Formula for Calculating Land Levy When Changing Land Use Purpose for Households Applicable from August 01, 2024

1. Formula for Calculating Land Levy When Changing Land Use Purpose for Households, Individuals Applicable from August 1, 2024, in Vietnam

According to the provisions of Article 6 Decree 103/2024/ND-CP on calculating land levy when changing land use purpose for households, individuals as follows:

(1) Households and individuals when granted a decision by the competent state agency to change the land use purpose to homestead land shall calculate the land levy as follows:

In which:

- The land levy of the type of land after changing the use purpose is calculated as follows:

- Land levy, land rent of the types of land before changing the use purpose (hereinafter referred to as land levy before changing the use purpose) is calculated according to the provisions of Clauses 2 and 3, Article 6 of Decree 103/2024/ND-CP.

- In case the land levy of the type of land after changing the use purpose is less than or equal to the land levy before changing the use purpose, the land levy when changing the land use purpose is zero (=0).

(2) Land levy before changing the land use purpose is calculated as follows:

- For agricultural land of households, individuals allocated by the state without land levy or agricultural land legally transferred from other households, individuals that has been allocated by the state without land levy; the land levy before changing the use purpose is calculated by multiplying (=) the land area by (x) the land price of the corresponding agricultural land in the Land Price List.

- For agricultural land leased by the state with land rent paid once for the entire lease period; the land levy before changing the use purpose is calculated as follows:

In which:

+ The land price corresponding to the lease term of the land before changing the use purpose is the land price in the Land Price List for determining the land rent paid once for the entire lease period.

+ The remaining land use term is determined by subtracting (-) the used land term from the total allocated or leased land term before changing the use purpose.

In case the remaining land use term determined according to the formula specified in Point b, Clause 2, Article 6 of Decree 103/2024/ND-CP is not in full years, it is calculated by months; if the remaining term is not in full months, the remaining period of 15 days or more is calculated as a full month, and less than 15 days is disregarded.

- For agricultural land leased by the state with annual rent payments, the land levy before changing the use purpose is zero (= 0).

(3) For non-agricultural land, excluding homestead land before changing the use purpose, the land levy before changing the use purpose is calculated as follows:

- For non-agricultural land recognized by the state for households, individuals with a stable and long-term use according to the land law, the land levy before changing the use purpose is determined by the equivalent land rent paid once for the lease term of non-agricultural production and business land in the Land Price List for a 70-year term at the time of the state agency's decision for changing the use purpose.

- For leased non-agricultural land with annual rent payments, the land levy before changing the use purpose is zero (=0).

In case the land user has pre-paid the land rent for several years according to the 1993 land law or has advanced compensation and clearance payments and is allowed by the state to deduct from the annual land rent payments, the pre-paid period that has not been deducted (unused) by the time of use purpose change will be converted into an amount based on the annual land rent at the time of the change to calculate the land levy before the change to be deducted from the land levy.

- For non-agricultural land allocated with a land levy or leased with land rent paid once for the entire lease period, the land levy before changing the use purpose is calculated as follows:

In which:

+ The land price corresponding to the allocation or lease term of the land before changing the use purpose is the land price in the Land Price List to determine the land rent paid once for the entire lease period.

+ The remaining land use term is determined by subtracting (-) the used land term from the total allocated or leased land term before changing the use purpose.

In case the remaining land use term determined according to the formula specified in Point c, Clause 3, Article 6 of Decree 103/2024/ND-CP is not in full years, it is calculated by months; if the remaining term is not in full months, the remaining period of 15 days or more is calculated as a full month, and less than 15 days is disregarded.

(4) The land price for calculating the land levy before changing the use purpose for the case specified in Clause 2 and Clause 3, Article 6 of Decree 103/2024/ND-CP shall be the price specified in Clause 1, Article 5 of Decree 103/2024/ND-CP at the time the state agency issues the decision for changing the use purpose.

2. Cases of Land Use Purpose Change Requiring Approval by the Competent State Agency in Vietnam

According to the provisions of Clause 1, Article 121 of the Land Law 2024, there are 07 cases of land use purpose changes that require approval by the competent state agency, including:

(1) Conversion of rice cultivation land, special-use forest land, protection forest land, production forest land to other types of land within the agricultural land group;

(2) Conversion of agricultural land to non-agricultural land;

(3) Conversion of other types of land to concentrated livestock land when implementing large-scale livestock projects;

(4) Conversion of non-agricultural land allocated without land levy to other non-agricultural land allocated with land levy or leased by the state;

(5) Conversion of non-agricultural land not being homestead land to homestead land;

(6) Conversion of land for construction of non-business works, land for public purposes with business purposes to non-agricultural production and business land;

(7) Conversion of non-agricultural production and business land not being commercial land to commercial land.

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