The rental of land use rights by foreign contactor (FC) is in effect a form of property tax rather than land tax.
It is usually known as land rental and the range of rates is wide depending upon the location, infrastructure and the industrial sector in which the business is operating.
In Vietnam, under the law on non-agricultural land use tax, owners of houses and apartment are obligated to pay land tax.
However, in case there is an agreement between the lessor and the lessee about the transfer of this obligation, the lessee will be responsible for paying this tax to the State. The taxable value is calculated based on the specific land area and progressive tax rates ranging from 0.03% to 0.15%.
