According to Vietnam’s current regulations, within 30 days after a tax agency signs the notice, land users shall pay 50% of the notified land use levy. The question is, on what basis is the land use levy the land user must pay according to the Tax Authority's Notice determined?
Article table of contents
According to Article 3 of Decree No. 45/2014/NĐ-CP of Vietnam’s Government, land users that are allocated land, have land use purpose changed or have land use rights recognized by the State shall pay land use levy in accordance with the Land Law based on the following grounds:
1. Area of land which is allocated or of which the use purpose is changed or use rights are recognized.
2. Land use purpose.
3. Land price used for land use levy calculation:
- The land price on the Land Price Table prescribed by the People’s Committee of the province or central-affiliated city (below referred to as the provincial-level People’s Committee) is applicable in case households or individuals have land use rights recognized or have land use purpose changed for within-quota areas of residential land.
The determination of within-quota areas of land under this Point must adhere to the principle that for every household (even households separated under law) or individual, the area of land within the allocation quota or recognition quota for residential land shall be determined only once and within the same province or central-affiliated city.
For a household or an individual that has more than one land parcel within the same province or central-affiliated city, the areas of its/his/her land parcels shall be aggregated for determining the area of land within the allocation quota or recognition quota for residential land, provided that the total of the selected land areas must not exceed the allocation quota or recognition quota of residential land in the locality where the land areas are selected.
Households and individuals shall take responsibility before law for the truthfulness and accuracy of the declaration of the area of land parcels within the allocation quota or recognition quota for residential land subject to land use levy; if they are detected to make, untruthful declaration, households and individuals shall have land use levy retrospectively collected in accordance with the land law and shall be sanctioned in accordance with the tax law.
- The specific land price determined by the method of direct comparison, deduction, income or surplus prescribed in the Government’s Decree on land prices shall be applied in the following cases:
+ Determining land use levy in case the land use levy-liable area of the land parcel or land lot is valued (calculated at the land price in the Land Price Table) at VND 30 billion or more, for centrally run cities; VND 10 billion or more, for mountainous and highland provinces; or VND 20 billion or more, for other provinces, in the following cases: Organizations are allocated land not through auction of land use rights or have land use purpose changed or land use rights recognized; households and individuals are allocated land not through auction of land use rights, have land use rights recognized or have land use purpose changed for the over-quota area of residential land.
+ Determining the reserve price for auction of land use rights when the State allocates land with land use levy through auction of land use rights.
- The specific land price determined by the method of land price adjustment coefficient shall be applied in case the land use levy-liable area of the land parcel or land lot is valued (calculated at the land price in the Land Price Table) at under VND 30 billion, for centrally run cities; under VND 10 billion, for mountainous and highland provinces; or under VND 20 billion, for other provinces, for determining land use levy in the following cases:
+ Organizations are allocated land by the State with land use levy not through auction of land use rights or have land use rights recognized or land use purpose changed;
+ Households and individuals are allocated land by the State not through auction of land use rights;
+ Households and individuals have land use rights recognized or land use purposes changed by the State for the over-quota area of residential land.
Annually, provincial-level People’s Committees shall provide the land price adjustment coefficient for application in the cases specified above.
- Land price adjustment coefficients issued by the People's Committees of provinces and central-affiliated cities apply from January 01 every year. The survey time to develop the land price adjustment coefficient is carried out from October 01 every year. Costs related to the development of land price adjustment coefficients (including the cost of hiring a consulting organization in case of necessity) are paid from the budget according to the provisions of law on state budget. The selection of a consulting organization to survey and develop the land price adjustment coefficient is carried out in accordance with the law on bidding.
In case at the time of determining land use fees, the Provincial People's Committee has not issued the land price adjustment coefficient according to regulations, then apply the land price adjustment coefficient issued in the previous year to determine the land use fee payable and the Provincial People's Committee is responsible for the loss of budget revenue due to the delay in promulgating the land price adjustment coefficient (if any).
Nguyen Trinh
- Key word:
- Decree No. 45/2014/NĐ-CP
