Is the compensation when the State recovers the land calculated based on the land price tables or the specific land price in Vietnam?

Is the compensation when the State recovers the land calculated based on the land price tables or the specific land price in Vietnam? (Internet image)

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

1. What shall the land price tables be used for in Vietnam?

According to Clause 2, Article 114 of the Land Law 2013, land price tables shall be used as a basis for the following cases:

- Calculation of land use levy when the State recognizes land use rights of households and individuals for land areas within land use quotas, or permits change of land use purpose from agricultural land or non-agricultural land which is non-residential land to residential land for land areas within land allocation quotas applied to households and individuals;

- Calculation of land use tax;

- Calculation of charges and fees in land management and use;

- Calculation of fines for administrative violations in the field of land;

- Calculation of indemnification paid to the State for damage caused in land management and use;

- Valuation of land use rights paid to the people who voluntarily return land to the State in case the returned land is allocated with land use levy, recognized of land use rights with land use levy, or leased land with full one-off rental payment for the entire lease period by the State.

2. What shall the specific land price be used for in Vietnam?

In Clause 4, Article 144 of the Land Law 2013, specific land price shall be used as a basis for the following cases:

- Calculation of land use levy when the State recognizes land use rights of households and individuals for land areas in excess of land use quotas, or permits change of land use purpose from agricultural land or non-agricultural land which is non-residential land to residential land for land areas in excess of land allocation quotas applied to households and individuals;

And determination of land rental for agricultural land areas in excess of land allocation quotas or quotas for receipt of transferred agricultural land use rights of households and individuals;

- Calculation of land use levy when the State allocates land with land use levy not through auction of land use rights, recognizes land use rights, or permits change of land use purpose for organizations that shall pay land use levy;

- Calculation of land rental when the State leases land not through auction of land use rights;

- Valuation of land use rights upon equitization of state enterprises that are allocated land with land use levy, leased land with one-off rental payment; and calculation of land rental in case equitized state enterprises are leased land by the State with annual rental payment;

- Calculation of compensation amount upon land expropriation by the State.

3. Is the compensation when the State recovers the land calculated based on the land price tables or the specific land price in Vietnam?

According to Sections 1 and 2 above, the compensation when the State recovers land is calculated according to the specific land price.

In addition, Article 74 of the Land Law 2013 stipulates the principles of compensation upon land expropriation by the State as follows:

- Land users who meet the conditions prescribed in Article 75 of this Law upon land expropriation by the State shall be compensated.

- The compensation must be made in the form of allocating new land with the same land use purpose with the expropriated land. If there is no land available for compensation, the land users shall receive compensation in money calculated according to the specific land price of the type of expropriated land which is decided by the provincial-level People’s Committee at the time of the recovery decision.

- The compensation upon land expropriation by the State must be made in a democratic, impartial, equal, public, timely and lawful manner.

Thus, the compensation when the State recovers the land is calculated bases on the specific land price.

Nguyen Ngoc Que Anh

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