Decree 103/2024/ND-CP prescribing land use levy and land rental

THE GOVERNMENT		THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness
No. 103/2024/ND-CP		Hanoi, July 30, 2024

 

DECREE

Providing land use levy and land rental^[1]

 

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the January 18, 2024 Land Law;

At the proposal of the Minister of Finance;

The Government promulgates the Decree providing land use levy and land rental.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides:

1. Land use levy (including provisions on land use levy calculation, collection, payment, and exemption or reduction; handling of money amounts for compensation, support and resettlement; and recording of owed land use levy amounts) specified at Point a, Clause 1, Article 153 of the Land Law in the following cases:

a/ The State allocates land with collection of land use levy.

b/ The State permits repurposing of a type of land to another type of land that falls into the case in which the State allocates land with collection of land use levy.

c/ The State recognizes land use rights, modifies land allocation decisions, adjusts detailed master plans, permits the change of land use forms, or permits the use of land for multiple purposes in accordance with law that gives rise to land use levy-related obligations.

2. Land rental (including provisions on land rental calculation, collection, payment, and exemption or reduction; and handling of money amounts for compensation, support and resettlement) specified at Point b, Clause 1, Article 153 of the Land Law in the following cases:

a/ The State leases land (including also land with water surface).

b/ The State permits repurposing of a type of land to another type of land that falls into the case in which the State leases land with collection of land rental.

c/ The State leases land for construction of underground works for business purposes and such works are not the underground parts of above-ground construction works; and land for construction of above-ground works serving the operation, exploitation and use of underground works specified in Article 216 of the Land Law.

d/ The State recognizes land use rights, extends land use period, adjusts land use period, modifies land lease decisions, adjusts detailed master plans, permits the change of land use forms, or permits the use of land for multiple purposes in accordance with law that falls into the case subject to land rental collection under regulations.

3. Payable additional amounts (increased land use levy amounts and increased land rental amounts) for cases in which those entitled to the State’s allocation of land, lease of land, grant of permission for land repurposing, recognition of land use rights, or acquisition of land use rights for implementation of investment projects fail to put the land into use, or delay the land use schedule as specified in Clause 8, Article 81, or at Point dd, Clause 1, Article 153, of the Land Law.

Article 2. Subjects of application

1. State agencies engaged in the management, calculation and collection of land use levy and land rental.

2. Land users defined in Article 4 of the Land Law that are entitled to the State’s allocation of land, lease of land, grant of permission for land repurposing, extension of land use period, adjustment of land use period, modification of land allocation or land lease decisions, adjustment of detailed master plans, grant of permission for change of land use forms, or recognition of land use rights and fall into cases subject to land use levy or land rental payment.

3. Other subjects involved in the calculation, collection, payment and management of land use levy and land rental.

 

Chapter II

CALCULATION, COLLECTION AND PAYMENT OF LAND USE LEVY

Section 1

CALCULATION OF LAND USE LEVY

Article 3. Bases for calculation of land use levy

1. Land area for calculation of land use levy as specified in Article 4 of this Decree.

2. Land price for calculation of land use levy as specified in Article 5 of this Decree.

3. Policies on land use levy exemption or reduction as specified in Articles 17, 18 and 19 of this Decree.

Article 4. Land area for calculation of land use levy

1. The land area for calculation of land use levy for those entitled to land allocation, grant of permission for land repurposing, modification of detailed master plans, or change of land use forms is the land area subject to land use levy collection stated in the competent state agency’s decision on land allocation, grant of permission for land repurposing, modification of land allocation decision, adjustment of detailed master plan, or change of land use form.

2. The land area for calculation of land use levy in case of recognition of land use rights is the recognized land area stated in the slip for forwarding information for determination of land-related financial obligations (below referred to as information slip) forwarded by the agency with land management function to the tax agency under the Government’s Decree on basic land surveys; registration and grant of certificates of land use rights and ownership of land-attached assets, and land information systems (below referred to as the Decree on grant of certificates).

The determination of residential land allocation quotas and residential land recognition quotas of households and individuals must comply with Articles 141, 195 and 196 of the Land Law, the Government’s Decree detailing the implementation of a number of articles of the Land Law, and the Decree on grant of certificates.

3. The land area for calculation of land use levy specified in Clauses 1 and 2 of this Article shall be calculated in square meter (m²).

Article 5. Land price for calculation of land use levy

1. The land price for calculation of land use levy is the land price stated in the land price list applicable to the cases specified at Points a, h, k and l, Clause 1, Article 159 of the Land Law.

2. The land price for calculation of land use levy is the specific land price applicable to the cases specified at Points a and dd, Clause 1, Article 160 of the Land Law, which shall be determined under the Government’s Decree on land prices.

3. The land price for calculation of land use levy is the winning bid applicable to the auction of land use rights.

4. The land prices for calculation of land use levy specified in Clauses 1, 2 and 3 of this Article shall be denominated in Vietnam dong per square meter (VND/m²).

Article 6. Calculation of land use levy upon land allocation by the State

1. The land use levy amount in case the State allocates land with collection of land use levy shall be calculated as follows:

In which:

- The land area for calculation of land use levy shall be determined under Article 4 of this Decree.

- The land price for calculation of land use levy shall be determined under Article 5 of this Decree.

- The time for calculation of land use levy must comply with Clause 3, Article 155 of the Land Law. Particularly in case of allocation of resettlement land, the time for determination of land prices or calculation of land use levy is the time the competent authority decides to approve the compensation, support and resettlement plan as specified in Clause 3, Article 111 of the Land Law.

2. In case the competent state agency issues land allocation decisions based on the implementation progress of an investment project and the progress of land recovery, compensation, support and resettlement specified in Clause 4, Article 116 of the Land Law, the calculation of land use levy and handling of money amounts for compensation, support and resettlement must comply with each of such decisions.

3. For a multi-story building on land allocated by the State directly to many land users, the land use levy amount shall be distributed to each land user. The distribution of the land use levy amount to each land user is as follows:

Land use levy amount distributed to each land user	=	Land use levy amount calculated under Clause 1 of this Article	x	Usable floor area of each land user
		Total usable floor area

In which:

The usable floor area shall be determined in accordance with the construction and housing laws.

The total usable floor area includes the total usable floor area under the private ownership by the owners of the multi-story building (apartment building), calculated according to the clearance area of apartments and the commercial and service area subject to land use levy (excluding the usable floor area under the common ownership of owners).

The distribution of land use levy under this Clause does not apply to cases of selling state-owned houses (now houses classified as public assets in accordance with the housing law) to current lessees.

4. When reselling social houses that are independent houses after the 5-year time limit as specified at Point e, Clause 1, Article 89 of the Housing Law, and the Government’s Decree detailing a number of articles of the Housing Law regarding social housing development and management, the sellers shall, in addition to payable amounts specified by law, pay 50% of the land use levy amount calculated under Clause 1 of this Article, in which:

a/ The land area for calculation of land use levy is the land area stated in the Certificate of land use rights and ownership of land-attached assets (below referred to as the Certificate) specified at Point e, Clause 1, Article 89 of the Housing Law.

b/ The land price for calculation of land use levy is the land price stated in the land price list.

c/ The time for calculation of land use levy must comply with the Government’s Decree detailing a number of articles of the Housing Law regarding  social housing development and management.

5. In case of payment of a money amount equivalent to the value of the land area with technical infrastructure thereon for the construction of social houses under Clause 2, Article 83 of the Housing Law and the Government’s Decree detailing a number of articles of the Housing Law regarding social housing development and management, such money amount, which is payable by the project owner, is equal to the land use levy amount calculated under Clause 1 of this Article, in which:

a/ The land area for calculation of land use levy is the residential land area in the commercial housing project with constructed technical infrastructure systems for the construction of social houses for which the project owner is permitted by a competent authority to pay the equivalent money amount.

b/ The land price for calculation of land use levy is the specific price of the land with constructed technical infrastructure systems for the construction of social houses.

c/ The time for land use levy calculation must comply with the Government’s Decree detailing a number of articles of the Housing Law regarding social housing development and management.

Article 7. Calculation of land use levy upon land repurposing for project implementation applicable to economic organizations, people of Vietnamese origin residing abroad and foreign-invested organizations

1. When obtaining a competent state agency’s permission for land repurposing for the implementation of a commercial housing project that fully satisfies the conditions specified in Clause 3, Article 122 of the Land Law, or a cemetery infrastructure investment project for the transfer of land use rights together with infrastructure or for construction of columbaria specified in Clause 2, Article 119 of the Land Law and such project is subject to  land use levy under Clauses 1 and 2, Article 121, and Article 156, of the Land Law, the land use levy amount shall be calculated as follows:

 

In which:

- The land use levy amount for the type of land after being repurposed shall be calculated as follows:

- The land use levy or land rental amount for the types of land within the project’s scope before being repurposed (below referred to as land-related amount before the land repurposing) shall be calculated under Clauses 2 and 3 of this Article.

- In case the land use levy amount for the type of land after being repurposed is smaller than or equal to the land-related amount before the land repurposing, the land use levy amount upon the land repurposing is zero (0).

2. The land-related amount before the land repurposing is as follows:

a/ For agricultural land or non-agricultural land other than residential land before being repurposed whose user is an organization allocated land by the State without payment of land use levy or leased land with annual payment of land rental, the land-related amount before the land repurposing is zero (0).

In case the land user has paid land rental in advance for a number of years under the 1993 land law or has advanced the money amount for compensation and ground clearance and is permitted by the competent state agency to have such amount deducted from the annual payable land rental amount by conversion into the number of years and months of fulfillment of financial obligations but such amount has not yet been fully deducted by the time of land repurposing, the number of years and months during which the land rental amount has been paid but not yet fully deducted shall be converted into a money amount based on the unit rate of land rental with annual payment at the time the competent state agency issues the decision on grant of permission for land repurposing in order to determine the land-related amount before the land repurposing to be deducted from the land use levy amount of the project.

b/ For agricultural land or non-agricultural land other than residential land before being repurposed that is allocated by the State for a definite period with collection of land use levy or that is leased by the State with one-off payment of land rental for the entire lease period and whose user has fulfilled the financial obligation concerning land use levy or land rental, the land-related amount before the land repurposing shall be calculated as follows:

In which:

- The land price corresponding to the allocation or lease period of the land before being repurposed is the specific land price for calculating land rental for one-off payment for the entire lease period.

- The remaining land use period is equal to (=) the allocation or lease period of the land before being repurposed minus (-) the period during which the land has been used before being repurposed.

If the remaining land use period determined under this Point is shorter than 1 full year, it shall be counted in months; if such a period is between 15 days and under 1 full month, it shall be regarded as 1 full month; if such a period is shorter than 15 days, no land-related amount before the land repurposing shall be calculated.

For agricultural land before being repurposed that is lawfully acquired from a household/individual allocated land by the State without collection of land use levy, the land-related amount before the land repurposing shall be calculated as follows:

c/ For non-agricultural land other than residential land before being repurposed that has a stable and long-term use period and was allocated by the State with collection of land use levy before July 1, 2004 (for which the land user has previously fulfilled the financial obligation concerning land use levy), the land-related amount before the land repurposing is equal to (=) land area multiplied by (x) by the price of the corresponding type of non-agricultural land of the 70-year period.

d/ In case of implementation of a commercial housing project in which the project-covered land before being repurposed takes different types, including residential land (but such residential land area is not included in a separate component of the project after the land repurposing), the value of such residential land area shall be included in the land-related amount before the land repurposing at the time the competent state agency issues the decision on grant of permission for land repurposing.

dd/ After the land repurposing, if a project covers multiple forms of land use, the handling of the land-related amount before the land repurposing calculated under Points a, b, c and d of this Clause is as follows:

In case the project involves the form of land allocation by the State with collection of land use levy and the form of land allocation by the State without collection of land use levy, the whole land-related amount before the land repurposing shall be deducted from the land use levy amount of the project.

In case the project involves the form of land allocation by the State with collection of land use levy, the form of land lease by the State, and the form of land allocation by the State without collection of land use levy, or the project involves the form of land allocation by the State with collection of land use levy and the form of land lease by the State, the whole land-related amount before the land repurposing shall be deducted from the land use levy or land rental amount of the project in adherence to the principle of distribution to the land areas subject to calculation of land use levy or land rental in proportion to the area of each part in the total area subject to land use levy or land rental payment.

3. The land price for calculation of the land-related amount before the land repurposing for the case specified in Clause 2 of this Article is the land price specified in Clause 2, Article 5 of this Decree, which is calculated at the time the competent state agency issues the decision on grant of permission for land repurposing.

4. In case economic organizations, people of Vietnamese origin residing abroad or foreign-invested organizations negotiate on the acquisition of land use rights for implementation of projects under Article 127 of the Land Law which requires land repurposing, land use levy shall be calculated under Clauses 1, 2 and 3 of this Article.

Article 8. Calculation of land use levy upon land repurposing for households and individuals

1. For a household/individual for which/whom the competent state agency issues the decision on grant of permission for repurposing to residential land, the land use levy amount shall be calculated as follows:

In which:

- The land use levy amount for the type of land after being repurposed shall be calculated as follows:

Land use levy amount for the type of land after being repurposed

=

Land area for calculation of land use levy after the land repurposing as specified in Article 4 of this Decree

x

Land price for calculation of land use levy specified in Clause 1, Article 5 of this Decree

- The land use levy or land rental amount for the types of land before being repurposed (below referred to as land-related amount before the land repurposing) shall be calculated under Clauses 2 and 3 of this Article.

- In case the land use levy amount for the type of land after being repurposed is smaller than or equal to the land-related amount before the land repurposing, the land use levy amount upon the land repurposing is zero (0).

2. The land-related amount before the land repurposing shall be calculated as follows:

a/ For a household/individual’s agricultural land before being repurposed that is allocated by the State without collection of land use levy, or for agricultural land before being repurposed that is lawfully acquired from another household/individual that has been allocated land by the State without collection of land use levy, the land-related amount before the land repurposing is equal to (=) the land area multiplied by (x) the price of the corresponding type of agricultural land stated in the land price list.

b/ For agricultural land before being repurposed that is leased by the State with one-off payment of land rental for the entire lease period, the land-related amount before the land repurposing shall be calculated as follows:

Land-related amount before the land repurposing	=	Land area subject to land rental multiplied by (x) land price corresponding to the lease period of the land before being repurposed	x	Remaining land use period
		Lease period of the land before being repurposed

In which:

- The land price corresponding to the lease period of the land before being repurposed is the land price stated in the land price list for calculation of land rental for one-off payment for the entire lease period.

- The remaining land use period is equal to (=) the allocation or lease period of the land before before being repurposed minus (-) the period during which the land has been used before being repurposed.

If the remaining land use period determined under this Point is shorter than 1 full year, it shall be calculated in months; if such a period is between 15 days and under 1 full month, it shall be regarded as 1 full month; if such a period is shorter than 15 days, the land use levy amount shall not be calculated.

c/ For agricultural land before being repurposed that is leased by the State with annual payment of land rental, the land-related amount before the land repurposing is zero (0).

3. For non-agricultural land other than residential land before being repurposed, the land-related amount before the land repurposing shall be calculated as follows:

a/ For non-agricultural land before being repurposed for which the State recognizes land use rights for households or individuals with a stable and long-term use period in accordance with the land law, the land-related amount before the land repurposing is equal to the land rental amount as one-off payment for the entire lease period applicable to land for non-agricultural production and business activities as stated in the land price list for a 70-year period at the time the competent state agency issues the decision on grant of permission for land repurposing.

b/ If the land before being repurposed is leased with annual payment of land rental, the land-related amount before the land repurposing is zero (0).

