Is it possible to convert land for rice cultivation to residential land in Vietnam? Is it necessary to apply for permission to change the purpose of using land for rice cultivation to land for aquaculture in Vietnam?
Is it possible to convert land for rice cultivation to residential land in Vietnam? Is it necessary to apply for permission to change the purpose of using land for rice cultivation to land for aquaculture in Vietnam? Are there tax exemptions when changing land use purpose from land for rice cultivation to residential land in Vietnam?
Is it possible to convert land for rice cultivation to residential land in Vietnam?
My family received the land use right transfer in 2003. On the certificate, the total area is 28 784 m2 of land for rice cultivation. On this land, I raise fish and build a house, but it only shows as land for rice cultivation. So, if I want to transfer a part of such residential land, is there a tax exemption?
Reply:
Clause 1, Article 57 of the 2013 Land Law stipulates:
1. Cases in which change of land use purpose requires permission by competent state agencies:
a/ Change of land for rice cultivation to land for perennial crops, forests, aquaculture or salt production;
b/ Change of land for other annual crops to land for saltwater aquaculture, salt production or aquaculture in ponds, lakes or marshlands;
c/ Change of land for special-use forests, protection forests or production forests to land for other purposes within the type of agricultural land;
d/ Change of agricultural land to non-agricultural land;
e/ Change of non-agricultural land which is allocated by the State without land use levy to non-agricultural land which is allocated by the State with land use levy, or to leased land;
f/ Change of non-agricultural land which is not residential land to residential land;
g/ Change of land for construction of non-business facilities or land for public purposes involving commercial purpose, or non-agricultural land for business and production purposes which is not land for trading or services to land for trading or services; change of land for trading or services or land for construction of non-commercial facilities to land for non-agricultural production establishments.
At the same time, Article 134 of the 2013 Land Law also provides:
1. The State shall develop policies to protect land for rice cultivation and to limit the change from the purpose of rice cultivation to other non-agricultural purposes. In case it is necessary to change a certain area for rice cultivation to another purpose, the State shall take measures to supplement such land area or improve the efficiency in using land for rice cultivation.
The State shall adopt policies to support and invest in the construction of infrastructure and application of modern science and technologies into the areas planned for high-productivity and high-quality rice cultivation.
2. Those who use land for rice cultivation shall improve and increase the fertility of the soil. They may not use that land for planting perennial trees, afforestation, aquaculture and salt production or for non-agricultural purposes without permission by competent state agencies.
3. People who are allocated or leased land by the State for non-agricultural purposes and that land is currently used for wet rice cultivation, shall pay a certain amount of money under the Government’s regulations for the State to supplement the lost area of wet rice cultivation land or improve efficiency in using land for rice cultivation.
Thus, the conversion of land use purpose for rice cultivation land to residential land will be restricted and can only be done with the permission of the competent state agency. At the same time, this case is not exempt from tax, but the person changing the land use purpose must pay a sum of money to the State to supplement the lost area of land specialized in rice cultivation in Vietnam.
Is it necessary to apply for permission to change the purpose of using land for rice cultivation to land for aquaculture in Vietnam?
My neighbor recently renovated 1000 m2 of rice cultivation land to make a pond for aquaculture. As far as I know, they plan to raise the tortoise. I would like to find out if there are cases where the change of land use purpose requires permission from the competent state agency. In this case, does my neighbor have to ask for permission? If not, how much will be fined?
Reply:
According to Clause 1, Article 57 of the 2013 Land Law, cases in which change of land use purpose requires permission by competent state agencies:
a/ Change of land for rice cultivation to land for perennial crops, forests, aquaculture or salt production;
b/ Change of land for other annual crops to land for saltwater aquaculture, salt production or aquaculture in ponds, lakes or marshlands;
c/ Change of land for special-use forests, protection forests or production forests to land for other purposes within the type of agricultural land;
d/ Change of agricultural land to non-agricultural land;
e/ Change of non-agricultural land which is allocated by the State without land use levy to non-agricultural land which is allocated by the State with land use levy, or to leased land;
f/ Change of non-agricultural land which is not residential land to residential land;
g/ Change of land for construction of non-business facilities or land for public purposes involving commercial purpose, or non-agricultural land for business and production purposes which is not land for trading or services to land for trading or services; change of land for trading or services or land for construction of non-commercial facilities to land for non-agricultural production establishments.
Thus, change of land use purpose for rice cultivation to rearing tortoise (aquaculture land) is subject to the request for permission from a competent state agency in Vietnam.
According to the provisions of Point b, Clause 2, Article 9 of Decree 91/2019/ND-CP, there is a fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed if area of land illegally repurposed is from 0.1 hectare to less than 0.5 hectare.
As such, your neighbors can be fined at least 5,000,000 VND if they do not apply for permission to change the land use purpose in Vietnam.
In addition, your neighbor is forced to restore the original state of the land before the violation and is forced to return the illegal profits obtained from committing the violation in Vietnam.
Are there tax exemptions when changing land use purpose from land for rice cultivation to residential land in Vietnam?
Please advise. Currently I have a plot of rice cultivation land that I received as a gift from my biological parents, now I want to change the use purpose from rice cultivation land to residential land, can I be exempted from tax on change of land use purpose? Because I only have a piece of land that is determined to convert to residential land to build a house. Thank you!
Reply:
Article 134 of the 2013 Land Law provides:
1. The State shall develop policies to protect land for rice cultivation and to limit the change from the purpose of rice cultivation to other non-agricultural purposes. In case it is necessary to change a certain area for rice cultivation to another purpose, the State shall take measures to supplement such land area or improve the efficiency in using land for rice cultivation.
The State shall adopt policies to support and invest in the construction of infrastructure and application of modern science and technologies into the areas planned for high-productivity and high-quality rice cultivation.
2. Those who use land for rice cultivation shall improve and increase the fertility of the soil. They may not use that land for planting perennial trees, afforestation, aquaculture and salt production or for non-agricultural purposes without permission by competent state agencies.
3. People who are allocated or leased land by the State for non-agricultural purposes and that land is currently used for wet rice cultivation, shall pay a certain amount of money under the Government’s regulations for the State to supplement the lost area of wet rice cultivation land or improve efficiency in using land for rice cultivation.
The collection of land use levy upon change of land use purpose upon change of land use purpose shall comply with Article 5 of Decree 45/2014/ND-CP.
Thus, in terms of policy in Vietnam, the state has policies to protect rice cultivation land, limit the conversion of rice cultivation land to non-agricultural purposes. In case of change from rice cultivation land to residential land, the person who changes the land use purpose must pay a sum of money for the State to supplement the lost area of specialized rice cultivation.
Best regards!
