05/08/2022 09:50

Vietnam: To increase land use levy when delaying the process of putting land into use

Vietnam: To increase land use levy when delaying the process of putting land into use

Below is one of the highlights of the Draft Land Law Project (amended) publicly posted by the Ministry of Natural Resources and Environment of Vietnam for consultation from relevant agencies, organizations, and individuals before submitting it to the Government.

According to the draft Land Law, regarding the land price list, it is clearly stated that the State will use the land price list as a basis for:

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

-Calculating income tax from land use rights transfer;

-Calculating the starting price in case of auction of land use rights to allocate or lease land to households and individuals

Thus, according to the above, the state has a very new policy: it will charge an additional land use fee when it is slow to put the land into use and will not put it into use to avoid the situation of buying land just for speculation without using it or delaying the process of putting it into use.

In addition, the Draft Land Law (as amended) also stipulates other new provisions such as:

- The specific land price will be used as a basis for calculating land use levy, land rent upon extension of land use term; adjustment of detailed construction planning that affects the land use coefficient; permitting the change of land use form; determining the starting price for auctioning land use rights; for the land auction plan applicable to the organization participating in the auction; and determining the starting price for bidding for land use projects.

- The limit for receiving the transfer of agricultural land use rights of households and individuals does not exceed 15 times (current regulations are not more than 10 times) the agricultural land allocation limit of households and individuals for each type. Land (Article 146)

- Auction of land use rights and bidding for land-using projects must be carried out, except for the cases where no auction is required as prescribed in Article 63 of the Draft, specifically:

+ Land distribution without the imposition of a land use levy;

+ Allocation of land with collection of land use levy or lease of land exempt from land use levy and land rent as prescribed in Article 128 of this Law;

+ Using land for mineral activities

+ Allocating residential land to cadres, civil servants, public employees, active-duty officers, and professional soldiers who relocate to work locations in accordance with competent agencies' dispatching decisions; construct housing for workers in industrial parks, social housing, and official residences.

+ Allocating residential land to households and individuals who have a permanent address in the commune but no residential land and have not been allocated residential land by the State.

+ Allocating residential land to households and individuals with permanent household registration in townships located in socioeconomically difficult areas; areas with extremely difficult socioeconomic conditions but no residential land; and townships where the State has not allocated residential land;

+ Support for leasing land to continue production and business in the event of land recovery of current users' non-agricultural production establishments;

+ As compensation in land under the provisions of this law and other applicable laws; as resettlement assistance under this law;

+ Allocating or leasing land to economic organizations whose production and business land has been recovered in accordance with Articles 66 and 67 of this Law and the organization requires land in another location to continue production and business;

+ Cases decided by the Prime Minister


Nguyen Sang

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