In case the land user has paid land rental in advance for a number of years under the 1993 land law or has advanced the money amount for compensation and ground clearance and is permitted by the state agency to have such paid amount deducted from the annual payable land rental amount by conversion into the number of years and months of fulfillment of financial obligations but such amount has not been fully deducted by the time of land repurposing, the number of years and months during which the land rental amount has been paid but not yet fully deducted shall be converted into a money amount based on the unit rate of land rental with annual payment at the time of land repurposing in order to determine the land-related amount before the land repurposing to be deducted from the land use levy amount.

c/ For non-agricultural land before being repurposed that is allocated by the State with collection of land use levy for a definite period or that is leased by the State with one-off payment of land rental for the entire lease period, the land-related amount before the land repurposing shall be calculated as follows:

Land-related amount before the land repurposing	=	Land area multiplied by (x) land price corresponding to the allocation or lease period of the land before being repurposed	x	Remaining land use period
		Allocation or lease period of the land before being repurposed

In which:

- The land price corresponding to the allocation or lease period of the land before being repurposed is the land price stated in the land price list for calculation of the land rental amount as one-off payment for the entire lease period.

- The remaining land use period is equal to (=) the allocation or lease period of the land before being repurposed minus (-) the period during which the land has been used before being repurposed.

If the remaining land use period determined under this Point is shorter than 1 full year, it shall be calculated in months; if such a period is between 15 days and under 1 full month, it shall be regarded as 1 full month; if such a period is shorter than 15 days, the land use levy amount shall not be calculated.

4. The land price for calculation of the land-related amount before the land repurposing for the cases specified in Clauses 2 and 3 of this Article is the land price specified in Clause 1, Article 5 of this Decree, which is calculated at the time the competent state agency issues the decision on grant of permission for land repurposing.

Article 9. Calculation of land use levy upon grant of the Certificate in case land-using households and individuals possess one of the papers concerning land use rights specified in Clauses 4, 5, 6 and 7, Article 137 of the Land Law

1. For a household/individual entitled to grant of the Certificate under Clause 4, Article 137 of the Land Law but having yet to pay land use levy, land use levy shall be calculated as follows:

a/ In case the competent state agency has issued a notice of payment of land use levy but the land user has not yet paid it, the land user shall pay the land use levy amount as notified; and also pay a late-payment interest on the land use levy amount in accordance with the law on tax administration for each period.

b/ In case the competent state agency has not yet issued a notice of payment of land use levy under regulations, the payable land use levy amount and payable additional amount shall be calculated in adherence to the principles specified in Clause 2, Article 257 of the Land Law and in accordance with Clause 2, Article 50 of this Decree; specifically, the time for calculation of land use levy is the time stated in one of the papers concerning land use rights specified in Clause 4, Article 137 of the Land Law. In case the time stated in one of the papers concerning land use rights is earlier than January 1, 2005, land use levy shall be calculated based on the land price applied in 2005 as stated in the land price list.

In case the land use levy amount and payable additional amount specified at this Point is larger than the land use levy amount calculated according to the policy and land price applied at the time of submission of a complete and valid dossier of application for the Certificate as specified by law, such amounts shall be calculated according to the land price and policy applied at the time of submission of a complete and valid dossier.

2. Households/individuals entitled to grant of the Certificate under Clause 5, Article 137 of the Land Law shall pay taxes, charges and fees (if any) in accordance with the law on taxes, charges and fees. Particularly for applicants for the Certificate whose names are stated in one of the papers concerning land use rights as specified in Clause 4, Article 137 of the Land Law and who have yet to pay land use levy, they shall, in addition to the tax, charge and fee obligations, also pay land use levy calculated under Clause 1 of this Article.

3. For a household/individual entitled to grant of the Certificate under Clause 6, Article 137 of the Land Law, if the judgment or ruling of the court, award or ruling of the Vietnam Commercial Arbitration, judgment enforcement decision of the judgment enforcement agency, or the competent state agency’s decision on settlement of land-related disputes, complaints and denunciations already has the content on settlement of land use levy-related issues, such document shall apply.

In case the above-mentioned document does not have the content on settlement of land use levy-related issues, depending on the origin of the land parcel, and land use papers and time, the determination of land use levy-related obligations, and taxes, charges and fees (if any) must comply with Clause 6, Article 137 of the Land Law and the corresponding provisions of Clauses 1, 2 and 4, Article 9, and Articles 10, 11, 12 and 13, of this Decree.

4. For a household/individual entitled to grant of the Certificate under Clause 7, Article 137 of the Land Law, land use levy shall be calculated as follows:

a/ In case the household/individual is granted the Certificate under Clause 1, 2 or 3, Article 137 of the Land Law without having to pay land use levy, it/he/she shall, upon being granted the Certificate, pay taxes, charges and fees (if any) in accordance with the law on taxes, charges and fees, and relevant laws.

b/ In case the household/individual is granted the Certificate under Clause 4 or 5, Article 137 of the Land Law in which the transferor has not yet paid land use levy, the household/individual applying for the Certificate shall, in addition to taxes, charges and fees (if any) in accordance with the law on on taxes, charges and fees and relevant laws, also pay land use levy calculated under Clause 1 or 2 of this Article.

Article 10. Calculation of land use levy upon grant of the Certificate in case households and individuals currently using land do not possess papers concerning land use rights but do neither violate the land law nor fall into the cases of being allocated land ultra vires specified in Clause 1, 2 and 3, Article 138 of the Land Law

1. For a household/individual that started to use land before December 18, 1980, and is now granted the Certificate under Points a and d, Clause 1, Article 138 of the Land Law, the land use levy amount shall be calculated as follows:

a/ For the land area exceeding the recognized residential land quota specified at Point a, Clause 1, Article 138 of the Land Law:

 

b/ For the land area currently used as agricultural land, in case the land user requests recognition of such land area as non-agricultural land and is granted the Certificate for use of such land area as non-agricultural land under Point d, Clause 1, Article 138 of the Land Law:

2. For a household/individual using land during the period between December 18, 1980, and the date before October 15, 1993, that is granted the Certificate under Clause 2, Article 138 of the Land Law, the land use levy amount shall be calculated as follows:

a/ For the land area exceeding the recognized residential land quota for which the land user is granted the Certificate under Point a, Clause 2, Article 138 of the Land Law:

b/ For the land area currently used as agricultural land, in case the land user requests recognition of such land area as non-agricultural land and is granted the Certificate for use of such land area as non-agricultural land under Point d, Clause 2, Article 138 of the Land Law:

3. For a household/individual using land during the period between October 15, 1993, and the date before July 1, 2004, and is granted the Certificate for use of such land as residential land under Clause 3, Article 138 of the Land Law, the land use levy amount shall be calculated as follows:

a/ For the recognized land area within the residential land allocation quota as specified in Clause 2, Article 195, or Clause 2, Article 196, of the Land Law, for which the land user is granted the Certificate for use of such land area as residential land under Point b, Clause 3, Article 138 of the Land Law:

 

 

b/ For the recognized land area exceeding the residential land allocation quota as specified in Clause 2, Article 195, or Clause 2, Article 196, of the Land Law, for which the land user is granted the Certificate for use of such land area as residential land under Point a, Clause 3, Article 138 of the Land Law:

c/ For a land parcel used for non-agricultural production and business or commercial and service purposes, which is now recognized and for which the land user is granted the Certificate for use for construction of non-agricultural production or commercial and service establishments under Point c, Clause 3, Article 138 of the Land Law:

d/ For the land area currently used as agricultural land, in case the land user requests recognition of such land area as non-agricultural land and is granted the Certificate for use of such land area as non-agricultural land under Point d, Clause 3, Article 138 of the Land Law:

4. For a household/individual using land during the period between July 1, 2004, and the date before July 1, 2014, that is granted the Certificate for use of such land as residential land under Clause 3, Article 138 of the Land Law, the land use levy amount shall be calculated as follows:

a/ For the recognized land area within the residential land allocation quota as specified in Clause 2, Article 195, or Clause 2, Article 196, of the Land Law, for which the land user is granted the Certificate for use of such land area as residential land under Point b, Clause 3, Article 138 of the Land Law:

b/ For the recognized land area exceeding the residential land allocation quota as specified in Clause 2, Article 195, or Clause 2, Article 196 of the Land Law, for which the land user is granted the Certificate for use of such land area as residential land under Point a, Clause 3, Article 138 of the Land Law:

c/ For a land parcel used for non-agricultural production and business or commercial and service purposes, which is recognized and for which the land user is granted the Certificate for use for construction of non-agricultural production or commercial and service establishments under Point c, Clause 3, Article 138 of the Land Law:

d/ For the land area currently used as agricultural land, in case the land user requests recognition of such land area as non-agricultural land and is granted the Certificate for use of such land area as non-agricultural land under Point d, Clause 3, Article 138 of the Land Law:

5. The land price for calculation of land use levy for the cases specified in Clauses 1, 2, 3 and 4 of this Article is the land price specified in Clause 1, Article 5 of this Decree at the time the land user submits a complete and valid dossier under regulations.

Article 11. Calculation of land use levy upon grant of the Certificate in case land-using households and individuals violated the land law before July 1, 2014, as specified in Clauses 1, 2 and 3, Article 139 of the Land Law

1. For a household/individual that started using land before December 18, 1980, and is granted by the competent state agency the Certificate for use of such land as residential land under Clause 1; Point c, Clause 2; or Point a, Clause 3, Article 139 of the Land Law, the land use levy amount shall be calculated as follows:

a/ For the land area for which the land user is granted the Certificate within the recognized residential land quota under Clause 5, Article 141 of the Land Law:

b/ For the land area for which the land user is granted the Certificate in excess of the recognized residential land quota under Clause 5, Article 141 of the Land Law:

 

c/ For the land area for which the land user is granted the Certificate for use as non-agricultural land (if any) under the Decree on grant of certificates:

2. For a household/individual using land during the period between December 18, 1980, and the date before October 15, 1993, that is granted by the competent state agency the Certificate for use of such land as residential land under Clause 1; Point c, Clause 2; or Point a, Clause 3, Article 139 of the Land Law, the land use levy amount shall be calculated as follows:

a/ For the land area for which the land user is granted the Certificate within the recognized residential land quota under Clause 5, Article 141 of the Land Law:

b/ For the land area for which the land user is granted the Certificate in excess of the recognized residential land quota under Clause 5, Article 141 of the Land Law:

c/ For the land area for which the land user is granted the Certificate for use as non-agricultural land (if any) under the Decree on grant of certificates:

3. For a household/individual using land during the period between October 15, 1993, and the date before July 1, 2004, that is granted by the competent state agency the Certificate for use of such land as residential land under Clause 1; Point c, Clause 2; or Point a, Clause 3, Article 139 of the Land Law, the land use levy amount shall be calculated as follows:

a/ For the land area for which the land user is granted the Certificate within the residential land allocation quota under Clause 2, Article 195; or Clause 2, Article 196, of the Land Law:

b/ For the land area for which the land user is granted the Certificate in excess of the residential land allocation quota under Clause 2, Article 195; or Clause 2, Article 196, of the Land Law:

Land use levy amount

=

Land area for which the land user is granted the Certificate in excess of the residential land allocation quota

x

Residential land price stated in the land price list

x

60%

c/ For the land area for which the land user is granted the Certificate for use as non-agricultural land (if any) under the Decree on grant of certificates:

4. For a household/individual using land during the period between July 1, 2004, and the date before July 1, 2014, that is granted by the competent state agency the Certificate for use of such land as residential land under Clause 1; Point c, Clause 2; or Point a, Clause 3, Article 139 of the Land Law, the land use levy amount shall be calculated as follows:

a/ For the land area for which the land user is granted the Certificate for use as residential land (within the residential land allocation quota or in excess of the residential land allocation quota as specified in Clause 2, Article 195; or Clause 2, Article 196, of the Land Law):

b/ For the land area for which the land user is granted the Certificate for use as non-agricultural land (if any) under the Decree on grant of certificates:

5. The land price for calculation of land use levy for the cases specified in Clauses 1, 2, 3 and 4 of this Article is the land price specified in Clause 1, Article 5 of this Decree at the time the land user submits a complete and valid dossier under regulations.

Article 12. Calculation of land use levy upon grant of the Certificate for those currently using land allocated ultra vires as specified in Article 140 of the Land Law

1. For a household/individual that is granted by the competent state agency the Certificate under Clause 1, Article 140 of the Land Law, the land use levy amount shall be calculated as follows:

a/ In case the Certificate is granted for the land area allocated within the residential land recognition quota under Clause 5, Article 141 of the Land Law, the land use levy amount shall be calculated under Clause 2, Article 138 of the Land Law.

b/ In case the Certificate is granted for the land area allocated in excess of the residential land recognition quota specified in Clause 5, Article 141 of the Land Law, or the land area currently used as agricultural land that is recognized for use for non-agricultural purposes, the land use levy amount shall be calculated under Clause 2, Article 10 of this Decree. In case the land user has papers proving its/his/her payment for being permitted to use the land under Clause 5 of this Article, it/he/she is not required to pay land use levy.

2. For a household/individual that is granted by the competent state agency the Certificate under Clause 2, Article 140 of the Land Law, the land use levy amount shall be calculated as follows:

a/ In case the land user has no papers proving its/his/her payment for being permitted to use the land, the land use levy amount shall be calculated under Clause 3, Article 138 of the Land Law and Clause 3, Article 10 of this Decree.

b/ In case the land user has papers proving its/his/her payment for being permitted to use the land under Clause 5 of this Article, it/he/she is not required to pay land use levy.

c/ In case the land user has papers proving its/his/her payment for being permitted to use the land but the paid amount is lower than the level specified by law at the time of payment, the paid amount shall be converted into percentage of the land area for which land use levy payment has been completed according to the policy and land price applied at the time of payment; the land use levy amount for the remaining land area shall be calculated under Point a of this Clause according to the policy and land price applied at the time of submission of a complete and valid dossier.

3. For a household/individuals that is granted by the competent state agency the Certificate under Point a, Clause 3, Article 140 of the Land Law, the land use levy amount shall be calculated as follows:

a/ In case the land user has no papers proving its/his/her payment for being permitted to use the land, the land use levy amount for the land area for which the land user is granted the Certificate for use as residential land shall be calculated as follows:

 

b/ In case the land user has papers proving its/his/her payment for being permitted to use the land under Clause 5 of this Article, it/he/she is not required to pay land use levy.

c/ In case the land user has papers proving its/his/her payment for being permitted to use the land but the paid amount is lower than the level specified by law at the time of payment, the paid amount shall be converted into percentage of the land area for which land use levy payment has been completed according to the policy and land price applied at the time of payment; the land use levy amount for the remaining land area shall be calculated under Point a of this Clause according to the policy and land price applied at the time of submission of a complete and valid dossier.

4. In case a household/individual is granted the Certificate under Clause 4, Article 140 of the Land Law, the payable land use levy amount is equal to 100% of the land use levy amount for the residential land area for which the the land user is granted Certificate at the time of submission of a complete and valid dossier according to the residential land price specified in Clause 1, Article 5 of this Decree. In case the land user has papers proving its/his/her payment for being permitted to use the land under regulations, the paid amount shall be deducted from the payable land use levy amount provided that the to-be-deducted amount does not exceed the payable land use levy amount.

