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Vietnam has extended its agricultural land use tax exemption through the end of 2030, reinforcing long-standing government support for farmers and rural development. The move, formalized in Decree 292/2025/ND-CP, implements National Assembly Resolution 216/2025/QH15 and continues a policy first introduced in 2010 to reduce financial burdens on agricultural stakeholders.
Eligible beneficiaries include individual farmers, agricultural cooperatives, research institutions, and organizations directly engaged in agricultural production. Leased or subcontracted land, however, remains fully taxable, and non-compliance may result in land withdrawal under the Land Law.
Property investors must navigate a broader Vietnamese property tax framework, which encompasses:
- Rental income tax (RIT): Rental income below VND100 million (~US$4,000) per year is tax-exempt. Above this threshold, income is subject to 5% VAT and 5% personal income tax, alongside business license taxes ranging from VND300,000 to VND1 million (~US$12–40) for mid-tier earners.
- Property transfer taxes: Individuals pay 2% PIT on transfer value, while corporate sellers pay 20% CIT on net gains.
- VAT on transfers: Enterprises transferring real estate must calculate VAT via output-input deduction or direct revenue methods.
- Additional fees: Registration, notarization, and appraisal fees are levied depending on property value, land type, and local regulations, with caps for high-value transactions.
- Land tax: Non-agricultural land attracts rates from 0.03% to 0.15%, scaled by location and usage, with urban and commercial properties taxed at higher rates.
Experts advise foreign investors to register for a tax code, file returns on rental and capital gains, and leverage international tax treaties to avoid double taxation. Non-compliance can trigger penalties, legal action, and restrictions on property transfers.
Vietnam’s property tax landscape remains complex and evolving, balancing incentives for agriculture and rural development with robust obligations for real estate investors. Compliance diligence is critical to minimize exposure and maximize investment returns.
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