How should taxes be declared and paid for multiple parcels of land exceeding the land limit?
If the taxpayer has the right to use multiple land plots in different districts and some of these plots exceed the land use limit, they can choose to submit a consolidated tax declaration to the tax authority where the exceeded plot(s) is located.
In cases where a taxpayer has the right to use land for many plots in districts and counties and has many plots of land that exceed the land limit in the place where they have the right to use the land, the taxpayer may choose to submit a consolidated declaration to the tax authority in the location where the plots of land that exceed the limit are subject to tax.
According to Mr. Nguyen Huu Son (Da Nang) referring to Circular No. 153/2011/TT-BTC dated November 11, 2011 of the Ministry of Finance guiding the declaration of non-agricultural land use tax: "In case there are plots of land that exceed the land use quota at the location where the land is managed, the taxpayer can choose the land use quota at the location where the exceeded plot of land is located to determine the amount of tax to be paid. The area of land outside the quota is determined by adding the exceeded area of the plot of land at the chosen location with the area of all other plots of land with land use rights."
Mr. Son asked whether it is mandatory to use the land plots that exceed the land limit as the basis for calculating taxes or if taxpayers can choose any land plot to determine the tax amount. In case there are multiple land plots that exceed the limit, can taxpayers choose which ones to use for tax payment?
Every year, Mr. Son pays land use taxes based on the tax payment notice issued by the land use rights holder. However, when it comes to declaring cases where there are more than two land plots that exceed the limit in the locality, he did not receive any declaration notice to pay additional taxes or late payment fees. The tax authorities and officials in charge of tax collection at the ward level have no opinion on this matter.
Mr. Son has received a summary of the tax amount he must declare from 2016 to 2022, along with the late payment fines for those years. He asked whether this is reasonable.
The Tax Department of Da Nang City replied as follows:
Based on the regulations in:
• Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government detailing some articles of the Law on Tax Administration:
Clause 3, Article 10 regulates the deadline for declaring non-agricultural land use taxes;
Clause 7, Article 11 regulates the place of submission of tax declaration documents for taxpayers who have tax obligations for land-related revenues;
Clause 2, Article 16 of Circular No. 153/2011/TT-BTC dated November 11, 2011 of the Ministry of Finance guiding the declaration of non-agricultural land use taxes;
Clause 1, Article 21 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance guiding the determination of late payment fees.
Accordingly, households and individuals who declare the summary of non-agricultural land use taxes shall submit their tax declaration documents at the tax authorities where they make the summary declaration according to the provisions at Point a2, Clause 7, Article 11 of Decree No. 126/2020/NĐ-CP and Point 2.2, Clause 2, Article 16 of Circular No. 153/2011/TT-BTC.
In case there is no land plot exceeding the limit but the total area of taxable land plots exceeds the limit in the place where the land use right is exercised: The taxpayer can choose to submit the tax declaration dossier to any tax agency in the area where the land plots are located.
If the taxpayer has the right to use land for multiple plots in the same province or city, and there is only one plot exceeding the land limit in the place where the land use right is exercised, then the taxpayer must submit the consolidated tax declaration dossier to the tax agency in the district or town where the plot exceeding the limit is located.
If the taxpayer has the right to use land for multiple plots in different districts or towns and there are multiple plots exceeding the land limit in the place where the land use right is exercised, then the taxpayer can choose to submit the consolidated tax declaration dossier to the tax agency where the exceeded land plot is located.
The deadline for submitting the tax declaration for non-agricultural land use is no later than March 31 of the following Gregorian year for which the tax is calculated according to Article 10, Clause 3 of Decree No. 126/2020/NĐ-CP.
In case the taxpayer fails to pay the tax on time as prescribed, the tax authority shall determine the late payment amount according to the guidelines in Article 21, Clause 1 of Circular No. 80/2021/TT-BTC.
The Danang Tax Department provides this response for Mr. Nguyen Huu Son's information. If further discussion is needed, please contact directly with the Danang Tax Department (Department of Communication and Support) for guidance or refer to the tax policy information on the Danang Tax Department's Electronic Information Portal.
By: Translator: LeAnh-Bizic
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