What are state budget revenues from land in Vietnam? What are bases for calculating a land rent in Vietnam?

What are state budget revenues from land in Vietnam?

Pursuant to Article 153 of the Law on Land in 2024 stipulating state budget revenues from land in Vietnam:

State budget revenues from land

1. State budget revenues from land include:

a) Land levies;

b) Land rents;

c) Proceeds from penalties for land-related administrative violations;

d) Recompense for the State when causing damage in land management and use;

dd) Additional land levies, additional land rents for projects in which land is not put into use or is used behind the schedule;

e) Land use taxes;

g) Income taxes from disposition of LURs;

h) Fees and charges in land management and use;

i) Other incomes as prescribed by law.

2. Annual land rent is applied stably for every period of 05 years from the date on which the State issues a decision to lease out land or grant permission for repurposing land associated with changing land use mode into land lease by the State with annual land rent payments.

Land rent for the next period shall be based on the land price list of the year in which such land rent is determined. If the current land rent is higher than that of the previous period, the land rent payable must be adjusted within the rate prescribed by the Government for each period.

The adjustable rate prescribed by the Government for each period shall not exceed the total annual national consumer price index (CPI) of the previous 5-year period.

3. The Government shall elaborate points a, b, c, d and dd clause 2 and clause 2 of this Article.

As regulated above, the State budget revenues from land include:

- Land levies;

- Land rents;

- Proceeds from penalties for land-related administrative violations;

- Recompense for the State when causing damage in land management and use;

- Additional land levies, additional land rents for projects in which land is not put into use or is used behind the schedule;

- Land use taxes;

- Income taxes from disposition of LURs;

- Fees and charges in land management and use;

- Other incomes as prescribed by law.

What are state budget revenues from land in Vietnam? What are bases for calculating a land rent in Vietnam? - image from internet

What are bases for calculating a land rent in Vietnam?

Pursuant to Article 155 of the Law on Land in 2024 stipulating basis for calculating land levy, land rent; time of land valuation, time of calculating land levy, land rent:

Basis for calculating land levy, land rent; time of land valuation, time of calculating land levy, land rent

1. Basis for calculating a land levy:

a) Area of the allocated land, repurposed land, or the land whose LURs are recognized;

b) Land prices under Article 159 and Article 160 of this Law; in case of LUR auction, land price will be the hammer price;

c) Policies on land levy exemption or reduction of the State.

2. Basis for calculating a land rent:

a) Land area for rent;

b) Land lease term, land use extension term;

c) Land rental unit price; In case of auction of land lease rights, the land lease price is the hammer price;

d) The land use mode: land lease by the State with annual land rent payments or land lease by the State under one-off arrangement;

dd) Policies on land rent exemption or reduction of the State.

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As regulated above, basis for calculating a land rent is stipulated as follows:

- Land area for rent;

- Land lease term, land use extension term;

- Land rental unit price; In case of auction of land lease rights, the land lease price is the hammer price;

- The land use mode: land lease by the State with annual land rent payments or land lease by the State under one-off arrangement;

- Policies on land rent exemption or reduction of the State.

What are cases of exemption and reduction of land levy in Vietnam?

Pursuant to Article 157 of the Law on Land in 2024, the cases of exemption and reduction of land levy in Vietnam include:

- Land is used for production and business purposes in investment incentive fields or in investment incentive areas according to investment laws and relevant laws, except land for commercial housing construction, commercial land;

- Land is used to implement policies on housing and homestead land for people with meritorious services to the revolution, war invalids or sick soldiers who are unable to work, families of martyrs who no longer have main workers, and the poor;

- Land is used to implement investment projects to build social housing, worker accommodation in industrial parks, housing for the people's armed forces, renovate and rebuild apartment buildings according to housing laws;

- Homestead land is allocated to displaced people when the State expropriates land due to a threat to human life;

- Homestead land is allocated to the entities who are working in border communes, islands or island districts without third-level administrative divisions belonging to areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions.

- Ethnic minorities using land are exempted or reduced from land levies and land rents according to the Government’s regulations;

- Land of public service providers;

- Land is used to build airport and aerodrome infrastructure;

- Land is used to construct facilities and works providing aviation services;

- Land is used for parking lots and maintenance workshops serving public passenger transportation activities;

- Land is used for construction of above ground works serving the operation, exploitation and use of underground works;

- Land is used to build dedicated railway infrastructure; land is used for construction of railway industrial projects;

- Land is used for construction of other auxiliary works directly serving train operations, passenger pick-up and drop-off, and cargo loading and unloading of the railway;

- Land is used to implement PPP projects;

- Land is used as premises to build headquarters, drying yards, warehouses, production workshops; build service facilities directly serving agriculture production, forestry production, aquaculture, salt production of cooperatives and unions of cooperatives;

- Land is used for construction of clean water supply, drainage, and wastewater treatment projects in urban and rural areas;

- Land is used for national defense or security purposes of military or police enterprises though it is not national defense or security land;

- Homestead land is allocated to households or individuals who have to relocate when the State expropriates land affixed to housing but are not eligible for homestead land-related recompense and have no other accommodation in the third-level administrative division to which the expropriated land belongs;

Best regards!