Due to the increased demand for land use, and little residential land, many people have applied for state permission to change the land use purpose. When changing the land use purpose, in addition to the conditions that need to be met, the land user needs to pay the land use purpose change fee. So about the matter “What is money for land use change under Vietnam law?”Let’s find out with LSX in the article below.
Legal grounds
- Land Law 2013
- Decree 45/2014/ND-CP
What is land use change?
When being permitted by the State to change the use purpose, the land user must pay land use levy. According to the provisions of Decree 45/2014/ND-CP. Current land users permitted by the State to change the land use purpose to residential land or land for cemeteries or graveyards in the cases specified in Clause 2, Article 2 of Decree No. soil.
Accordingly, it can be understood that the land use purpose change fee is the land use fee that the person authorized by the state to change the land use purpose must pay in accordance with the law.
When changing land use purpose will change the type of land used. Each type of land will have a different land use fee. The previous land may be subject to land use levy or no land use levy. Therefore, when changing land use purposes, most of them will have to pay land use fees.
Paying land use levy upon change of land use purpose is the obligation of land users and is obligatory for them to ensure their rights.
Persons who have to pay money for change of land use purpose
According to Clause 2, Article 2 of Decree 45/2014/ND-CP stipulating that people who have to pay money for changing land use purposes include:
Current land users are permitted by the State to change the land use purpose to residential land or land for cemeteries or graveyards in the following cases:
a) Agricultural land, non-agricultural land, originally allocated without land use levy, is now permitted by a competent state agency to be converted to residential land or land for cemeteries or graveyards;
b) Agricultural land is originally allocated by the State with land use levy, converted to residential land or land for cemeteries or graveyards with land use levy;
c) Non-agricultural land (not residential land) originally allocated by the State with the collection of land use levy and converted to use as residential land with the collection of land use levy;
d) Agricultural land, non-agricultural land (not residential land) originally leased by the State is changed to residential land or land for cemeteries and graveyards concurrently with the change from land lease to land lease. land allocation with collection of land use levy.
What is money for land use change under Vietnam law?
Article 5, Clause 3, Article 2 of Decree 123/2017/ND-CP collects land use levy upon change of land use purpose as follows:
- For economic organizations
Change from agricultural land, non-agricultural land allocated without payment to residential land; cemetery land
Change from agricultural land, non-agricultural land allocated without land use levy to residential land; For conversion from agricultural land or non-agricultural land allocated without land use levy to land for cemeteries or graveyards, land use levy shall be calculated as follows:
Land use fee =100% x Land use fee according to the price of the land type after the change of purpose.
Change from agricultural land, non-agricultural land that is not residential land allocated or leased by the State to residential land
Change of use purpose from agricultural land, non-agricultural land other than residential land allocated by the State with land use levy or leased land to residential land shall be collected as follows:
+ In case agricultural land or non-agricultural land is allocated by the State with collection of land use levy before July 1, 2014, when the purpose is changed to residential land:
Land use levy = land use levy calculated at the residential land price – land use levy calculated at the land price of the type of land before changing the purpose of the remaining land use term
+ In case agricultural land or non-agricultural land is leased by the State in the form of annual land rental payment, when the purpose is changed to residential land at the same time as the change from land lease to land allocation:
Land use fee =100% x Land use fee based on residential land price
+ In case agricultural land or non-residential agricultural land is leased by the State in the form of one-time payment of land rent, when the purpose is changed to residential land at the same time as the change from land lease to land allocation:
Land use fee = land use fee calculated according to residential land price – one-time payment of land rent for the type of land before changing the purpose according to the remaining land use term
- For land owned by organizations that are self-financed public non-business units and enterprises with state capital under the management of the central government, the provincial-level People’s Committees shall decide on the change of land use purpose together with the change of land use purpose. change the utility of public property according to regulations after obtaining the written consent of the Ministry of Finance.
Change from agricultural land allocated or leased by the State with payment or lease to land for cemeteries or graveyards
If the use purpose is changed from agricultural land allocated by the State with land use levy or leased to land for cemeteries or graveyards, land use levy shall be collected according to the principles specified in the case of change of use purpose. from agricultural land, non-agricultural land that is not residential land allocated by the State with land use levy or leased land to residential land.
In case an economic organization receives a lawful transfer of land use rights in accordance with the land law to implement an investment project
Change of land use purpose: In case an economic organization that receives a lawful transfer of land use rights in accordance with the land law to implement an investment project has to change the land use purpose, the land use levy shall be collected as follows: after:
+ In case an economic organization that receives a lawful transfer of land use rights to implement an investment project has to change the land use purpose to residential land, cemetery land, or graveyard, the land use levy shall be paid at the land price. specified at Point b, Point c, Clause 3, Article 3 of this Decree of the type of land after changing the land use purpose.
+ The amount paid by economic organizations to receive the transfer of land use rights shall be deducted from the payable land use levy upon change of purpose. This amount is determined according to the land price of the transferred land use purpose at the time of being permitted by a competent state agency to change the land use purpose, but does not exceed the corresponding compensation and support amount. in case the State recovers land according to the provisions of law.
+ The amount paid by the economic organization to receive the above-mentioned land use right transfer is determined as follows:
• In case the land price for calculating land use levy of a type of land after change of purpose is determined by the land price adjustment coefficient method, the price of the transferred land type is also determined by the adjustment coefficient method. land price.
• In case the land price for calculating land use levy of a land type after change of purpose is determined by methods of direct comparison, deduction, income, and surplus, the price of the land type to be transferred is also determined. determined by these methods.
