural land use tax from 2011 onwards to establish the tax books as follows:

1.1. Establishment of original books to trace the subjects of agricultural land use:

Original tax books made are required to show the whole area of ​​agricultural production land of organizations, households and individuals, including: the total area of ​​agricultural production land of organizations, households and individuals; area of agricultural land which is object of tax-exemption according to provisions in Article 1 of the Decree No.20/2011/ND-CP; area of ​​agricultural land which is object of reduction of agricultural land use tax specified in Article 2 of the Decree No.20/2011/ND-CP; land area exceeding the limit of receipt of land use right transfer required to pay 100% of tax for agricultural land use and other cases required to pay 100% of tax for agricultural land use.

After the original tax books have been made, extract and transfer the area to be reduced 50% of tax (required to pay 50% of tax for agricultural land use recorded revenue) and the area required to pay 100% of tax for agricultural land use tax to the tax books to track collection at specified in point 1.2 below for tax collection management.

Objects exempted from tax must only make dossiers to conduct procedures for review tax exemption agricultural land use once for many years.

Taxpayers who have made dossiers to conduct procedures for tax exemption of agricultural land use and have named in the original tax exemption book from 2010, now are objects of tax exemption under the Decree No.20/2011/ND-CP must not re-declare and re-make dossiers for review tax exemption, tax agencies shall transfer tracking book from the 2010 tax books to the 2011 tax books.

If there is any change in tax calculating bases in year, the taxpayer shall re-declare and submit to commune-level People's Committee for adjusting the tax book.

Objects eligible for tax exemption under the original tax books are bases for tracking objects of tax exemption from 2011 tax year to 2020 tax year.

1.2. Establishment of tax book to trace the subjects required paying 50% and the subjects required paying 100% of tax for agricultural land use every year (called as tracking book of tax collection).

Based on tracking books of tax collection, tax agencies monitor the collection and payment and review for tax reduction, exemption under current regulations.
Tracking book of tax collection is made one time (extracted and transferred from the original book). If there is any change in tax calculating bases in year, the taxpayer shall re-declare and submit declaration dossier to commune-level People's Committee for adjusting the tax book.

The settlement of agricultural land use tax and process of making tax books for taxpayers of agricultural land use shall comply with the guidance in Circular No.89-TC/TCT dated 09/11/1993 of the Ministry of Finance guiding the implementation of the Decree No.74/CP dated 25/10/1993 of the Government detailing the implementation of Law on Agricultural Land Use Tax.

2. For households and individuals being agricultural, forestry members, cooperative members receiving stable contracted land from agricultural and forestry farms:

In case of being exempted from or reduced tax under the Resolution No.15/2003/QH11 dated 17/06/2003 of the National Assembly, it shall be implemented as prescribed in Clause 1, Article 6 of this Circular.

In case of not having yet been exempted from or reduced tax under the Resolution No.15/2003/QH11, now being object of tax reduction of or exemption from agricultural land use tax under the Resolution No.55/2010/QH12 and the Decree No.20/2011/ND-CP it shall implement as follows: Tax Branches collaborate with the agricultural and forestry farms to deliver declarations of calculating agricultural land use tax to the households receiving land by contract; cross-check tax declaration with contract assigning land on land area, land grade and amount of agricultural land use tax recorded annual revenue of each household and included in the original tax books as a basis for approval of tax exemption or reduction directly to each household paying taxes.

3. For households and individuals contributed land to establish cooperatives of agricultural production, the tax agencies are based on certificate of land use right of agricultural production of each household, in case of not having yet been granted the land use right certificate, it shall be based on each household's declaration as joining in cooperatives certified by commune-level People's Committee to establish the original tax books as prescribed in Clause 1 of this Article.

4. For households and individuals with areas of ​​agricultural production land in different communes are implemented as follows:

Order for reviewing the exemption from agricultural land use tax in the communes where agricultural production households do not have permanent residence before; after that reviewing tax exemption for the land area for agricultural production in the localities where tax-paying households have their inhabitants of family, namely:

Households with land area for agricultural production in different communes shall declare in the declaration issued together with this Circular with certification of commune-level People's Committees where their agricultural production lands are situated on land area, land grade for calculating tax, amount of tax exempted or reduced.

