In which cases are land users entitled to exemption from or reduction of land use levy and land rent in Vietnam?

Main Content

• What is the time for calculation of land use levy or land rent in Vietnam?
• What are financial revenues from land in Vietnam?
• In which cases are land users entitled to exemption from or reduction of land use levy and land rent in Vietnam?

What is the time for calculation of land use levy or land rent in Vietnam?

According to Article 108 of the 2013 Land Law of Vietnam stipulating as follows:

Bases and time for calculation of land use levy and land rent

1. Bases for calculation of land use levy include:

a/ The land area which is allocated, permitted for change of land use purpose, or of which land use rights are recognized;

b/ The land use purpose;

c/ The land price as prescribed in Article 114 of this Law; in case of auction of land use rights, the land price is the winning price.

2. Bases for calculation of land rent include:

a/ The area of leased land;

b/ The land lease term;

c/ The unit price for land lease; in case of auction of land lease rights, the land rent is the winning unit price;

d/ Types of land lease, including annual rental payment or full one-off rental payment for the entire lease period.

3. The time for calculation of land use levy or land rent is the time when the State decides on the land allocation or land lease, permits change of land use purpose, or recognizes land use rights.

Thus, the time for calculation of land use levy or land rent is the time when the State decides on the land allocation or land lease, permits change of land use purpose, or recognizes land use rights.

In which cases are land users entitled to exemption from or reduction of land use levy and land rent in Vietnam?

What are financial revenues from land in Vietnam?

Pursuant to Article 107 of the 2013 Land Law of Vietnam stipulating as follows:

Financial revenues from land in Vietnam

1. Financial revenues from land include:

a/ Land use levy upon land allocation by the State with land use levy, permission for change of land use purpose, or recognition of land use rights with land use levy;

b/ Land rent upon land lease by the State;

c/ Land use tax;

d/ Income tax on transfer of land use rights;

e/ Revenue from sanction of administrative violations of the land law;

f/ Indemnification to the State for damage caused during land management and use;

g/ Charges and fees in land management and use.

2. The Government shall prescribe in detail the collection of land use levy and land rent, sanctioning of administrative violations of the land law, and indemnification to the State for damage caused during land management and use.

According to the above regulations, financial revenues from land include:

- Land use levy upon land allocation by the State with land use levy, permission for change of land use purpose, or recognition of land use rights with land use levy;

- Land rent upon land lease by the State;

- Land use tax;

- Income tax on transfer of land use rights;

- Revenue from sanction of administrative violations of the land law;

- Indemnification to the State for damage caused during land management and use;

- Charges and fees in land management and use.

In which cases are land users entitled to exemption from or reduction of land use levy and land rent in Vietnam?

Pursuant to Clause 1, Article 110 of the 2013 Land Law of Vietnam stipulating as follows:

Exemption from and reduction of land use levy or land rent

1. The exemption from and reduction of land use levy or land rent apply in the following cases:

a/ Using land for production and business purposes in sectors or geographical areas that are given investment preferences in accordance with the investment law, except for investment projects on construction of commercial houses;

b/ Using land for implementation of policies on houses and residential land for the people with meritorious services to the revolution, for poor households, for households and individuals of ethnic minorities living in areas with especially difficult socio-economic conditions, in bordering areas or on islands; using land for social housing construction in accordance with the housing law; residential land for people who have to be relocated when the State expropriates land due to the risks threatening humans life;

c/ Using agricultural land by households and individuals of ethnic minorities;

d/ Using land for construction of non-business facilities of public non-business organization;

dd/ Using land for construction of infrastructure of airports, airfields and facilities to provide air services;

e/ Using land for construction of offices, drying grounds and warehouses; service facilities directly serving agriculture, forestry, aquaculture or salt production for agricultural cooperatives;

g/ Other cases as prescribed by the Government.

2. The Government shall detail this Article.

3. The land development fond of a locality shall be established by the provincial-level People’s Committee or entrusted to the Fund for development investment or other financial funds of the locality to advance capital for compensation, ground clearance or creation of land fund in accordance with land use master plans and plans approved by competent state agencies.

4. The financial sources for the land development fund shall be allocated from the State budget and other mobilized sources in accordance with law.

5. The Government shall detail this Article.

Thus, in the above cases, land users can be exempted or reduced from land use levy or land rent.