5. Papers proving that the land user has made payment to the competent agency or organization for being permitted to use land as specified in Clauses 1, 2, 3 and 4 of this Article include:

a/ Receipts and invoices proving that the land user has made payment for being permitted to use land under Decision No. 186/HDBT of May 31, 1990, of the Council of Ministers, on payment of compensation for repurposed agricultural land and land under forests.

b/ Receipts and invoices as specified in the Ministry of Finance’s Circular No. 60/TC-TCT of  July 16, 1993, guiding the management of revenues from the sale of state-owned houses and the grant of use rights of land  for construction of houses and works.

c/ Receipts and invoices proving that the land user has made payment for being permitted to use land, issued by the commune-level People’s Committee or by the agency/organization that allocated land ultra vires.

d/ In case one of the papers specified at Points a, b and c of this Clause is lost or missing but the commune-level People’s Committee or the agency/organization that allocated land ultra vires still retained papers and records proving that the land user has made payment for being permitted to use land, the land user shall request the commune-level People’s Committee to give a written certification or make a true copy of such papers/records. The written certification or true copy specified at this Point shall be recognized as a paper proving payment as one of the papers specified at Points a, b and c of this Clause.

6. The land price for calculation of land use levy for the cases specified in Clauses 1, 2, 3 and 4 of this Article is the land price specified in Clause 1, Article 5 of this Decree at the time the land user submits a complete and valid dossier under regulations.

Article 13. Calculation of land use levy upon the modification of land allocation decisions specified at Point c, Clause 3, Article 155 of the Land Law, or renewal of the Certificate under Clause 6, Article 135 of the Land Law

1. In case the competent state agency modifies the land allocation decision under Point c, Clause 3, Article 155 of the Land Law, which results in an increase in the land area for calculation of land use levy and does not fall into the case specified in Clause 2 of this Article, the land use levy amount for the increased land area is equal to the increased land area multiplied by (x) the land price applied at the time of modification of the land allocation decision. In case such modification results in a reduction of the land area for calculation of land use levy (not falling into the case of land recovery by the State), thus leading to reduction of the payable land use levy amount compared to the paid amount, the difference shall be included in the project’s investment capital.

2. In case the competent state agency modifies the land allocation decision under Point c, Clause 3, Article 155 of the Land Law as a result of adjustment of the relevant detailed master plan, the land use levy amount shall be calculated under Article 14 of this Decree at the time of modification of the land allocation decision.

3. In case the renewed Certificate for a household/individual indicates that the actually measured land area is larger than the land area stated in the Certificate while the boundaries of the currently used land parcel remain unchanged as compared to those at the time of grant of the Certificate under the Decree on grant of certificates, the land user shall pay the land use levy amount for the increased residential land area in excess of the residential land quota in accordance with regulations at the time of grant of the initial certificate.

Article 14. Calculation of land use levy upon the issuance of decisions on adjustment of detailed master plans under Point d, Clause 3, Article 155; and Point dd, Clause 1, Article 160, of the Land Law

1. As proposed by the land user, when the competent state agency issues the decision on adjustment of the project’s detailed master plan in accordance with law, which results in a change in the land use structure or location of each type of land or land use coefficient, the land use levy amount shall be calculated as follows:

1.1. Before the adjustment of the detailed master plan, if the project does not fall into the case of land allocation by the State through auction of land use rights:

a/ Before the issuance of the decision on adjustment of the project’s detailed master plan, if the land user has completed the land use levy-related obligation under regulations:

a1/ When the competent state agency issues the decision on overall adjustment of the project’s detailed master plan, the land user shall pay the land use levy amount equal to the difference (if any) between the land use levy amount calculated for the whole project under the detailed master plan after the adjustment and that calculated for the whole project under the detailed master plan before the adjustment in accordance with regulations at the same time with the issuance of the decision on overall adjustment of the project’s detailed master plan.

a2/ When the competent state agency issues the decision on partial adjustment of the project’s detailed master plan (part of the project’s area), the land user shall pay the land use levy amount equal to the difference (if any) between the land use levy amount calculated for the partially adjusted area under the detailed master plan after the adjustment and that calculated for the partially adjusted area under the detailed master plan before the adjustment in accordance with regulations at the same time with the issuance of the decision on partial adjustment of the project’s detailed master plan.

In case it is impossible to calculate or distribute the land use levy amount for the adjusted land area, the land use levy amount shall be calculated for the whole project as specified at Item a1 of this Point.

b/ Before the issuance of the decision on adjustment of the detailed master plan for the project, if the land user has yet to complete the land use levy-related obligation under regulations (applicable only to projects allocated land before the effective date of the 2024 Land Law and now undergoing adjustment of detailed master plans), the land user shall comply with the following provisions:

b1/ In case of availability of the notice of the land use levy amount calculated under the detailed master plan before the adjustment, the land user shall fully pay such amount plus late-payment interest (if any) in accordance with the law on tax administration.

In case of unavailability of the decision on land price, the land user shall calculate and pay the land use levy amount under Clause 2, Article 257 of the Land Law and the additional amount specified in Clause 2, Article 50 of this Decree.

b2/ The land user shall pay an additional amount of land use levy that is equal to the difference (if any) between the land use levy amount payable under the master plan after the adjustment and that payable under the master plan before the adjustment, which is determined at the same time with the competent state agency’s issuance of the decision on adjustment of the master plan as specified at Item a of this Point.

1.2. Before the adjustment of the detailed master plan, if the project falls into the case of land allocation by the State through auction of land use rights in which the land user has completed the land use levy-related obligation, the land use levy amount upon adjustment of the detailed master plan shall be calculated as follows:

a/ In case the competent state agency issues the decision on overall adjustment of the project’s detailed master plan, the land use levy amount shall be calculated as follows:

b/ In case the competent state agency issues the decision on partial adjustment of the detailed master plan for the project (part of the project’s area), the land use levy amount shall be calculated as follows:

Land use levy amount

=

[

Land use levy amount calculated for the partially adjusted land area under the detailed master plan after the adjustment in accordance with law at the time of issuance of the decision on adjustment of the detailed master plan

-

Land use levy amount calculated for the partially adjusted land area under the detailed master plan before the adjustment in accordance with law at the time of issuance of the decision on adjustment of the detailed master plan

]

x

Winning bid Reserve price

In case it is impossible to calculate or distribute the land use levy amount for the partially adjusted land area, the land use levy amount shall be calculated for the whole project as specified at Point a of this Clause.

2. If, to meet management requirements, the competent state agency issues the decision on adjustment of the detailed master plan for the project under law, thus changing the land use structure or location of each type of land or land use coefficient which results in the increase or reduction of the payable land use levy amount:

a/ If the land use levy amount calculated under the detailed master plan after the adjustment is larger than the land use levy amount calculated under the detailed master plan before the adjustment at the same time with the issuance of the decision on adjustment of the detailed master plan, the land user shall pay an additional amount that is equal to the difference between the land use levy amount payable under the detailed master plan after the adjustment and that payable under the detailed master plan before the adjustment. The calculation of the land use levy amount payable under the detailed master plan before the adjustment and that payable under the detailed master plan after the adjustment must comply with Article 6 of this Decree.

b/ If the land use levy amount calculated under the detailed master plan after the adjustment is smaller than the land use levy amount calculated under the detailed master plan before the adjustment at the same time with the issuance of the decision on adjustment of the detailed master plan, the land user will be entitled to refund of the difference. The calculation of the land use levy amount payable under the detailed master plan before the adjustment and that payable under the detailed master plan after the adjustment must comply with Article 6 of this Decree.

The refund of the land use levy amount to the land user specified at this Point must comply with the law on the state budget and law on tax administration.

3. If, after the adjustment of the detailed master plan, the project involves different forms of land use (land allocation with collection of land use levy, land allocation without collection of land use levy, and land lease), the land use levy or land rental amount for the whole project (or for the partially adjusted land area) is equal to the difference between the total land use levy or land rental amount calculated under the detailed master plan after the adjustment and the total land use levy or land rental amount calculated under the detailed master plan before the adjustment at the same time with the issuance of the decision on adjustment of the detailed master plan.

4. For economic organizations, people of Vietnamese origin residing abroad, and foreign-invested organizations that have negotiated on the acquisition of land use rights for implementation of their projects under Article 127 of the Land Law which requires adjustment of detailed master plans for the projects, the land use levy amount shall be calculated under Clauses 1, 2 and 3 of this Article.

5. In case the land plot or land parcel for implementation of a commercial housing project is the lawful residential land area acquired by the household/individual specified at Point b, Clause 1, Article 127 of the Land Law, the land use levy amount for such land plot or land parcel before the adjustment of the master plan shall be calculated as in the case of settlement of compensation and support for residential land of households and individuals specified in the Decree on compensation, support and resettlement upon land recovery by the State and the Decree on land prices.

Article 15. Calculation of payable additional amounts upon the extension of project implementation period as specified in Clause 8, Article 81, and at Point dd, Clause 1, Article 153, of the Land Law

1. In case the project owner is entitled to land use period extension for its project under Clause 8, Article 81 of the Land Law, it shall, in addition to the payable land use levy amount, pay to the State an additional amount, which shall be calculated as follows:

In particular, the extended period of between 15 days and under 1 full month shall be regarded as 1 full month; in case the extended period is shorter than 15 days, no additional amount shall be calculated.

2. The provisions on deduction of the money amount for compensation, support and resettlement and provisions on land use levy exemption or reduction do not apply to the amount specified in Clause 1 of this Article.

 Article 16. Handling of amounts of compensation, support and resettlement under Article 94 of the Land Law, determination of the remaining land investment costs under Article 107 of the Land Law

1. In case a land development fund advances capital to units/organizations performing the compensation, support and resettlement work so as to create a land fund for land allocation with collection of land use levy or in case state budget funds have been arranged for the compensation, support and resettlement work, the amounts of compensation, support and resettlement shall be handled as follows:

Land users that are allocated land by the State with collection of land use levy and not exempt from land use levy must pay land use levy to the state budget as prescribed by law. The reimbursement of amounts of compensation, support and resettlement to the land development fund must comply with the law on land development funds and the law on the state budget.

Land users that are allocated land by the State with collection of land use levy and exempt from land use levy must reimburse the amounts of compensation, support and resettlement to the state budget and may include such amounts in their project investment costs according to Clause 2, Article 94 of the Land Law. The reimbursement of amounts of compensation, support and resettlement to the land development fund must comply with the law on land development funds and the law on the state budget.

2. The deduction of amounts of compensation, support and resettlement in case the State allocates land with collection of land use levy but the project-implementing unit voluntarily advances amounts of compensation, support and resettlement to the unit/organization performing the compensation, support and resettlement work under Clause 2, Article 94 of the Land Law must comply with the following regulations:

a/ The land user shall coordinate with the unit/organization performing the compensation, support and resettlement work to prepare a dossier of request for deduction of the amount of compensation, support and resettlement and submit it, together with a dossier for determination of financial obligations regarding land use levy, to the land registration office or agency with land management function or inter-agency single-window division. The dossier must comprise:

a1/ A request for deduction of amount of compensation, support and resettlement, made by the project-implementing unit: 1 original;

a2/ The compensation, support and resettlement plan approved by a competent state agency: 1 copy;

a3/ The document proving the project-implementing unit’s transfer of money to the unit/organization performing the compensation, support and resettlement work: 1 copy;

a4/ A list of amounts paid for compensation, support and resettlement, made by the unit/organization performing the compensation, support and resettlement work and stating the amounts paid, serial number of payment documents, date of payment, and payee: 1 original.

b/ The land registration office or agency with land management function or inter-agency single-window division shall forward the dossiers specified at Point a of this Clause to the district-level People’s Committee.

c/ Based on the documents and dossiers specified at Point b of this Clause, within 30 days, the district-level People’s Committee shall review and issue a document confirming the amount of compensation, support and resettlement allowed to be deducted from land use levy and send such document to the tax agency for the latter to deduct the advance payment from the payable land use levy amount.

d/ The unit/organization performing the compensation, support and resettlement work shall be held responsible for the accuracy of the data and information specified at Point a of this Clause, except the documents and papers included in the dossiers that have been previously approved, decided or resolved by other competent agencies, organizations and individuals. The district-level People’s Committee shall be held responsible for the accuracy of the data on the amount of compensation, support and resettlement allowed to be deducted from land use levy for use as a basis for the tax agency to deduct the advance payment from the payable land use levy amount according to Point c of this Clause, except documents and papers included in the dossiers that have been previously approved, decided or resolved by other competent agencies, organizations and individuals.

3. For cases of land allocation by the State with collection of land use levy or land lease by the State, if the project-implementing unit voluntarily advances the amount of compensation, support and resettlement according to the compensation, support and resettlement plan approved by the competent state agency under Clause 2, Article 94 of the Land Law and the investment project involves different forms of land use (land allocation without collection of land use levy, land allocation with collection of land use levy, and land lease), the amount of compensation, support and resettlement to be deducted according to the plan approved by the competent state agency shall be calculated based on land area of each type. The amount of compensation, support and resettlement for the land area used for public purposes that is allocated without collection of land use levy shall be distributed to the land area subject to land use levy or land rental based on the proportion of the area of such land area in the total land area subject to payment of land use levy or land rental so as to make deduction according to regulations.

The amount of compensation, support and resettlement specified in this Clause will not be distributed to the land rental amount of the area for construction of underground works (other than underground parts of above-ground construction works) or underground parts of above-ground construction works with the area of underground works exceeding the surface land area.

The remaining amount of compensation, support and resettlement that has not been deducted from the land use levy or land rental amount (if any) shall be included in the project’s investment cost.

4. In case the to-be-recovered land is previously allocated by the State with collection of land use levy, in which the advanced amount of compensation, support and resettlement has been included in the project’s investment capital and the land user has received compensation for land, the remaining land investment costs specified at Point d, Clause 2, Article 107 of the Land Law and Clause 6, Article 17 of Decree No. 88/2024/ND-CP shall be regarded as zero (0).

Section 2

LAND USE LEVY EXEMPTION OR REDUCTION

Article 17. Principles for application of land use levy exemption or reduction for subjects eligible for land use levy exemption or reduction

1. Households and individuals eligible for land use levy exemption or reduction as prescribed in Articles 18 and 19 of this Decree shall enjoy exemption or reduction only once when they are allocated land by the State to build houses or permitted to repurpose other land to residential land or have their land recognized as residential land in accordance with the land law.

2. For a household with more than one member eligible for land use levy reduction, the reduction level applicable to the household shall be the total of the reduction levels applicable to the household’s members, which, however, must not exceed the payable land use levy amount.

3. Land users that are eligible for both land use exemption and land use levy reduction according to regulations shall be exempt from land use levy. Land users that are eligible for land use levy reduction at different reduction levels shall enjoy the highest reduction level.

4. Land use levy exemption and reduction upon land allocation, grant of permission for land repurposing, or recognition of land use rights by the State shall apply directly only to the subjects eligible for exemption or reduction.

The reduction of land use levy shall be calculated based on the payable land use levy amounts according to Articles 6, 7, 8, 9, 10, 11 and 12 of this Decree. Land users shall submit documents proving the eligibility for land use levy reduction as prescribed by law.

5. Land use levy exemption or reduction shall not apply to cases of auction of land use rights for land allocation with collection of land use levy.

Land use levy exemption or reduction in case of land allocation for resettlement must comply with the Decree on compensation, support and resettlement upon land recovery by the State.

