Finance Minister Ngo Van Tuan told the National Assembly on 6 November that deciding whether land counts as abandoned will rest on land law, not on tax officials. His comments came during debate on a bill that would tax abandoned or idle land at 0.2 percent, Thanh Nien reported.
The proposal sits in a draft law amending the corporate income tax, non-agricultural land use tax and personal income tax laws. It applies to land left unused or put to use late.
Who decides
Tuan said the proposal was weighed carefully inside the government. Tax authorities collect the tax, he said, but the definition of abandoned land must come from land legislation.
He said specific plots and their status would be identified by tax officials working with land and natural-resources agencies, using the national land database and population data that are being connected. "The two agencies must coordinate closely to determine it accurately, ensure the right purpose, and avoid abuse and tax evasion," he said.
Delegates' concerns
Delegate Duong Khac Mai of Lam Dong supported the tax but said criteria are not uniform and could be applied differently between provinces. Delays can have objective causes, such as site clearance or force majeure, he said.
He asked that the 0.2 percent rate apply only after a land authority records the unused period in writing and notifies the user, and that land users be allowed to explain themselves.
Delegate Nguyen Van Huy of Hung Yen said the rate is needed to curb speculation and hoarding. He asked for it to apply only to the part of a plot that is actually idle, so that phased projects are not taxed on areas already in use.
Other points
On the corporate income tax exemption for education, Tuan said private non-profit schools are defined in the Education Law. Tax authorities would rely on the investment registration and business certificates issued by the competent authority.
The article does not say when the Assembly will vote, and the bill has not yet been passed.
Sources
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