Decree on Land Tax

Lao People's Democratic Republic Peace Independence Democracy Unity Prosperity Prime Minister DECREE ON LAND TAX Pursuant to the constitution of the Lao People's Democratic Republic, Pursuant to the Decree No. 99/PM, dated 19/12/1992, of the Prime Minister on Land, Pursuant to the Decree No. 47/CCM of the Council of Ministers, dated 26/6/1988, on the state Tax Regime, Based on the study and proposal forwarded by the Minister of Finance, The Prime Minister issues the following decree : Article 1·: The aqr i.cul ture I tax regime and land tax regime as provided in the Decree No. 47/CCM, dated 26/6/1989 is abrogated and superseded by the following land tax regime : Part l : General Principles Article 2: Land tax shall be collected from individuals holding and using all land within the Lao People's Democratic Republic. Land held and used by diplomatic missions and international organizations shall be subject to international principles as proposed by the Ministry of Foreign Affairs. Article 3: Land tax is an annual tax, computed and collected on the basis of thet~eld and used land from January 1 to December 31 of each year.• Such tax col~ction shall start from January until April. Article 4 Land subject to land tax is divided in 3 categories 1: Construction land (land used for construction of buildings, .•. ) VIC-1 • Agricultural land (lowland fi~ld5. orchards, upland fields) 3: other types of land. computation of rates on land area shall take place according to its geographical position, location and land use. Part II : Tax Rate for Each Type ot Land Atticle 5 The land tax rates are defined in the following table: a.- Construction Land : Region Location Land use Construct Constructi Commerce Land not ion of on of or yet used dwelling factory Services (Vacant and land) production site ( 1) (2) (3) (" ) 1. vientiane 1. Along 5 kip/ro2/ 4 kip/ml/ 10 kip/ml/ 6 kip/ro2/ Municipality paved road Year year year year Luang Prabang town Thakhek township 2. Along 4 Kip/ro2/ 3 kip/ro2/ 8 kip/ro2/ 5 kip/rtt2 (Khammuane other year year year / year Province) roads Khanthabouly 3 kip/roll 2 kip/ro2/ 6 kip/ro2/ 4 kip/ro21 township 3. Other year (Savannakhet) places year year year Pakse township (Champassak) VIC-2 .. -- ·~··e. ,.' .. .. ..- - . -.. 2. Townships of i . Along 4 kip/m2/ 3 kip/m2/ 8 kip/m2 / 5 kip/mll ot.her provinces paved year year year year road. 4 kip/m"/ I 2. Along 3 kip/m2/ 2 kip/m2/ 6 kip/m2/ year other year year year 3 kip/ml/ roads. year 3. Other 2 kip/m2/ 1 kip/m2 / 4 kip/m2/ places. year year year , 3. District 1. Along 3 kip/m2 2 kip/nf/ 6 kip/m2 / 3 kip/m2 / I townships of paved year year year year provinces. roads. 2 kip/m2/ 1 kip/m2/ 4 kip/ml/ 2 kip/m2 / 2. Along year year . year year other 1 kip/ml/ 0.5kip/ml/ 2 kip/m2/ 1 kip/m2 / i roads. year year year year 3. Other places. 4. village 1. Along 2 kip/m2/ 1 kip/m2/ 4 kip/m2/ 2 kip/m2 / II areas outside main year year year year II district towns. roads. I, 2. Along 1 kip!nf/ 0.5 kip/ 3 kip/m2/ 1 kip/m2/ I: small ml/year Iyear year year IIroads. 3. Other 0.5 0.3 kip/ 2 kip/m2/ 0.5 ii places. kip/m2/ m2/year year kip/m2/ I: year year 'I ,:il Remarks Any land r smerru.nq from construction in excess of 2,000 m2 shall be considered as other type of land. Any village area seen appropriate for tax exemption shall be presented by the Land Tax Unit to the district administrative authorities to study and forward the matter to the provincial administrative authorities for decision on exemption. b. Agricultural Land : Article 6: Agricultural Land Tax is imposed upon : lowland fields, irrigated fields, orchards, based on their location, whether in plains, mountains and on soil quality. The tax rate for each type of land is defined as follows : 1. Fields: are divided in two categories, such as : single season cul tivation fields and double seasons cul, tive tion fields. Each category is classified in 3 levels according to soil quality in the following table : VIC-3 i7.f:qi()D Type Produc t iv i t.v Double season fields Single season of in one sinqLu (iniga ted) fields field season Single season Double season (1 ) (2 ) (3 ) L Plains 1 Over 3,510 6,000 Kipjhll 5,000 kipjlFl. 4,000 kip/ha all over Kgjha the 2 3,000-5,000 5,000 kip/ha 4,000 kip/ha 3,000 kip/ha country kgjha 3 Under 3,000 4,000 kipjha 3,000 kipjha 2,000 klp/ha kipjha 2. 1 Over 3,001 5,000 kip(ha 4,000 kipjha 3,000 kipjha Mountains kg/ha all over 2 2,501-3,000 4,000 kipjha 3,uOO kip/ha 2,000 kipjha the kg/ha country 3 Under 2,500 3,000 kipjha 2,000 kipjha 1,000 kip/ha kg/ha 2. Orchards I +'-- - - ---:1 Region Location Orchards Long-term in- Long-term Other orchards I dustrial trees fruit trees (1 ) (2 ) , L i . Within 5,000 kip/ha 4,000 kip/ha 3,000 kipjha i Plains village areas , all over 2. Next to 4,000 kipjha 3,000 kip/ha 2,000 kip/ha the other roads country 3. Other places 3,000 kipjha 2,000 kip/ha 1,000 kipjha 2. i . Within 4,000 kip/ha 3,000 kip/ha 2,000 kipjha IMountain village areas Isall 2. Next to 3,000 kipjha 2,000 kip/ha 1,000 kip/ha iover the other roads I country 3. Other places 2,000 kip/ha 1,000 kip/ha 500 kip/ha I 'OJ VIC-4 3. Upland~l.1§. Region Type of upland field Tax Rate ~- 1- Plains all over 1- Fixed upland fields 3,000 kip/ha the country 2. Rotation upland fields 4,000 kip/ha 3. Other types of upland fields 5,000 kip/ha- . .. - . ---- ...... ..