6. In case a competent state agency detects that a land user that has enjoyed land use levy exemption or reduction is ineligible for land use levy exemption or reduction (if any) as prescribed, or uses land for purposes other than those stated in the land allocation decision but does not fall into cases of land recovery as prescribed by the land law, or in case the land user requests non-application of incentives as it/he/she is no longer eligible for land use levy exemption or reduction, it/he/she must pay the exempted or reduced land use levy amount to the state budget. The recovery of the exempted or reduced land use levy amount is as follows:

a/ The exempted or reduced land use levy amount to be recovered shall be calculated based on the land price in the land price list effective at the time the State issues the land allocation decision plus (+) an amount equivalent to the late-payment interest on such land use levy amount as prescribed by the law on tax administration effective in each period.

b/ The late-payment interest specified at Point a of this Clause shall be calculated for the period from the time the land user starts enjoying land use levy exemption or reduction to the time a competent state agency decides to recover the exempted or reduced land use levy amount.

c/ The tax agency shall recover the exempted or reduced land use levy amount.

7. In case a land user has to reimburse the exempted or reduced land use levy amount under Clause 6 of this Article, the amount of compensation, support and resettlement that has been advanced (if any) shall be deducted from the to-be-reimbursed land use levy amount according to Clause 2, Article 94 of the Land Law and Clauses 2 and 3, Article 16 of this Decree. In case the amount of compensation, support and resettlement has been included in the project investment costs, it shall not be deducted from the payable land use levy amount.

8. When determining land use levy exemption or reduction for households and individuals, the geographical areas (regions) with extremely difficult socio-economic conditions and geographical areas (regions) with difficult socio-economic conditions specified in Articles 18 and 19 of this Decree are villages, communes and rural districts defined according to regulations or decisions of the Government, the Prime Minister, or agencies and persons assigned, decentralized, or authorized by the Government or the Prime Minister.

The identification of poor people must comply with decisions of the Prime Minister; the determination of households or individuals as ethnic minorities must comply with regulations or decisions of the Government or the Prime Minister.

9. The exemption from land use levy for implementation of investment projects on construction of social houses or houses for the people’s armed forces, and for condominium renovation and reconstruction must comply with the housing law.

Land use levy exemption or reduction for implementation of housing and land policies for people with meritorious contributions to the revolution must comply with the law on people with meritorious contributions to the revolution.

10. In case a domestic organization that has enjoyed land use levy exemption or reduction according to law and now transfers or contributes land use rights as capital or transfers its investment project associated with transfer of land use rights, the following regulations shall apply:

a/ In case the domestic organization has enjoyed land use levy exemption or reduction according to law and now transfers or contributes land use rights as capital or transfers its investment project associated with transfer of land use rights in accordance with law (including also cases in which project owners have sold social houses already leased for 10 years according to Clause 9, Article 88 of the Housing Law, and the Decree detailing a number of articles of the Housing Law regarding social housing development and management), it must pay to the State a money amount corresponding to the land use levy amount exempted or reduced at the time of land allocation or grant of permission for land repurposing as prescribed at Point b, Clause 3, Article 33 of the Land Law and an additional amount equal to the late-payment interest for the period from the date of starting to enjoy land use levy exemption or reduction to the date of transfer of land use rights or contribution of land use rights as capital, calculated according to the law on tax administration effective in each period.

The calculation of the land use levy amount exempted or reduced to be paid to the State must comply with Articles 6 and 7 of this Decree according to the policies and land prices effective at the time of land allocation or land repurposing.

b/ For cases of transferring a cemetery infrastructure investment project for transfer of land use rights associated with infrastructure, or for construction of columbaria in association with transfer of land use rights, the following regulations shall apply:

b1/ In case the exempted or reduced land use levy amount is not included in the transfer price and the transferee will continue to implement the project, the transferee continues to enjoy land use levy exemption or reduction according to the investment law for the remaining period of the project.

b2/ If not continuing to implement the project, the transferee must pay land use levy according to the regulations applicable to the project after the transfer. In case the transferor has fulfilled part of the financial obligations regarding land use levy, the transferee may inherit the part of the obligations that the transferor has fulfilled.

Article 18. Land use levy exemption

Land use levy shall be exempted in the following cases:

1. To exempt land use levy when competent state agencies allocate land, permit land repurposing, or recognize land use rights (grant the Certificate) within the residential land limit for land users in the following cases:

a/ Implementing housing and residential land policies for invalids or diseased soldiers who have lost working capacity and martyrs’ households without any breadwinner;

b/ Poor people or ethnic minority households or individuals living in areas with extremely difficult socio-economic conditions, border areas or islands;

c/ Residential land of people subject to relocation upon land recovery by the State due to risks to human life;

d/ Allocating residential land to households and individuals that are subject to relocation upon recovery of house-attached land by the State but are ineligible for compensation for residential land and have no other accommodation in the commune-level administrative unit where exists the recovered land parcel.

dd/ The land area at investment projects on construction of cemetery infrastructure for transfer of land use rights associated with infrastructure, or construction of columbaria, which are arranged by the project owners to serve social policy beneficiaries according to the law on construction, management and use of cemeteries and cremation facilities.

2. To exempt land use levy for land within the residential land allocation limit for land users upon first-time issuance of the Certificate when repurposing non-residential land to residential land due to separation of household, for ethnic minority households and poor households in areas with extremely difficult socio-economic conditions, areas inhabited by ethnic minority people, and mountainous areas in the List of areas with extremely difficult socio-economic conditions prescribed by the Government or the Prime Minister.

3. To exempt land use levy for residential land within the residential land allocation limit (including cases of land allocation, land repurposing, and issuance of the Certificate to current land users) for households and people with meritorious services to the revolution that are eligible for land use levy exemption according to the law on people with meritorious services.

Land use levy exemption for implementing investment projects on construction of social houses or houses for the people’s armed forces, or for condominium renovation and reconstruction must comply with the housing law.

4. Land use levy exemption in other cases as specified in Clause 2, Article 157 of the Land Law shall be proposed by ministries, sectors and provincial-level People’s Committees to the Ministry of Finance for summarization and submission to the Government for decision after obtaining the approval of the National Assembly Standing Committee.

5. For cases eligible for land use levy exemption without having to carry out procedures for requesting land use levy exemption and procedures for determination of land prices and calculation of to-be-exempted land use levy amount prescribed in Clause 3, Article 157 of the Land Law, when carrying out land allocation procedures, agencies with land management function shall make statistics of, and sum up, cases eligible for land use levy exemption.

During the implementation process, if detecting that a person who has enjoyed land use levy exemption is ineligible for land use levy exemption (if any), the competent agency or person shall forward the case to the agency with land management function for the latter to coordinate with functional agencies in examining, reviewing and determining the status of eligibility for land use levy exemption.

If the person that has enjoyed land use levy exemption is ineligible therefor, the agency with land management function shall report thereon to the People’s Committee at the same level for the latter to decide on revocation of the land use levy exemption and forward information to the tax agency for coordination in calculation and collection of the payable land use levy amount (not exempted) according to the policy and land price effective at the time the competent state agency issues the land allocation decision and an amount equivalent to the late-payment interest on the payable land use levy amount according to the law on tax administration.

Article 19. Land use levy reduction

1. To reduce land use levy by 50% for poor people and ethnic minority households and individuals living in geographical areas other than those specified at Point b, Clause 1, Article 18 of this Decree when competent state agencies allocate land, permit land repurposing, or recognize land use rights.

2. To reduce land use levy by 50% for residential land for the subjects specified at Points a and b, Clause 3, Article 124 of the Land Law who currently work in border or island communes or island districts without commune-level administrative units in areas with extremely difficult socio-economic conditions.

3. To reduce land use levy by 30% for residential land for the subjects specified at Points a and b, Clause 3, Article 124 of the Land Law who currently work in border or island communes or island districts without commune-level administrative units in areas with difficult socio-economic conditions.

4. To reduce land use levy for residential land within the residential land allocation limit (including cases of land allocation, land repurposing, and issuance of the Certificate to current land users) for people with meritorious services to the revolution who are eligible for land use levy reduction as prescribed by the law on people with meritorious services to the revolution.

5. To reduce land use levy according to the investment law and relevant laws for cases of using land for implementing cemetery infrastructure investment projects for transfer of land use rights associated with infrastructure or for construction of columbaria according to Point a, Clause 1, Article 157 of the Land Law:

a/ To reduce land use levy by 50% for projects in areas with extremely difficult socio-economic conditions.

b/ To reduce land use levy by 30% for project in areas with difficult socio-economic conditions.

c/ To reduce land use levy by 20% for projects in areas other than those specified at Points a and b of this Clause.

The list of areas with difficult socio-economic conditions and areas with extremely difficult socio-economic conditions specified in this Clause must comply with the investment law.

6. Based on land dossiers and documents forwarded from state management agencies in charge of land in accordance with law, tax agencies shall calculate the payable land use levy amounts and the to-be-reduced land use levy amounts. The reduction of land use levy shall be carried out together with the calculation of payable land use levy amounts according to Article 20 of this Decree.

7. The reduction of land use levy in other cases as specified in Clause 2, Article 157 of the Land Law shall be proposed by ministries, sectors and provincial-level People’s Committees to the Ministry of Finance for summarization and submission to the Government for decision after obtaining the approval of the National Assembly Standing Committee.

8. Competence to calculate and decide on to-be-reduced land use levy amounts:

a/ Directors of provincial-level Tax Departments shall determine to-be-reduced land use levy amounts and issue land use levy reduction decisions for economic organizations, people of Vietnamese origin residing abroad, and foreign-invested organizations.

b/ Heads of district-level Tax Branches or regional Tax Branches shall determine to-be-reduced land use levy amounts and issue land use levy reduction decisions for households and individuals.

Section 3

CALCULATION OF PAYABLE LAND USE LEVY AMOUNTS

Article 20. Calculation of payable land use levy amounts

1. In case land users are ineligible for land use levy exemption or reduction and do not fall into cases eligible for reimbursement of amounts of compensation, support and resettlement, the payable land use levy amount shall be calculated according to Articles 6, 7, 8, 9, 10, 11, 12, 13, 14, and 15 of this Decree.

2. In case land users are eligible for land use levy reduction and  reimbursement of amounts of compensation, support, and resettlement, the payable land use levy amount shall be calculated as follows:

 

Section 4

COLLECTION AND PAYMENT OF LAND USE LEVY

Article 21. Order of calculation, collection and payment of land use levy

1. For economic organizations, foreign-invested organizations, and people of Vietnamese origin residing abroad:

a/ Based on the decision on land allocation, decision on land repurposing, decision on adjustment of detailed master plan, or decision on change of land use form, the concerned land user’s demand for recognition of land use rights and dossiers submitted by the land user to a competent agency specified in the Decree on grant of the Certificate, the land registration office or agency with land management function or inter-agency single-window division shall forward the information slip to the tax agency for calculation of land use levy in accordance with law.

For the case specified in Clause 5, Article 6 of this Decree, in addition to the above-mentioned dossier, the project owner shall submit additional dossiers as prescribed in the Government’s Decree detailing a number of articles of the Housing Law regarding social housing development and management.

b/ The tax agency shall base itself on the dossiers forwarded by the land registration office or agency with land management function or inter-agency single-window division, comprising:

b1/ Information slip (information on the land user, area and location of the land parcel, land use purpose, origin of the land parcel and specific land price, for cases requiring determination of specific land price).

b2/ Land allocation decision, decision permitting land repurposing, decision approving the specific land price for calculation of the project’s payable land use levy amount, or land price list.

b3/ The district-level People’s Committee’s document confirming the amount of compensation, support and resettlement to be deducted from land use levy (in case the project-implementing unit advances the amount of compensation, support and resettlement). In this case, the dossiers must comply with Clause 2, Article 16 of this Decree.

b4/ The land user’s request for land use levy reduction and documents proving eligibility for land use levy reduction, made according to the form specified in the law on tax administration (if the land user is eligible for land use levy reduction).

Within 7 working days after receiving a complete dossier specified in this Clause, the tax agency shall calculate the payable land use levy amount and issue a notice of land use levy payment according to regulations (the notice of land use levy payment shall be made according to Form No. 01a or Form No. 01b provided in Appendix I to this Decree).

The notice of land use levy payment shall be sent simultaneously to the State Treasury office at the same level for monitoring and accounting according to regulations.

c/ In case of lacking grounds for calculation of the land use levy amount and other payable amounts, within 5 working days after receiving the dossier, the tax agency shall notify in writing thereof to the land registration office or agency with land management function or inter-agency single-window division and the district-level People’s Committee (in case of requesting deduction of the amount of compensation, support and resettlement) for dossier supplementation; the tax agency shall calculate the payable land use levy amount and issue a notice of land use levy payment within 5 working days after receiving supplementary documents. At the same time, the tax agency shall prepare a dossier for monitoring the collection and payment of land use levy according to Form No. 04 provided in Appendix I to this Decree.

The register of delivery of notices of land-related financial obligations shall be made according to Form No. 04 provided in Appendix II to this Decree.

d/ The land user shall pay land use levy to the state budget according to the tax agency’s notice in accordance with the law on tax administration.

dd/ In case of land allocation with collection of land use levy, after collecting land use levy, the state budget collection agency shall forward information on collection and payment of state budget revenues to the tax agency in accordance with the law on tax administration for the latter to forward such information to the agency with land management function for use as a basis for reporting to the state agency competent to allocate land to the land user according to regulations. Land shall be allocated only after the land user has fully paid land use levy according to regulations.

2. For households and individuals:

a/ Based on the land allocation decision, decision permitting land repurposing or decision on change of land use form, request for (document on) recognition of land use rights of a household/individual and other documents as prescribed in the Decree on issuance of certificates, the land registration office or agency with land management function or inter-agency single-window division shall forward the information slip to the tax agency for the latter to calculate the payable land use levy amount in accordance with the regulations on grant of certificates.

b/ Based on the information slip (information on the land user, area and location of the land parcel, land use purpose, and origin of the land parcel) forwarded by the land registration office or agency with land management function or inter-agency single-window division; the land price list and the land use levy reduction level determined or approved by competent authorities (if any), within 5 working days after receiving a complete and valid dossier, the tax agency shall calculate the payable land use levy amount and the to-be-reduced land use levy amount and issue a notice of land use levy payment and a decision on land use levy reduction (if the land user is eligible for land use levy reduction) and send them to the household/individual concerned or the agency forwarding the information slip according to regulations. The decision on land use levy reduction shall be made according to Form No. 02 provided in Appendix I to this Decree.

The notice of land use levy payment shall be sent simultaneously to the State Treasury office at the same level for monitoring and accounting according to regulations.

c/ In case of lacking grounds for calculation of land use levy and other payable amounts, within 5 working days after receiving the dossier, the tax agency shall send a notice thereof to the land registration office or agency with land management function or inter-agency single-window division and concurrently to the district-level People’s Committee (in case of requesting deduction of the amount of compensation, support and resettlement) for dossier supplementation; the tax agency shall issue a notice of land use levy payment and a decision on reduction of land use levy (if the land user is eligible for land use levy reduction) within 5 working days after receiving all supplementary documents. At the same time, the tax agency shall prepare a dossier for monitoring the collection and payment of land use levy according to Form No. 04 provided in Appendix I to this Decree.

d/ The land user shall pay land use levy to the state budget according to the notice of the tax agency in accordance with the law on tax administration.

dd/ After collecting land use levy, the state budget collection agency shall transfer the budget collection information to the tax agency according to the law on tax administration for the latter to transfer such information to the agency with land management function for use as a basis for allocation of land to the land user according to regulations. Land allocation shall only be carried out after the land user fully pays land use levy according to regulations (for land users eligible for land allocation by the State with collection of land use levy).

3. The land registration office /agency with land management function or inter-agency single-window division shall be responsible for the accuracy of the  data and information provided to the tax agency. The tax agency shall be responsible for the calculation and issuance of the notice of the payable land use levy amount.

