How are the determination and collection of land use levies for economic organizations, households and individuals carried out? How long are the time limits for land use levy payment? These are questions of Ms. Luu Thi Th*** sent to LawNet for advice.
Article table of contents
LawNet would like to answer Ms. Th***’s questions as follows:
According to Article 14 of Decree No. 45/2014/NĐ-CP of Vietnam’s Government and Article 9 of Circular No. 76/2014/TT-BTC of the Ministry of Finance of Vietnam, the determination and collection of land use levies for economic organizations, households and individuals are carried out as follows:
Regarding economic organizations:
- Application of K coefficient method to determine land levies: tax authority shall notify the economic organization of land levies payable according to K coefficient and Table of land prices issued by the People’s Committee of provinces; compensation for resettlement or the payment of land transfer which is offset against land levies (if any) determined by finance; within 05 working days from the day on which cadastral documents are sent by the natural resource and environment agency.
- Application of direct comparison, subtraction, income-based, surplus-based methods to determine land levies: the tax authority shall notify the economic organizations of land levies payable according to Table of land prices issued by the People’s Committee of provinces; compensation for resettlement or the payment of land transfer which is offset against land levies (if any) determined by finance; within 05 working days from the day on which cadastral documents are sent by natural resource and environment agencies.
Regarding households or individuals:
- In case the household or the individual is allocated new piece of residential land, permitted to change purposes of the piece of land to residential land, or granted the Certificate and the land price subject to land levies is determined according to K coefficient method, they shall follow the procedures below: They shall apply for the Certificate or changing purposes of the piece of land at the Office of land registration or natural resource and environment agency (if there is no Office of land registration). According to cadastral documents sent by the Office of land registration or natural resource and environment agency and Table of land prices and K coefficient regulated by the People’s Committee of the province and area of land subject to land levies, tax authority shall determine land levies payable and notify households and individuals within 05 working days from the day on which the satisfactory application is received.
In case there are no grounds to determine land levies payable, the tax authority shall request the Office of land registration and natural resource and environment agency in writing to provide additional documents within 03 working days from the day on which the application is received.
- In case the household or the individual is allocated the piece of land , permitted to change purposes of the piece of land, or granted the Certificate and the land price subject to land levies is determined according to income-based, surplus-based, subtraction, or comparison methods: according to cadastral documents sent by natural resource and environment agency, Table of land prices regulated by the People’s Committee of the province, the tax authority shall notify the household or the individual of land levies payable within 05 working days.
Time limits for land use levy payment: According to Clause 4 Article 14 of Decree No. 45/2014/NĐ-CP of Vietnam’s Government:
- Within 30 days after a tax agency signs the notice, land users shall pay 50% of the notified land use levy;
- Within the subsequent 60 days, land users shall pay the remaining 50% of notified land use levy;
Past the time limits specified above, land users that fail to fully pay the notified land use levy shall pay a late payment interest for the unpaid amount at a rate prescribed in the law on tax administration, unless they file applications for owning land use levy if they are eligible to owe.
View more: Basis for calculating land use fees that people need to know in 2020.
Nguyen Trinh
- Key word:
- Decree No. 45/2014/NĐ-CP
