What are cases eligible for land levy reduction in Vietnam from August 01, 2024? What is the newest reduction rate in Vietnam?
What are cases eligible for land levy exemtion in Vietnam from August 01, 2024?
Based on Article 18 Decree 103/2024/ND-CP stipulates exemptions on land levy in the following cases:
(1) Exemptions on land levy will apply when state-authorized agencies allocate land, permit changes in land use purposes, recognize land use rights (issue Certificates) within the homestead land limit for land users in the following cases:
- To implement housing policies, homestead land for war invalids or sick soldiers who are unable to work, families of martyrs without the main laborer.
- The poor, families or individuals of ethnic minorities living in areas with particularly difficult socio-economic conditions, borders, and islands.
- Residential land for those who must relocate when the State withdraws land due to a life-threatening danger.
- Allocation of homestead land for families and individuals when the State withdraws land attached to housing, requiring relocation but who are not eligible for compensation for homestead land and have no other residence within the administrative unit at the commune level where the land is withdrawn.
- Land area in cemetery infrastructure investment projects for transferring land use rights associated with the infrastructure, constructing facilities to store remains as designated by the investor to serve burial for social policy subjects according to laws on construction, management, use of cemeteries, and cremation facilities.
(2) Exemptions on land levy within the homestead land limit when issuing the first Certificate for land due to the change of land use purpose from non-homestead land to homestead land for household separation for poor families or ethnic minorities in areas with especially difficult socio-economic conditions, ethnic minority and mountainous regions according to the List of areas with particularly difficult socio-economic conditions stipulated by the Government of Vietnam, Prime Minister.
(3) Exemptions on land levy for homestead land within the homestead land allocation limit (including land allocation, change of land use purpose, issue of Certificate to land users) for families of meritorious people as recognized by the laws on people with meritorious services to the revolution.
Exemptions on land levy to implement social housing projects, housing for armed forces, renovation, and reconstruction of apartment buildings as prescribed by housing laws.
(4) Exemptions on land levy in other cases prescribed in Clause 2, Article 157 Land Law 2024 as proposed by Ministries, sectors, and provincial People's Committees and submitted by the Ministry of Finance to the Government of Vietnam for regulations after approval by the Standing Committee of the National Assembly.
During implementation, if competent agencies or individuals discover that the person granted land levy exemptions does not meet the conditions for such exemptions, the authorized body or individual will inform the relevant land management agency to cooperate with other functional bodies for review and determination of eligibility conditions for land levy exemptions.
If the recipient of the land levy exemption does not meet the conditions, the land management agency will report to the corresponding People's Committee for decision to revoke the exemption and transfer information to the tax authority for calculation, collection, and submission of payable (non-exempt) land levy based on the policies and land prices at the time the state authority issued the land allocation decision and a fine equivalent to the late payment of land levy as per tax management laws.
| Previously, the cases for land levy exemption were specified in Article 11 Decree 45/2014/ND-CP as follows: - Exemption of land levy within homestead land limits upon: + Utilizing land to implement housing policies, homestead land for people with meritorious services to the revolution recognized for land levy exemption according to laws; + Poor households, ethnic minority families in areas with particularly difficult socio-economic conditions, border, and islands; + Utilizing land to construct social housing as prescribed in housing laws; + Housing for those forced to relocate due to natural disasters. The determination of poor households is as per the Prime Minister's decision; the identification of ethnic minority households or individuals follows the Government's regulations. - Exemption of land levy within homestead land limits when issuing the first Certificate for land due to changes in land use from non-homestead land to homestead land for ethnic minority households or poor households in particularly difficult communes as per the list regulated by the Prime Minister. - Exemption of land levy for allocated land within homestead land limits for fishing village residents, waterway inhabitants, lagoon inhabitants relocating to resettlement areas approved by competent authorities. - Exemption of land levy for allocated land within homestead land limits for resettlement or to families, individuals in flood-prone residential clusters or lines as approved projects. - The Prime Minister decides on other exemptions proposed by the Minister of Finance based on suggestions from Ministry Heads, agencies under the Government, Provincial People's Committee Chairmen. |
What are cases eligible for land levy exemtion in Vietnam from August 01, 2024? (Internet image)
What are cases eligible for land levy reduction in Vietnam from August 01, 2024? What is the newest reduction rate in Vietnam?
