Real Property Taxes: Building Tax

Building tax is levied on building and construction which strengthen the utility of the buildings.

The taxpayer of building tax shall be the owner of the building, if a Dien Right has been established, the Dien Right assignor.

The building tax is levied based on the government assessed value of the building at applicable tax rates. The government assessed value is not the market value of the building. The value is assessed by the tax office based on standards issued by the MOF. The value assessment factors are location, construction type (i.e., RC, steel frame, etc.) and the total number of stores in the building.

Applicable tax rates are as follows:
Building purpose Maximum
Rate
Minimum
Rate
Actual Rate
Enforced
Building for business purposes 5% 3% 3%
Building for private hospitals, private clinics, free-lance offices, offices for non-profit organizations 2.5% 1.5% 2%
Building for residential purposes 2% 1.2% 1.2%
(for self-use building)

For a building that serves as residential and non-residential purposes at the same time, the tax rate is calculated based on the actual size used as residential and non-residential purposes. But the taxable non-residential area shall be no less than one-sixth of the total area.

Building tax is collected once every year.

Tax Exemptions
No building tax shall be levied on any of the following private buildings:
1. Buildings offered without compensation to government organizations for public or military use.
2. Buildings for livestock farming, greenhouses for cultivating agricultural products and operation rooms for growing rice seedlings, places of agriculture reproduction, water pumps, kilns for smoking tobacco, dry machines for rice and tea leaves, for storing agricultural machines and dung heaps, and so on.
3. Buildings of which more than 50% of the floor area has been destroyed by a disaster, and which must be repaired before they are usable.
4. Warehouses of farmers and associations used exclusively for storage of public rice by each food administration, as attested to by competent authorities.
Tax Reductions
The building tax shall be reduced by half the amount levied on the following private buildings:
1. Buildings owned by a factory duly registered and used directly for production.
2. Buildings of which more than 30% but less than 50% of the floor area has been destroyed due to disaster.

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