What is the land use levy upon change from agricultural land to residential land applied for individuals in Vietnam?

What is the land use levy upon change from agricultural land to residential land applied for individuals in Vietnam?

Pursuant to Clause 2.b Article 5 of the Decree 45/2014/NĐ-CP stipulating as follows:

Collection of land use levy upon change of land use purpose

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2. For households and individuals:

a/ In case of change from garden or pond land within the same land parcels with houses in residential areas, which is not recognized as residential land under Clause 6, Article 103 of the Land Law, to residential land; or change from land originating from garden or pond land associated with houses which had been separated by land users for ownership transfer or separated into different parcels by survey units upon survey and drawing of cadastral maps, to residential land since before July 1, 2004, land use levy shall be collected at a level equal to 50% of the difference between land use levy calculated based on the residential land price and land use levy calculated based on the agricultural land price at the time of issuance of decision on change of land use purpose by a competent state agency;

b/ In case of change from agricultural land allocated by the State without land use levy to residential land, land use levy shall be collected at a level equal to the difference between land use levy calculated based on the residential land price and land use levy calculated based on the agricultural land price at the time of issuance of a decision on change of land use purpose by a competent state agency;

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According to the above regulations, when changing from land for growing annual crops to residential land, the land use levy that an individual must pay is the difference between these two types of land, specifically according to the following civil servants:

Land use levy = Residential land use fee – Agricultural land use fee

In addition, according to point dd, clause 2, Article 5 of Circular 85/2019/TT-BTC, there are other fees such as certification fees, land change registration certification fees, cadastral map extracts, documents and data of cadas appropriate fees.

The rate of collection for individuals in districts of centrally run cities, urban wards of cities or provincial towns is higher than that in other areas; The level of revenue for organizations is higher than that for individuals.

What are bases for change from agricultural land to residential land in Vietnam?

Pursuant to Article 52 of the Law on Land in 2013 stipulating as follows:

Bases for land allocation, land lease and change of land use purpose

1. The annual district-level land use plans which have been approved by competent state agencies.

2. Land use demands as indicated in investment project documents or in applications for land allocation, land lease or change of land use purpose.

As regulations above, bases for change from annual agricultural land to residential land in Vietnam are: the plans are approved by competent state agencies and the land use demands as indicated in investment project documents or in applications for land allocation, land lease or change of land use purpose.

Which agencies have authority to allow individuals to change from annual agricultural land to residential land in Vietnam?

Pursuant to Clause 1.a and 2.a, Article 10 of the Law on Land in 2013 stipulating land classification as follows:

Land classification

Depending on land use purpose, land is classified into the following types:

1. Agricultural land, including:

a/ Land for cultivation of annual crops, including paddy land and land for cultivation of other annual crops;

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2. Non-agricultural land, including:

a/ Residential land, including rural residential land and urban residential land;

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Pursuant to Clause 1.d Article 57 of the Law on Land in 2013 stipulating as follows:

Change of land use purpose

1. Cases in which change of land use purpose requires permission by competent state agencies:

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d/ Change of agricultural land to non-agricultural land;

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As regulations above, when changing from annual agricultural land to residential land (non-agricultural land), individuals shall obtain consent from authority agencies.

Pursuant to Article 59 of the Law on Land in 2013 stipulating competence to allocate, lease land and approve change of land use purpose as follows:

Competence to allocate, lease land and approve change of land use purpose

1. Provincial-level People’s Committees may decide on the allocation or lease of land, and permit change of land use purpose in the following cases:

a/ Allocation or lease of land to, and permission for change of land use purpose for, organizations;

b/ Allocation of land to religious institutions;

c/ Allocation of land to overseas Vietnamese or foreign-invested enterprises under Clause 3, Article 55 of this Law;

d/ Lease of land to overseas Vietnamese or foreign-invested enterprises under Points e and f, Clause 3, Article 56 of this Law;

2. District-level People’s Committees may decide on the allocation or lease of land, and permit change of land use purpose in the following cases:

a/ Allocation or lease of land to, and permission of change of land use purpose for, households and individuals. If these subjects wish to lease or use agricultural land with an area of 0.5 ha or more for trading and service purposes, written approval from the provincial-level People’s Committee is required before the district-level People’s Committee makes decision;

b/ Allocation of land to communities.

3. Commune-level People’s Committees may lease land from the agricultural land fund for public purposes in their communes, wards or townships.

4. Agencies having the competence to decide on land allocation or lease and permit change of land use purpose as prescribed in Clauses 1 and 2 of this Article may not delegate their competence.

As regulations above, agencies having the competence to decide on change of land use purpose for households and individuals are:

- Provincial-level People’s Committees may decide on land use purpose for organizations

- Commune-level People’s Committees may decide on land use purpose for households and individuals.

Best regards!