Some Notes on the Implementation of the Land Law 2024 of Vietnam (Official Dispatch 4161)

Some Notes on Implementing the Land Law 2024 of Vietnam (Official Dispatch 4161) (Image from the internet)

On September 19, 2024, the General Department of Taxation of Vietnam issued Official Dispatch 4161/GDT-CL on reviewing the work done to complete and implement the Land Law 2024.

Some Notes on Implementing the Land Law 2024 of Vietnam (Official Dispatch 4161)

In which, the Land Law 2024 and the Decrees detailing the Law have many amendments including the determination of amounts, exemptions, reductions, the process of resolving dossiers of financial obligations from land and the functions, tasks of tax authorities. It is recommended to carefully study the above documents to correctly implement the process, fulfilling the functions and duties of the tax authority, collecting the right amount and fully for the state budget in Vietnam;

At the same time, note the following points:

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

(1) When registering, issuing land use right certificates for organizations, households, individuals for the first time at the one-stop-shop units such as the Land Registration Office, Branch Land Registration Office. This is clearly stipulated in Section 4 (from Articles 31 to 44 of Decree 101/2024/ND-CP), including the regulation that the land management agency will send an information sheet determining the financial obligations on land (Form 12/DK) to the tax authority to determine and notify the financial obligations to the land user.

The deadline for tax notification and payment timeline according to the provisions of Decree 103/2024/ND-CP and the tax management law.

(2) When allocating land, changing land use purpose with land levy, land rent, the process is stipulated in Article 47 of Decree 102/2024/ND-CP. In this case, there is an information sheet determining financial obligations (Form 04h attached to Decree 102/2024/ND-CP); and the relevant information regarding the parcel and financial obligations on land levy, land rent must be recorded in the Decision on land allocation (Form 04a attached to Decree 102/2024/ND-CP), Decision on land lease (Form 04b attached to Decree 102/2024/ND-CP) and Decision on permitting the change of land use purpose (Form 04c attached to Decree 102/2024/ND-CP).

The procedure for calculating the land levy, land rent is stipulated in Articles 21 and 42 of Decree 103/2024/ND-CP, including changes from previous regulations. The competent authority determining the amount of compensatory costs to be deducted from land levy, land rent to be paid is the district-level People’s Committee (previously the Department of Finance).

- The consideration of land levy, land rent exemption is not the responsibility of the tax authority. The tax authority only reviews the dossiers and issues decisions on reducing the land levy, land rent (if any).

Concurrently, the General Department of Taxation also requests the Chief of the Provincial and Municipal Tax Departments directly under the Central Government to self-review the resolved dossiers according to the land policy before the Land Law 2024 to ensure conformity with the law for each period and correctly resolve tasks and functions of the tax authority, appropriate to the expertise on tax management in the state budget revenue. If any errors are found, promptly take measures to rectify and complete the resolved dossiers to ensure conformity.

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