Cases of land rent exemption and reduction under the latest regulations in Vietnam

Cases of land rent exemption and reduction under the latest regulations in Vietnam​ (Image from the Internet)

Cases required to pay land rent in Vietnam

Based on Clause 2, Article 1 of Decree 103/2024/ND-CP, land rent (including calculation, collection, payment, exemption, and reduction of land rent; handling compensation costs, support, resettlement) is stipulated in Point b, Clause 1, Article 153 of the Land Law 2024 in the following cases:

- The State leases land (including land with water surfaces).

- The State permits the conversion of land use purpose to a type of land under the case where the State leases land and must pay land rent.

- The State leases land for the construction of underground facilities for business purposes, where such facilities are not part of an above-ground construction; land for constructing above-ground facilities to serve the operation, exploitation, and use of underground facilities as stipulated in Article 216 of the Land Law 2024.

- The State recognizes land use rights, extends land use, adjusts land use duration, adjusts decision to lease land, adjusts detailed planning, permits change of land use form, allows multi-purpose land use according to law requiring payment of land rent.

Latest regulations on land rent exemption, reduction in Vietnam

According to Article 157 of the Land Law 2024, regulations on exemption and reduction of land levy and land rent are as follows:

- Exemption and reduction of land levy and land rent are applicable in the following cases:

+ Using land for production and business purposes in investment incentive sectors or in investment incentive locations as per investment law and related laws, excluding land used for commercial housing construction, using commercial land;

+ Using land to implement housing policies, homestead land for people with meritorious services to the revolution, war invalids, or sick soldiers who are unable to work, families of martyrs without a primary laborer, and the poor; using land to implement investment projects for building social housing, worker accommodations within industrial zones, housing for the armed forces, renovation, and reconstruction of condominiums in accordance with housing law; homestead land for individuals required to relocate due to State land recovery with a human life threat; homestead land for individuals defined in points a and b, clause 3 of Article 124 of the Land Law 2024 working in border communes, islands, or island districts without commune-level administrative units in areas with economic and social difficulties, areas with special difficulties;

+ Ethnic minorities using land receive exemption or reduction of land levy and land rent according to the Government of Vietnam regulations;

+ Land used by public service providers under Point c, Clause 3, Article 120 of the Land Law 2024;

+ Using land to construct airport and airfield infrastructure; land for facilities and works providing aviation services; land for parking, maintenance workshops serving public passenger transport activities; land for above-ground constructions serving the operation, exploitation, and use of underground works;

+ Using land to construct railway infrastructure; land for industrial railway works; other auxiliary works directly serving train operations, passenger embarkation and disembarkation, cargo loading and unloading;

+ Using land to implement investment projects in the form of public-private partnerships;

+ Using land for setting up offices, drying yards, warehouses, factories; building service facilities directly supporting agriculture, forestry, aquaculture, salt production of cooperatives, cooperative federations;

+ Using land to construct water supply and drainage systems, wastewater treatment in urban and rural areas;

+ Using land that is not for defense and security for national defense and security purposes by army and police enterprises;

+ Allocating homestead land for families or individuals when the State recovers land associated with a residence requiring relocation, which does not qualify for compensation regarding homestead land and has no other residence within the commune-level administrative unit where the land was recovered;

- The Government of Vietnam shall stipulate other cases eligible for exemption, reduction of land levy and land rent not covered in the clause mentioned above after the agreement of the Standing Committee of the National Assembly.

- In cases where land levy and land rent are exempted, there is no need to carry out procedures for determining land price, calculating exempted land levy and land rent. Land users eligible for exemption are not required to apply for exemption procedures.

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