Will land price brackets in Vietnam be annulled under the Land Law 2024? When will the Land Law 2024 come into force?
Will land price brackets in Vietnam be annulled under the Land Law 2024?
The land price brackets, as regulated in the Land Law 2013, are prices determined and periodically issued by the Government every five years. These serve as the basis for provincial People's Committees to establish and announce land price tables applicable in each locality.
However, in reality, there exists a dual land pricing mechanism in the land market. One is the price set by the state, which is used for calculating taxes or compensating for land acquisition. The second is the market price, which is often significantly higher than the state-determined price.
With the institutionalization of Resolution 18/NQ-TW 2022 and the consensus among agencies, the Land Law 2024 has annulled the provision on land price brackets and implemented the construction of annual land price tables. The annulment of land price brackets means that the state will no longer apply minimum and maximum prices for each type of land. Instead, before issuing the land price tables for each locality, provincial People's Committees will base their decisions on the principles, methods of land valuation, standards, and actual market land prices to construct the land price tables.
Will land price brackets in Vietnam be annulled under the Land Law 2024?
Vietnam: When will the Land Law 2024 come into force?
According to the provisions of Article 252 of the Land Law 2024, the following content applies to the effective implementation:
Effect
This law comes into force from January 1, 2025, except as provided in paragraphs 2 and 3 of this Article.
Article 190 and Article 248 of this law comes into force from April 1, 2024.
The establishment and approval of land use planning shall continue to be implemented according to the provisions of Resolution No. 61/2022/QH15 dated June 16, 2022, of the National Assembly on further enhancing the effectiveness and efficiency of policies and laws on planning and some measures to overcome difficulties, obstacles, accelerate the progress of planning, and improve the quality of planning for the period 2021-2030.
Paragraph 9 of Article 60 of this law shall take effect from the date when Resolution No. 61/2022/QH15 expires.
The Land Law No. 45/2013/QH13, as amended and supplemented by the Law No. 35/2018/QH14 (hereinafter referred to as the Law No. 45/2013/QH13), shall cease to be effective from the date when this law comes into effect.
Therefore, the Land Law 2024 comes into force from January 1, 2025. However, Article 190 and Article 248 of the Land Law 2024 comes into force from April 1, 2024.
What are the cases of application of land price tables in Vietnam?
According to the provisions of Clause 1, Article 159 of the Land Law 2024, land price tables are applicable in the following cases:
- Calculation of land use fees when the State recognizes the land use rights of households and individuals; conversion of land use purposes by households and individuals.
- Calculation of land lease fees when the State leases land and collects annual land lease fees, except for cases of land lease through land use right auctions.
- Calculation of land use tax.
- Calculation of income tax from the transfer of land use rights for households and individuals.
- Calculation of fees in land management and use.
- Calculation of fines for administrative violations in the field of land.
- Calculation of compensation payments to the State for damages in land management and use.
- Serving as a basis for calculating land use fees and land lease fees when the land use rights are recognized with lump-sum land use fees or the rented land is paid with lump-sum land lease fees for households and individuals.
- Calculation of starting prices for land use right auctions when the State allocates or leases land for cases where the land parcels or areas have been invested in technical infrastructure according to detailed construction plans.
- Calculation of land use fees for cases where land is allocated to households and individuals without land use right auctions.
- Calculation of land use fees for cases where state-owned residential houses are sold to current tenants.
Vietnam: Is there the latest Land Law 2024?
Article 80 of the Law on Promulgation of legislative documents 2015 stipulates the announcement of laws, ordinances, and resolutions as follows:
Announcement of laws, ordinances, and resolutions
1. The President shall announce a law or ordinance within 15 days from the day on which it is ratified.
...
Furthermore, on the morning of January 18, 2024, during the extraordinary 5th session of the 15th National Assembly, the National Assembly officially voted to approve the amended Land Law 2024 project.
Accordingly, the full text of the latest Land Law will be available no later than 15 days from January 18, 2024.
Currently, there is an official document, the amended Land Law 2024, which can be referred to as the Land Law 2024.
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