Vietnam Proposes Extension of Agricultural Land Tax Exemption to 2030

On December 23, 2024, the Ministry of Finance in Vietnam proposed an extension of the agricultural land tax exemption until December 31, 2030. This initiative aims to support farmers and enhance agricultural productivity across the nation. If the proposal is approved, the tax exemption will take effect from January 1, 2026 [f6f86cb1].

Historically, the annual tax relief provided by this exemption has shown a significant upward trend. From 2003 to 2010, the average annual relief was approximately VNĐ3.27 trillion (around US$128.46 million). This figure increased to VNĐ6.31 trillion for the period of 2011-2016, and further rose to VNĐ7.5 trillion for the years 2021-2023. The Ministry anticipates that extending the exemption will continue to provide around VNĐ7.5 trillion in annual tax relief through 2030 [f6f86cb1].

The proposed extension aligns with Vietnam's commitment to sustainable rural development and its international trade obligations. By alleviating the tax burden on agricultural land, the government aims to foster economic growth and support the livelihoods of farmers, thereby promoting a more robust agricultural sector [f6f86cb1].

As Vietnam navigates its economic landscape, this proposal reflects a broader strategy to enhance agricultural productivity while ensuring that farmers are supported in their endeavors, contributing to the overall economic resilience of the country [f6f86cb1].