Regulations on the collection and payment of the land rent in Vietnam

Regulations on the collection and payment of the land rent in Vietnam (Internet image)

Regulations on the collection and payment of the land rent in Vietnam

According to the provisions of Article 43 of Decree 103/2024/ND-CP, the collection and payment of land rent by the State for leased land in Vietnam is regulated as follows:

- Land rent shall be paid to the State budget in Vietnamese Dong (VND); in cases where foreign organizations or individuals, or Vietnamese residing abroad, pay land rent in foreign currency, conversion to VND shall be made according to legal provisions at the time of payment.

- The payment of land rent is regulated as follows:

+ The tax authority sends a notice of land rent payment to the land lessee; simultaneously, it is sent to the Land Registry Office or the agency responsible for land management and the State Treasury of the same level (for monitoring and accounting according to regulations).

+ The land lessee shall pay the land rent into the State budget as notified by the tax authority, according to legal provisions on tax management.

+ For cases of leasing land with a one-time lump sum payment for the entire lease period, after collecting the one-time payment for the entire lease period, the State budget revenue authority shall transfer the revenue and payment information to the tax authority as regulated by tax management law for the tax authority to forward to the agency responsible for land management to serve as a basis for land allocation to the lessee as regulated. Land allocation shall only be carried out when the lessee has fully paid the one-time land rent for the entire lease period as stipulated.

- Due date for land rent payment

+ In cases where the State leases land through the auction of land use rights, the due date for the payment of the auction winning price for land use rights must be specified in the auction plan or the decision recognizing the auction result as per the auction regulations to be implemented by the auction winner, but not beyond the due date for land rent payment as stipulated by tax management laws.

If  the  auction  winner  violates  the  obligation  to  pay  the  auction  winning  price  leading  to  the  cancellation  of  the  decision  recognizing  the  auction  result,  the  handling  shall  be  carried  out  according  to  the  asset  auction  laws,  and  the  decree  detailing  the  implementation  of  certain  provisions  of  the  Land Law 2024, and tax management laws.

+ For cases where the State leases land not through the auction of land use rights, the land rent payment deadline is in accordance with the tax management regulations but shall not exceed 180 days from the date of the decision approving land pricing for land rent calculation by the competent state authority (in cases of a one-time land rent payment for the entire lease period at a specific land price).

If  the  180-day  period  from  the  date  of  the  decision  approving  the  land  pricing  for  a  one-time  payment  for  the  entire  lease  period  lapses  without  full  payment  of  the  land  rent,  the  land  shall  not  be  handed  over  as  regulated.  If  the  payment  deadline  as  per  the  tax  authority  notice  lapses  without  the  full  payment  of  land  rent  into  the  State  budget,  a  late  payment  fine  shall  be  imposed  at  the  rate  prescribed  by  tax  management  law.In  cases  where  the  lessee  does  not  comply  with  enforcement  measures,  the  tax  authority  will  refer  the  documents  to  the  agency  responsible  for  land  management  to  submit  to  the  competent  authority  for  consideration  and  handling  as  prescribed  in  the  decree  detailing  the  implementation  of  certain  provisions  of  the   Land Law 2024  for  the  land  leasing  decision.

+ In cases where the State leases land under the form of annual land rent payment and the lessee requests, they shall be allowed to prepay land rent for several years of the land rent stability cycle (not exceeding 5 years) and shall have the rights of a land user under the form of annual land rent payment by the State.

- The Ministry of Finance regulates the forms, receipts, and monitoring books for the collection and payment of land rent.

Area used as basis for land rent calculation under the Latest Regulations in Vietnam

Under Article 24 of Decree 103/2024/ND-CP, the area used as basis for land rent calculation in Vietnam is regulated as follows:

(1) The area for land rent calculation is the area of land for which rent is collected as recorded in the decision on land lease, the decision adjusting the land lease decision, the decision permitting the change of land use purpose, the decision extending land use, the decision adjusting land use duration, the decision adjusting detailed planning, the decision permitting the change in land use form that requires land rent payment (hereinafter collectively referred to as the land leasing decision). If the area recorded in the land lease contract is greater than the area recorded in the land leasing decision, the area for rent calculation shall be determined according to the area recorded in the land lease contract.

(2) The area for land rent calculation in cases of recognition of rented land use rights is the area recognized according to the Land Financial Obligation Statement sent by the land management authority to the tax authority as prescribed by the decree on the issuance of land use right certificates or according to the signed land lease contract.

(3) The area for land rent calculation as stipulated in (1) and (2) is measured in square meters (m²).

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