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(MARD - 30/09/2011) The Ministry of Finance recently issued Circular 120/2011/TT-BTC providing guidelines for implementing Government Decree 20/2011/ND-CP dated March 23, 2011 (providing guidelines for executing National Assembly Resolution 55/2010/QH12 dated November 24, 2010 on agricultural land use tax exemption and reduction).



According to Circular 120/2011/TT-BTC, freed from agricultural land use tax are 1) agricultural land serving research and experimental production, land on which annual crops are planted yearly (at least one rice crop per year); 2) land used for salt production, agricultural land that the State has allocated or earmarked for poor households; and 3) agricultural land allocated to: farmers and farmer households to which the State allocates land (including inherited and presented land and transferred land use rights) for agricultural production; households and individuals as members of agricultural production co-operatives that have received land from co-operatives and state-owned farms and plantations for stable agricultural production according to law; households and individuals as members of farms and plantations that have received land from state-owned farms and plantations for stable agricultural production according to law; and agricultural production households and individuals with agricultural land use rights that contribute land to establish an agricultural production co-operative according to law.
The circular says that, the following subjects can benefit from agricultural land use tax reduction:
(a) A 50-percent reduction in annual agricultural land use tax is subject to extra agricultural land area (compared to the fixed agricultural land area and not exceeding the stipulated would-be-transferred agricultural land area) for households and individuals. Agricultural land area exceeding the stipulated, would-be-transferred agricultural land area bears the whole agricultural land use tax.
(b) For agricultural land that the State has allocated to economic, political, sociopolitical, socio-occupational, administrative organizations and other organizations, a 50-percent reduction in annual agricultural land use tax will be subject to agricultural land that the State has allocated to economic, political, sociopolitical, socio-occupational, administrative organizations and other organizations if these organizations directly use the land for agricultural production. Referring to agricultural land that the State has allocated to economic, political, sociopolitical, socio-occupational, administrative organizations and other organizations, if these organizations just manage the land and do not use it for agricultural production but hand over the land to other organizations and individuals for agricultural production they will have the land revoked according to law and pay all of the agricultural land use tax for the land before the State takes back the land.
(c) A 50-percent reduction in annual agricultural land use tax is subject to agricultural land that the State has allocated to people's armed forces for management and use.
The circular is to become effective from October 1, 2011.



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