Is land sublease subject to registration fee in Vietnam?

Is land sublease subject to registration fee in Vietnam?

Based on Article 10 of Decree 10/2022/ND-CP, the cases of land sublease that are not subject to registration fee are stipulated as follows:

- Land leased by the State in the form of one-time payment for the entire lease term for the following purposes:

+ Used for public purposes according to the law on land.

+ Exploration, mining; scientific research under a license or confirmation by a competent state agency.

+ Investment in infrastructure construction (regardless of whether the land is inside or outside industrial zones, export processing zones), investment in house construction for transfer, including cases where organizations or individuals receiving transfer continue to invest in infrastructure construction, house construction for transfer. For these cases, if they register ownership or usage rights for rent or self-use, they must pay a registration fee.

- Land leased by the State for agricultural, forestry, aquaculture, or salt production purposes.

- Land leased by the State in the form of annual rent payment or rented from organizations or individuals with legal land use rights.

- Organizations or individuals assigned land by the State and already granted a land use right certificate must switch to one-time rent payment for the entire lease term according to the Land Law from the effective date of Decree 10/2022/ND-CP.

Is land sublease subject to registration fee in Vietnam? (Image from the Internet)

What are regulations on base price for land for registration fee determination in Vietnam?

According to Point a, Clause 1, Article 3 of Circular 13/2022/TT-BTC, the determination of the registration fee valuation for land is as follows:

- The value of the land for the registration fee is determined as follows:

Value of land for registration fee (VND) = Area of land subject to registration fee (m²) x Price per square meter of land (VND/m²) in the land price table issued by the provincial or city People's Committee directly under the Central Government

- In which:

+ The area of land subject to registration fee is the entire parcel area under the legal management and use of the organization, household, or individual as determined and provided by the Land Use Rights Registration Office to the tax authority via the "Information Transfer Form for Determining Land Financial Obligations".

+ The price per square meter of land in the land price table is issued by the provincial People's Committee according to the land law at the time of registration fee declaration.

- In cases where the land price in the land use right transfer contract is higher than the price issued by the provincial People's Committee, the registration fee valuation for land is the price in the land use right transfer contract. If the price in the contract is lower than the price issued by the provincial People's Committee, the registration fee valuation for land is the price issued by the provincial People's Committee according to the land law at the time of registration fee declaration.

- If the land user has been granted a Land Use Right Certificate without paying the registration fee and is later allowed by a competent agency to change the land use purpose to a new purpose that is subject to registration fee, the registration fee valuation is the land price according to the new land use purpose in the land price table issued by the provincial People's Committee according to the land law at the time of registration fee calculation.

- In cases where the registration fee valuation for the house and land in the land use right transfer contract, house sale contract does not separately state the house and land values, the registration fee valuation is:

+ The price in the sale, transfer contract if the total house and land value in the contract is higher than the total house and land value according to the price issued by the provincial People's Committee.

+ The price issued by the provincial People's Committee according to land and construction law at the time of registration fee declaration if the total house and land value in the contract is lower than the total house and land value according to the price issued by the provincial People's Committee.

What is the registration fee rate for land in Vietnam?

According to Article 8 of Decree 10/2022/ND-CP, the registration fee rate is as follows:

Registration Fee Rate (%)

1. House, land: The rate is 0.5%.

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The maximum registration fee for the asset specified in this Article is capped at 500 million VND per asset per registration, except for cars for passenger transportation with up to 9 seats, aircraft, and yachts.

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Thus, the registration fee rate for land is 0.5% and is capped at a maximum of 500 million VND per asset per registration.