Calculation of Land Improvement Tax (Article 47)
The value of the part of the improvement that does not exceed 5 times the minimum wage applicable on the date of issuance of the final decision determining the amount of improvement is exempt from Land Improvement Tax.
The tax is imposed on the portions exceeding the amount mentioned in the previous paragraph according to the following rates:
| Rate | Portion |
|---|---|
| 10% | Exceeding 5 times the minimum wage and not exceeding 25 times. |
| 20% | Exceeding 25 times and not exceeding 50 times. |
| 30% | Exceeding 50 times and not exceeding 100 times. |
| 40% | Exceeding 100 times the minimum wage. |
Provided that the value of the Land Improvement Tax does not exceed the value of one quarter of the property area on the date of issuance of the improvement decision.
- Calculation Table: Minimum Wage LBP 300,000
| Rate | Brackets | Tax |
|---|---|---|
| --- | LBP 1,500,000 | Not subject |
| 10% | LBP 6,000,000 | LBP 600,000 |
| 20% | LBP 7,500,000 | LBP 1,500,000 |
| 30% | LBP 15,000,000 | LBP 4,500,000 |
| 40% | More than LBP 30,000,000 | --- |
- Calculation Table: Minimum Wage LBP 500,000
| Rate | Brackets | Tax |
|---|---|---|
| --- | LBP 2,500,000 | Not subject |
| 10% | LBP 10,000,000 | LBP 600,000 |
| 20% | LBP 12,500,000 | LBP 1,500,000 |
| 30% | LBP 25,000,000 | LBP 4,500,000 |
| 40% | More than LBP 50,000,000 | --- |
Land Improvement Tax on property subject to consolidation and subdivision is reduced by 25% in accordance with Decision No. 37/L.R. dated 5/2/1934 concerning real estate improvements in agricultural lands, where a decision may have been issued declaring the works to be of public benefit by the competent minister before the preliminary committee begins the improvement assessment, Article 57.