Guidelines for the implementation of the Land Law 2024 and Decree 103 on land levy in Vietnam

Guidelines for the implementation of the Land Law 2024 and Decree 103 on land levy in Vietnam (Image from the internet)

On July 31, 2024, the General Department of Taxation of Vietnam issued Official Telegram 05/CD-TCT regarding the implementation of the Land Law 2024 and Decree 103/2024/ND-CP on land levy and land rent.

Guidelines for the implementation of the Land Law 2024 and Decree 103 on land levy in Vietnam

The General Department of Taxation of Vietnam requests that the Heads of the Provincial/City Tax Departments under the Central Government direct the offices and Sub-Departments of Taxation to urgently undertake the following tasks based on the provisions of the Land Law 2024 and Decree 103/2024/ND-CP:

- Tax authorities at all levels must widely and thoroughly disseminate the key contents of the land levy and land rent policies as stipulated in the Land Law 2024 and Decree 103/2024/ND-CP to organizations, units, businesses, households, and individuals. To be specific:

+ Within each tax management area, tax authorities should proactively cooperate with news agencies, radio stations, television stations, branches/representative offices of VCCI, etc., to organize the dissemination and communication of the contents of the Land Law 2024 and Decree 103/2024/ND-CP.

+ Develop instructional materials for implementing the Land Law 2024 and Decree 103/2024/ND-CP, and publish these materials on the Tax Department's website.

+ The dissemination should be frequent and continuous in various forms, ensuring that taxpayers access and clearly understand the scope, subjects, deadlines, procedures, and benefits when implementing the new policies on land levy and land rent collection.

- Heads of tax agencies are responsible for assigning relevant departments within the tax agency to update, search, review, and verify records, and urge implementation according to legal regulations.

- In case of difficulties or issues during the implementation process, the Tax Departments should compile reports on these issues and propose, if any, to the General Department of Taxation for prompt guidance.

For detailed contents, refer to Official Telegram 05/CD-TCT issued on July 31, 2024.

Issuance of Decree 103 on land levy, land rent in Vietnam

On July 30, 2024, the Government of Vietnam issued Decree 103/2024/ND-CP stipulating land levy and land rent in Vietnam.

Decree 103/2024/ND-CP stipulates:

(1) Land levy (including calculation, collection, payment, exemption, and reduction of land levy; handling compensation costs, support, resettlement; land levy debt acknowledgment) as prescribed in point a, clause 1, Article 153 of the Land Law 2024 in cases:

- The State allocates land with land levy collection.

- The State permits land use conversion to a type in which the State allocates land with land levy collection.

- The State recognizes land use rights, adjusts decisions on land allocation, adjusts detailed planning, permits the conversion of land use forms, and permits multi-purpose land use according to the law, which results in land levy obligations.

(2) Land rent (including calculation, collection, payment, exemption, and reduction of land rent; handling compensation costs, support, resettlement) as prescribed in point b, clause 1, Article 153 of the Land Law 2024 in cases:

- The State leases land (including land with water surfaces).

- The State permits land use conversion to a type in which the State leases land and land rent must be paid.

- The State leases land to build underground structures for business purposes where the structure is not part of an above-ground construction; land for above-ground construction serving the operation, exploitation, and use of underground structures as stipulated in Article 216 of the Land Law 2024.

- The State recognizes land use rights, extends land use duration, adjusts land use duration, adjusts decisions on land leasing, adjusts detailed planning, permits the conversion of land use forms, and permits multi-purpose land use according to the law, which requires land rent payment as stipulated.

(3) Supplemental payments (additional land levy, additional land rent) in cases where the State allocates land, leases land, permits land use conversion, recognizes land use rights, receives land use rights transfers for project implementation but does not put the land into use or delays the land use progress as stipulated in clause 8, Article 81, point đ, clause 1, Article 153 of the Land Law 2024.

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