Calculation of Land Betterment Tax (Article 47)
The portion of the betterment value that does not exceed five times the minimum wage in force on the date of the decision determining the amount of betterment is exempt from the tax.
The portions exceeding that amount are taxed at the following rates:
| Rate | Taxable Portion |
|---|---|
| 10% | The portion exceeding 5 times the minimum wage and not exceeding 25 times the minimum wage. |
| 20% | The portion exceeding 25 times and not exceeding 50 times the minimum wage. |
| 30% | The portion exceeding 50 times and not exceeding 100 times the minimum wage. |
| 40% | The portion exceeding 100 times the minimum wage. |
The amount of the betterment tax may not exceed the value of one quarter of the property area as of the date of the valuation decision.
Calculation Table Based on a Minimum Wage of LBP 300,000
| Rate | Bracket | Tax |
|---|---|---|
| — | LBP 1,500,000 | Exempt |
| 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% | Amount exceeding LBP 30,000,000 | — |
Calculation Table Based on a Minimum Wage of LBP 500,000
| Rate | Bracket | Tax |
|---|---|---|
| — | LBP 2,500,000 | Exempt |
| 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% | Amount exceeding LBP 50,000,000 | — |
Reduction of the Betterment Tax
The betterment tax is reduced by 25% for property subject to a consolidation and subdivision process under Decision No. 37/L.R. dated 5 February 1934 concerning land improvements in agricultural areas, where a public-interest decision has been issued by the competent minister before the preliminary committee begins the betterment valuation process (Article 57).