Guidelines for handling the tax administrative procedures related to land in Vietnam

Guidelines for handling the tax administrative procedures related to land in Vietnam (Image from the internet)

On September 12, 2024, the General Department of Taxation of Vietnam issues Official Dispatch 4021/TCT-DNNCN regarding the handling of tax administrative procedures related to land in Vietnam.

Guidelines for handling the tax administrative procedures related to land in Vietnam

Land Law 2024 was passed by the National Assembly on January 18, 2024, and the guiding Decrees came into effect on August 1, 2024. On August 1, 2024, the General Department of Taxation issued Telegraph 05/CD-TCT regarding the implementation of Land Law 2024 and Decree 103/2024/ND-CP dated July 30, 2024, of the Government of Vietnam stipulating land levy, land rent. However, following reports by the press on unresolved cases concerning land financial obligations in certain localities. On August 7, 2024, the Ministry of Finance issued Official Dispatch 8288/BTC-QLCS regarding the implementation of provisions from Land Law 2024, which includes transitional guidance for applying the Land Pricing Table (section 8) and the implementation of Land Law 2024 (section 9). The General Department of Taxation requests the Heads of provincial and city Tax Departments to direct their respective departments and Tax Sub-departments to undertake the following:

- Review unresolved cases that have surpassed the time limit for issuing Tax Notifications as per clause 6 Article 13 of Decree 126/2020/ND-CP dated October 19, 2024, of the Government of Vietnam, detailing some articles of the Tax Administration Law and Articles 21 and 42 of Decree 103/2024/ND-CP dated July 30, 2024, of the Government of Vietnam, stipulating land levy, land rent to promptly resolve issues for citizens and enterprises.

- Properly follow the procedures for calculating land levy, land rent, registration, issuance of land use right certificates, and property ownership associated with land as guided in Articles 31, 32, 37, 38, 41, 43, 44 of Decree 101/2024/ND-CP dated July 29, 2024, of the Government of Vietnam on fundamental land surveys; registration, issuance of land use right certificates, ownership of property associated with land, and land information systems, and Articles 21, 42 of Decree 103/2024/ND-CP dated July 30, 2024, of the Government of Vietnam stipulating land levy, land rent.

- Perform their functions correctly by relying on documentation and information on the Information Transfer Form provided by the land management agencies and other relevant agencies (including location, area, land use purpose, land use duration, land levy timing, land price, etc.) to determine land financial obligations. If the conditions to determine land financial obligations are insufficient, the tax authority must notify in writing the Land Registration Office or competent land management agency or the interlinked one-stop shop, and notify in writing the District People's Committee (in cases with deduction requests for compensation, support, resettlement expenses) to supplement the documentation.

- Issue Notifications on land levy and land rent using the forms in Appendix I, Appendix II issued along with Decree 103/2024/ND-CP within the specified time limits and update information in the IT application once the General Department of Taxation completes the application upgrade.

- Collaborate with local authorities (People's Committees at various levels, land management agencies, etc.); if necessary, report to the provincial-level People's Committee for directing relevant agencies to execute interlinked administrative procedures; advise the provincial-level People's Committee to instruct the Department of Natural Resources & Environment and related agencies to build the Land Pricing Table as per regulations in Land Law 2024 and Decree 71/2024/ND-CP, forming a basis for tax authorities to resolve administrative procedures for citizens and enterprises.

- Strictly implement Telegraph 05/CD-TCT dated August 1, 2024, and Official Dispatch 8288/BTC-QLCS dated August 7, 2024, of the Ministry of Finance. During implementation, if there are any difficulties, the Tax Department should compile and report the issues to the competent authorities for prompt guidance.

More details can be found in Official Dispatch 4021/TCT-DNNCN issued on September 12, 2024.

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