Decree on collection of land use fees in Vietnam

by Anh Việt

Land use fee payment is one of the obligations of land users that must be fulfilled. Land law stipulates that in some cases land users must pay land use levy, except for cases where they are not required to pay or are exempted. Currently, regulations on land use levy are implemented according to Decree 45/2014/ND-CP on collection of land use levy. So about the matter “Decree on collection of land use fees in Vietnam”. Let’s find out with LSX in the article below.

Legal grounds

  • Land Law 2013
  • Decree 45/2014/ND-CP

Decree on collection of land use fees in Vietnam

Here are some issues that readers need to pay attention to about Decree 45/2014/ND-CP.

Who must pay land use levy?

According to Article 3 of Decree 45/2014/ND-CP, subjects to pay land use levy include:

“1. Persons who are allocated land by the State for the following purposes:

a) Households and individuals are allocated residential land;

b) Economic organizations that are allocated land for implementation of investment projects on construction of houses for sale or for sale in combination with lease;

c) Overseas Vietnamese and foreign-invested enterprises are assigned land to execute investment projects on construction of houses for sale or for sale and lease;

d) Economic organizations that are assigned land to implement investment projects on infrastructure of cemeteries and graveyards to transfer land use rights associated with infrastructure (hereinafter referred to as cemetery or cemetery land for short);

dd) Economic organizations are allocated land for construction of mixed-use high-rise buildings, including residential areas for sale or for sale and lease.

2. 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.

3. Households and individuals are using land for housing or non-agricultural land recognized by the State for a long term before July 1, 2014 when they are granted a Certificate of land use right and ownership rights. Owners of houses and other land-attached assets (hereinafter referred to as Certificates for short) must fulfill financial obligations as prescribed in Articles 6, 7, Article 8 and 9 of this Decree.”

Accordingly, the State will collect land use fees in specific cases when land users are allocated land by the State to use for certain purposes; be allowed to change the land use purpose or have the land use right recognized.

Bases for calculating land use levy

According to Article 3 of Decree 45/2014/ND-CP, the bases for calculating land use levy are as follows:

Land users who are allocated land by the State, change the land use purpose or have land use rights recognized by the State, must pay land use levy in accordance with the provisions of the Land Law and shall be determined on the following bases:

– The allocated land area, the use purpose is changed, the land use right is recognized.

– Purpose of using land.

– Land price for calculation of land use levy:

+ Land prices according to the land price list prescribed by the People’s Committees of the provinces and centrally-run cities (hereinafter referred to as the provincial-level People’s Committees for short), applicable in cases where households and individuals are recognized land use, change the land use purpose for the residential land area within the quota.

The determination of the land area within the quota at this Point must ensure the principle that each household (including households formed by separation of households according to the provisions of law), individuals can only determine the land area of ​​each household. within the quota of residential land allocation or the quota of recognition of residential land once and within a province or centrally run city.

In case a household or individual has more than one land plot within a province or centrally run city, that household or individual may accumulate the land area of ​​the land plots to determine the land area within a given period. residential land allocation or residential land recognition quota, but the total selected land area does not exceed the residential land allocation quota or residential land recognition limit in the locality where the selection is made.

Households and individuals are responsible before law for the truthfulness and accuracy of the declaration of the area of ​​the land plot within the residential land allocation quota or the residential land recognition limit applied for the calculation of land use levy; if detected fraudulent declaration will be arrears to pay the land use levy in accordance with the land law and be fined according to the provisions of the tax law.

+ The specific land price is determined according to the methods of direct comparison, deduction, income and surplus specified in the Government’s Decree on land prices, applicable in the following cases:

• Determination of land use levy in case the area for calculation of land use levy collection of a land parcel or land plot has a value (calculated according to the land price in the Land Price List) of VND 30 billion or more, for cities directly centrally; from 10 billion VND or more for mountainous and highland provinces; from 20 billion VND or more for the remaining provinces in the following cases: Organizations are allocated land not through auction of land use rights, change of land use purpose, recognition of land use rights; households and individuals are allocated land not through auction of land use rights; have the right to use land recognized, change the purpose of land use for the residential land area exceeding the quota.

• Determine the starting price of land use right auction when the State allocates land with collection of land use levy through land use right auction.

+ The specific land price is determined according to the method of land price adjustment coefficient applied to the case where the area for calculation of land use levy collection of the land parcel or the land plot has value (calculated according to the land price in the land price list). less than 30 billion VND for cities directly under the Central Government; less than 10 billion VND for mountainous and highland provinces; below VND 20 billion for the remaining provinces, applied to determine land use levy in the following cases:

• Organizations that are allocated land by the State with the collection of land use levy not through auction of land use rights, recognition of land use rights, or permission to change land use purposes;

• Households and individuals allocated land by the State without auctioning land use rights;

• Households and individuals have land use rights recognized by the State and allowed to change land use purposes for residential land areas exceeding the quota.

Annually, the provincial People’s Committee shall stipulate the land price adjustment coefficient to apply to the cases specified in this Point.

– The land price adjustment coefficient issued by the People’s Committee of the province or centrally run city (hereinafter referred to as the People’s Committee of the province) shall apply from January 1 every year. The survey time to build the land price adjustment coefficient is carried out from October 1 every year. Expenses related to the development of the land price adjustment coefficient (including the cost of hiring a consulting organization in case of necessity) shall be spent from the state budget in accordance with the law on state budget. The selection of a consulting organization to survey and build the land price adjustment coefficient must comply with the law on bidding.

