Vietnam: What is the land price table according to current regulations? What is the land price table used for?
What is the land price table in Vietnam according to current regulations?
Pursuant to the provisions of Clause 19, Article 3 of the 2013 Land Law of Vietnam and Clause 1, Article 114 of the 2013 Land Law of Vietnam as follows:
Interpretation of terms
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Land price means the value of land use rights calculated per unit of land area.
Land price tables and specific land prices
1. Based on the principles, methods of land valuation and land price frames, provincial-level People’s Committees shall develop and submit the land price tables to the People’s Councils of the same level for review before promulgation. Land price tables shall be developed once every 5 years and publicized on January 1 of the beginning year of the period.
Thus, land price tables are understood as a list of land prices of all types of land for each location issued by the provincial-level People's Committee after being approved by the People's Council of the same level once every 5 years and publicized on January 1 of the beginning year of the period.
Vietnam: What is the land price table according to current regulations? What is the land price table used for?
What are land price tables used for?
Pursuant to Clause 2, Article 114 of the 2013 Land Law of Vietnam, land price tables shall be used as a basis for the following cases:
(1) Calculation of land use levy in some cases, specifically:
- Calculating land use fees when the State recognizes the residential land use rights of households and individuals for the area within the quota.
When the State recognizes the land use right (grants the Certificate), in some cases households and individuals have to pay land use levy. In other words, in some cases, making a Certificate of land use rights must pay land use fees. When the State recognizes the land use right, the land use levy is calculated according to two different types of land prices:
+ If the residential land area is recognized within the quota, the land use fee shall be paid according to the land price in the land price table (the amount will be less).
+ If the area in excess of the quota is recognized, the payable land use fee shall be calculated according to the specific land price (the more payable amount).
- Calculating land use levy when permitting the change of land use purpose from agricultural land, non-agricultural land which is not residential land to residential land for the area within the quota of residential land allocation to households and individuals.
(2) Calculation of land use tax
Depending on the type of land used, the land user is obliged to pay non-agricultural land use tax and agricultural land use tax, unless otherwise exempted.
According to Circular No. 153/2011/TT-BTC, non-agricultural land use tax, if not eligible for exemption or reduction, is calculated as follows:
Tax payable = (Area x Price of 1m2 of taxable land area) x Tax rate
In which, the price of 01m2 of land is normally equal to the land price specified in the land price table, in some locations, the price of 01m2 of taxable land area is equal to the land price x the K coefficient.
(3) Calculation of fees and charges in land management and use
When registering the land use right, the land use right holder must pay the registration fee. In case of first registration and issuance of the Certificate, the registration fee must be equal to the land price in the land price table x 0.5%.
(4) Calculation of fines for administrative violations in the field of land.
(5) Calculation of compensation to the State when causing damage in the management and use of land.
(6) Calculation of the value of land use rights to pay the person who voluntarily returns the land to the State in case the returned land is land allocated by the State with the collection of land use levy, recognition of the land use right with the collection of land use levy or leased land with a one-time payment of land rental for the entire lease period.
What are the procedures for promulgation of land price tables in Vietnam?
Pursuant to Article 12 of Decree No. 44/2014/ND-CP, the procedures for formulating and promulgating the land price table of the provincial-level People's Committee are as follows:
Procedure for the compilation of the land price table in Vietnam
1. The procedures for the compilation of the land price table include:
a) Classifying land in the province by location (in the plain, midland, highland, and classes of urban areas);
b) Investigating, analyzing, synthesizing the market prices of land, the natural, economic, and social factors, management and use of land that affect land prices.
c) Analyzing, evaluating the implementation of the current land price table.
d) Formulating the land price table and making a written request of its promulgation; imposing prices for land in bordering areas prescribed in Article 13 of this Decree;
dd) Conducting a survey into the draft land price table.
e) Completing the draft land price table and submitting it to the People’s Committee of the province.
g) Verifying the draft land price table.
h) Submitting the People’s Council at the same level for approval.
i) The People’s Committee of the province shall promulgate the land price table.
2. The application for promulgation of land price table submitted to the People’s Committee of the province consists of:
a) A written request of the compilation of the land price table;
b) The draft land price table.
c) A description of the compilation of the land price table.
d) A record on land price verification.
3. The application for the compilation of land price table submitted to the People’s Council of the province consists of: A written request of the People’s Committee of the province, the draft land price table and a description of the compilation of the land price table.
4. The Verifying Council which is established by the People’s Committee of province and in charge of verifying the land price table includes:
a) A senior representative of the People’s Committee of province as the Council President.
b) A senior representative of the Department of Finance of the province as the permanent member, senior representatives of the Department of Natural Resources and Environment, and Department of Justice of the province , the People’s Committee of the districts, towns, provincial cities (hereinafter collectively referred to as the People’s Committee of Districts), organizations licensed to provide consultancy on land pricing services or specialists in land price and other members chosen by the People’s Committee of the province.
5. The Department of Natural Resources and Environment of the province shall impose the local land price table and request the People’s Committee of the same province to promulgate it every 5 years and publish it on January 1st in the first year of this 5-year period.
Thus, the process of promulgation of land price tables in Vietnam is as follows:
Step 1: Develop a draft land price table
The Department of Natural Resources and Environment is responsible for organizing the construction and submitting to the Provincial-level People’s Committee for promulgation the local land price table every 5 years. This includes performing the following tasks:
- Determination of land type and location according to plain, midland and mountainous communes and urban areas in the province.
- Investigate, synthesize and analyze information on market land prices; Natural, socio-economic, management and land use factors affect land prices.
- Analyze and evaluate the results of implementation of the current land price table.
- Develop the land price table and the Proposal on the issuance of the land price table; handling land prices in the land price table in the bordering areas.
- Organize consultation on the draft land price table.
- Finalize the draft land price table and submit it to the People's Committee of the province.
Step 2: Submit to Provincial-level People’s Committee
Application includes:
- A report on the issuance of the land price table;
- Draft land price table;
- Report explaining the construction of the land price table;
- Written appraisal of land price table.
Step 3: Through the land price table
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