4. Time limits for payment of land use levy in case land use levy is calculated based on the specific land price or land price offered by the bidder winning the land use rights auction:

a/ For those who are allocated land by the State through auction of land use rights, the time limit for payment of auction winnings must comply with the Government’s Decree detailing a number of articles of the Land Law.

In case the auction winner violates the obligation to pay the auction winnings, leading to the annulment of the decision on recognition of the auction result, the time limit for payment of land use levy must comply with the Government’s Decree detailing a number of articles of the Land Law, the law on asset auction, and the law on tax administration.

b/ In case the payable land use levy amount is calculated based on the specific land price and the land user does not fall into cases eligible for land allocation by the State through auction as specified at Point a of this Clause, the time limit for payment of land use levy must comply with the law on tax administration but must not exceed 180 days after a competent state agency issues a decision approving the land price for calculation of land use levy.

Past the above-mentioned 180-day limit, if the land user fails to fully pay land use levy, it/he/she shall not be allocated land according to regulations (for cases eligible for land allocation by the State). Past the time limit for payment of land use levy stated in the tax agency’s notice, if the land user still fails to fully pay land use levy to the state budget, it/he/she shall pay a late-payment interest on the payable land use levy amount at the rate prescribed by the law on tax administration.

In case the land user fails to comply with the tax enforcement as prescribed, the tax agency shall forward the dossier to the agency with land management function for submission to the competent authority for consideration and handling the land allocation decision according to the Government’s Decree detailing a number of articles of the Land Law.

5. Time limits for payment of land use levy in case the payable land use levy amount is calculated based on the land price in the land price list

a/ In case the payable land use levy amount is calculated based on the land price in the land price list, the time limit for payment of land use levy must comply with the law on tax administration. Past the time limit for payment of land use levy, the land user shall pay a late-payment interest in accordance with the law on tax administration, except case of owing land use levy amount as specified in Clause 2, Article 22 of this Decree.

6. In case the exempted or reduced land use levy amount has to be reimbursed according to Clause 6 and Clause 7, Article 17 of this Decree, the to-be-reimbursed  land use levy amount shall be calculated according to the policy and land price effective at the time of land allocation, grant of permission for land repurposing or recognition of land use rights. The tax agency shall recover the exempted or reduced land use levy amount after reporting to, and obtaining approval from, the People’s Committee at the same level.

Article 22. Recording of owed land use levy amounts

1. Subjects eligible for owing land use levy, land use levy amounts to be recorded as owed, and period for owing land use levy must comply with the Decree on compensation, support and resettlement upon land recovery by the State and the Decree on grant of certificates.

2. Order and procedures for recording owed land use levy amounts of households and individuals:

a/ In case of recording owed land use levy amounts of persons eligible for resettlement arrangement under Clause 3, Article 111 of the Land Law, land users that wish to owe land use levy shall submit an application for owing land use levy  and documents proving that they are eligible for owing land use levy together with the dossier of application for a Certificate as prescribed by law (comprising the Decision on land allocation for resettlement and compensation, support and resettlement plan approved by a competent state agency) to the land registration office or agency with land management function or inter-agency single-window division.

b/ For cases other than those specified at Point a of this Clause, land users shall carry out the procedures for recording owed land use levy amounts (if any) according to the Decree on grant of certificates.

c/ The land registration office or agency with land management function or inter-agency single-window division shall review and check the dossiers of the land user eligible for owing land use levy as specified at Points a and b of this Clause and make an information slip and send them to the tax agency and related agencies as prescribed; the information slip must state information on the land user eligible for owing land use levy and the land use period for which the land user is allowed to owe land use levy as specified in Clause 1 of this Article; and, at the same time, hand over an appointment note to the land user according to regulations.

d/ Based on the information slip forwarded from the land registration office or agency with land management function or inter-agency single-window division, the tax agency shall calculate and issue a notice as prescribed and send it to the concerned household/individual, the state management agency in charge of land and related agencies (if necessary) within 5 (five) working days after issuing the notice. The notice must include the following contents:

d1/ The total land use levy amount payable by the household or individual.

d2/ The land use levy amount allowed to be owed.

d3/ The land use levy amount not allowed to be owed (if any).

d4/ The deadlines for land use levy payment by the household/individual, including:

The deadline for paying the land use levy amount not allowed to be owed (if any) according to the law on tax administration;

The deadline for paying the land use levy amount allowed to be owed according to Clause 1 of this Article.

dd/ Based on the tax agency’s notice, the household/individual shall pay the land use levy amount not allowed to be owed (if any) to the state budget according to such notice and submit the payment document to the land registration office or agency with land management function or inter-agency single-window division so as to be granted a Certificate.

e/ The state budget collection agency prescribed by the law on tax administration shall collect land use levy according to the tax agency’s notice and provide the payment document to the household/individual; and, at the same time, forward information on the amount collected from the household/individual to related agencies according to regulations.

g/ Based on the payment documents submitted by the household/individual, the land registration office or agency with land management function or inter-agency single-window division shall return the Certificate to the household/individual according to regulations; the Certificate must state the land use levy amount owed and the land use levy-owing period as specified in Clause 1 of this Article.

3. Procedures for payment and write-off of the owed land use levy amount for a household/individual allowed to owe land use levy:

a/ Based on the land use levy-owing period as specified in the Decree on compensation, support and resettlement upon land recovery by the State and the Decree on grant of certificates, the household/individual shall pay the land use levy  amount it/he/she owes by making a one-off payment to the state budget according to the law on tax administration.

The state budget collection agency defined in the law on tax administration shall collect the land use levy amount owed by the household/individual as stated in the Certificate or the tax agency’s notice and provide a payment document to the household/individual; and, at the same time, forward information on the amount collected from the household/individual to related agencies according to regulations.

The tax agency shall issue a notice on confirmation of completion of financial obligations regarding land use levy, made according to Form No. 03 provided in Appendix I to this Decree.

b/ After completely paying the owed land use levy amount as specified at Point a of this Clause, the household/individual shall submit a dossier comprising: the Certificate (original), land use levy payment document (original) or notice on confirmation of completion of financial obligations regarding land use levy (original) to the land registration office or agency with land management function or inter-agency single-window division so as to have the entry on the owed land use levy amount on the Certificate cleared. In case of loss or misplacement of the payment document, the household/individual shall come to the state budget collection agency defined by the law on tax administration so as to get a written confirmation of the land use levy amount paid.

c/ The land registration office or agency with land management function or inter-agency single-window division shall review and cross-check the payment document submitted by the household/individual to have the entry on the land use levy amount owed on the Certificate cleared and return the Certificate to the household/individual within 1 working day from the date the household/individual submits the dossier as specified at Point b of this Clause.

 

Chapter III

CALCULATION, COLLECTION AND PAYMENT OF LAND RENTAL

Section 1

CALCULATION OF LAND RENTAL

Article 23. Grounds for calculation of land rental

1. Land area for calculation of land rental as specified in Article 24 of this Decree.

2. Land lease period, extended land use period as specified in Article 25 of this Decree.

3. Unit rate of land rental as specified in Article 26 of this Decree.

4. Form of land lease by the State, which is either land lease with annual payment of land rental or land lease with one-off payment of land rental for the entire lease period.

5. State’s policy on land rental exemption and reduction.

Article 24. Land area for calculation of land rental

1. The area for calculation of land rental is the land area subject to collection of land rental stated in the land lease decision, decision adjusting the land lease decision, decision permitting land repurposing, decision on extension of land use period, decision adjusting the land use period, decision adjusting the detailed master plan, or decision permitting change of land use form in cases subject to payment of land rental according to regulations (below collectively referred to as the decision on land lease). In case the area stated in the land lease contract is larger than the area stated in the decision on land lease, the land area for calculation of land rental is the area stated in the land lease contract.

2. The area for calculation of land rental in case of recognizing land use rights is the land area recognized according to the information slip for determination of land-related financial obligations forwarded by the agency with land management function to the tax agency according to the Decree on grant of certificates or according to the signed land lease contract.

3. The area for calculation of land rental specified in Clauses 1 and 2 of this Article shall be calculated in square meter (m²).

Article 25. Land lease period

1. The land lease period (except the case prescribed in Clause 2 of this Article) is the period stated in the decision on land lease issued by a competent state agency or the Certificate or the land lease contract. In case the above-mentioned documents state different land lease periods, the agency with land management function shall determine the period for use as a ground for calculation of land rental.

2. In case of recognition of the right to use leased land, the land lease period is the period stated in the information slip forwarded from the agency with land management function to the tax agency as prescribed in the Decree on grant of certificates or according to the signed land lease contract.

Article 26. Unit rate of land rental

1. For cases of land lease with annual payment of land rental not through auction:

Annual unit rate of land rental = Percentage (%) for calculation of the unit rate of land rental multiplied by (x) Land price for calculation of land rental. In which:

a/ The percentage (%) for calculation of the unit rate of land rental in a year is between 0.25% and 3%.

Based on their local realities, provincial-level People’s Committees shall specify the percentage (%) for calculation of unit rate of land rental for each region and road corresponding to each land use purpose after consulting the People’s Councils of the same level.

b/ Land price for calculation of land rental is the land price in the land price list (as specified at Points b and h, Clause 1, Article 159 of the Land Law), which is determined in Vietnam dong per square meter (VND/m²).

2. For cases of land lease with one-off payment of land rental for the entire lease period not through auction:

a/ In case of calculating land rental when the State recognizes land use rights in the form of land lease with one-off payment of land rental for the entire lease period for a household/individual as specified at Point h, Clause 1, Article 159 of the Land Law, the unit rate of land rental in case of land lease with one-off payment of land rental for the entire lease period shall be calculated as follows:

b/ In case of calculation of land rental for the cases prescribed at Points b and dd, Clause 1, Article 160 of the Land Law, the unit rate of land rental in case of land lease with one-off payment of land rental for the entire lease period is the specific land price determined according to the Decree on land prices.

3. In case of auction of land use rights, the unit rate of land rental is the unit rate offered by the auction winner corresponding to the form of land lease by the State, which is either land lease with annual payment of land rental or land lease with one-off payment of land rental for the entire lease period.

Article 27. Unit rate of land rental for construction of underground works

1. The unit rate of land rental for construction of above-ground works serving the operation, exploitation and use of underground works specified at Point b, Clause 5, Article 216 of the Land Law shall be calculated according to Clause 1, Article 26 of this Decree.

2. The unit rate of land rental for land leased by the State for construction of underground works (other than the underground parts of above-ground construction works) specified in Clause 1, Article 120 of the Land Law shall be calculated as follows:

a/ For cases of land lease with annual payment of land rental, the unit rate of land rental shall be calculated at a rate not exceeding 30% of the unit rate of land rental applicable to surface land used for the same purpose in the form of land lease with annual payment of land rental.

b/ For cases of land lease with one-off payment of land rental for the entire lease period, the unit rate of land rental shall be calculated at a rate not exceeding 30% of the unit rate of land rental applicable to surface land used for the same purpose and the same land use period in the form of land lease with one-off payment of land rental for the entire lease period.

c/ Based on their local realities, provincial-level People’s Committees shall specify the unit rate of land rental specified at Points a and b of this Clause after consulting People’s Councils of the same level.

3. For land for construction of underground works associated with the underground part of above-ground construction works with the ​​underground construction works exceeding the surface land area allocated by the State with collection of land use levy or leased to the land user, the unit rate of land rental applicable to this excessive area shall be determined according to Clause 2 of this Article.

Article 28. Unit rate of land rental for land with water surface

1. For the land area without water surface, the unit rate of land rental in case of land lease with annual payment of land rental and the unit rate of land rental in case of land lease with one-off payment of land rental for the entire lease period shall be calculated according to Article 26 of this Decree.

2. For the land area with water surface, the unit rate of land rental in case of land lease with annual payment of land rental and the unit rate of land rental in case of land lease with one-off payment of land rental for the entire lease period must not be lower than 20% of the unit rate of land rental in case of land lease with annual payment of land rental or the unit rate of land rental in case of land lease with one-off payment of land rental for the entire lease period applicable to the land type of the land parcel adjacent to the land area with water surface with the assumption that such land is used for the same use purpose and the same land use period as the land area with water surface.

3. Based on their local realities, provincial-level People’s Committees shall specify the unit rate of land rental specified in Clause 2 of this Article after consulting the People’s Councils of the same level.

Article 29. Agencies determining unit rates of land rental

1. In case of land lease not through auction of land use rights, based on the specific land price decided by the Chairperson of the competent People’s Committee, the land price in the land price list, the percentage (%) for calculation of unit rate of land rental, the unit rate of land rental applicable to land for construction of underground works, the unit rate of land rental applicable to land with water surface, and the information slip forwarded from the agency with land management function, the provincial-level Tax Department (for organizations, people of Vietnamese origin residing abroad and foreign-invested organizations), district-level Tax Branch or regional Tax Branch (for other cases) shall determine the unit rate of land rental in case of land lease with annual payment of land rental and the unit rate of land rental in case of land lease with one-off payment of land rental for the entire lease period.

The notice of unit rate of land rental shall be made according to Form No. 03 provided in Appendix II to this Decree.

2. In case of land lease through land use rights auction, the responsibility for determining the reserve price and auction-winning price shall be implemented according to the Decree detailing a number of articles of the Land Law.

Article 30. Calculation of land rental

1. In case of land lease with annual payment of land rental, the payable land rental amount of a year shall be calculated as follows:

2. In case of land lease with one-off payment of land rental for the entire lease period:

a/ The land rental amount to be paid in one-off for the entire lease period shall be calculated as follows:

b/ The land rental amount for land with water surface to be paid in one-off for the entire lease period shall be calculated as follows:

Land rental amount for land with water surface to be paid in one-off for the entire lease period

=

Land rental amount for land area without water surface

+

Land rental amount for land area with water surface

In which: The land rental amount for land area without water surface and land rental amount for land area with water surface shall be calculated under Point a of this Clause.

3. In case public non-business units choose the form of land lease by the State with annual payment of land rental under Clause 3, Article 30 of the Land Law, land rental shall be calculated according to this Decree.

In case public non-business units do not choose the form of land lease by the State with annual payment of land rental but use land-attached houses and works for the purpose of business, lease, joint venture or affiliation under the law on the management and use of public assets, they shall perform financial obligations according to the law on the management and use of public assets and not be required to pay land rental under this Decree.

4. In case a project owner is entitled to extension of the land use period under Clause 8, Article 81 of the Land Law, in addition to the payable land rental amount, it shall pay to the State an additional amount which shall be calculated as follows:

a/ In case the project owner is entitled to extension of the land use period under Clause 8, Article 81 of the Land Law, in addition to the payable land rental amount, it shall pay to the State an additional amount which shall be calculated as follows:

In which:

- Land price in the land price list and percentage (%) for calculating the unit rate of land rental shall be determined based on the use purpose of the land leased by the State.

- When determining the extension period, if the number of odd days is 15 or more, such odd days shall be rounded to 1 month; if the number of odd days is less than 15, the additional amount shall not be calculated.

b/ The regulations on deduction of compensation, support and resettlement amounts and land rental exemption or reduction shall not apply to the amount specified at Point a of this Clause.

5. In case a land user that is leased land with annual payment of land rental files a request for permission for voluntary return of land according to Clause 2, Article 82 of the Land Law, it/he/she shall pay land rental calculated up to the date a competent state agency issues a land recovery decision under the Decree detailing a number of articles of the Land Law; past the deadline for land recovery prescribed in the Decree detailing a number of articles of the Land Law, in case the competent state agency has yet to issue a land recovery decision, the land user shall not have to pay land rental for  the period from such deadline on, provided it/he/she no longer uses land.