Article 19 Decree 103/2024/ND-CP stipulates land levy reduction in Vietnam as follows:
- A 50% reduction in land levy upon land allocation, change in land use purpose, recognition of land use rights for the poor, households or individuals of ethnic minorities in areas not listed in point b, clause 1, Article 18 Decree 103/2024/ND-CP.
- A 50% reduction in land levy for homestead land for the subjects listed in points a and b, clause 3, Article 124 of Land Law 2024, working in border communes, islands, or island districts without sub-communal administrative units in areas with particularly difficult socio-economic conditions.
- A 30% reduction in land levy for homestead land for the subjects listed in points a and b, clause 3, Article 124 of Land Law 2024, working in border communes, islands, or island districts without sub-communal administrative units in economically hard regions.
- Land levy reduction for homestead land within homestead land limits (including land allocation, change in land use purpose, issuance of Certificates for land users) for meritorious individuals as specified by laws on persons with meritorious services.
- Land levy reductions as per investment and related laws for land use for cemetery infrastructure investment projects aimed at transferring land use rights with infrastructure, constructing facilities for storing remains according to the regulation in point a, clause 1, Article 157 Land Law 2024:
+ A 50% reduction in land levy if the project is located in areas with particularly difficult socio-economic conditions.
+ A 30% reduction in land levy if the project is located in areas with difficult socio-economic conditions.
+ A 20% reduction in land levy if the project is not in the areas listed in points a and b of this clause.
The list of regions with difficult socio-economic conditions, particularly difficult, is as regulated by investment laws.
Note:
- Based on land management agency records and documents, the tax authority calculates the payable land levy and the reduced land levy. The reduction in land levy is implemented concurrently with the tax calculation as stipulated in Article 20 Decree 103/2024/ND-CP.
- Reductions in land levy in other cases prescribed in Clause 2, Article 157 Land Law 2024 proposed by Ministries, sectors, and provincial People's Committees and submitted by the Ministry of Finance to the Government of Vietnam for regulations after approval by the Standing Committee of the National Assembly.
| Previously, Article 12 Decree 45/2014/ND-CP states cases of land levy reduction as follows: - A 50% reduction in land levy within homestead land limits for ethnic minority households, poor households in areas not covered by Clause 2, Article 11 Decree 45/2014/ND-CP when the state authorizes land allocation; recognition (issue of Certificate) of land use rights for the first time for land currently in use, or changes in land use from non-homestead land to homestead land. The determination of poor households follows the Prime Minister's decision; the identification of ethnic minority households or individuals as per the Government's regulations. - Land levy reduction for homestead land within homestead land limits (including land allocation, change of land use purpose, issuance of Certificate to land users) applies to meritorious individuals recognized for reduction under relevant laws. - Decisions on other reductions by the Prime Minister based on suggestions by the Minister of Finance from proposals by Ministry leaders, agencies under the Government, and Provincial People's Committee Chairmen. |
If the application for land levy reduction was made before August 01, 2024, will the reduction rate follow old or new regulations in Vietnam?
Clause 5, Article 50 Decree 103/2024/ND-CP stipulates the transitional provision for land levy with content as follows:
Transitional provision for land levy
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5. In cases where land users belong to the subject group and are undergoing procedures for land levy reduction at competent state agencies but no land levy reduction decision has been made yet, the reduction will follow this Decree. If the reduction amount is less, the land user will receive the higher reduction amount from their ongoing application.
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Thus, if the application for land levy reduction was made before but no decision has been made, the reduction will follow the new regulation; if the reduction amount is lower with the new regulation, the land user will receive the higher reduction amount from their previous application.
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