Guidance on determining land area for calculating land levy in Vietnam

Guidance on determining land area for calculating land levy in Vietnam (Image from the Internet)

1. Guidance on determining land area for calculating land levy in Vietnam

According to Article 4 of Decree 103/2024/ND-CP, the land area for calculating land levy in Vietnam is defined as follows:

- The land area for calculating land levy in Vietnam in cases of land allocation, change of land use purposes, adjustment of detailed planning, or change of land use forms is the land area subject to the land levy as stated in the decision on land allocation, land use purpose conversion, adjustment of land allocation decision, adjustment of detailed planning, or change of land use forms issued by the competent state authorities.

- The land area for calculating land levy in Vietnam in cases of land use right recognition is the recognized land area noted in the Information Transfer Form to determine financial obligations regarding land (hereinafter referred to as the Information Transfer Form) issued by the land management authority and sent to the tax authority as prescribed in the Government of Vietnam’s decree on basic land investigation, land registration, issuance of land use right certificates, ownership rights of properties attached to land, and the land information system (hereinafter referred to as the Decree on land certification).

The determination of the homestead land allocation limit, the homestead land recognition limit for households and individuals is implemented according to the provisions of Articles 141, 195, and 196 of the Land Law 2024, the Government of Vietnam’s decree detailing the implementation of several articles of the Land Law 2024, and the Decree on land certification.

- The land area for calculating land levy in Vietnam as stipulated in Clauses 1 and 2, Article 4 of Decree 103/2024/ND-CP is calculated in square meters (m²).

2. Cases of land levy exemption in Vietnam

According to Article 18 of Decree 103/2024/ND-CP, land levy is exempt in the following cases:

- Land levy exemption when land is allocated, the land use purpose is changed, or land use rights are recognized (issuance of land certificates) within the homestead land limit for land users in the following cases:

+ To implement housing policies, homestead land for war invalids or sick soldiers who are unable to work, families of martyrs without main laborers;

+ The poor, households, or individuals who are ethnic minorities living in areas with particularly difficult socio-economic conditions, border areas, or islands.

+ Residential land for those who have to relocate when the state retrieves land due to life-threatening hazards.

+ Allocation of homestead land for households, individuals when the state retrieves land attached to residential houses requiring relocation but do not qualify for compensation for homestead land and have no other residence within the administrative unit where the land is retrieved.

+ Land area within an infrastructure investment project for cemeteries to transfer land use rights associated with infrastructure, construction of facilities to store ashes that the investor arranges to serve burial for social policy subjects as prescribed by law on construction, management, and use of cemeteries and cremation facilities.

- Land levy exemption within the homestead land allocation limit when issuing land certificates for the first time for land converted from non-homestead to homestead land due to household separation for ethnic minority households, poor households in areas with particularly difficult socio-economic conditions, ethnic and mountainous regions as per the list of particularly difficult socio-economic areas stipulated by the Government of Vietnam, the Prime Minister of the Government of Vietnam.

- Land levy exemption for homestead land within the homestead land allocation limit (including land allocation, land use purpose conversion, issuance of land certificates for those using land) for households, people with merits recognized as eligible for land levy exemption under the laws regarding people with merits.

Land levy exemption to implement social housing investment projects, housing for the people's armed forces, renovation, and reconstruction of apartment buildings following the housing law.

- The land levy exemption in other cases as stipulated in Clause 2, Article 157 of the Land Law 2024 shall be proposed by Ministries, sectors, and provincial People's Committees and sent to the Ministry of Finance for compilation and submission to the Government of Vietnam for regulation after obtaining the approval of the Standing Committee of the National Assembly.

- In cases where land levy is exempt and there is no need to file an application for land levy exemption or perform the procedure to determine the land price, the exempt land levy shall be calculated as per Clause 3, Article 157 of the Land Law 2024. When proceeding with land allocation procedures, the land management authority is responsible for recording and summarizing cases eligible for land levy exemption.

During implementation, if authorities find that individuals who have been granted land levy exemption do not meet the conditions for such exemption, they must involve relevant land management authorities for inspection and verification of eligibility for land levy exemption.

If individuals granted land levy exemption are found ineligible, the land management authority shall report to the respective People's Committee to revoke the exemption and transfer the information to the tax authority for coordination in calculating, collecting, and paying the land levy due (not exempted) as per policy and land price at the time the competent state authority issued the land allocation decision, including the late payment interest for land levy as stipulated by the tax management laws.

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