6. In case a land user has started using land before a competent state agency issues a land lease decision or before a land lease contract is signed (in case of recognition of rights to use leased land) but has yet to pay land rental for such land use period, it/he/she shall pay annual land rental for such period. The annual land rental amount shall be calculated based on the percentage (%) for calculating the unit rate of land rental and land price for calculating land rental for each year of land use up to the time the State issues a land lease decision. The calculation, collection and payment of land rental from the time the State issues a land lease decision onward must comply with this Decree.

7. In case competent state agencies decide on land lease based on the progress of investment projects or land recovery, compensation, support and resettlement work according to Clause 4, Article 116 of the Land Law, the calculation of land rental and handling of compensation, support and resettlement amounts shall be carried out for each land lease decision.

8. For organizations that are currently using land leased by the State in the cases specified Article 120 of the Land Law and now granted the Certificate under Point a, Clause 2 of Article 142 of the Land Law, the calculation of land rental must comply with Clauses 1 and 2 of this Article.

9. When renewing the Certificate of land use rights of a household/individual, if there is any difference in the land area between actual measurement data and data stated in the granted Certificate but the boundary of the land parcel currently in use is the same as it was at the time the Certificate was granted under the Decree on grant of certificates, the land user shall pay land rental for the increased area according to the law effective at the time the Certificate was granted.

Article 31. Handling of compensation, support and resettlement amounts; determination of remaining land investment costs prescribed in Article 107 of the Land Law

1. In case a land development fund advances capital to units or organizations performing compensation, support and resettlement work so as to create land funds for lease or the state budget allocates funds for implementation of compensation, support and resettlement work, compensation, support and resettlement amounts shall be handled as follows:

a/ In case a land user is leased land by the State with one-off payment of land rental for the entire lease period and is ineligible for land rental exemption or is eligible for land rental exemption but wishes to pay land rental (the land user refuses to enjoy the incentive) as prescribed in Clause 5, Article 38 of this Decree, the land user shall pay land rental into the state budget in accordance with law. The refund of compensation, support and resettlement amounts into the land development fund must comply with the laws on land development funds and the state budget.

In case the land user is leased land with annual payment of land rental and ineligible for land rental exemption, the land user shall pay compensation, support and resettlement amounts in advance to the state budget and at the time of issuance of the land lease decision, such advance payment shall be converted into a number of years and months for which the land user has fulfilled the annual land rental-related obligation; when the converted period of fulfillment of land-related obligation ends, the land lessee shall continue paying land rental under regulations. The refund of compensation, support and resettlement amounts into the land development fund must comply with the laws on land development funds and the state budget.

b/ In case a land user is leased land by the State and eligible for land rental exemption, the land user shall refund compensation, support and resettlement amounts into the state budget and may include such amounts into the project’s investment costs under Clause 2, Article 94 of the Land Law. The refund of compensation, support and resettlement amounts into the land development fund must comply with the laws on land development funds and the state budget.

2. In case a land user is leased land by the State and eligible for advance of compensation, support and resettlement amounts under Clause 2, Article 94 of the Land Law, the dossier of request for deduction of compensation, support and resettlement amounts must comply with Clause 2, Article 16 of this Decree. The deduction of compensation, support and resettlement amounts must adhere to the principle specified in Clause 1 of this Article.

3. The handling of compensation, support and resettlement amounts for investment projects with various forms of land use (land allocation with collection of land use levy, land allocation without collection of land use levy, and land lease) must comply with Clause 3, Article 16 of this Decree.

4. In case a land user is leased land by the State in the form of land lease with annual payment of land rental and, at the time the land lease decision is issued, has the advanced compensation, support and resettlement amounts converted into a period of fulfillment of the annual land rental-related obligation, during the period for which the land user is certified by a competent agency as having fulfilled the financial obligation concerning annual land rental, the land user shall have the same land-related rights as cases of land lease by the State with annual payment of land rental.

5. In case a land user is leased land by the State with annual payment of land rental but has fulfilled the financial obligation for a number of years because it is entitled to deduct the advanced compensation, support and resettlement amounts or the land-related amount before the land repurposing specified in Clause 3, Article 34 of this Decree from the payable land rental amount as prescribed by law, when the land user transfers the project or transfers its leased land-attached assets in accordance with law, the transferee shall take over and continue to be entitled to deduct the remainder of the compensation, support and resettlement amounts advanced by the transferor or the land-related amount before the land repurposing corresponding to the amount already converted into period of fulfillment of financial obligations but not yet fully deducted from land rental.

6. The determination and handling of compensation, support and resettlement amounts in the cases specified in Clauses 1, 2 and 3 of this Article shall be carried out concurrently with the calculation of land rental by the competent state agency under regulations.

7. In case a land user has enjoyed land rental exemption or reduction but does not meet the conditions for exemption or reduction and is subject to recovery of the exempted or reduced land rental amount as prescribed in Clause 9, Article 38 of this Decree, the compensation, support and resettlement amounts shall be handled under Clauses 1, 2 and 3 of this Article while the amount of compensation, support and resettlement that has been included in  the project’s investment costs under Clause 2, Article 94 of the Land Law shall not be deducted from land rental.

8. Based on the actual situation in their localities, provincial-level People’s Committees shall propose the same-level People’s Councils to decide to waive land users that are allocated land by the State without collection of land use levy or leased land in hi-tech parks by the State from the obligation to refund to the state budget the amount of compensation, support and resettlement allocated by the State from the state budget (excluding cases of capital advanced from the land development fund) in the following cases:

a/ Land users are leased land with annual payment of land rental and eligible for land rental exemption or reduction but refuse to enjoy the exemption or reduction.

b/ Land users use land and land with water surface for construction of transport works, technical infrastructure, greenery areas and public parks according to general master plans and zoning master plans.

c/ Hi-tech park management boards and units under hi-tech park management boards use land for construction of working offices, public non-business works and works serving the management and exploitation of hi-tech park infrastructure.

d/ Land users are allocated land without collection of land use levy or leased land and eligible for land rental exemption for the entire lease period and have received land from hi-tech park management boards before July 1, 2014.

9. In case a person subject to land recovery is entitled to receive compensation for remaining land investment costs under Point d, Clause 2, Article 107 of the Land Law and Clause 6, Article 17 of Decree No. 88/2024/ND-CP, the remaining land investment costs shall be determined as follows:

a/ The amount of compensation, support and resettlement that has been advanced under the approved compensation, support and resettlement plan but not yet been fully deducted from the payable land rental amount (below referred to as amount of compensation, support and resettlement not yet deducted) shall be determined as follows:

a1/ In case the recovered land is land leased by the State with one-off payment of land rental for the entire lease period and the advanced amount of compensation, support and resettlement has been included in the project’s investment costs and the land user has received compensations for the land, the amount of compensation, support and resettlement not yet deducted shall be determined as zero (0).

a2/ In case the recovered land is land leased by the State with annual payment of land rental and the amount of compensation, support and resettlement is converted into a number of years and months of fulfillment of the land rental-related obligation for deduction, the amount of compensation, support and resettlement not yet deducted shall be determined as follows:

In which the unit rate of land rental for annual payment shall be determined under Clause 1, Article 26 of this Decree.

a3/ In case the recovered land is land leased by the State with annual payment of land rental and the amount of compensation, support and resettlement is gradually deducted from the land rental amount payable according to regulations, the amount of compensation, support and resettlement not yet deducted shall be determined as follows:

b/ In case a land user that is leased land with annual payment of land rental has paid land rental in advance for many years and the period for which land rental has been advanced has not yet ended, the remaining land investment cost shall be determined as follows:

In which:

- The payable land rental amount of a year shall be determined under Clause 1, Article 30 of this Decree according to the policy and land price effective at the time the State decides on approval of the compensation, support and resettlement plan.

- The remaining period for which land rental has been advanced shall be determined as equal (=) the period for which land rental has been advanced minus (-) the land use period up to the time the State approves the compensation, support and resettlement plan.

Article 32. Stabilization of land rental in case of annual payment of land rental 

1. Annual land rental (including also annual land rental in case of auction of land use rights) shall be stably applied as prescribed in Clause 2, Article 153 of the Land Law.

2. The determination of the payable land rental amount for the next period must comply with Clause 1, Article 26 and Clause 1, Article 30 of this Decree. In case land rental for the next period does not increase compared to that of the current period, the payable land rental amount shall not be adjusted; in case the land rental for the next period increases compared to that of the current period, the annual land rental adjustment rate prescribed in Clause 2, Article 153 of the Land Law shall be determined as equal (=) the country’s total annual consumer price index (CPI) in the 5-year period prior to the time of adjustment.

If the CPI increases by 10% or more for 5 consecutive years, the Ministry of Finance shall coordinate with related ministries and sectors in reporting to the Government for the latter to adjust the annual land rental adjustment rate of the next period as appropriate.

3. In case the amount of compensation, support and resettlement or the money amount already paid for acquisition of land use rights is deducted from the payable land rental amount in the form of conversion into a number of years and months of fulfillment of the land rental-related obligation under regulations, the land user shall not be required to perform procedures for land rental adjustment under Clause 2 of this Article during the period for which it/he/she is certified as having fulfilled the land rental-related obligation. After such period ends, land rental shall be adjusted according to Clause 2 of this Article to calculate the payable land rental amount for the next period.

Article 33. Calculation of land rental in case of change of the form of land lease prescribed in Clauses 1 and 2, Article 30 of the Land Law

1. For cases of changing from land lease with annual payment of land rental to land lease with one-off payment of land rental for the entire lease period:

a/ In case the State issues a decision permitting a land user to change from land lease with annual payment of land rental to land lease with one-off payment of land rental for the entire lease period, the land user shall pay land rental in one-off for the remaining land lease period under Clause 2, Article 30 of this Decree. The land rental unit rate for one-off payment of land rental for the remaining land lease period shall be determined according to Clause 2, Article 26 of this Decree, in which the land price for calculation of land rental unit rate is the land price effective at the time the State issues a decision permitting the change to land lease with one-off payment of land rental.

b/ In case a land user has the amount of compensation, support and resettlement or the money amount already paid for acquisition of land use rights deducted from land rental in the form of conversion into a number of years and months of fulfillment of the land rental-related obligation under regulations, the remainder (amount not yet deducted) shall be deducted from the land rental amount to be paid in one-off for the entire lease period.

The above-mentioned to-be-deducted amount shall be equal (=) the land rental amount calculated based on the annual land rental unit rate effective at the time the State issues the decision permitting the change to land lease with one-off payment of land rental for the entire lease period multiplied by (x) the certified remaining period of fulfillment of the annual land rental-related obligation (not yet deducted).

2. In case of changing from land lease with one-off payment of land rental for the entire lease period to land lease with annual land rental payment, land rental shall be calculated as follows:

a/ In case the land user has fulfilled the land rental-related obligation, the land user shall not be required to pay land rental on an annual basis for the remaining land lease period.

b/ In case the land user has yet to fulfill the land rental-related obligation, the land user shall pay land rental on an annual basis from the time the State issues the decision permitting the change from land lease with one-off payment of land rental for the entire lease period to land lease with annual payment of land rental. The land use periods shall be handled as follows:

b1/ In case of failing to pay land rental, the land user shall pay land rental for the land use periods:

Additionally, the land user shall pay a late-payment interest calculated on the payable land rental amount in accordance with the law on tax administration from the time the competent state agency decides on land lease to the time the land user is permitted to change from land lease with one-off payment of land rental for the entire lease period to land lease with annual payment of land rental.

b2/ In case the land user has paid part of the payable land rental amount, if the paid amount is smaller than the payable amount as specified at Item b1 of this Point (exclusive of the late-payment interest), the land user shall pay the deficit amount and a late-payment interest thereon in accordance with the law on tax administration; if the paid amount is greater than the payable amount as specified at Item b1 of this Point (exclusive of the late-payment interest), the surplus amount shall be deducted from the annual payable land rental amount by conversion into a number of years and months of fulfillment of the land rental-related obligation based on the annual land rental unit rate determined according to the land price effective at the time the State issues the decision permitting the change from land lease with one-off payment of land rental for the entire lease period to land lease with annual land rental payment.

Article 34. Calculation of land rental upon land repurposing

1. For land users that are permitted by competent state agencies to repurpose land under Clause 1, Article 121 of the Land Law and fall into cases of land lease, land rental shall be calculated as follows:

a/ In case of repurposing agricultural land or non-agricultural land allocated by the State without collection of land use levy to non-agricultural land leased by the State, land users shall pay land rental on an annual basis or pay land rental in one-off for the entire lease period calculated based on the type of land after repurposing according to Article 30 of this Decree.

b/ For cases of repurposing leased land without changing the form of land use:

b1/ If the form of land use is land lease with one-off payment of land rental for the entire lease period and the land user has fulfilled the land rental-related obligation for the land before repurposing, land rental shall be calculated as follows:

b2/ In case the form of land use is land lease with annual payment of land rental, upon land repurposing, the land user shall pay land rental on an annual basis based on the type of land after repurposing under Clause 1, Article 30 of this Decree.

c/ In case of repurposing land concurrently with change of the form of land use from land lease with one-off payment of land rental for the entire lease period to land lease with annual payment of land rental, if the land user has fulfilled the land rental-related obligation, the annual payable land rental amount for the new use purpose shall be calculated according to regulations effective at the time the competent state agency permits land repurposing in association with changing the form of land lease.

The land rental amount already paid in one-off for the remaining land lease period shall be calculated based on the type of land before repurposing according to the policy and land price effective at the time the competent state agency permits land repurposing and converted into a period of fulfillment of the annual land rental-related obligation based on the land rental unit rate for annual rental payment for the type of land after repurposing, which is effective at the time the competent state agency permits land repurposing.

2. For cases of land repurposing specified in Clause 1, Article 121 of the Land Law in association with change of the form of land use from land allocation for a definite period by the State with collection of land use levy to land lease under Article 120 of the Land Law, provided land was allocated before July 1, 2014, and the land user has fulfilled the land use levy-related obligation, land rental shall be calculated as follows:

a/ In case of land lease with one-off payment of land rental for the entire lease period, land rental shall be calculated as follows:

In which: The land use levy amount already paid shall equal the land rental amount to be paid in one-off for the remaining land lease period for the type of land before repurposing, which is calculated under Clause 2, Article 30 of this Decree at the time the State issues the decision permitting land repurposing.

b/ In case of land lease with annual payment of land rental, the land rental amount to be paid upon land repurposing shall be calculated according to Point a of this Clause; particularly, the land rental amount shall be calculated based on the type of land after repurposing according to Clause 1, Article 30 of this Decree. The land use levy amount already paid shall be deducted from the land rental amount to be paid upon land repurposing and calculated according to Point a of this Clause. Such amount shall be converted into a period of fulfillment of the annual land rental-related obligation at the time the competent state agency permits land repurposing.

3. In case an economic organization acquires lawful land use rights from an organization/individual for the implementation of an investment project in conformity with the lands use master plan or plan under Article 127 of the Land Law and therefore has to repurpose land after acquisition and is subject to a land rental-related obligation as prescribed in Clauses 1 and 2, Article 121 of the Land Law, land rental shall be calculated as follows:

a/ The land rental amount to be paid by the project shall be calculated according to the land use purpose after land repurposing based on the grounds and time for calculation of land rental prescribed in Article 155 of the Land Law and Article 30 of this Decree.

b/ The money amount paid by the economic organization for acquisition of land use rights before land repurposing shall be determined and handled as follows:

b1/ In case of acquiring lawful agricultural land use rights from an organization (other than cases of land lease by the State with annual collection of land rental or land allocation without collection of land rental for organizations), the money amount paid by the economic organization for acquisition of land use rights before land repurposing shall be determined as equal to (=) the land rental amount paid in one-off for the remaining land lease period at the time the State issues the decision permitting land repurposing specified in Clause 2, Article 30 of this Decree. This amount shall be deducted from land rental, if the type of land after land repurposing makes it falls into cases of land lease with one-off payment of land rental for the entire lease period, or converted into a period of fulfilment of the land rental-related obligation, if the type of land after land repurposing makes it fall into cases of land lease with annual payment of land rental.

