When is the deadline for paying land levy? How to calculate land levy when being allocated land on which a land levy is imposed by the State of Vietnam?

What is Land Levy?

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

Definition of Terms

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

...

43. A standard parcel is a parcel that possesses representative characteristics in terms of area, shape, and dimensions for parcels within a set value range, selected as the standard parcel for valuation of other parcels within that range.

44. Land levy is the amount of money that land users must pay to the State when being allocated land on which a land levy is imposed by the State of Vietnam, allows the change of land use purpose, or in cases where the use of land incurs a land levy according to legal provisions.

45. Land rent is the amount of money paid by land users to the State when the State leases land to them, permits the change of land use purpose for land lease, or in cases where land use incurs land rent according to legal regulations.

...

Thus, land levy is the amount of money that land users must pay to the State when being allocated land on which a land levy is imposed by the State of Vietnam, allows for a change of land use purpose, or in circumstances that require a land levy payment according to the law.

When is the deadline for paying land levy? How to calculate land levy when being allocated land on which a land levy is imposed by the State of Vietnam? (Image from the Internet)

When is the deadline for paying land levy in Vietnam?

Based on Clauses 4 and 5, Article 21 of Decree 103/2024/ND-CP, the deadline for land levy payment is specified as follows:

(1) In case of calculating land levy based on specific land price or auction-winning land use rights price:

- In case being allocated land by the State of Vietnam through auctioning of land use rights, the deadline for paying the auction-winning amount for land use rights follows the regulations stipulated in Decree 102/2024/ND-CP, specifically:

+ Within no more than 5 working days from the date of receiving the decision recognizing the auction-winning result by the competent-level People's Committee, the tax authority shall send a written notice of land levy or land rent payment to the auction winner following regulations on tax management.

+ If the auction winner fails to pay or fails to pay the full amount of the auction-winning land use rights fee, the tax authority is responsible for notifying the land management agency to present to the competent authority a proposal to annul the decision recognizing the auction-winning result. The auction winner will not be reimbursed the deposit. In cases where the auction winner has paid more than the deposit, the State will refund the excess amount beyond the deposit as per regulations.

- In cases where land levy calculation is based on specific land prices without State allocation through auction forms, the payment deadline follows tax management regulations but shall not exceed 180 days from the date of approval of land price used for calculating land levy by the competent state agency.

+ If the land user does not pay the full land levy within 180 days from the date of approval of the land price used for calculating land levy, they will not be allocated the land according to regulations (in the case where being allocated land by the State of Vietnam). If the land user does not pay the full amount after the deadline stated in the tax authority's notification, they must pay late payment interest according to tax management laws.

+ If the land user fails to comply with tax enforcement regulations, the tax authority transfers the dossier to the land management agency for the competent level to consider and handle according to Decree 102/2024/ND-CP regarding this land allocation decision.

(2) In case of calculating land levy based on the land price in the Land Price List:

- When land levy calculation is based on land prices in the Land Price List, the payment deadline is executed according to tax management laws. Beyond this deadline, land users must pay late payment interest for land levy as per tax management regulations, unless there is a recorded debt for the land levy.

What is the formula for calculating land levy when being allocated land on which a land levy is imposed by the State of Vietnam?

Based on Clause 1, Article 6 of Decree 103/2024/ND-CP, the calculation for land levy when being allocated land on which a land levy is imposed by the State of Vietnam is:

Land levy = Land area subjected to land levy x Land price used for calculating land levy

Where:

- The land area subjected to land levy is determined according to Article 4 of Decree 103/2024/ND-CP.

- The land price used for calculating land levy is determined according to Article 5 of Decree 103/2024/ND-CP.

- The timing for land levy calculation adheres to Clause 3, Article 155 of the Land Law 2024. Particularly for resettlement land allocation, the timing for determining land price and calculating land levy follows the approval timing for the compensation, support, and resettlement plan by the competent authority stipulated in Clause 3, Article 111 of the Land Law 2024.