Based on this certification, the commune-level People's Committees where the households have their inhabitants of family add the entire areas to determine the areas of ​​agricultural production land within the limit to be tax-exempted and land area in excess of limit of agricultural land allotment but not exceeding limit of receipt of the agricultural land use right transfer reduced agricultural land use tax, land area beyond the limit of receipt of agricultural land use right transfer required to be paid 100% of agricultural land-tax, determine objects and areas exempted or reduced specifically of each household, then notify in writing to the district tax branches to make the reduction or exemption of agricultural land use tax and notify the commune-level People's Committees where the households have agricultural production land for monitoring, management.

In case the households have agricultural production land in the localities other than the places where they registered their number of inhabitants, but they do not declare and have not been certified by the commune-level People's Committees where they have agricultural production land and sent to the commune-level People's Committees where they have their number of inhabitants shall not be considered for exemption from agricultural land use tax, but only considered for reduction for agricultural land use tax for the area not exceeding the limit of receipt of agricultural land use right transfer, land area beyond the limit of receipt of land use right transfer shall be paid 100% of agricultural land-tax.

Example 3: Mr. A’s farmer household has 2 ha of planting annual crops in the commune H, province B where he has number of inhabitants under the South East (land limit for agricultural production of annual crops is defined as 3 ha, limit of receipt of land use right transfer as 20 ha). In the commune K where Mr. A has no number of inhabitants, Mr. A has an area of ​​annual crop planting land as 4 ha and has been certified by the commune-level People's Committee; average tax recorded revenue collection over the entire area is 500 kg/ha.

Based on certification by the People's Committee of commune K on agricultural production land of Mr. A as 4 ha, the People's Committee of commune H determines the total area of ​​agricultural land for planting annual crops of Mr. A as 6 ha. So according to provisions, Mr. A is exempted from and reduced tax as follows:

Mr. A is exempted from agricultural land use tax for 3 ha of land within the limit in commune K, and 3 ha of land exceeding the limit (1 ha in commune K and 2 ha in the commune H) is reduced 50% of tax recorded revenue collection. The People's Committee commune H where he has number of inhabitants sends notice in writing to the People's Committee of commune K for knowledge to implement the exemption from agricultural land use tax of Mr. A as 3 ha, and 1 remaining ha is reduced 50% of tax recorded annual revenue collection, and notifies the district Tax Branch where the commune K is situated for monitoring and management.

If Mr. A does not declare and has not been certified by the People's Committee of commune K, Mr. A is only exempted from agricultural land use tax for 2 ha in commune H, the remaining 4 ha in the commune K is only reduced 50% of tax recorded revenue collection.

5. For the agricultural land use tax temporarily collected in 2011, at the end of year, it must be settled according to the tax book prepared in accordance with regulations.

6. The declaration, notice period and payment of tax, tax offset, tax refund, tax penalties shall comply with the provisions of the Tax Administration Law and documents guiding the implementation of the Tax Administration Law.

7. Objects of exemption from, reduction of agricultural land use tax not defined in the Resolution No.55/2010/QH12 and the Decree No.20/2011/ND-CP but prescribed in the Law on agricultural land use tax in 1993 and the documents guiding the implementation of the Law on agricultural land use tax in 1993 shall be exempted or reduced under the provisions in those documents.

8. The agricultural land fund used for the public-utility purposes of communes, wards or townships lends households and individuals not subject to tax of agricultural land use in accordance with provisions of the Law on agricultural land use tax and the documents guiding the implementation are not eligible for tax reduction of or exemption from agricultural land use as stipulated in the Decree No.20/2011/ND-CP and the guidance in this Circular.

9. Taxpayers of the case to be entitled both exemption from and reduction of agricultural land use tax as stipulated in the Resolution No.55/2010/QH12, the Decree No.20/2011/ND-CP and the provisions of the Law on Agricultural Land Use Tax shall be enjoyed the maximum level of reduction of or exemption from agricultural land use tax.

Article 7. Effect

This Circular takes effect from 01/10/2011. The review and decision on reduction of or exemption from agricultural land use tax as prescribed in this Circular are made from tax years of 2011 through the end of 2020.

The declaration forms No.01/SDNN, 02/SDNN, and 03/SDNN and notice form for tax payment No.04/SDNN issued together with this Circular shall replace the declaration forms and notice form for payment of agricultural land use tax issued together with the Circular No.28/2011/TT-BTC dated 28/02/2011 of the Ministry of Finance guiding the implementation of the Decree No.85/2007/ND-CP dated 25/5/2007 and the Decree No.106/2010/ND-CP on 28/10/2010 of the Government.

During the implementation, if any problems arise, the organizations and individuals should promptly report them to the Finance Ministry for study and settlement./.