Exemption and Reduction Rates of Land Levy When Issuing Certificates of Land Use Rights

1. The exemption and reduction levels of land levy within the homestead land allocation limit are specified as follows:

- Exemption of land levy within the local homestead land allocation limit for households and individuals in areas with particularly difficult socio-economic conditions, border areas, and islands.- Reduction of 50% land levy, specifically: Collect 20% land levy according to the homestead land price stipulated in the Land Price Table at the time the competent state authority issues the decision recognizing the land use right for the area within the local homestead land allocation limit.

2. For the area exceeding the homestead land allocation limit (if any), households and individuals must pay 100% land levy according to the specific land price at the time the competent state authority issues the decision recognizing the land use right. The specific land price is determined as follows:

- The specific land price is determined according to the land price adjustment coefficient method when the homestead land area exceeding the allocation limit has a value (calculated according to the land price in the Land Price Table) of less than 30 billion VND for centrally-affiliated cities; less than 10 billion VND for mountainous and highland provinces; less than 20 billion VND for other provinces.- The specific land price is determined according to the direct comparison, deduction, income, and surplus methods stipulated in Decree 44/2014/ND-CP when the homestead land area exceeding the allocation limit has a value (calculated according to the land price in the Land Price Table) of 30 billion VND or more for centrally-affiliated cities; 10 billion VND or more for mountainous and highland provinces; 20 billion VND or more for other provinces.

Circular 134/2015/TT-BTC takes effect from October 15, 2015.

- Ngoc Duyen -

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