What are procedures for transfer of land for production forests in Vietnam?

What are procedures for transfer of land for production forests in Vietnam?

Article 191 of the 2013 Land Law stipulates cases in which acquisition or donation of land use rights is not allowed, according to which:

1. Organizations, households, individuals, communities, religious institutions, overseas Vietnamese and foreign-invested enterprises may not receive transfer or donation of land use rights in case the transfer or donation of land use rights is prohibited by law.

2. Economic organizations may not acquừe the rights to use paddy land, protection forest land or special-use forest land from households or individuals, except the case of change in land use purpose in accordance with the land use master plan and plans approved by competent state agencies.

3. Households and individuals not directly engaged in agricultural production may not receive the transfer or donation of paddy land use rights.

4. Households and individuals may not receive the transfer or donation of residential land use rights and agricultural land use rights with regard to the land located in the areas of protection forests, strictly protected zones and ecological rehabilitation zones in special-use forests if they do not live in such protection forests or special-use forests.

According to Clause 1, Article 179 of the Land Law 2013, rights and obligations of households and individuals using landare as follows:

1. Households or individuals that use agricultural land allocated by the State within land use quotas, are allocated land with land use levy or leased with full one-off rental payment for the entire lease period, have land use rights recognized by the State, or obtain land through exchange, transfer, inheritance or donation, have the following rights and obligations:

a/ The general rights and obligations prescribed in Article 166 and Article 170 of this Law;

b/ To exchange agricultural land use rights with other households and individuals within the same commune, ward or township;

c/ To transfer land use rights in accordance with law;

d/ To lease land use rights to other organizations, households, individuals or overseas Vietnamese investing in Vietnam;

e/ Individuals using land are entitled to bequeath their land use rights in accordance with their will or law.

If any member of a household to which land has been allocated by die State dies, land use rights of that member may be inherited in accordance with his/her will or law.

If the heir is an overseas Vietnamese who falls into the category defined in Clause 1, Article 186 of this Law, he/she is entitled to inherit land use rights. Otherwise, he/she is only entitled to receive the value of the inherited land use rights;

e/ To donate land use rights under Point c, Clause 2, Article 174 of this Law and to donate land use rights to households, individuals or overseas Vietnamese who fall into the category defined in Clause 1, Article 186 of this Law;

g/ To mortgage land use rights at credit institutions which are licensed to operate in Vietnam, or at other economic organizations or individuals in accordance with law;

h/ To contribute land use rights as capital to organizations, households, individuals or overseas Vietnamese for cooperation in production or business;

i/ In case the land is subject to recovery for project implementation, land users are entitled to invest on land by their own or to lease land use rights to the investor or to contribute land use rights as capital to the investor for project implementation in accordance with the Government’s regulations.

According to Clause 1, Article 188 of the 2013 Land Law, specifically:

1. Land users may exercise the rights to exchange, transfer, lease, sublease, inherit, donate or mortgage land use rights and contribute land use rights as capital when meeting the following conditions:

a/ Having the certificate, except the case prescribed in Clause 3, Article 186 and the case of receiving inheritance prescribed in Clause 1, Article 168 of this Law;

b/ The land is dispute-free;

c/ The land use rights are not distrained to secure judgment enforcement;

d/ Within the land use term.

Thus, according to the provisions of the Land Law in Vietnam, you can be transferred land use rights when meeting the above conditions and not in the cases where the transfer of land use rights is restricted within the land use term of your family.

How much is the income tax when transferring the rights to use forest land in Vietnam? 

Pursuant to Clause 12, Article 2 of Decree No. 12/2015/ND-CP stipulates as follows:

The rate of tax on income from real estate transfer is 2% of the transfer price

According to this Article, with this regulation in Vietnam, the income tax when transferring the rights to use forest land is 2%.

Best Regards!