Circular No. 76/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance guiding a number of articles of the Government’s Decree No. 45/2014/ND-CP of May 15, 2014, providing the collection of land use levy

DETERMINATION OF LAND USE LEVY WHEN CHANGING THE LAND USE PURPOSE

According to the Circular No. 76/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance guiding a number of articles of the Government’s Decree No. 45/2014/ND-CP of May 15, 2014, providing the collection of land use levy, for households or individuals that are leased by the State non-agricultural land with one-off rental payment for the entire lease period, when changing the land use purpose to residential land at the same time with changing from land lease to land allocation, they shall pay a land use levy being the difference between the land use levy calculated based on the price or residential land minus the payable one-off land rental calculated based on the price of non-agricultural land of the remaining land lease period at the time the change of land use purpose is permitted by a competent agency.

For land originating from garden or pond land in the same land parcel with houses in a residential area and not being recognized as residential, the payable land use levy is equal to 50% of the difference between the land use levies calculated based on the price of residential land and based on the price of agricultural land.

Under this Circular, households and individuals that are permitted to change the land use purpose or granted certificates and have to pay land use levy under this Decree and households and individuals that are allocated by the State for resettlement land and meet financial difficulties and wish to owe land use levy, shall make a written request for change of land use purpose or a dossier of allocation of resettlement land; or make a written request for owing upon receipt of the notice of payable land use levy and submit it to the land use rights registration office or the district level Natural Resources and Environment Division where the land is located.

In case after 5 years from the date of owing written on the certificate, a household or an individual can pay the owed amount or within five years it/she/he fails to fully pay the owed amount, the still owed land use levy amount for each of the within-quota and over-quota areas shall be converted into a percentage (%) of unfulfilled financial obligation.