General Department of Taxation's guidance on documentation for determination of financial obligations regarding land levy and land rent in Vietnam

General Department of Taxation's guidance on documentation for determination of financial obligations regarding land levy and land rent in Vietnam (Image from the Internet)

On September 19, 2024, the General Department of Taxation issued Official Dispatch 4161/TCT-CS regarding the review of the tasks performed to complete and implement the Land Law 2024.

General Department of Taxation's guidance on documentation for determination of financial obligations regarding land levy and land rent in Vietnam

In Official Dispatch 4161/TCT-CS, the General Department of Taxation of Vietnam provided the following guidance:

Land Law 2024 and the decrees detailing the Law have many changes related to the determination of revenue, exemptions, reductions, the process of resolving financial obligations dossiers from land, and the functions and duties of the tax authority. It's recommended to thoroughly study the documents mentioned above to implement the process correctly, fulfill the functions and duties of the tax authority accurately, and collect fully for the state budget. Additionally, attention should be given to the following points:

- For dossiers determining financial obligations regarding land levy, land rent:

+ When registering, issuing a Certificate of Land Use Rights for organizations, households, and individuals issuing the Certificate for the first time at the one-stop-shop, Land Registration Office, or its branches, as specified in Section 4 (from Article 31 to Article 44 Decree 101/2024/ND-CP). This includes the provision for the land management agency to send the Information Transfer Slip to the tax authority in form 12/DK to determine and notify the financial obligation to the land user.

The tax notification and payment deadlines are regulated by Decree 103/2024/ND-CP and tax management laws.

+ When allocating land, changing the land use purpose with payable land levy, land rent, the process is stipulated in Article 47 Decree 102/2024/ND-CP. In this case, there is an Information Transfer Slip determining financial obligations (form 04h attached to Decree 102/2024/ND-CP); and information related to the parcel and financial obligations regarding land levy, land rent, listed in the Decision on Land Allocation (form 04a attached to Decree 102/2024/ND-CP), the Decision on Land Lease (form 04b attached to Decree 102/2024/ND-CP), and the Decision on Permitting Land Use Purpose Change (form 04c attached to Decree 102/2024/ND-CP).

The sequence for calculating land levy, land rent is defined in Article 21 and Article 42 of Decree 103/2024/ND-CP, including changes compared to previous regulations about the agency determining compensation costs, support deducted from the payable land levy, land rent, which is now the district-level People's Committee (previously the Department of Finance).

- The consideration of land levy, land rent exemption is not under the tax authority's responsibility. The tax authority only reviews the dossier and issues a decision on land levy, and land rent reduction (if any).

Moreover, to implement the new policy promptly and avoid errors during the implementation process, the General Department of Taxation requests the Chief of Provincial and City Tax Departments directly under the Central Government to direct the implementation of the following key contents:

- Self-review dossiers resolved under land policy regulations prior to Land Law 2024 to ensure compliance with the law for each period and resolve matters according to the tax authority's functions and duties, suitable for the tax management expertise in state budget revenue collection of the tax authority. In case of detecting errors, promptly take corrective measures and complete the resolved dossiers ensuring compliance.

- Proactively research the issues identified by investigating agencies, the State Auditor, or other inspection agencies in reports and conclusions on state budget revenue management tasks of the tax authority related to the implementation of financial obligations regarding land of taxpayers, such as incorrect land rent, land levy exemptions, incorrect execution of terms in tax collection delegation contracts for non-agricultural land use.

Tax Departments should focus on evaluating the causes of existing issues and violations to correct, remedy, and draw experience to implement in compliance with the law in Vietnam.

More details can be found in Official Dispatch 4161/TCT-CS dated September 19, 2024.

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