Regulations on the reduction of land levy in Vietnam from August 1, 2024

Regulations on the reduction of land levy in Vietnam from August 1, 2024 (Image from the Internet)

Reduction rates for land levy in Vietnam from August 1, 2024

Pursuant to Article 19 of Decree 103/2024/ND-CP, the rates of land levy reduction from August 1, 2024, are as follows:

- A 50% reduction in land levy when the state authority allocates land, converts land use purposes, or recognizes land use rights for the poor, families, or individuals of ethnic minority groups in areas not classified as having especially difficult socio-economic conditions, border areas, or islands.

- A 50% reduction in land levy for homestead land for individuals specified at points a and b, Clause 3, Article 124 of the Land Law 2024 working in border, island communes, or island districts without commune-level administrative units in especially difficult socio-economic conditions.

- A 30% reduction in land levy for homestead land for individuals specified at points a and b, Clause 3, Article 124 of the Land Law 2024 working in border, island communes, or island districts without commune-level administrative units in difficult socio-economic conditions.

- Reduction of land levy for homestead land within the allocation limit (including land allocation, change of land use purposes, issuance of Certificates to current land users) for those who have made significant contributions to the revolution and are entitled to land levy reductions in accordance with regulations on persons with meritorious services.

- Reduction of land levy according to investment and related legal regulations for cases of land use for investment in cemetery infrastructure projects to transfer land use rights linked with infrastructure, or build facilities for storing ashes as stipulated in point a, Clause 1, Article 157 of the Land Law 2024:

(i) A 50% reduction in land levy for projects invested in areas with especially difficult socio-economic conditions.

(ii) A 30% reduction in land levy for projects invested in areas with difficult socio-economic conditions.

(iii) A 20% reduction in land levy for projects not located in the areas specified in (i) and (ii).

The list of areas with difficult and especially difficult socio-economic conditions as stipulated in this section shall comply with investment-related laws.

Note:

Land levy reductions in other cases as specified in Clause 2, Article 157 of the Land Law 2024 may be proposed by the Ministries, sectors, and provincial People's Committees to the Ministry of Finance for compilation and submission to the Government of Vietnam for regulation after approval by the Standing Committee of the National Assembly.

Authority to calculate and decide on the Reduction rates for land levy in Vietnam from August 1, 2024

The authority to calculate and decide on the Reduction rates for land levy in Vietnam from August 1, 2024, is prescribed as follows:

- The Chief of the Tax Department determines and issues decisions on land levy reduction for economic organizations, overseas Vietnamese, and foreign-invested organizations.

- The Chief of the Sub-Department of Taxation or the Chief of the Regional Sub-Department of Taxation determines and issues decisions on land levy reduction for households and individuals.

(Clause 8, Article 19 of Decree 103/2024/ND-CP)

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