The land value tax is imposed on a taxpayer’s total urban and rural land which has been assigned a land value in each special municipality directly administered by the central government or county.
Under the Land Tax Act, the taxpayers of land value tax are as follows:
1. Landowner;
2. The assignor of Dien Right (the right to possess and use the real estate of another person by paying a certain sum of money)
3. Transferee of land granted;
4. The administration-in-charge for publicly owned land;
5. The administrator for commonly-owned land; and
6. For jointly owned land, the joint owners shall be responsible for their respective portions.
For the following situations, the tax authority may designate land users to be responsible for paying the land value tax:
1. When the whereabouts of the legal taxpayer is unknown;
2. When the land is under no one's control;
3. When the title right of the land is indefinite; and
4. When landowner petitions for the occupant to pay the tax.
The taxpayer shall declare his/her own land value with reference to the Posted Value announced publicly by the Land Value Assessment Commission. The declared land value should be within a ceiling of 80% to 120% of Posted Value.
The tax base of land value tax is the “starting cumulative value”, determined by the average land value of seven acres in the special municipality or county where the respective land is located.
Land value tax is levied at either the regular progressive rates or the special rates. Regular progressive rates is from 1% to 5.5%. Special privileged tax are applicable to land used for the following purposes:
Purpose
Special
Privileged
tax rate
Remarks
Land for self-use residence 0.2%
The property is rated at no more than 300 square meters within an urban area, no more
than 700 square meters within a rural area.
Land reserved for public facilities 0.6% If the land is for self-use during reservation period, the tax rate shall be 0.2%.
Land for industrial use, mining, private parks, zoos, gas stations, parking lots and so on 1.0%
Land value tax may be exempted or reduced in any one of the following situations:
1. Land reserved for public facilities for urban planning purposes and has not been used during the reservation period, and has been segregated from land being used, are fully exempted from land value tax.
2. Land exclusively used for private experimental facilities in farming, forestry, fishery, livestock farming, industrial use, or mining, which has been duly registered with and approved by the competent authority, and has been actually engaging in experimental activities for more than 5 years, shall be entitled to a reduction of 50%.
3. Land base used for railroads and highways operated privately, or railroads and highways for exclusive use, shall have full exemption if their construction have been approved by the competent authority, and if they are regularly open for public use including passenger and cargo transportation.
4. Land used for agricultural irrigation systems by businesses whose establishment have been approved by the competent authority to collect, store or drain water shall have full exemption; however, land used for offices and work stations thereof shall have a 50% reduction.
5. Land provided without compensation for the use of governmental agencies or public schools, or military institutes, troops and schools, shall have full exemption for the period during usage.
6. Land used as passage ways or hallways for public passage with no construction improvement shall be exempted from land value tax; land with building improvements is subject to the reduction listed below:
7. A one-story addition may claim a 50% reduction.
8. A two-story addition, a one-third reduction.
9. A three-story addition, a one-fourth reduction.
10. A four-story or more addition, a one-fifth reduction
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