When a household, individual or economic organization, a person with Vietnamese nationality living and settling in a foreign country, or a foreign-invested enterprise wants to ask the State for permission to change the use purpose. If they ask for land allocation or recognition of land use rights by the State, these subjects must fulfill the obligation to pay land use levy. The payment of land use levy has an important meaning in ensuring the above subjects use the land reasonably and for the State to manage the land. So about the matter “What is land use levy debt under Vietnam law?” Let’s find out with LSX in the article below.
Legal grounds
- Land Law 2013
- Decree 45/2014/ND-CP Regulations on collection of land use levy
- Decree 123/2017ND-CP amending and supplementing Decree 45/2014/ND/CP
What is land use levy according to regulations?
The land use levy specified in Clause 21, Article 3 of the 2013 Land Law is a financial obligation of the land user for the land area allocated by the State, allowing the change of land use purpose. land or the State recognizes the right to use land. This is an obligation of practical significance, ensuring that land users are responsible for their land allocated and allowed by the State to use, the State can also manage and supervise closely. with this land.
What are the current regulations on land use levy?
Land use fees are regulated by the State based on criteria such as land area, land use purpose and land price. In addition, the law has specific provisions in each case on land use levy.
The State prescribes the determination of the land use levy collection and payment regime for economic organizations, households and individuals on the basis of cadastral records and decisions of the provincial-level People’s Committees approving the land use price. specific land in each case. After the decision is made, the tax authority shall issue a notice of land use levy payment and send it to households, individuals and organizations using land to fulfill the obligation to pay land use levy.
However, not all cases must pay land use levy, but the law also has specific provisions on the exemption or reduction of land use levy for special subjects, such as:
+ For people with meritorious services to the revolution, Vietnamese law always has priority provisions, specifically for the obligation to pay land use levy, people with meritorious services to the revolution as prescribed by law will be exempted from paying land use levy. pay land use levy; In addition, there are poor households or ethnic minority households living and residing in areas with extremely difficult socio-economic conditions. families living in border areas and islands; using land for the purpose of building social housing in accordance with the law on housing or housing for people displaced by natural disasters, in these cases, the State shall be exempt from land use levy tax within the scope of the law on housing. residential land allocation limit when using land.
+ Cases of change of residential land use purpose according to the first-time grant of land use right certificates for ethnic minorities, poor households living and residing in extremely difficult communes, Areas of ethnic minorities or mountainous residents belonging to the category of extremely difficult communes shall be permitted by the State of Vietnam to use land legally without having to perform the obligation to pay land use levy.
+ For the allocated land area of households belonging to households living on rivers and fishing activities that wish to or are considered for relocation in resettlement sites or areas according to regulations. Legally planned or the land area for households and individuals to be resettled by the State within the quota of residential land allocation that these households and individuals previously lived in flooded areas, are also exempted from land use fees.
+ In areas and areas that are not within the scope of regulation, poor households and ethnic minorities when being allocated land by the State, granting land use right certificates for the first time, recognition of land use rights to the land currently in use or when the land use purpose is changed.
What is land use levy debt under Vietnam law?
Debiting land use levy is one of the above preferential policies that has created conditions for disadvantaged households and individuals to reduce difficulties and burdens of having to pay land use fees at a relatively high level. for a short period of time, instead of paying land use fees for a certain period of time.
Debit of land use levy is currently regulated in Article 16 of Decree 45/2014/ND-CP (amended and supplemented by Decree 79/2019/ND-CP) as follows:
– Entities entitled to debit land use levy: Households and individuals (including people with meritorious services to the revolution; poor households; households and individuals who are ethnic minorities; households and individuals) individuals with permanent residence in commune-level areas recognized as difficult socio-economic areas or extremely difficult socio-economic areas) may debit land use levy in case of land allocation resettlement when the State recovers land in accordance with the land law.
– Amount to be debited for: 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, land support when the State recovers it.
– Debit term: 05 years from the date of issuance of the decision on allocation of resettlement land by a competent state agency.
What is the current case of land use levy exemption or reduction?
During the land use process, some cases will be exempted from land use levy as prescribed in Article 110 of the 2013 Land Law.
For more specific guidance, Decree 45/2014/ND-CP stipulates that there are 5 cases of land use levy exemption. Specifically, applying land use levy exemption 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 under the provisions of this Law. the law on 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.
Exemption from land use levy within the quota of residential land allocation upon first issuance of the 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.
Exemption of land use levy for the allocated land area within the residential land allocation quota for households in fishing villages, people living on rivers and lagoons who move to settle in resettlement areas and points as plans and projects approved by competent authorities.
Exemption from land use levy for the allocated land area within the residential land allocation quota for resettlement or for households and individuals in residential clusters and lines in flooded areas according to the granted projects to approve.
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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
Individuals and households that have financial difficulties can apply for land use levy debt. However, the time to owe land use levy is 5 years from the date of debiting. If after 5 years, the individual or household has not fully paid the debt, interest will be charged. In case of applying for a debit of land use levy but not fully paid within 5 years, no interest will be charged. 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.
The order and procedures for debiting land use levy under this Decree 79/2019/ND-CP are as follows:
Step 1: Households and individuals submit dossiers at the Land Registry Office or the natural resources and environment agency
Step 2: The land registration office handles the application
Step 3: The tax authority issues a notice
Step 4: Households and individuals paying land use levy are not allowed to be debited
Step 5: Households and individuals receive the Certificate
When owed land use levy, land users will have their rights restricted, which is the right to transfer, lease, sublease, donate, mortgage, contribute capital to land use rights without restriction on land use rights. obtaining a permit to build on that land. Therefore, when you have a land use right certificate, you are still allowed to build a house and apply for a construction permit.
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