What are the 04 methods for land valuation to compile the land price list in Vietnam? How to calculate the non-agricultural land use tax price in Vietnam?

What are the 04 methods for land valuation to compile the land price list in Vietnam?

Based on the provisions in Clause 5, Article 158 of the Land Law 2024, the four methods for land valuation to compile the land price list are defined as follows:

(1) Comparative Method

The comparative method is conducted by adjusting the price levels of parcels with the same purpose of land use and certain similarities concerning factors affecting the land price that have been transferred in the market, or auctioned for land use rights where the auction winner has completed financial obligations according to the auction decision. This is done through the analysis and comparison of factors affecting the land price after excluding the value of assets attached to the land (if any) to determine the price of the parcel needing valuation;

(2) Income Method

The income method is executed by taking the average net income per annum per area unit of land divided by the average savings deposit interest rate for 12-month term deposits in Vietnamese currency at commercial banks with more than 50% state-controlled charter capital or total voting shares in the provincial area for the 3 consecutive years up to the end of the nearest quarter with available data before the land valuation time;

(3) Residual Method

The residual method is carried out by deducting the total estimated development cost from the total estimated development revenue of a land parcel or land zone based on the highest and best use (land use coefficient, compileion density, maximum number of floors) according to land use planning and detailed compileion planning approved by competent authorities;

(4) Land Price Adjustment Coefficient Method

The land price adjustment coefficient method is implemented by multiplying the land price in the land price list by the land price adjustment coefficient. The land price adjustment coefficient is determined by comparing the land price in the land price list with the market land price;

What are the 04 methods for land valuation to compile the land price list in Vietnam? (Image from the Internet)

When is the land price list applied in Vietnam?

According to Clause 1, Article 159 of the Land Law 2024 (amended by point d, clause 2, Article 57 of the Urban and Rural Planning Law 2024), the land price list is applied in the following cases:

- Calculating land levy when the State recognizes the use rights for homestead land of households and individuals; changing the land use purpose of households and individuals;

- Calculating land rent when the State leases land with annual land rent collection;

- Calculating land use tax;

- Calculating income tax from the transfer of land use rights for households and individuals;

- Calculating fees in land management and use;

- Calculating fines for administrative violations in the land sector;

- Calculating compensation payments to the State when causing damage in land management and use;

- Calculating land levy, land rent when the State recognizes land use rights in the form of land allocation with a land levy, or land lease with a one-time land rent payment for the entire lease period for households and individuals;

- Calculating the starting price for auctioning land use rights when the State allocates land or leases land in cases where the land parcel or land zone has been invested in technical infrastructure according to the detailed planning under urban and rural planning law;

- Calculating land levy in cases of land allocation without auctioning land use rights for households and individuals;

- Calculating land levy for selling state-owned houses to existing tenants.

>>> See more: land price list in Ho Chi Minh City

How to calculate the non-agricultural land use tax price in Vietnam?

According to Article 6 of the Non-Agricultural Land Use Tax Law 2010 (amended by Article 249 of the Land Law 2024), the non-agricultural land use tax price is regulated as follows:

(1) The tax price for land is determined by the taxable land area multiplied by the price per square meter of land.

(2) The taxable land area is prescribed as follows:

- The taxable land area is the actual land area in use.

In cases of multiple residential parcels, the taxable land area is the total area of the taxable parcels.

In cases where the State allocates or leases land for industrial zone compileion, the taxable land area does not include the area used for shared infrastructure compileion;

- For multi-storey residential buildings, apartments used for both residence and business, the taxable land area is determined by the allocation coefficient multiplied by the building area of each organization, household, or individual.

The allocation coefficient is determined by the building area of multi-storey residential buildings or apartments divided by the total building area used by organizations, households, or individuals.

In cases of multi-storey residential buildings or apartments with basements, 50% of the basement area used by organizations, households, or individuals is added to the building area used to calculate the allocation coefficient;

- For underground compileions, an allocation coefficient of 0.5 is applied, dividing the compileion area's land by the total compileion area used by organizations, households, or individuals.

(3) The price per square meter of land is the land price according to the land price list corresponding to the purpose of use, and it is stable for a 5-year cycle.