- In case of acquiring lawful agricultural land use rights from a household/individual (other than cases of land lease by the State or cases subject to change to land lease specified by the land law), the money amount paid by the economic organization for acquisition of land use rights before land repurposing shall be determined as equal to (=) the value of land use rights of the corresponding type of agricultural land at the time the State issues the decision permitting land repurposing.

b2/ In case of acquiring lawful non-agricultural land other than residential land allocated by the State with collection of land use levy or leased by the State with one-off payment of land rental for the entire lease period, if the land user has fulfilled the land use levy- or land rental-related obligation, the money amount paid by the economic organization for acquisition of land use rights before land repurposing shall equal the land rental amount to be paid in one-off for the remaining land use period at the time the State issues the decision permitting land repurposing according to Clause 2, Article 30 of this Decree. This amount shall be deducted from land rental if the type of land after repurposing makes it fall into cases of land lease with one-off payment of land rental for the entire lease period. If the type of land after land repurposing makes it fall into cases of land lease with annual payment of land rental, the money amount paid by the economic organization for acquisition of land use rights before land repurposing shall be converted into a period of fulfilment of the annual land rental-related obligation at the time the competent state agency issues the decision permitting land repurposing.

b3/ In case of acquiring land other than non-agricultural land allocated by the State without collection of land use levy or acquiring assets attached to land leased with annual payment of land rental, upon land repurposing, if the economic organization is leased such land by a competent state agency, the money amount paid by the economic organization for acquisition of land use rights before land repurposing shall be calculated as zero (0).

In case the land user has paid land rental in advance for a number of years in accordance with the land law or has advanced the amount of compensation and ground clearance and therefore is permitted by a state agency to deduct such amount from the payable annual land rental amount by converting it into a number of years and months of fulfilment of the financial obligation, if, by the time of land purposing, such period has not ended (the advanced payment has not yet been fully deducted), the remaining period shall be converted into the money amount paid by the economic organization for acquisition of land use rights before land repurposing according to the annual land rental unit rate effective at the time of land repurposing. This amount shall be deducted from the payable land rental amount if the type of land after repurposing makes it fall into cases of land lease with one-off payment of land rental for the entire lease period, or converted into a period of fulfilment of the land rental-related obligation if the type of land after repurposing makes it fall into cases of land lease with annual payment of land rental.

b4/ In case of acquiring the rights to use non-agricultural land of which the land use period is stable and long-term and which has been granted the Certificate in accordance with law before July 1, 2014, for use for non-agricultural production and business purposes, the money amount paid by the economic organization for acquisition of land use rights before land repurposing shall equal the project’s payable land rental amount that shall be calculated according to the use purpose of land after repurposing under Point a of this Clause.

c/ In case of acquiring lawful rights to use land for non-agricultural production and business activities other than commercial and service land and then repurposing such land to commercial and service land under Point g, Clause 1, Article 121 of the Land Law, the money amount paid by the economic organization for acquisition of land use rights before land repurposing shall be determined as follows:

c1/ In case of land lease with one-off payment of land rental for the entire land lease period, the money amount paid by the economic organization for acquisition of land use rights before land repurposing shall equal the land rental amount to be paid in one-off for the remaining land use period at the time the State issues the decision permitting land repurposing under Clause 2, Article 30 of this Decree.

c2/ In case of land lease with annual payment of land rental, the money amount paid by the economic organization for acquisition of land use rights before land repurposing shall be calculated as zero (0). In case the land user has paid land rental in advance for a number of years in accordance with the 1993 land law or has advanced the amount of compensation and ground clearance and therefore is permitted by a state agency to deduct the advance payment from the payable annual land rental amount by converting it into a number of years and months of fulfilment of the financial obligation but, by the time of land repurposing,  such period has not ended yet (the advanced payment has not been fully deducted yet), the money amount paid by the economic organization for acquisition of land use rights before land repurposing shall be determined according to Item b3, Point b of this Clause.

The money amount paid by the economic organization for acquisition of land use rights before land repurposing shall be deducted from the payable land rental amount if the form of land lease with one-off payment of land rental for the entire land lease period is chosen. In case the person that is leased land by the State chooses the form of land lease with annual payment of land rental, the money amount paid by the economic organization for acquisition of land use rights before land repurposing shall be converted into a period of fulfilment of the land rental-related obligation at the time a competent state agency permits land repurposing.

d/ The money amount paid by the economic organization for acquisition of land use rights before land repurposing in case the project, after land repurposing, is subject to various forms of land use, shall be handled as follows:

d1/ In case the project is subject to land lease by the State and land allocation by the State without collection of land use levy, the whole money amount paid by the economic organization for acquisition of land use rights before land repurposing specified at Point b of this Clause shall be deducted from the project’s payable land rental amount.

d2/ In case the project is subject to the forms of land allocation by the State with collection of land use levy, land lease, and land allocation by the State without collection of land use levy, the money amount paid by the economic organization for acquisition of land use rights before land repurposing specified at Point b of this Clause shall be deducted from the project’s payable land use levy amount and land rental amount corresponding to the land area allocated with collection of land use levy and the leased land area, respectively. The amount paid for the acquisition of land use rights for the land area allocated by the State to the project without collection of land use levy shall be deducted based on the principle of distribution for the land area allocated with collection of land use levy and the leased land area.

4. In case a household/individual acquires lawful agricultural land use rights for the implementation of an investment project in conformity with the approved land-use master plan or plan, has to repurpose land after the acquisition and is subject to land rental, the money amount paid for the acquisition of land use rights before land repurposing shall be handled according to Item b1, Point b, Clause 3 of this Article.

Article 35. Calculation of land rental upon extension of land use period, adjustment of land use period under Clause 2, Article 156, and modification of land lease decisions under Point c, Clause 3, Article 155 of the Land Law

1. Calculation of land rental upon extension of land use period:

When a competent state agency permits the extension of land use period but the land user is subject to land rental, the payable land rental amount shall be calculated according to the policy and land price effective at the time the competent state agency issues a decision on extension of land lease period.

For cases of land lease with annual payment of land rental, the land rental stabilization period shall be counted from the time the competent state agency issues the decision on extension of land lease period. In case the land lease period expires before the competent state agency issues the decision on extension of land lease period, the land user shall pay land rental on an annual basis but the land rental rate for the period from the time the land lease period expires till the decision on extension of land lease period is issued shall not be stabilized as prescribed in Article 32 of this Decree.

2. Calculation of land rental upon adjustment of land lease period

a/ In case of land lease with annual payment of land rental, if a land user is permitted by a competent state agency to adjust the land use period of its/his/her project, the payable land rental amount shall be calculated according to the policy and land price effective at the time the competent state agency decides to adjust the land use period.

Prior to the adjustment of the project’s land use period, if the land user has advanced the compensation, support and resettlement amount and is permitted by a competent state agency to deduct the advanced payment by converting it into a number of years and months of fulfillment of the annual land rental-related obligation, if such period has not ended yet, the land user may continue using land for the remaining period of fulfillment of the annual land rental-related obligation, counted from the time the competent state agency permits the adjustment of the land use period of the project, and not be required to pay land rental. When such period ends, the land user shall pay land rental on an annual basis under Clause 1, Article 30 of this Decree.

b/ In case of lease land with one-off payment of land rental for the entire land lease period, if a competent state agency decides to permit the adjustment of the project’s land use period, the payable land rental amount shall be calculated as follows:

b1/ In case the adjustment of the project’s land use period leads to no change in its detailed master plan, the payable land rental amount shall equal (=) the difference between the land rental amount paid in one-off for the entire lease period as adjusted under the competent state agency’s decision and the land rental amount paid in one-off for the remainder of the initial land use period.

b2/ In case the adjustment of the project’s land use period leads to changes in its detailed master plan, the payable land rental amount shall equal (=) the difference between the land rental amount paid in one-off for the entire lease period as adjusted under the competent state agency’s decision and the land rental amount paid in one-off for the remainder of the land use period under the initial detailed master plan.

b3/ The adjusted land use period specified at Items b1 and b2 of this Point includes the remainder of the project’s land use period plus the extended land use period under the competent state agency’s adjustment decision.

b4/ The land rental amount already paid in one-off for the remainder of the initial land use period specified at Items b1 and b2 of this Point shall equal (=) the land rental amount already paid in one-off of the initial land lease period divided by (:) the initial land lease period multiplied by (x) the remainder of the initial land use period.

3. Calculation of land rental upon modification of land lease decisions under Point c, Clause 3, Article 155 of the Land Law:

a/ In case the modification of a land lease decision by the competent state agency under Point c, Clause 3, Article 155 of the Land Law leads to an increase in the area for calculation of land rental, provided the land user does not fall into the case specified at Point b of this Clause, the land rental amount for the increased land area shall be calculated according  Article 30 of this Decree at the time the competent state agency decides on modification of the land lease decision. In case such modification leads to a decrease in the area for calculation of land rental (other than cases of land recovery by the State) and the payable land rental amount, such amount shall be calculated as the project’s investment costs.

b/ In case the competent state agency modifies the land lease decision under Point c, Clause 3, Article 155 due to changes in the project’s detailed master plan, land rental shall be calculated by the method specified in Article 36 of this Decree at the time the competent state agency decides to modify the land lease decision.

c/ In case the competent state agency modifies the land lease decision under Point c, Clause 3, Article 155 due to changes of the land use period, land rental shall be calculated according Clause 2 of this Article at the time the competent state agency decides to modify the land lease decision.

Article 36. Calculation of land rental upon adjustment of projects’ detailed master plans in accordance with law without changing land lease decisions as specified at Point d, Clause 3, Article 155; and Point a, Clause 2, Article 160, of the Land Law

1. In case a land user requests adjustment of its project’s detailed master plan and has the detailed master plan adjusted under decision of a competent state agency in accordance with law, leading to changes in the land use structure, location of land of each type or land use coefficient, the payable land rental amount shall be recalculated as follows:

1.1. In case the project, before having its detailed master plan adjusted, does not fall into cases of land allocation by the State through auction of land use rights:

a/ For cases of land lease with one-off payment of land rental for the entire lease period, before the project’s detailed master plan is adjusted, if the land user has made a full one-off payment of land rental for the entire lease period in accordance with law:

a.1/ When obtaining the competent state agency’s decision on overall adjustment of the project’s detailed master plan, the land user shall pay a land rental amount equal to the difference (if any) between the land rental amount calculated for the whole project according to the adjusted master plan and that calculated according to the pre-adjustment master plan in accordance with law effective at the time the competent state agency decides on the overall adjustment of the detailed master plan.

a.2/ When obtaining the competent state agency’s decision on partial adjustment of the project’s detailed master plan (part of the project’s area), the land user shall pay a land rental amount equal to the difference (if any) between the land rental amount calculated for the area subject to adjustment according to the adjusted master plan and that calculated according to the pre-adjustment master plan in accordance with law effective at the time the competent state agency decides on partial adjustment of the detailed master plan.

When it is impossible to calculate or distribute the payable land rental amount for the land area subject to adjustment, land rental shall be calculated for the whole project as specified in Item a1 of this Point.

b/ In case the land user has yet to fulfill land rental-related obligations under regulations before the issuance of the decision on adjustment of the project’s detailed master plan (only applicable to projects that are allocated land before the effective date of the 2024 Land Law and now have their detailed master plans adjusted):

b1/ In case the land user has been notified of the payable land rental amount calculated according to the pre-adjustment detailed master plan, the land user shall fully pay the land rental amount determined according to the pre-adjustment master plan plus a late-payment interest (if any) in accordance with the law on tax administration.

In case the land price has not been determined, the land user shall calculate and pay land rental under Clause 2, Article 257 of the Land Law and an additional amount as specified in Clause 9, Article 51 of this Decree.

b2/ The land user shall additionally pay a land rental amount equal to the difference between the payable land rental amount calculated according to the adjusted master plan and that calculated according to the pre-adjustment master plan; both shall be determined in accordance with law effective at the time the competent state agency decides on the adjustment of the master plan as specified at Item a of this Point (if any).

c/ In case of land lease with annual payment of land rental, the land user shall pay land rental according to policies and land prices effective at the time the competent state agency issues the decision on adjustment of the detailed master plan.

1.2. In case the land user is leased land by the State through auction of land use rights in accordance with law and has paid land rental:

a/ In case of land lease with one-off payment of land rental for the entire lease period, when a competent state agency issues a decision on overall adjustment of the project’s detailed master plan, the payable land rental amount shall be calculated as follows:

b/ In case of land lease with one-off payment of land rental for the entire lease period, when a competent state agency issues a decision on partial adjustment of the project’s detailed master plan, the payable land rental amount shall be calculated as follows:

 

 

 

When it is impossible to calculate or distribute the payable land rental amount for the land area subject to adjustment, the payable land rental amount shall be calculated for the whole project as specified at Item a of this Point.

c/ In case of land lease with annual payment of land rental, the annual land rental amount of the whole project shall be recalculated according to the adjusted detailed master plan in accordance with law effective at the time the competent state agency decides on adjustment of the detailed master plan.

2. In case the land user has made a full one-off payment of land rental for the entire lease period but due to management requirements, the State adjusts the project’s detailed master plan or adjusts a relevant general master plan or zoning master plan, leading to changes in the project’s detailed master plan, land use structure or location of land area of each type or land use coefficient, leading to an increase or a decrease in the land rental amount:

a/ If the land rental amount for the entire lease period calculated according to the adjusted detailed master plan is greater than the land rental amount calculated according to the pre-adjustment detailed master plan as calculated at the time a competent state agency issues the decision on adjustment of the master plan, the land user shall pay an additional amount equal to the difference between these two land rental amounts. The calculation of the land rental amount for the entire lease period for each detail master plan must comply with Clause 2, Article 30 of this Decree.

b/ If the land rental amount for the entire lease period calculated according to the adjusted detailed master plan is smaller than the land rental amount calculated according to the pre-adjustment detailed master plan as calculated at the time a competent state agency issues the decision on adjustment of the master plan, the land user shall have the overpaid land rental amount reimbursed. The reimbursed land rental amount shall be equal to the difference between the land rental amount for the entire lease period calculated according to the pre-adjustment detailed master plan and that calculated according to the adjusted detailed master plan at the time a competent state agency issues the decision on adjustment of the master plan. The calculation of the land rental amount for the entire lease period according to the pre-adjustment master plan and the adjusted master plan must comply with Clause 2, Article 30 of this Decree.

The land rental amount specified in this Clause shall be reimbursed directly or deducted from the organization’s financial obligations toward the State in accordance with the law on the state budget and the law on tax administration.

3. After having its detailed master plan adjusted, if a project is subject to multiple forms of land use (land allocation with collection of land use levy, land allocation without collation of land use levy, and land lease), the land use levy and land rental amount of the whole project (or the partly adjusted land area) shall be equal to the difference between the total land use levy amount and land rental amount calculated according to the adjusted master plan and those calculated according to the pre-adjustment master plant at the time a competent state agency issues the decision on adjustment of the master plan.

