Vietnam: Determination of land levies on the piece of land whose purposes permitted to be changed paid by the economic organization

According to Circular No. 10/2018/TT-BTC of the Ministry of Finance of Vietnam, land levies shall be determined as follows:

- The remaining land use period shall be expressed in months if it is shorter than a full year, and considered as 01 month if it is shorter than a month but not shorter than 15 days. Land levy shall not be imposed for the remaining land use period which is shorter than 15 days.

- If the purpose of the piece of land which is transferred from the household or individual is changed from the non-agricultural land (other than the residential land) to the land for construction of an investment project from July 01, 2014 onwards, the land levy to be paid shall be the difference between the land levy calculated according to the detailed construction plan for the project given approval by the competent authority and the land levy calculated according to the household or individual’s housing construction plan of each region on the date on which the permission for changes in purposes of the piece of land is made by the competent authority.

- If an economic organization is allowed to change the purpose of the piece of land, which is allocated with payment of land levies, in accordance with regulations in Clause 29 and Clause 30 Article 2 of Decree No. 01/2017/NĐ-CP of Vietnam’s Government, it must pay the land levy which is the difference between the land levy calculated according to the price of the piece of land after change over the determined land use term and the land levy calculated according to the price of the piece of land before change over the remaining use term and the date on which the permission for changes in purposes of the piece of land is made by the competent authority.

View more details at Circular No. 10/2018/TT-BTC of the Ministry of Finance of Vietnam, effective from March 20, 2018.

-Thao Uyen-

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE