Land use levy is a financial obligation of a land user to pay the state for the area of land to be used. Land use levy is also a tool for the state to regulate the value added from the land that is not brought in by the investment of the land user. However, not everyone understands the procedure for paying land use levy. LSX Lawfirm will give you an article about: “Pay land use levy in Vietnam”, as follows:
Legal grounds
– Land Law 2013
– Decree 126/2020/ND-CP detailing a number of articles of the Law on Tax Administration
– Decree 79/2019/ND-CP amending Article 16 Decree No. 45/2014/ND-CP dated May 15, 2014 of the Government regulating the collection of land use fees
When to pay land use levy?
According to the provisions of Clause 21, Article 3 of the Land Law 2013:
“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.”
From the above regulations, it can inferred that land users are obliged to pay land use fees in the following cases:
Case 1: Land is allocated by the State with collection of land use levy
According to Article 55 of the 2013 Land Law, the State allocates land with collection of land use levy in the following cases:
- Firstly Households and individuals allocated residential land;
- Secondly Economic organizations that allocated land to implement investment projects on construction of houses for sale or for sale in combination with lease;
- Thirdly Overseas Vietnamese and foreign-invested enterprises may allocated land to implement investment projects to build houses for sale or for sale and lease;
- Finally Economic organizations allocated land to implement investment projects on infrastructure of cemeteries and graveyards to transfer land use rights associated with infrastructure.
Case 2: The government allows the change of land use purpose
Cases of change of land use purpose requiring payment of land use levy specified in Clause 1, Article 57 of the 2013 Land Law include:
- Firstly, converting land for rice cultivation to land for planting perennial crops, land for afforestation; land for aquaculture, land for salt production;
- Secondly, converting land for planting other annual crops to land for saltwater aquaculture, salt production; aquaculture land in the form of ponds, lakes or lagoons;
- Thirdly, change of special-use forest land, protection forest land, production forest land to use for other purposes in the group of agricultural land;
- Converting agricultural land to non-agricultural land;
- Then transfer of non-agricultural land allocated by the State without land use levy to non-agricultural land allocated by the State with land use levy or leased land;
- Converting non-agricultural land which is not residential land to residential land;
- Transfer of land for construction of non-business works, land used for public purposes for business purposes; land for non-agricultural production and business that is not commercial or service land, to commercial or service land; converting commercial, service, and non-business construction land to land for non-agricultural production establishments.
Case 3: Being recognized by the state for land use rights
So, state recognition of land use rights is the granting of land use rights by the State to people; who are using land on a stable basis without origin and have allocated or leased land by the State; through the issuance of land use right certificates. , ownership of houses; and other land-attached assets for the first time for a definite land parcel.
You can refer to the article related to Regulations on apartment ownership; or In case the company’s head office address is located in an apartment building in Vietnam
Related artice: Procedures for foreigners to buy apartments in Vietnam
Foreigners buy apartments of Vietnamese individuals
Procedures for payment of land use levy
Step 1: Determine the amount of land use
Land use levy determined on the basis of:
(1) Area of land allocated, converted to use purpose, recognized use right
(2) Purpose of land use
(3) Land price for calculation of land use levy
So, the determination of land use levy will made by the tax authority based on the cadastral records sent by the land use right registration office; or the natural resources and environment agency and the decision of the provincial People’s Committee on approval; approve specific land prices for calculation and collection of land use levy; or land price list, land price adjustment coefficient and application for a Certificate, change of land use purpose.
In case there are enough grounds to determine the land use levy; the tax authority will issue a notice of land use levy payment and send it to the land user.
In case there are not enough grounds to determine the land use levy; the tax authority will notify in writing the land user for additional records.
Step 2: Pay land use fee
After receiving the notice of land use levy payment, the land user obliged to complete the payment of land use levy as follows:
- So, 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.
- Finally, within 30 days from the date of issuance of the Notice of payment of land use levy; 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.
Past the above time limits, if the land use levy; has not yet paid in full according to the notice; the land user must pay late payment interest for the unpaid amount; at the rate prescribed by law on tax administration; unless land use levy debit application.
So, the subjects entitled to debit land use levy include: Households and individuals (including: people with meritorious services to the revolution; poor households; households and individuals who are ethnic minorities; households, individuals with permanent residence in the commune-level areas recognized as difficult socio-economic areas; or extremely difficult socio-economic areas) may debit land use levy in case they assigned land use rights; resettlement land when the State recovers the land according to the provisions of the land law.
Related questions
The purpose is to make a place to live for people whose houses and land have been cleared. People choose one of the following two cases:
Receive compensation and move to another place
Moving into a resettlement area (a type of apartment building with basic services)
This is a type of apartment for people with low income. People who have been working for a long time but do not have enough money to buy a house have to rent a house to live in. In general, you will have to show low income to get into this type of housing.
Social housing is only granted a certificate of house ownership, lease and transfer after 5 years of receiving the house.
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