When there is a need to change the land use purpose, such as from residential land to commercial and service land, we must carry out the procedures for changing land use purpose. However, certain fees must be paid. So about the matter “Fees when changing land use purpose in Vietnam” Let’s find out with LSX in the article below.
Legal grounds
- Land Law 2013
What is land use change?
Pursuant to the latest current regulations, the 2013 Land Law also does not provide a clear definition of land conversion, but only refers to cases of land conversion and some cases of land conversion. must be permitted by a competent authority to change the land purpose before the owner of this land plot can change the land purpose.
Thus, it can basically be understood: Land purpose change is the conversion of land use purpose from one purpose to another by an administrative decision of a competent state agency or by registration. changes in land (depending on each case, do you have to ask for permission or not?). The change of land purpose has been carried out in accordance with the 2013 Land Law and related guiding documents.
Basis for calculation of land use purpose conversion fee
When a land user has been approved by the State in the change of land use purpose, he/she must carry out the procedures for paying land use levy (land fee) according to the provisions of the Land Law and as shown in Article 03 of the Land Law. Decree No. 45/2014/ND-CP on the following grounds:
The land area permitted by a competent State agency to change the land use purpose;
Land use purpose of the person performing the change of land use purpose;
Land price for calculation and collection of land use levy: the land price is determined according to the land price list prescribed by the People’s Committee of the province or centrally run city, applicable in case households and individuals are allowed to change the land use purpose. land use for residential land within the limits prescribed under the 2013 Land Law.
Cases of change of land use purpose must be approved by a competent state agency
According to Clause 1, Article 57 of the 2013 Land Law, cases of change of land use purpose that must be approved by a competent state agency include:
Change of land for rice cultivation to land for growing perennial crops, land for afforestation, land for aquaculture, land for salt production;
Change of land for planting other annual crops to land for saltwater aquaculture, salt production, and aquaculture land in the form of ponds, lakes and lagoons;
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;
Converting 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.
Cases of change of land use purpose that do not require permission
Considering the provisions of Clause 1, Article 11 of Circular 02/2015/TT-BTNMT detailing a number of articles of Decree 43/2014/ND-CP and Decree 44/2014/ND-CP dated May 15 5 years of 2014 of the Government, amended and supplemented by Clause 2, Article 5 of Circular No. 09/2021/TT-BTNMT amended and supplemented by a number of articles of the Circulars detailing and guiding implementation of the 2013 Land Law on the cases of change of land purpose without obtaining permission from the competent state agency but having to register the change as follows:
– Converting annual crops to other agricultural land, including: land used to build greenhouses and other houses for cultivation purposes; land for construction of barns for raising poultry, cattle and other animals permitted by current law; aquaculture for the purpose of study, research and experiment;
– Change of land for planting other annual crops and aquaculture land for perennial crops;
– Converting land for planting 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.
For the above cases, when changing the land purpose, the land user is not required to obtain permission from the competent State agency but must register the change.
Fees when changing land use purpose in Vietnam
Land use fees
Depending on each case, the land use fee you need to pay will be calculated differently.
Case 1: Land use fee equal to 50% of land price difference
The payable land use fee will be equal to 50% of the land price difference in the following cases:
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 to residential land;
From land originating from garden land, ponds attached to houses but the land users separated to transfer rights or because the measurement unit when measuring and drawing cadastral maps before July 1, 2004 measured by themselves. split into separate plots for residential land.
In this case, the formula for calculating land use fee is:
Land use fee = 50% x (Land use fee calculated according to residential land price – Land use fee calculated according to agricultural land price at the time there is a decision on change of purpose issued by a competent state agency)
Case 2: Land use fee is equal to 100% of the price difference
The payable land use fee will be equal to 100% of the land price difference in the case of changing the land use purpose from agricultural land allocated by the State without collection of residential land use levy.
In this case, the formula for calculating land use fee is:
Land use levy = Land use levy based on residential land price – Land use levy calculated at agricultural land price at the time of issuance of a decision on change of purpose issued by a competent state agency
Case 3: Other specific cases
From non-agricultural land which is not residential land to residential land, the payable land use levy will be calculated as follows:
For non-agricultural land that has been recognized by the State as land use rights with a stable and long-term use term before July 1, 2004 but is not allocated or leased by the State: Land use fees = 0 (No need to pay land use fee);
Non-agricultural land being used in the form of land allocation by the State with collection of land use levy before July 1, 2004: Land use fee = (Land use fee calculated according to residential land price – Land use fee) land calculated at the non-agricultural land price of the remaining land use term at the time of the decision on change of purpose issued by the competent state agency);
Non-agricultural land which is not residential land is leased by the State in the form of one-time payment of land rent for the entire collection period: Land use fee = (Land use fee calculated according to residential land price – Land rental a lump-sum payment based on the non-agricultural land price of the remaining land use term at the time of issuance of a decision on change of purpose issued by a competent state agency);
Non-agricultural land being used other than residential land in the form of land leased by the State with annual rental payment: Land use fee = 100% of land use fee calculated according to residential prices at the time of decision change the purpose of a competent state agency.
The specific amount will be calculated by the tax authority and notified to the land user. People’s obligation is to pay money according to the notice, if it is overdue, it will be charged late payment.
Registration fee
Not all cases must be paid, but only applied to the case of registration and issuance of certificates, which are exempt from registration fees, and then permitted by the competent authority to change the purpose to residential land.
The registration fee calculation price for land is determined as follows:
Price for calculating registration fee for land (VND) = Area of land subject to registration fee (m2) x Price of 1 m2 (VND/m2) in the Land Price List
And the rate of registration fee in proportion to house and land is 0.5%.
Application assessment fee
Fees for appraisal of dossiers for grant of land use right certificates are collected for the appraisal of dossiers, necessary and sufficient conditions to ensure the issuance of certificates of land use rights and house ownership rights. and properties attached to land as prescribed by law.
Based on the size of the land plot, the complexity of each type of application, the purpose of land use and the specific conditions of the locality, to determine the fee rate for each case. The fee for appraisal of the certificate is a fee set by the People’s Council of the province, so each locality will have a different appraisal fee.
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Frequently asked questions
According to the provisions of Article 61 of the 2013 Land Law, the time for carrying out administrative procedures on land is as follows:
“ 1. The time for carrying out procedures for land lease, land allocation and land purpose change is specified as follows:
a) Land lease or land allocation must not exceed 20 days excluding the time for ground clearance;
b) Change of land use purpose within 15 days.”
Thus, the time limit for settlement for land use purpose conversion procedures is not more than 15 days.
Article 59 of the 2013 Land Law stipulates the authority to permit the change of land use purpose as follows:
– Provincial-level People’s Committees (provinces, cities directly under the central government) decide to allow the change of use purposes for organizations.
– District-level People’s Committees have the authority to permit the change of use purposes for households and individuals.
In case of permitting the change of agricultural land use purpose for commercial and service purposes with an area of 0.5 hectares or more, a written approval from the People’s Committee of the province must be obtained before making a decision.
Depending on the type of land and area illegally transferred, the level of administrative violations is different. Besides being fined, violators are forced to restore their original condition.
Conclusion: So the above is Fees when changing land use purpose in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
