In the process of using land allocated by the State, people must pay a land use fee as prescribed. However, the amount of land use fee is usually very large, so many people cannot afford to pay this cost to the state within the stipulated time limit. So, in this case, what should people do? So about the matter “Is the land use levy charged interest under Vietnam law?” Let’s find out with LSX in the article below.
Legal grounds
- Land Law 2013
- Decree 79/2019/ND-CP
What is land use levy?
Clause 21, Article 3 of the 2013 Land Law stipulates:
“Land use levy is the amount of money that a land user must pay to the State when the State allocates land with the collection of land use levy, permits the change of land use purpose, and recognizes the land use right.”
Accordingly, land use levy is the amount that a land user must pay to the State when:
– To be allocated land by the State with the collection of use fees.
– Get permission from a competent state agency to change the land use purpose.
– Having land use rights recognized by the State (granting Red Book and Pink Book for land of origin other than land allocated or leased by the State).
Land use levy and land use tax are both financial obligations of land users, but the difference is that: Land use levy is an amount payable to the State and is only made in one of the three cases above. , except for cases where it is exempted or not payable, and land use tax is an amount paid into the state budget and paid annually.
In what cases can land use levy be debited?
Decree 79/2019/ND-CP has completely abolished the old regulation on who is entitled to debit land use levy in Decree 45/2014/ND-CP. At the same time, the objects to be debited in Decree 79/2019/ND-CP have been greatly narrowed.
Specifically, in Clause 1, Article 1 of Decree 79/2019/ND-CP, households and individuals are entitled to debit land use levy in case they are allocated land for resettlement when the State recovers land as follows: :
– People with meritorious services to the revolution
– Poor households
– Households and individuals who are ethnic minorities
– Households and individuals with permanent residence in commune-level areas are recognized as areas with extreme socio-economic difficulties.
Thus, in case you belong to one of the above subjects, you are entitled to debit the land use levy.
Is the land use levy charged interest under Vietnam law?
Debiting land use levy is understood as the fact that when a land user is allocated land with collection of land use levy by the State, recognizes the land use right or changes the land use purpose, he has to pay money to the State, but If you have financial difficulties, you should debit that amount and return it to the State within a certain time limit.
In Clause 1, Article 16 of Decree 45/2014/ND-CP stipulates:
1. Households and individuals may change land use purposes; Those who are granted the Certificate of having to pay land use levy as prescribed in Articles 5, 6, 7, Article 8, Article 9 of this Decree and households and individuals that are allocated land for resettlement by the State but have difficulties If you are in financial difficulty, if you wish to debit, you may debit the land use levy payable on the Certificate after an application is submitted together with the application for the Certificate or the application for change of land use purpose. or records of land allocation and resettlement or an application for debit when receiving notice of sale and payment of land use levy. Land users are entitled to pay their debts gradually over a maximum period of 5 years; After 5 years from the date of debit, if the land use levy debt has not been fully paid, the land user must pay the remaining land use levy at the land price at the time of debt repayment. In case households and individuals pay their debts ahead of time, they will be supported to deduct from the payable land use levy at the support rate of 2%/year of the prepayment term and calculated on the land use levy paid premature debt.
In addition, in Article 18 of Decree 45/2014/ND-CP, there are provisions on handling late payment as follows:
“In case of late payment of land use levy to the state budget, the land user must pay late payment interest. The determination of late payment of land use levy shall comply with the rate prescribed by the Law on Tax Administration.”
Thus, based on the above provisions of law, in case you do not apply for a debit of land use levy but are late to pay it, you must pay interest on late payment of land use levy. On the contrary, if you apply for a debit for the land use fee and pay it in installments over a period of 5 years, but during that time you have not fully paid, you will not be charged interest. However, the remaining payable land use levy shall be recalculated according to the land price list issued by the People’s Committee of the province where the land is located at the time of payment of the late payment amount.
In case households and individuals pay their debts ahead of time, they will be supported to deduct from the payable land use levy according to the support rate of 2%/year of the early repayment term and calculated on the historical amount. use land to pay debts before maturity.
In case the land use levy has been debited before the effective date of this Decree but still owes land use levy within the debited time limit, the support level for early payment shall be enjoyed as prescribed above.
What are the regulations on land use levy payment?
