07/10/2022 09:54

To remove land price bracket and develop land price list according to market value in Vietnam

To remove land price bracket and develop land price list according to market value in Vietnam

The Government of Vietnam is drafting the Land Law (amended) which removes the regulation on land price brackets and amends the principle of developing land price lists, specifically as follows:

1. Remove the price range for land.

According to current regulations in the Land Law 2013, the government issues a land price bracket every five years for each type of land and for each region. During the implementation of the land price bracket, the common land price in the market increases by 20% or more compared to the maximum price.

The government shall adjust the land price bracket accordingly. or 20% or more reduction compared to the minimum price in the land price bracket.

In Resolution 18-NQ/TW dated June 16, 2022, of the Fifth Conference on "Continuing to renovate and perfect institutions and policies, improve the effectiveness and efficiency of land management and use, and create force to turn our country into a high-income developed country" with the view of "Removing the land price bracket, having a mechanism and method for determining land prices according to market principles, and defining the functions, tasks, and responsibilities of the agency in charge of land price determination." Following the above guidance, the Draft Land Law (as amended) has fully annulled the provisions on the land price bracket.

2. Amendments to the principle of creating land price lists based on market value

The land price list is developed on the basis of principles, standards, land pricing methods, common land prices in the market and land price fluctuations. The Provincial People's Committees shall develop and submit to the People's Councils of the same level for approval the land price list and land price fluctuation adjustment coefficient before promulgation. The land price list is established annually and publicly announced on January 1 of each year.

During the implementation of the land price list, when the common land price in the market fluctuates, the People's Committee of the province shall adjust the land price list accordingly.

The land price list stipulates the prices of different types of land by location. For areas where digital cadastral maps and market land prices are available, a land price list shall be developed according to the region's land value and standard land plot price.

The Land Law 2013 stipulates that the land price list is built on the basis of principles and methods of land pricing and the land price bracket. The People's Committee of the province shall develop and submit the land price list to the People's Council of the same level for approval before promulgating it. The land price list is built every five years and publicly announced on January 1 of the first year of the period.

Thus, the Draft Land Law (amended) has determined the land price list according to the common land price in the market and land price fluctuations instead of the land price bracket as in the current regulations. This is considered one of the prominent regulations in the land management of Vietnam in order to bring the land price to its actual value.

In addition, the Land Price List is used as a basis in the following cases:

- Calculating land use fees when the State recognizes the residential land use rights of households and individuals for the area within the quota; permitting the change of land use purpose from agricultural land and non-agricultural land that is not residential land to residential land for the area within the quota of residential land allocation to households and individuals;

- Calculating land use tax;

- Calculating income tax from land use rights transfer; (new)

- Calculating additional land use levy for cases of delay in putting land into use or not putting land into use; (new)

- Calculation of fees and charges in land management and use;

- Calculating fines for administrative violations in the field of land;

- Calculating compensation to the state when causing damage in the management and use of land;

- Calculating the value of land use rights to pay to those who voluntarily return the land to the State. If the returned land is land allocated by the State with the collection of a land use levy, land recognized with the collection of a land use levy, or leased land with a one-time rental payment for the entire lease period;

- Calculation of the starting price in the event of an auction of land use rights to allocate or lease land to households and individuals. (new)

For details, see the Draft Land Law (as amended).

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

Nhu Y
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