What are the current bases for calculating land levy in Vietnam?

What is land levy in Vietnam?

According to Clause 44 Article 3 of the Land Law 2024, land levy is defined as follows:

Definitions

In this Law, the terms below are understood as follows:

...

44. Land levy is the amount of money that land users must pay to the State when they are allocated land with land levy collection, permitted to change land use purpose, or in other cases of land use where land levy must be paid according to the provisions of law.

45. Land rent is the amount of money that land users must pay to the State when they are leased land by the State, permitted to change land use purpose to lease land, or in other cases of land use where land rent must be paid according to the provisions of law.

...

Thus, land levy is the amount of money that land users must pay to the State when they are allocated land with land levy collection, permitted to change land use purpose, or other instances where land levy needs to be paid according to the law.

What are the current bases for calculating land levy in Vietnam?

According to Clause 1 Article 155 of the Land Law 2024, the calculation of land levy is based on the following grounds:

(1) Area of land allocated, permitted for change of use, or recognized for land use rights;

(2) Land price according to regulations at:

- Land price list established by the provincial People's Committee according to area and position. For areas with digital cadastral maps and land price databases, a land price list is developed for each parcel based on value range and standard parcel.

- Specific land prices decided by People's Committees at all levels.

Note: In cases of land use right auction, the land price is the winning auction price.

(3) State's policies on exemption and reduction of land levy.

>> See more: What unit is used to calculate land levy area?

Current bases for calculating land levy in Vietnam (Image from Internet)

When is the deadline for paying land levy in Vietnam?

According to Clauses 4 and 5, Article 21 of Decree 103/2024/ND-CP, the deadline for paying land levy is regulated as follows:

(1) For cases where land levy is calculated based on specific land prices or winning land use right auction prices:

- In cases where the State allocates land through land use right auction, the payment deadline for winning auction prices follows the regulations in Decree 102/2024/ND-CP, specifically:

+ Within no more than 5 working days from the date of receiving the decision recognizing the auction results by the competent People's Committee, the tax authority sends a written notice of land levy or land rent payment to the winning bidder according to tax management law.

+ Where the winning bidder does not pay or does not pay enough for the land use right auction, after 120 days from the approval date of the auction results, the tax authority must notify the land management function agency to request the competent People's Committee to cancel the decision recognizing the auction results. The winning bidder will not receive back the deposit. If the winning bidder has paid more than the deposit, the State will refund the excess amount over the deposit according to the regulations.

- For cases where land levy is calculated based on specific land prices without State land allocation through auction, the payment deadline for land levy follows tax management law but must not exceed 180 days from the date of the decision approving the land price for land levy calculation by the competent state agency.

+ After 180 days from the land price approval decision, if the land user does not pay enough land levy, they will not be allocated land (for cases allocated by the State). After the tax authority's notice deadline, if the land user does not pay enough land levy to the state budget, they must pay late payment interest at the rate stipulated by tax management legislation.

+ If the land user does not comply with tax enforcement as regulated, the tax authority transfers the documents to the land management function agency to request the competent level to review and handle according to Decree 102/2024/ND-CP for this land allocation decision.

(2) For cases where land levy is calculated based on land prices in the Land Price List:

- For cases where land levy is calculated based on the Land Price List, the payment deadline for land levy follows tax management law. Beyond the payment deadline, the land user must pay late payment interest on land levy as per tax management legislation, except for cases of land levy debt.