- For households and individuals
Change the purpose of using land for gardens, ponds with houses or attached houses
The land use fee is calculated as 50% of the difference between the land use fee of the two types of land, specifically:
– Converting from garden or pond land in the same parcel of land with houses in a residential area that is not recognized as residential land as prescribed in Clause 6, Article 103 of the Land Law 2013 to residential land;
– Changed from land originating from gardens or ponds attached to houses, but the land user is separated to transfer rights or measured by the measurement unit when measuring and drawing cadastral maps before July 1, 2004. divided into separate parcels for residential land.
The land use fee is calculated as follows:
Land use fee = 50% x (land use fee calculated according to residential land price – land use fee calculated according to agricultural land price)
The land price is determined at the time of the competent state agency’s decision on change of purpose.
Change from agricultural land allocated by the State without land use levy to residential land
– When converting from agricultural land allocated by the State without land use levy to residential land, the land use levy shall be calculated as follows:
Land use fee = Land use fee calculated according to residential land price – land use fee calculated according to agricultural land price
Change of purpose from non-agricultural land which is not residential land to residential land
– Change the purpose from non-agricultural land which is not residential land to residential land and collect land use levy in the following cases:
+ Using non-agricultural land that has been recognized by the State for land use rights with a stable and long-term use term before July 1, 2004 that is not land allocated or leased by the State.
In this case, the land use fee is not required.
+ In case of using non-agricultural land in the form of land allocation by the State with collection of land use levy before July 1, 2014, when the purpose is changed to residential land, the land use levy shall be calculated as follows:
Land use fee= Land use fee calculated according to residential land price – Land use fee calculated according to non-agricultural land price of the remaining land use term
+ In case the State leases non-agricultural land that is not residential land in the form of one-time payment of land rental for the entire lease period, when the purpose is changed to residential land and concurrently changes from land lease to land allocation. The land use fee is calculated as follows:
Land use fee= Land use fee calculated at the residential land price – One-time payment of land rent calculated at the non-agricultural land price of the remaining land use term
– In case of using non-agricultural land other than residential land in the form of land leased by the State with annual rental payment, the land use levy shall be calculated as follows:
Land use fee = 100% x Land use fee calculated according to land price
*Land price is determined at the time there is a decision on change of purpose issued by a competent state agency.
Change of land use purpose derived from the transfer
Change of land use purpose derived from receiving the transfer of lawful land use rights according to the land law of the land user to residential land shall, based on the origin of the transferred land, collect land use levy according to the following provisions: above case.
- Other case
Change of use purpose from non-agricultural production and business land (not residential land) with a stable and long-term use term originating from land allocated by the State with collection of land use levy before July 1, 2004 to residential land for implementation of investment projects from July 1, 2014 onwards, the land use levy shall be equal to the difference between the land use levy calculated at the residential land price minus (-) the calculated land use levy according to the land price calculated and collect one-off land rental for the whole lease period of non-agricultural production and business (commercial, service) land for a period of 70 years at the time of being permitted by a competent state agency to move the land use purposes.
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Please see more
- Vietnamese law on mortgage of land use rights
- Change of land use purpose in Vietnam to implement investment projects
- The issuance of a land use right certificate in Vietnam is refused
Frequently asked questions
In case of change of purpose, the permission of the competent authority is not required but only change registration is required, including:
Converting annual crops to other agricultural land, including: land used for building greenhouses and other houses for cultivation purposes; land for construction of barns for raising cattle, poultry and other animals permitted by law; aquaculture for the purpose of study, research and experiment;
Converting land for planting other annual crops and aquaculture land to planting perennial crops;
Converting land for growing perennial crops to land for aquaculture or annual crops;
Converting residential land to non-agricultural land which is not residential land;
Transfer of commercial and service land to other types of land belonging to non-agricultural production and business land which is not the land of non-agricultural production establishments; converting non-agricultural production and business land that is not commercial or service land, land of non-agricultural production establishments to land for construction of non-business works.
According to Article 1 of Decree 45/2014/ND-Cp on land use levy exemption, in the following cases, land use purpose change fee will be exempted:
Exemption from land use levy within the quota of residential land allocation in case the State allocates land, permits the change of land use purpose, and recognizes land use rights for people with meritorious services to the Revolution shall comply with the provisions of this Law. law on meritorious people. The exemption of land use levy for people with meritorious services to the Revolution is only made when there is a decision of a competent state agency on permission to exempt land use levy according to the law on people with meritorious services.
Exemption from land use levy within the residential land allocation quota when issuing the first Certificate for land due to change of use purpose from non-residential land to residential land due to household separation for ethnic minority households , poor households in extremely difficult communes in ethnic minority areas and mountainous areas according to the list of communes with special difficulties prescribed by the Prime Minister.
The Prime Minister shall decide on the exemption of land use levy for other cases submitted by the Minister of Finance on the basis of the proposal of the Minister, the head of the ministerial-level agency, the agency attached to the Government, and the President. Provincial People’s Committee.
According to Clause 4, Article 18 of Decree 126/2020/ND-CP:
Within 30 days from the date of issuance of the notice of land use levy payment, the land user must pay 50% of the land use levy according to the notice.
Within 90 days from the date of issuance of the notice of land use levy payment, the land user must pay the remaining 50% of the land use levy according to the notice.
Within 30 days from the date of issuance of the notice of land use levy payment, the land user must pay 100% of the land use levy according to the notice in case of re-determination of the payable land use levy overdue. 5 years from the date of issuance of the decision on land allocation for resettlement, but the household or individual has not yet fully paid the outstanding land use levy.
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