– Households and individuals are entitled to gradually repay their debts within 05 years from the date of issuance of decisions on land allocation for resettlement by competent state agencies and do not have to pay late payment interest within this 05-year period.
– After 05 years from the date of issuance of the decision on allocation of resettlement land by a competent state agency, if the household or individual has not fully paid the land use levy stated in the Certificate, the household or individual shall must fully pay the outstanding land use levy and late payment interest calculated on the outstanding amount at the rate prescribed by law on tax administration from the time of expiry of the 5-year debit period to the time of debt repayment.
For example: On November 6, 2020, Mr. B is entitled to debit the land use levy, then Mr. B is entitled to gradually repay the debt within 5 years from the date of the decision on land allocation for resettlement and is not required to pay late payment interest within 5 years. term of 05 years; After 5 years, if the debt has not been fully paid, the outstanding amount and late payment interest must be paid in full according to the provisions of tax law (the late payment interest is at the rate of 0.05%/day/on the amount of late payment).
How long can I owe land use levy?
– Amount of land use fee to be debited (Clause 2, Article 1 of Decree 79/2019/ND-CP):
Determined by the difference between the land use levy payable when the household or individual is allocated land for resettlement minus (-) the value of compensation for land, support for land when the State recovers land.
– Time limit for payment of land use levy
According to Clause 3, Article 1 of Decree No. 79/2019/ND-CP, the repayment term is as follows:
+ Debit households and individuals are entitled to gradually repay their debts within 5 years from the date of issuance of decisions on land allocation for resettlement by competent State agencies and do not have to pay late payment interest for these 5 years.
+ In case, after 05 years from the date of issuance of the decision on allocation of resettlement land by a competent state agency, the household or individual has not fully paid the land use levy stated in the Certificate, they must pay the full amount. land use levy owed.
Late payment is calculated on the outstanding amount according to the rate prescribed by law on tax administration from the time of expiry of the 5-year debit period to the time of debt repayment.
What procedures should be done to debit land use levy?
Prepare profile:
Households and individuals submit dossiers at the Land Registration Office or the natural resources and environment agency
Profile include:
– An application for land use levy debit;
– Papers proving that the subjects are entitled to debit land use levy;
– Dossier of application for a Certificate: Decision on land allocation for resettlement, compensation, support and resettlement plan approved by a competent State agency.
File handling:
The land registration office handles the application
– Review and check records;
– Prepare information transfer slip to send to tax authorities and related agencies (The transfer note contains information about the amount of compensation and support for land that households and individuals receive);
– Return appointment papers to households and individuals.
The tax authority issued a notice:
To issue notices according to regulations and send them to households, individuals, land registration offices and relevant agencies (if necessary) within no more than 02 working days from the date of notification.
Services of LSX
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, LSX’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all brand information of client LSX will be 100% confidential.
Please contact us immediately if you have any questions about “Is the land use levy charged interest under Vietnam law?”
Contact LSX
Finally, hopefully the information in the article will provide helpful information for readers and help you solve the problem “Is the land use levy charged interest under Vietnam law?” At the same time, LSX Law firm always has leading lawyers and legal consultants who will help you in legal matters of life. If you have any need, please get in touch with us via hotline: +84846175333 or Email: [email protected]
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
Specifically, in Clause 1, Article 1 of Decree 79/2019/ND-CP, households and individuals are entitled to debit land use levy in case they are allocated land for resettlement when the State recovers land as follows: :
People with meritorious services to the revolution
Poor households
Households and individuals who are ethnic minorities
Households and individuals with permanent residence in commune-level areas are recognized as areas with extreme socio-economic difficulties.
Profile include:
An application for land use levy debit;
Papers proving that the subjects are entitled to debit land use levy;
Dossier of application for a Certificate: Decision on land allocation for resettlement, compensation, support and resettlement plan approved by a competent State agency.
By the end of February 28, 2021: those who are entitled to debit land use levy before March 1, 2016 but have not yet paid, shall continue to pay the outstanding land use levy according to the policy and land price at the time of payment. Issue certificate.
From March 1, 2021, households and individuals that still owe land use levy but have not yet paid will have to pay the outstanding land use levy according to the policy and land price at the time of debt repayment.
Conclusion: So the above is Is the land use levy charged interest under Vietnam law?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
