Procedures for calculation of land rent in Vietnam from August 1, 2024

Procedures for calculation of land rent in Vietnam from August 1, 2024

Article 42 of Decree 103/2024/ND-CP stipulates the procedures for calculation of land rent in Vietnam as follows:

- Based on cadastral files for land lease (information on area, location, purpose, form of land lease, lease term); land price decisions, rental rates for underground construction by the Provincial People's Committee; land price list, percentage (%) to calculate land rent as prescribed by the Provincial People’s Committee; the tax authority organizes the calculation, collection, and payment of land rent. To be specific:

+ Within 05 working days from the date of receiving the Information Transfer Form from the Land Registration Office or the land management authority (the agency transferring the Information Transfer Form), the tax authority shall determine the unit price, calculate the amount of land rent payable, and issue a land rent notice to the party obligated to pay land rent; simultaneously send it to the agency that transferred the Information Transfer Form.

The notice of land rent payment is carried out according to Form No. 01a or Form No. 01b in Annex II issued together with Decree 103/2024/ND-CP.

+ If there is insufficient basis to calculate the land rent, within 05 working days from the date of receiving the Information Transfer Form, the tax authority must notify in writing the agency transferring the Information Transfer Form for supplementation; within 05 working days after having sufficient cadastral documents as prescribed, the tax authority shall determine the unit price, calculate the land rent payable, and issue a land rent notice to the obligated party; simultaneously send it to the agency that transferred the Information Transfer Form.

- Annually, the tax authority notifies the land rent payment directly to the people who must pay land rent to carry out the collection and payment process during the stable period of land rent. If the basis for calculating the land rent changes, recalculation of land rent payable must be done, and the obligated party notified.

Land rent payment year is calculated by the calendar year, from January 1 to December 31 each year. If the first land lease year or the ending land lease year is less than 12 months, the first-year and ending-year rent will be calculated by the number of leased months. If the lease period in the first or last lease month is less than the number of days in a full month:

+ If the number of leased days is 15 days or more up to a full month (≥ 15 days), it is counted as a full month.

+ If the number of leased days is less than 15 days (< 15 days), no land rent is calculated for these days.

- After the stable land rent period stipulated in Clause 2, Article 153 of the Land Law 2024, the tax authority shall cooperate with the land management authority to determine and notify the lessee to adjust the land rent for the next stable period following the legal regulations at the adjustment time. If the cadastral information (location, road segment, area...) changes, the land management authority and the Land Registration Office are responsible for transferring information to the tax authority as the basis for determining the land rental unit price for the subsequent stable period according to regulations.

- The tax authority shall set up files to monitor the situation of land rent collection and payment according to the forms prescribed by the Ministry of Finance.

The book for transferring notices on financial obligations regarding land shall follow Form No. 04 in Annex II issued together with Decree 103/2024/ND-CP.

More details can be found in Decree 103/2024/ND-CP which takes effect in Vietnam from August 1, 2024.

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