If at the time of determining land use levy, the People’s Committee of the province has not yet issued the land price adjustment coefficient as prescribed, the land price adjustment coefficient issued in the previous year shall be applied to determine the land price adjustment coefficient. payable land use and the provincial People’s Committee is responsible for the loss of budget revenue due to the delay in promulgating the land price adjustment coefficient

Principles of land use levy exemption and reduction

Exemption and reduction of land use levy shall be made according to the following principles:

– Households and individuals eligible for land use levy exemption or reduction may only be exempted or reduced once in the following cases: They are allocated land by the State to build houses or are allowed to change the land use purpose from land. other people to make residential land or be granted a certificate of residential land use right.

– In a household with many members eligible for a reduction in land use levy, the reductions of each member may be added to the general reduction of the whole household, but the maximum reduction does not exceed the payable land use levy. within the limit of residential land allocation.

– In cases where people are eligible for both exemption and reduction of land use levy as prescribed in this Decree or other relevant legal documents, they shall be exempt from land use levy; In case a person is eligible for a reduction in land use levy but has different reductions as prescribed in this Decree and other relevant legal documents, the highest reduction shall be enjoyed.

– The land use levy exemption or reduction when the State allocates or permits the change of land use purpose according to the provisions of Article 11, Article 12 of this Decree shall only be applied directly to the subjects entitled to the exemption, reduction and calculation. on the payable land use levy as prescribed in Articles 4, 5, 6, 7, Article 8 and 9 of this Decree.

– Exemption or reduction of land use levy in accordance with the law on investment incentives is not applicable to commercial housing construction investment projects.

– Land users are only entitled to land use levy exemption or reduction incentives after carrying out the procedures for exemption or reduction according to regulations.

Economic organizations that are allocated land by the State with land use levy and are entitled to a reduction in land use levy have rights and obligations within the value of the land use right value for which land use levy has been paid in accordance with law. land law.

– In case a land user eligible for land use levy exemption or reduction wishes to pay land use levy (not enjoying incentives), he/she shall fulfill the financial obligations regarding land as in the case of non-exemption. , reduce land use levy and have rights and obligations under the land law as in the case of being allocated land by the State with collection of land use levy for the type of land with corresponding use purposes.

Order of determination, collection and payment of land use levy

The order of determination, collection and payment of land use levy is as follows:

For economic organizations

Pursuant to the cadastral dossiers (information about land users, land area, land location and land use purposes) sent by the land use right registration office or the natural resources and environment agency; Based on the decision of the People’s Committee of the province approving the specific land price for calculation of land use levy of the project or the land price list and land price adjustment coefficient, within 5 working days from the date of receipt land price approval decision of the People’s Committee of the province or from the date of receipt of the cadastral dossiers of the natural resources and environment agency (or declaration dossier; of economic organizations), the tax department (or the tax authority) authorized agencies, decentralized according to the law on tax administration) determine the land use levy, issue a notice of land use levy payment and send it to the land user organization.

For households and individuals

Pursuant to the cadastral dossiers (information about land users, land area, land location and land use purposes) sent by the land use right registration office or the natural resources and environment agency; based on the decision of the People’s Committee of the province approving the specific land price for calculation and collection of land use levy or the land price list, the land price adjustment coefficient and the application file for a certificate, change of land use purpose of households and individuals; Within 5 working days, the tax authority shall determine the land use levy amount, issue a notice of land use levy payment and send it to households and individuals.

In case there are not enough grounds to determine the land use levy amount, within 05 working days from the date of receipt of the dossier, the tax authority must notify in writing the relevant agency, organization or individual related to supplement records; After having sufficient and valid dossiers, the tax offices must issue a notice of land use levy payment within 05 working days from the date of receipt of the complete and additional dossiers. At the same time, the tax authority compiles a dossier to monitor the collection and payment of land use levy according to the form prescribed by the Ministry of Finance.

Time limit for payment of land use levy

Land users are obliged to pay land use levy within the following time limit:

– Within 30 days from the date of signing the notice of the tax authority, the land user must pay 50% of the land use fee according to the notice.

– Within the next 60 days, the land user must pay the remaining 50% of the land use fee according to the Notice.

– Past the time limit specified above, if the land user has not fully paid the land use levy according to the notice, he/she must pay late payment interest for the unpaid amount at the rate prescribed by law on tax administration except for In case there is an application for debiting the land use levy for the cases being debited.

– If the ground for calculating land use levy changes, the tax authority must re-determine the payable land use levy and notify the obligor.

– In case the land user has fulfilled the financial obligation for land use levy, if the land user requests an adjustment to the detailed construction planning, giving rise to a financial obligation for the land (if any), he/she must pay to add land use levy to the state budget.

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Frequently asked questions

When is the land use fee exempt?

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.

Is it possible to debit the land use fee?

Households and individuals that are issued with a Certificate of having to pay land use levy but have financial difficulties and wish to make a debit may debit the payable land use levy on the Certificate after having an application. The request shall be enclosed with the application for the Certificate or the application for the change of land use purpose or the application for land allocation for resettlement or an application for debit when receiving the notice of 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 with deductions from the payable land use levy at the support rate of 2%/year of the early repayment term and calculated on the land use levy.

What are the responsibilities of land users in paying land use fees?

Land users have the following responsibilities:
To declare land use levy in accordance with the provisions of the Law on Tax Administration and its guiding documents.
Pay the land use levy according to the deadline stated in the tax agency’s notice.
Past the time limit for land use levy payment according to the notice of the tax office, the late payment interest must be paid as prescribed.

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