Regulations About Land Use Levy in 2023

Kindly refer to the article provided by NT INTERNATIONAL LAW FIRM to obtain answers to the following inquiries: What does the term “land use levy” entail? What are the most recent regulations governing the collection of land use fees? Under what circumstances are land use fees exempted?

What is land use levy?

Legal Basis:

• 2013 Land Law, Clause 21, Article 3

Definition:

Land use levy is an amount of money paid by a land user to the State in three specific situations:

1. Land Allocation: When the State allocates land subject to a land use levy.
2. Change of Land Use Purpose: When a land user is granted permission by the State to change the land’s use purpose to a category requiring a land use levy.
3. Recognition of Land Use Rights: When the State recognizes land use rights for land subject to a land use levy.

In essence, the land use levy acts as a fee for the privilege of using land allocated by the State, especially when the land is used for purposes that generate significant economic benefits.

What is land use levy?

Latest regulations about land use levy

Legal Basis:

• Decree 45/2014/ND-CP, Article 4 (supplemented by Clause 2, Article 2 of Decree 123/2017/ND-CP)
• Decree 135/2016/ND-CP, Clause 1, Article 2
• Decree 45/2014/ND-CP, Article 3, Clause 3, Points b and c

Determination of Starting Price for Land Use Levy:

1. Auctions:
   • For land valued at:

     • = 30 billion VND (centrally run cities)

     • = 10 billion VND (mountainous/highland provinces)

     • = 20 billion VND (remaining provinces)

     • Starting price is determined by the Department of Natural Resources and Environment, transferred to the Land Price Appraisal Council, and approved by the Provincial People’s Committee.
   • For land valued at less than the above thresholds:
     • Starting price is determined by the financial agency using the land price adjustment coefficient method.
2. Non-Auctions:
   • Land use fees are calculated based on the following formula:
     • Land use fees = Land price x Land area – Land use fee reduction (if any) – Site clearance fees (if any) – Compensation money (if any)
   • Land area requiring land use fees is based on the land allocation decision.
   • Land price is calculated according to Decree 45/2014/ND-CP, Article 3, Clause 3, Points b and c.
   • Site clearance and compensation money are deducted if the investor submits a plan approved by the competent authority.
3. Multi-storey buildings:
   • Land use fees are allocated to each floor and user.

Key Takeaways:

• Land use levy determination varies depending on the land value and allocation process.
• Updated regulations provide specific methods for calculating starting prices and land use fees.
• Understanding these regulations is crucial for land users to comply and avoid penalties.

Note:

This summary provides a general overview of the latest regulations. Specific details and individual circumstances may require consulting legal professionals for accurate guidance.

Regulations About Land Use Levy

Cases that land use levy is waived

Legal Basis:

• 2013 Land Law, Article 54

Exempt Cases:

The State allocates land without collecting land use fees in the following five cases:

1. Individuals and households involved in agriculture, forestry, aquaculture, and salt making. This applies to the allocation of agricultural land within the limits prescribed by Article 129 of the 2013 Land Law.
2. Users of specific land categories:
   • Special-use forest land.
   • Protective forest land.
   • Production forest land that is natural forest.
   • Land for construction of State agency headquarters.
   • Land used for defense and security purposes.
   • Land used for public purposes not for business purposes.
   • Land for construction of cemeteries and graveyards not falling under Clause 4, Article 55 of the 2013 Land Law.
3. Public service organizations without financial autonomy:
   • Organizations using land to build public works without having financial autonomy.
4. Land for resettlement projects:
   • Land used for building housing for resettlement according to State projects.
5. Community land use and religious establishments:
   • Community of residents using agricultural land.
   • Religious establishments using non-agricultural land according to the provisions of Clause 1, Article 159 of the 2013 Land Law.

Understanding the exemptions:

This information highlights cases where land use levy is waived. Familiarizing yourself with these exemptions can help individuals and organizations avoid unnecessary fees and ensure compliance with land laws.

Additional notes:

• Specific details and individual circumstances may require consulting legal professionals for accurate guidance.
• The 2013 Land Law remains the primary legal basis for land use regulations in Vietnam.

Cases that land use levy is waived

NT International Law Firm has addressed the matter of the latest regulations concerning land use levy. If you have any further questions or concerns regarding land or real estate, please contact our law firm immediately for expert legal advice.

If you require any legal assistance, please feel free to reach out to us via phone at 090 252 4567 or through email: info@ntpartnerlawfirm.com. At NT INTERNATIONAL LAW FIRM, our team is committed to offering you prompt and personalized advice.

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