Many FDI enterprises are surprised to receive, on top of annual land rent, a notice to pay non-agricultural land use tax. This is not double charging — these are two independent financial obligations with different legal bases.
Who pays? Law 48/2010/QH12
The Law on Non-Agricultural Land Use Tax 48/2010/QH12 (still in force) provides in Article 4: organisations, households and individuals holding land use rights over taxable land are taxpayers. Non-agricultural production and business land — including industrial park land and production sites leased by FDI enterprises — is taxable. Plainly: an FDI enterprise leasing land for production or business must pay this tax, whether leasing from the State or subleasing from an infrastructure developer.
Rate and deadline
The rate for non-agricultural production and business land is 0.03% of the taxable price (the per-m² price set by the provincial People Committee). The tax is paid annually, no later than 31 October (per the deadlines for land-related state revenues in Decree 126/2020/ND-CP). Taxpayers declare once for the whole use period and pay yearly per the tax authority notice.
Distinguished from land rent
The common confusion: land rent (under Decree 103/2024/ND-CP, computed from the rent unit price) pays for the land use right — essentially a “rental price”. The non-agricultural land use tax is a tax obligation on using land for non-agricultural purposes. The two are independent, paid in parallel, and not nettable. Book them separately — and never cite “already paid land rent” as a reason to skip the tax; that is an administrative tax violation.
Frequently asked questions
1. We already pay State land rent — must we also pay non-agricultural land use tax?
Yes. Land rent (Decree 103/2024) and non-agricultural land use tax (Law 48/2010) are independent obligations — paying rent does not discharge the tax. FDI enterprises leasing production land must pay both.
2. What is the rate for production and business land?
0.03% of the taxable price (the per-m² price set by the provincial People Committee) — the rate for organisational non-agricultural production and business land.
3. What is the annual payment deadline?
No later than 31 October each year, per the tax authority notice. From the second year on, one payment per year.
4. Who pays when subleasing inside an industrial park?
The enterprise actually using the land (the sublessee) is the taxpayer, as the de facto land user. Check the sublease for which party bears the tax to avoid internal disputes — but to the tax authority, the user pays.
Key takeaways for investors
- FDI enterprises leasing production land must pay non-agricultural land use tax (Law 48/2010) — regardless of lessor.
- Production land rate: 0.03%; annual payment, 31 October deadline.
- Land rent and the land use tax are independent obligations — not nettable.
- Never cite paid land rent to refuse the tax — an administrative tax violation.
This article has been quality-reviewed by the FLAW AI Legal Council. Content is for legal reference only and does not replace lawyer advice for specific cases.