------ ---- ., . .. ", -."-'. , ~ Mountains all l. Fixed upland field [ 1,000 kip/ha over the country 2. Rotation upland field 1,500 kip/ha 3 . other types of upland fields 2,000 kip/ha. •. other Types of Land or Undeveloped Lan4 This type of land is situated outside areas of lowland fields, upland fields, orchards, that is land bordering the fields or orchards which have not been put under plantation of long-term crops. . .- - ., .-- - . . . -',-- ..--- . . [.~. Region Location Tax Rate . -- .. - . .. 1 . Plains l. Next to main roads 6,000 kip/ha 2- Next to small roads 5,000 kip/ha 3. Other places 4,000 kip/ha '-. -"" 2. Mountains 1- Next to main roads 3,000 kip/ha 2. Next to small roads 2,000 kip/ha 3. Other places 1,000 kip/ha .. The determination of plains or mountainous areas shall be based on the location of the concerned district. Part III : Exemption of Land Tax Article 7 : Land tax shall be exempted in the following conditions: * construction Land 1. Land up to 5,000 square meters used for the construction of housings for heroes, invalids during official missions who are unable to work, shall pe exempted, while the remaining land shall be subject to full payment. 2. Land where offices of state agencies within the administrative and technical apparatus and pUblic places are located. 3. Land where places of worship, cemeteries of all religions and other sacred places void of commercial features. VIC-5 ~ Land o~ organizations shall of Foreign Affairs. • ~gricultutal L~n1 J. -:;1':1,1. ti ~'- ~~~L ::.;S i ~ )r; s ,~I1d i n r.or ;:1~! r,LUrl!lL exempted as requested by the Ministry 1. Agricultural land of state organizations for resear~h ~nrl experimentation. 2. Land not exceeding 2 ha produced by the fami lies of c i vU servants, soldiers who have sacrificed their lives or invalids unable to work, as certified by the concerned organization, ~hile the remaining area from the said 2 ha shall be sUbject to full payment. 3. Invalids, leprous unable to work their lowland fields, upland fields and orchards for commercial purposes, enough only for their subsistence. ". Families cu I tivating lowland or upland fields wi th an average paddy yield per capita of 150 Kg per year. 5. Farmer families victims of natural disasters or pests shall receive a reduction according to their loss as follows: 21\-70% of reduction according to the percentage of loss. Over 71% of loss, 100% of reduction shall be given. 6. Newly cleared fields in mountainous areas shall be exempted for a period of 5 years from the day the fields are cleared. 7. Newly cleared fields in plains shall be exempted for a period of 3 years from the day the fields are cleared. 8. Long-term industrial tree and fruit tree orchards shall be exempted for a period of 2-5 years from the day the trees are planted based on the rapid or slow yield of each type of planted trees. Part IV : organization and Implementation Article 8: organizations and individuals holding and using land must declare the area of such held and used land to the Land Management Unit covering the area where the land is located within a period of 120 days from the day the collection of land tax is promulgated in each region and shall pay such tax as provided in this Decree. VIC-6 1'\X,:,C': ,1:~7 1~,, .L The Land Tax Unit of: ee ch dis tric t; shall. have t he duty to record such declarations and issue certificates of each land area in each village for the establishment of a land tax register for every village every year, then present to the district and provincial Land Management Unit for authorization of tax collection according to the computed figures . •",-~"j,-,;J~.Q.: When organizing annual land tax collection in provincial or district towns, the land holder and user shall pay the tax himself at the District Land Tax Office. Whereas in other villages outside the district towns, land tax officers shall coordinate with the village administrative authoricies and volunteers for the collection's organization. Article 11: Each licensed assignment or transfer of right of land tenure and use must be declared to the Land Tax Unit for the purpose of updating the Land Register. ~.;;:tid~£: Measures against transgressors. Any organization or individuals refusing to declare the land area under their tenure or use to the Land Management Unit of their area after 120 days from the promulgation of this Decree, such land will be considered as without tenants and users. If no declaration is made after 3 years, the State shall retrieve the right of use over that land. l1rt..:Lcle 13: Any delay for tax payment shall be fined 5\ of the payable tax for each month of delay. Artick..1.!: All ministries, equal ranking agencies, provinces and municipality, in close coordination with the Tax department of their level, shall divulge the content of this Decree to agencies, offices and the population for general acknowledgement. Article 15: The Ministry of Finance is entrusted to organize the implementation of this Decree and establish reports on the situation and proceeds for the conclusion of lessons and timely solutions. This decree is effective from the day it is signed. Vientiane, March 13, 1993 Prime Minister signed and stamped Khamtay siphandone VIC-7