How is the land levy calculated upon land repurposing to homestead land applied to households and individuals in Vietnam?

How is the land levy calculated upon land repurposing to homestead land applied to households and individuals in Vietnam?

Pursuant to Clause 1, Article 8 of Decree 103/2024/ND-CP which stipulates the calculation of land levy upon land repurposing to homestead land applied to households and individuals as follows:

applied to households and individuals, when a competent state agency issues a decision permitting the conversion of use purpose to homestead land, the land levy is calculated as follows:

Where:

- The land levy for the type of land after conversion is calculated as follows:

- The land levy, land rent for the types of land before conversion (hereinafter referred to as land fee before conversion) is calculated according to regulations in Clauses 2 and 3, Article 8 of Decree 103/2024/ND-CP.

- In case the land levy for the type of land after conversion is less than or equal to the land fee before conversion, then the land levy upon conversion is zero.

>>> See more: How much does it cost to convert garden land to homestead land?

How is the land levy calculated upon land repurposing to homestead land applied to households and individuals in Vietnam? (Image from the Internet)

Is the homestead land of households and individuals subject to non-agricultural land use tax in Vietnam?

Pursuant to Clause 1, Article 2 of the Law on Non-Agricultural Land Use Tax 2010 as follows:

Tax Subjects

1. homestead land in rural areas, homestead land in urban areas.

2. Non-agricultural production and business land, including: land for construction of industrial zones; land for construction of production and business premises; land for mineral extraction and processing; land for the production of building materials and ceramics.

3. Non-agricultural land as stipulated in Article 3 of this Law used for commercial purposes.

Thus, homestead land of households and individuals is subject to non-agricultural land use tax, irrespective of whether it is homestead land in rural or urban areas.

When is homestead land of households and individuals exempt from non-agricultural land use tax in Vietnam?

Pursuant to Article 10 of Circular 153/2011/TT-BTC, supplemented by Article 4 of Circular 130/2016/TT-BTC which stipulates the circumstances under which homestead land of households and individuals is exempt from non-agricultural land use tax as follows:

(1) homestead land within the limit in areas with especially difficult socio-economic conditions;

(2) homestead land within the limit for individuals active in the revolution before August 19, 1945; war invalids of rank 1/4, 2/4; persons receiving benefits similar to war invalids of rank 1/4, 2/4; sick soldiers of rank 1/3; heroes of the people's armed forces; Heroic Mother of Vietnam; biological parents, caregivers of martyrs when they were minors; spouse of martyr; children of martyrs receiving monthly benefits; revolution participants affected by Agent Orange; persons affected by Agent Orange with difficult family circumstances.

(3) homestead land within the limit for poor households as per the Decision of the Prime Minister of the Government of Vietnam regarding the poverty line. In the case that the provincial People's Committee stipulates specific poverty criteria applicable locally as per legal provisions, the poverty criteria issued locally will be used to identify poor households.

(4) Households, individuals whose homestead land is recovered according to the approved planning, plan by a competent state agency are exempt from tax in the actual year of recovery for land at the recovery site and at the new residence.

(5) Land with a garden house certified by a competent state agency as a historical-cultural relic.

(6) Households, individuals facing difficulties due to force majeure events if the damage value to land and property on the land exceeds 50% of the taxable value. This requires confirmation from the commune-level People's Committee where the damaged land is located.

(7) Exemption from non-agricultural land use tax applied to households and individuals whose annual payable non-agricultural land use tax on homestead land (after deducting the amount of tax exempted, reduced (if any) according to the Law on Non-Agricultural Land Use Tax and guiding documents) is fifty thousand dong or less. In the case that households and individuals have multiple parcels within a province or centrally-controlled city, the exemption according to this Article is calculated on the total payable tax amount of all parcels.