Cases Eligible for Land Levy Exemption. Does a Land User Eligible for Land Levy Exemption Need to File a Request for Exemption?
What is Land Levy?
According to Clause 44 Article 3 of the Land Law 2024, land levy is the amount of money that land users must pay to the State when they are allocated land by the State with land levy collection, allowed to change land use purposes, or in cases where land use requires a land levy payment as prescribed by law.
Which cases are exempt from land levy? Do land users who are exempt from the land levy need to complete procedures to request the exemption? (Image from the Internet)
Which cases are exempt from the land levy?
According to Article 18 of the Decree 103/2024/ND-CP, the cases exempt from land levy include:
[1] Exemption of land levy when land is allocated by authorities, allowed to change land use purposes, recognized land use rights (granting of Certificate) within the homestead land limit for land users in the following cases:
- To implement housing policies, homestead land for war invalids or diseased soldiers incapable of working, and families of martyrs without the main labor force;
- Poor people, families, or individuals who are ethnic minorities living in areas with particularly difficult socio-economic conditions, border areas, and islands.
- Residential land for people who have to relocate when the State recovers land due to threats to human life.
- Allocation of homestead land to families or individuals when the State recovers land attached to houses, requiring relocation without conditions for compensation for homestead land and having no other residence in the commune administrative unit where the land was recovered.
- Land area in cemetery infrastructure investment projects to transfer land use rights associated with infrastructure, building facilities to store ashes that investors arrange for burial services for social policy beneficiaries, according to the regulations on cemetery and cremation facility construction, management, and use.
[2] Exemption of land levy within the homestead land allocation limit when issuing the first Certificate for land due to the purpose change from non-homestead land to homestead land for family separation for families who are ethnic minorities, poor families in areas with particularly difficult socio-economic conditions, ethnic minority and mountainous areas, according to the list of areas with particularly difficult socio-economic conditions stipulated by the Government of Vietnam and the Prime Minister of Vietnam.
[3] Exemption of land levy for homestead land within the homestead land allocation limit (including land allocation, change of land use purpose, issuance of Certificate for current land users) for families and individuals who are meritorious service beneficiaries as per regulations on meritorious services.
Exemption of land levy to implement social housing investment projects, housing for the armed forces, and renovation and reconstruction of apartment buildings as per housing regulations.
[4] Exemption of land levy in other cases stipulated in Clause 2 Article 157 of the Land Law 2024 upon proposals from the Ministries, branches, and People's Committees of the provinces to the Ministry of Finance for compilation and submission to the Government of Vietnam after obtaining the approval of the Standing Committee of the National Assembly.
[5] In cases where land levy exemption does not require procedural requests for exemption and price determination as stipulated in Clause 3 Article 157 of the Land Law 2024, the functional land management agencies are responsible for compiling and summarizing exempted land levy cases during land allocation procedures.
During implementation, if authorities and competent persons detect that the individuals granted land levy exemption do not meet the conditions, they shall coordinate with functional land management agencies to review and verify compliance.
If individuals granted land levy exemption do not meet the conditions, the functional land management agency shall report to the People's Committee at the same level to revoke the exemption and transfer the information to the tax authority to calculate, collect and submit the payable land levy (non-exempted) according to the policy and land price at the time the competent authority issued the land allocation decision and the equivalent late payment amount as per tax management regulations.
Do land users who are exempt from land levy need to complete procedures to request exemption?
According to Article 157 of the Land Law 2024 stipulating exemption and reduction of land levy, land rent:
Article 157. Exemption and reduction of land levy, land rent
[...]
- the Government of Vietnam shall stipulate other cases eligible for exemption and reduction of land levy and land rent not specified in Clause 1 of this Article after obtaining the approval of the Standing Committee of the National Assembly.
- For cases of exemption from land levy and land rent, the procedures for determining land price and calculating exempted land levy and land rent are not required. Land users who are exempt from land levy and land rent do not need to complete procedures to request exemption.
- the Government of Vietnam shall detail this Article.
According to the above regulations, land users who are exempt from land levy do not need to complete procedures to request the exemption.
