Guidance on calculating land levy when the State allocates land in Vietnam from August 1, 2024

Guidance on calculating land levy when the State allocates land in Vietnam from August 1, 2024 (Image from the internet)

Guidance on calculating land levy when the State allocates land in Vietnam from August 1, 2024

Land levy is the amount of money that the land user must pay to the State when the State allocates land with a land levy, permits the change of land use purpose, or in other cases where a land levy is payable as prescribed by law in Vietnam.

In particular, Article 6 of Decree 103/2024/ND-CP provides guidelines for calculating land levy when the State allocates land in Vietnam in Vietnam as follows:

(1) land levy when the State allocates land with a land levy is calculated as follows:

In which:

- Land Area Subject to land levy is determined as prescribed in Article 4 of Decree 103/2024/ND-CP.

- Land Price Subject to land levy is determined as prescribed in Article 5 of Decree 103/2024/ND-CP.

- The point of time for calculating land levy is conducted according to the provisions in Clause 3, Article 155 of the Land Law 2024. For cases of land allocation for resettlement, the time for determining land price and calculating land levy is the time when the competent authority approves the compensation, support, and resettlement plan as provided in Clause 3, Article 111 of the Land Law 2024.

(2) In cases where a competent state authority decides to allocate land according to the progress of the investment project, the progress of land acquisition, compensation, support, and resettlement as prescribed in Clause 4, Article 116 of the Land Law 2024, the calculation of land levy, handling of compensation, support, and resettlement funds shall be executed according to each land allocation decision.

(3) In cases of multi-storey housing linked to land allocated directly by the State to multiple users, the land levy is allocated to each user. The allocation of land levy to each land user is executed as follows:

In which:

Usable Floor Area is determined according to the provisions of construction law and housing law.

The Total Usable Floor Area includes the total usable floor area exclusively owned by multi-storey housing owners (apartment buildings) calculated according to the clearance area of the apartments, commercial, service area that must pay land levy (excluding the area of commonly owned floor area by all owners).

The allocation of land levy as prescribed in this clause does not apply to the sale of State-owned housing (now being public housing assets as prescribed by housing law) to current tenants.

(4) When selling social housing as individual houses after a 5-year term as stipulated in Point e, Clause 1, Article 89 of the Housing Law 2023, the Government's Decree detailing certain provisions of the Housing Law 2023 on social housing development and management, in addition to the payable amounts as prescribed by law, the seller must pay 50% of the land levy calculated according to the formula in Clause (1), in which:

- The land area for calculating land levy is the land area mentioned in the Certificate of Land Use Rights, Ownership of Housing and Other Properties Attached to Land (hereinafter referred to as the Certificate) prescribed in Point e, Clause 1, Article 89 of the Housing Law 2023.

- The land price for calculating land levy is the land price in the Land Price Table.

- The point of time for calculating land levy is conducted as prescribed in the Government's Decree detailing certain provisions of the Housing Law 2023 on social housing development and management.

(5) In cases where payment is made equivalent to the value of the land fund invested in technical infrastructure for building social housing according to Clause 2, Article 83 of the Housing Law 2023, the Government's Decree detailing certain provisions of the Housing Law 2023 on social housing development and management, the amount equivalent to the value of the land fund invested in technical infrastructure for building social housing that the investor must pay is determined by the land levy calculated according to the formula in Clause (1), in which:

- The land area for calculating land levy is the area of homestead land in the commercial housing investment project that has invested in technical infrastructure for building social housing that the investor is allowed to pay equivalents by a competent authority.

- The land price for calculating land levy is the specific land price of the land that has invested in technical infrastructure for building social housing.

- The point of time for calculating land levy is conducted as prescribed in the Government's Decree detailing certain provisions of the Housing Law 2023 on social housing development and management.

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