Cases of land use levy exemption under current regulations in Vietnam

Cases of land use levy exemption under current regulations in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Cases of land use levy exemption under current regulations in Vietnam

According to Article 11 of Decree 45/2014/ND-CP, land use levy in Vietnam shall be exempted in the following cases:

- Land use levy shall be exempted for the land area within the allocation quota for residential land which is used for implementation of housing policies, residential land for people with meritorious services to the revolution who are eligible for land use levy exemption under regulations on people with meritorious services;

Poor households and ethnic minority households in areas with extremely difficult socio-economic conditions or in border areas or on islands; or land used for construction of social houses under the housing law; or houses for people who have to relocate due to natural disasters.

Poor households shall be identified under the Prime Minister’s decision while ethnic minority households or individuals shall be identified under the Government’s regulations.

- Land use levy shall be exempted for the land area within the allocation quota for residential land upon first-time grant of certificates for land changed from non-residential land to residential land as a result of separation of households for ethnic minority households or poor households in communes with extremely difficult socio-economic conditions in ethnic minority and mountainous areas on the Prime Minister-prescribed list of communes with extremely difficult socio-economic conditions.

- Land use levy shall be exempted for the land area allocated within the allocation quota for residential land for fishing households or people living in river or lagoon areas that move to resettlement areas under approved master plans, plans or projects.

- Land use levy shall be exempted for the land area allocated within the allocation quota for residential land for resettlement or allocated to households and individuals in flooded residential clusters and lines under approved projects.

- The Prime Minister shall decide on land use levy exemption in other cases submitted by the Minister of Finance at the proposal of ministers, heads of ministerial-level agencies or government-attached agencies or chairpersons of provincial-level People’s Committees.

2. Cases of land use levy reduction in Vietnam

Cases of land use levy reduction under Article 12 of Decree 45/2014/ND-CP are as follows:

- A 50% reduction of land use levy for the land area within the allocation quota for residential land is applicable to ethnic minority households and poor households in localities not prescribed in Clause 2, Article 11 of Decree 45/2014/ND-CP upon issuance of a decision by a competent state agency on land allocation;

First-time recognition (grant of certificates) of land use rights for currently used land or upon permission for change from non-residential land to residential land.

Poor households shall be identified under the Prime Minister’s decision while ethnic minority households or individuals shall be identified under the Government’s regulations.

- Land use levy reduction for residential land within the allocation quota for residential land (including land allocation, change of land use purpose and grant of certificates for current land users) is applicable to people with meritorious service to revolution who are eligible for land use levy reduction under regulations on people with meritorious service.

- The Prime Minister shall decide on land use levy reduction in other cases submitted by the Minister of Finance at the proposal of ministers, heads of ministerial-level agencies or government-attached agencies or chairpersons of provincial-level People’s Committees.

3. Land use levy payers in Vietnam

Land use levy payers in Vietnam according to Article 2 of Decree 45/2014/ND-CP are as follows:

- Entities allocated land by the State for use in the following cases:

+ Households and individuals that are allocated residential land;

+ Economic organizations that are allocated land for implementing investment projects on construction of houses for sale or for combined sale and lease;

+ Overseas Vietnamese and foreign-invested enterprises that are allocated land for implementing investment projects on construction of houses for sale or for combined sale and lease;

+ Economic organizations that are allocated land for implementing investment projects on infrastructure of cemeteries or graveyards for transfer of the rights to use land with infrastructure (below refereed to as land for cemeteries or graveyards);

+ Economic organizations that are allocated land for construction of multi-story buildings for multiple purposes, including the area of houses for sale or for combined sale and lease.

- Current users of land permitted by the State for change of use purpose to residential land or land for cemeteries or graveyards in the following cases:

+ Agricultural land or non-agricultural land is allocated without land use levy and now permitted by a competent state agency for change to residential land or land for cemeteries or graveyards;

+ Agricultural land is allocated by the State with land use levy and changed to residential land or land for cemeteries or graveyards with land use levy;

+ Non-agricultural land (that is not residential land) is allocated by the State with land use levy and changed to residential land with land use levy;

+ Agricultural land or (non-residential) non-agricultural land is leased by the State and now changed to residential land or land for cemeteries or graveyards concurrently with the shift from land lease to land allocation with land use levy.

- Households and individuals that are currently using residential land or non-agricultural land and have such land recognized by the State as land used for a long term before July 1, 2014, shall, upon grant of certificates of land use rights and ownership of houses and other land-attached assets (below refereed to as certificates), fulfill financial obligations under Articles 6, 7, 8 and 9 of Decree 45/2014/ND-CP.

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