Nowadays, land is a matter of great concern to many people. In which, there are many cases of land use right transfer in practice. So about the matter “Levy exemption when changing land use purpose in Vietnam” Let’s find out with LSX in the article below.
Legal grounds
- Land Law 2013
- Decree 45/2014/ND-CP
Levy exemption when changing land use purpose in Vietnam
Change of land use purpose is a change in land use purpose compared to the original land type by administrative decision in case of change of land use purpose requiring permission or land registration in the case not obtain permission from the competent state agency.
Currently, based on Article 57 of the 2013 Land Law, cases where land use purpose change must be approved by a competent state agency includes:
+ Changing the land for rice cultivation to land for planting perennial crops, land for afforestation, land for aquaculture, land for salt production;
+ Transfer of land for planting other annual crops to land for saltwater aquaculture, salt production, and aquaculture land in the form of ponds, lakes or lagoons;
+ Converting special-use forest land, protection forest land and 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.
It can be seen that, at present, it is possible to change the land use purpose in many different ways, but it should be noted that when changing the land use purpose, it is necessary to obtain permission from the competent state agency.
When changing the land use purpose, many people often wonder if they can get tax exemption or reduction when changing the land use purpose or not? The current law has no relevant and specific regulations on tax reduction when changing land use purposes, but only provisions related to land use levy exemption and land use levy reduction for specific subjects when changing land use purposes.
Therefore, when changing the land use purpose, the person who wants to change the land use purpose must meet the provisions of the law related to tax for each specific type of land without considering the issue of levy exemption or reduction.
Cases of levy exemption when changing land use purposes
Although they cannot be exempted from tax when changing land use purposes, the following subjects will be exempted from land use levy. Accordingly, Article 11 of Decree 45/2014/ND-CP stipulates land use levy exemption as follows:
1. Exemption from land use levy within the residential land allocation quota when using land to implement the housing and residential land policy for people with meritorious services to the revolution who are eligible for land use levy exemption as prescribed by law about people with meritorious services; poor households, ethnic minority households in areas with extremely difficult socio-economic conditions, border areas and islands; use land for construction of social housing in accordance with the law on housing; housing for people displaced by natural disasters.
The determination of poor households according to the decision of the Prime Minister; the identification of ethnic minority households and poor households in extremely difficult communes in ethnic minority and mountainous areas according to the list of communes with extreme difficulties prescribed by the Prime Minister.
3. Exemption of land use levy for the allocated land area within the residential land allocation quota for households or individuals who are ethnic minorities according to the Government’s regulations.
2. Exemption from land use levy within the residential land allocation quota upon first issuance of the Certificate for land due to the change of use purpose from non-residential land to residential land due to household separation for households
Fishing villagers, people living on rivers and lagoons move to settle in resettlement areas and points according to master plans, plans and projects approved by competent authorities.
4. Exemption of land use levy for the land area allocated within the residential land allocation quota for resettlement or for households and individuals in residential clusters and lines in flood-prone areas under the project approved by the competent authority.
5. 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 proposals of the Ministers, heads of ministerial-level agencies, agencies attached to the Government, and owners. Chairman of the People’s Committee of the province.
6. The Ministry of Finance shall specifically guide this Article.
Thus, if falling into the above cases, the land user will be completely exempted from the land use fee prescribed by the State.
Reducing land use levy in land use purpose change
People who change land use purpose are not entitled to tax reduction when changing land use purposes, but will be entitled to a reduction in land use fees (specified in Article 12 of Decree No. 45/2014/ND-CP), specifically as follows: after:
1. A 50% reduction in land use levy within the residential land quota for ethnic minority households and poor households in areas not covered by Clause 2, Article 11 of this Decree when approved by the competent authority to decide on land allocation; recognition (issuance of Certificate) of land use rights for the first time to the land currently in use or when the use purpose is changed from non-residential land to residential land.
The determination of poor households according to the decision of the Prime Minister; the identification of households or individuals as ethnic minorities according to the Government’s regulations.
2. Reduction of land use levy for residential land within the residential land allocation quota (including land allocation, change of land use purpose, and issuance of certificates to current land users) for people with meritorious services to the revolution for reduction of land use levy in accordance with the law on people with meritorious services.
3. The Prime Minister shall decide on the reduction 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 Government-attached agency, and the Owner. Chairman of the People’s Committee of the province.
4. The Ministry of Finance shall specifically guide this Article.
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Frequently asked questions
Pursuant to the provisions of Article 59 of the 2013 Land Law stipulating the authority to permit the change of land use purpose, the agency competent to permit the change of land use purpose must apply for a permit, including:
People’s Committees of provinces (provinces and cities directly under the central government) decide to permit 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 or 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 decision.
Procedures for carrying out project land use purpose
Step 1: Prepare the required documents
Step 2: Submit application at Department of Natural Resources and Environment
Step 3: The Department of Natural Resources and Environment is responsible for checking the dossier, verifying the authentication and appraising the request for change of land use purpose; in addition, to guide land users to fulfill their financial obligations as prescribed by law; submit the request to the People’s Committee at the competent level for approval on the request for change of land use purpose; directing the updating and correction of land databases and cadastral records.
According to the provisions of Article 13 of the Government’s Decision 11/2017/QD-UBND promulgating a number of contents in land recovery, land lease, land allocation, and change of land use purpose. Investment projects in Hanoi city stipulate the composition of dossiers for change of land use purpose as follows:
+ Application for registration of change of land use purpose (original).
+ Drawing of red line and detailed construction planning 1/500 or master plan of 1/500 scale already approved by competent agencies (original)
+ Appraisal of results of land use demand, conditions for change of land use purpose (for cases subject to appraisal) (copy).
+ The investment project is approved according to the regulations of the investment and construction management levels (including the explanation and the basic design, including the following contents: electricity supply, water supply and drainage, fire prevention and fighting, etc.), environment; escrow (for cases where it is required to comply with the provisions of the Law on Investment).
For projects of exploration and exploitation of minerals, building materials and ceramics, they must be accompanied by a permit from a state agency competent to decide on investment policies or to approve investment policies or decisions on approval of investment projects (for projects with state budget capital) or documents on approval of results of investor selection for projects using land in accordance with the provisions of the law on investment or the Law on Investment.
+ Papers related to the management and use of land and original copies.
Conclusion: So the above is Levy exemption 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