4. When it is necessary to adjust a project’s detailed master plan though the economic organization, person of Vietnamese origin residing abroad or foreign-invested organization that has negotiated on acquisition of land use rights for implementation of the project as specified in Article 127 of the Land Law, land rental shall be calculated according to Clauses 1, 2 and 3 of this Article.

5. In case the land plot or land parcel for implementation of a project is lawfully acquired by a household or individual, the land rental amount of the land plot or land parcel before the master plan is adjusted shall be equal to the compensation for land of the household or individual according to the Decree on compensation, support and resettlement upon land recovery by the State and the Decree on land prices.

Article 37. Calculation of payable land rental amounts in case of land rental exemption or reduction

1. For cases of land lease with annual payment of land rental:

a/ In case the land user is eligible for land rental exemption under Article 39 of this Decree, the annual payable land rental amount at the time the land user starts being subject to land rental after the rental exemption period expires shall be calculated as follows:

Payable land rental amount

=

Unit rate of annual land rental at the time the land user starts being subject to land rental

x

Land area liable to land rental

b/ In case of land lease with annual payment of land rental in which the land user is eligible for land rental reduction under Clause 1, Article 40 of this Decree, the annual payable land rental amount in the land rental reduction period shall be calculated as follows:

In which: The land rental amount of a year for which the land user is eligible for land rental reduction is the land rental amount calculated according to Clause 1, Article 30 of this Decree.

c/ In case the land user has voluntarily advanced an amount of compensation, support and resettlement under Clause 2, Article 31 of this Decree:

c1/ If the land user is eligible for exemption from land rental for a number of years under Clause 2, Article 39 of this Decree, after the land rental exemption period expires, the land user shall have the advanced amount of compensation, support and resettlement deducted by converting such amount into the number of years and months of fulfillment of land rental-related obligation as follows:

In which:

n: number of years and months for which land rental payment is not required.

c2/ In case the land user is eligible for land rental reduction, after subtracting the reduced land rental amount under Point b of this Clause, the land user shall have the advanced amount of compensation, support and resettlement which is allowed by a competent state agency to be deducted from the payable land rental amount of the land rental reduction period; the amount of compensation, support and resettlement left (after deducted from the land rental amount to be paid every year during the land rental reduction period) shall be further deducted by converting into a number of years and months of fulfilment of the land rental-related obligation according to the unit rate of land rental applied at the time of expiration of the land rental exemption or reduction period as follows:

n	=	Advanced amount of compensation, support and resettlement left after deducted from the land rental amount to be paid every year during the land rental reduction period
		Annual land rental amount calculated at the time of calculating land rental under regulations

 In which:

n: number of years and months of fulfilment of land rental-related obligations.

2. For cases of land lease with one-off payment of land rental for the entire lease period:

a/ For cases eligible for land exemption under Article 39 of this Decree

Payable land rental amount

=

Unit rate of land rental for one-off payment for the entire lease period after subtracting the land rental exemption period under Article 39 of this Decree

x

Land area liable to land rental

b/ For cases eligible for land rental reduction under Clause 2, Article 40 of this Decree, the payable land rental amount shall be calculated as follows:

c/ In case the land user has voluntarily advanced an amount of compensation, support and resettlement under Clause 2, Article 94 of the Land Law and Clause 2, Article 31 of this Decree, after subtracting the reduced land rental amount under Points a and b of this Clause, the advanced amount of compensation, support and resettlement which is allowed by a competent state agency to be deducted from the payable land rental amount shall be further deducted from the payable land rental amount.

Section 2

Land rental exemption or reduction

Article 38. Principles of land rental exemption or reduction

1. Persons who are leased land by the State shall carry out procedures for land rental reduction under regulations:

a/ If they are eligible for land rental reduction but fail to carry out procedures for such reduction, they shall pay land rental in accordance with law. If they are late in carrying out procedures for land rental reduction, they are only entitled to rental reduction for the remaining land rental reduction period counting from the time of starting to carry out valid procedures for land rental reduction; and are not entitled to land rental reduction for the period of failure to carry out procedures.

b/ Land users are not entitled to land rental reduction if they carry out procedures for land rental reduction when the land rental reduction period has expired under Article 40 of this Decree

2. In case land users are eligible for both land rental exemption and reduction under this Decree or other relevant legal documents, they will be entitled to land rental exemption. In case a land user is eligible for land rental reduction at different levels specified in this Decree and other relevant legal documents, it/he/she will be entitled to the highest reduction level.

3. Land rental exemption or reduction under Articles 39 and 40 of this Decree shall be carried out for each investment project and apply directly only to subjects that are leased land by the State and shall be calculated on land rental amounts, except where they are eligible for land rental exemption or reduction under Article 157 of the Land Law but are not required to formulate investment projects. Land users shall submit papers proving they are eligible for land rental reduction in accordance with law.

4. Land users that are currently entitled to land rental exemption or reduction levels higher than those specified in this Decree may continue to enjoy such levels for the remaining exemption or reduction period. In case exemption or reduction levels are lower than those specified in this Decree, they may enjoy the levels specified in this Decree for the remaining exemption or reduction period from the effective date of this Decree. In case the exemption or reduction period has expired by the effective date of this Decree, such exemption or reduction will not be given under this Decree.

In case the date when the land rental calculation commences precedes the effective date of this Decree but land lessees carry out the procedures for land rental reduction as from the effective date of this Decree, the provisions on land rental reduction and other relevant provisions shall be applied under this Decree.

5. In case persons who are leased land by the State with one-off payment of land rental for the entire lease period and entitled to land rental exemption wish to pay land rental (refuse to enjoy the exemption) during the lease period, the land rental amount to be paid in a lump sum  for the remaining lease period shall be calculated under Clause 2, Article 30 of this Decree and according to land policies and land prices by the time land users  make a written request for permission for land rental payment which are accepted by competent agencies. Land users have land-related rights for the remaining land lease period like in cases where they are not entitled to land exemption specified in Clause 1, Article 33 of the Land Law.

6. If land users that are leased land by the State with annual payment of land rental and currently entitled to land rental exemption or reduction transfer assets under their ownership attached to the leased land in accordance with law and purchasers of such assets continue to be leased land by the State for the remaining lease period for the land use purposes upon transfer, land rental exemption or reduction is as follows:

a/ Transferors may not account the exempted or reduced land rental amounts into transfer prices;

b/ Transferees may continue to be entitled to land rental exemption or reduction for the remaining exemption or reduction period. In case transferees continue to be entitled to land rental reduction, they are not required to carry out procedures for land rental reduction.

7. If land users that are leased land by the State with one-off payment of land rental for the entire lease period and entitled to land rental exemption or reduction in accordance with law transfer land use rights or contribute land use rights as capital or transfer investment projects together with land use rights:

a/ If land users that are leased land by the State with one-off payment of land rental for the entire lease period and entitled to land rental exemption or reduction in accordance with law transfer land use rights or contribute land use rights as capital in accordance with law, they shall pay to the State amounts equal to exempted or reduced land rental amounts at the time of land lease by the State or permission of the State for land repurposing as specified at Point b, Clause 3, Article 33 of the Land Law, and pay an additional amount for the period counting from the date of land exemption or reduction to the date of transfer of land use rights or contribution of land use rights as capital at the level equivalent to the late-payment interest rate in accordance with the tax administration law for each period.

The calculation of the exempted land rental amount to be paid to the State must comply with Clause 2, Article 30 and Article 34 of this Decree according to land policies and land prices at the time of land lease or land repurposing.

b/ For land users that are leased land by the State with one-off payment of land rental for the entire lease period and entitled to land rental exemption or reduction in accordance with law and now transfer investment projects together with land use rights in accordance with law:

b1/ In case the exempted or reduced land rental amounts are not accounted into transfer prices and the transferees continue to implement such projects, the transferees may continue to be entitled to land rental exemption or reduction in accordance with the investment law for the remaining duration of the projects. In case of continuing to be entitled to land rental reduction, the transferees are not required to carry out procedures for land rental reduction.

b2/ In case the transferees do not continue to implement the projects and are permitted by competent state agencies to use land for other purposes under regulations, they shall pay land rental in accordance with law for their projects after being transferred. In case the transferors have partly paid land rental amounts, the transferees may inherit such paid amounts.

8. Economic organizations that are leased land by the State with annual payment of land rental and currently entitled to land rental exemption or reduction, after transforming their operation models or being equitized in accordance with law, may continue to enjoy land rental exemption or reduction for the remaining period if continuing to use land for the purpose for which land rental is exempted or reduced in accordance with law before the transformation or equitization.

9. In case competent state agencies detect that land users entitled to land rental exemption or reduction no longer satisfy the conditions for exemption or reduction in accordance with law or use land not for the purposes stated in land lease decisions or contracts but are not subject to land recovery in accordance with the land law, or land users refuse to enjoy land rental exemption or reduction for the reason that they no longer satisfy the conditions for exemption or reduction, they shall refund to the state budget the exempted or reduced land rental amounts. The recovery of exempted or reduced land rental amounts shall be carried out as follows:

a/ Exempted or reduced land rental amounts to be recovered are calculated according to land prices stated in land price lists and percentage (%) for calculation of unit rate of land rental promulgated by provincial-level People’s Committees at the time of land rental calculation as specified in Clause 3, Article 155 of the Land Law plus (+) amounts equivalent to late land rental payment interests in accordance with the tax administration law for each period.

b/ The period of late payment interest calculation specified at Point a of this Clause counts from the time of land use exemption or reduction until the competent state agencies decide to recover the exempted or reduced land rental amounts.

c/ Tax agencies shall recover exempted or reduced land rental amounts.

10. Land rental exemption or reduction does not apply to cases where land is used for commercial and service purposes and cases eligible for land rental exemption or reduction specified in Clauses 2, 3 and 4, Article 39, and Point d, Clause 1, Article 40 of this Decree. Land rental exemption or reduction does not apply for cases of land lease by the State through auction of land use rights.

11. Land rental exemption or reduction does not apply in accordance with the regulations on investment incentives for investment projects in the fields of production and trading of goods and services liable to excise tax in accordance with the Law on Excise Tax, except projects on manufacturing of automobiles, aircraft and yachts.

12. Land rental exemption or reduction does not apply to projects on exploitation of mineral resources.

13. The List of sectors and trades eligible for investment incentives; sectors and trades eligible for special investment incentives, geographical areas meeting with difficult socio-economic conditions and geographical areas meeting with extremely difficult socio-economic conditions specified in Articles 39 and 40 of this Decree must comply with the investment law.

The List of geographical areas eligible for land rental incentives applies only to geographical areas with specific administrative boundaries (district-level areas).

14. Land rental exemption for implementation of investment projects on construction of social houses for lease, investment projects on renovation or reconstruction of apartment buildings must comply with the housing law.

15. Based on practical conditions of their localities, provincial-level People’s Committees shall propose same-level People’s Councils to decide on land rental exemption for each area or field, for projects using land for production and trading purposes in the fields of eligible for investment incentives (sectors and trades eligible for investment incentives) or in geographical areas eligible for land rental incentives specified at Point a, Clause 1, Article 157 of the Land Law and meeting either of the following two conditions: projects are on the List of projects with types scale criteria or socialization  standards decided by  the Prime Minister, or  non-profit projects.

Incentives are provided on the principles: the highest level is land rental exemption for the entire lease period, while the lowest level is the land rental exemption level specified in Clause 3, Article 39 of this Decree. Land users may not account exempted land rental amounts into prices of products or services provided to the society.

16. Land rental exemption or reduction for special investment projects must comply with the Prime Minister’s Decision on special investment incentives promulgated under Article 20 of the Investment Law and the Decree detailing and guiding the implementation of a number of articles of the Investment Law. The order and procedures for land rental exemption or reduction must comply with this Decree and other relevant laws.

Article 39. Land rental exemption

Land rental exemption in case of land lease by the State as specified in Clause 1, Article 157 of the Land Law is as follows:

1. Land rental exemption for the entire lease period applies to:

a/ Land used for agricultural production by ethnic minority households and individuals;

b/ Land used for implementation of investment projects on construction of accommodations for industrial park workers;

c/ Land used for construction of specialized railway infrastructure, construction of railway industry works as specified at Point b, Clause 1; Point b, Clause 2; and Clause 3, Article 209 of the Land Law.

d/ Land used for construction of working offices, drying grounds, warehouses and production workshops; land for construction of establishments providing direct services for agricultural production, forestry, aquaculture or salt making of cooperatives and unions of cooperatives.

dd/ Land used for construction of clean water supply, water drainage and wastewater treatment works in urban and rural areas.

e/ Land used for construction of maintenance and repair stations, parking lots (including ticket booths, administration quarters and public-service quarters) to serve public transportation of passengers in accordance with the road transport and traffic law.

g/ Land used for construction of airport and aerodrome infrastructure facilities under Point b, Clause 1, Article 208 of the Land Law.

h/ Land used for implementation of investment projects on construction of transport infrastructure in the form of public-private partnership.

i/ Land used for construction of social houses for lease under Point c, Clause 2, Article 120 of the Land Law; investment projects on condominium renovation or reconstruction eligible for land rental exemption in accordance with the housing and land laws.

k/ Land areas other than national defense or security land used by military or public security enterprises for national defense or security purposes in which land areas used for national defense or security purposes are separated from those used for other purposes.

2. Land rental exemption during the period of capital construction of projects approved by competent authorities must not exceed 3 years from the date of issuance of land lease decisions for projects eligible for land rental exemption specified at Point a, Clause 1, Article 157 of the Land Law. In case land users use land for agricultural production (for growing perennial trees) for projects approved by competent authorities, the period of capital construction of the gardens may be exempt from land rental for each type of trees according to technical processes for growing and tending of perennial trees specified by the Ministry of Agriculture and Rural Development. Land rental exemption during the period of capital construction shall be given to projects associated with lease of new land areas by the State or change from the land allocation without collection of land use levy to land lease, excluding cases of investment in construction, renovation and expansion of production and trading establishments and replantation of tree gardens on land areas currently leased by the State. The investment in the renovation or expansion of production and business establishments with land areas additionally leased by the State for implementation of projects, covering capital construction activities, is exempt from land rental for the period of capital construction for land areas additionally leased by the State.

In case investment certificates or investment licenses or investment registration certificates or investment approval decisions issued by competent authorities before the issuance of land lease decisions in accordance with law specify the period of capital construction (project implementation progress), the period of capital construction for each project shall be determined on the basis of such investment certificates or investment licenses or investment registration certificates or investment approval decisions but must not exceed 3 years from the date of issuance of land lease decisions.

3. Land rental exemption after the period of land rental exemption for the period of capital construction under Clause 2 of this Article for cases of land use specified at Point a, Clause 1, Article 157 of the Land Law, except the cases specified in Clauses 3 and 4 of this Article, is specifically as follows:

 a/ To exempt land rental for 3 (three) years for production and business projects on the List of sectors and trades eligible for investment incentives.

b/ To exempt land rental for 7 (seven) years for production, business and investment projects in areas with difficult socio-economic conditions.

c/ To exempt land rental for 11 (eleven) years for production, business and investment projects in areas with extremely difficult socio-economic conditions; production, business and investment projects on the List of sectors and trades eligible for special investment incentives; production and business projects on the List of sectors and trades eligible for investment incentives in areas with difficult socio-economic conditions.

d/ To exempt land rental for 15 (fifteen) years for production and business projects on the List of sectors and trades eligible for investment incentives in areas with extremely difficult socio-economic conditions; production and business projects on the List of sectors and trades eligible for special investment incentives in areas with difficult socio-economic conditions; for land used for construction of surface structures to serve the operation of underground structures.

e/ To exempt land rental for the entire lease period for projects using land for production and business purposes for implementation of investment projects on the List of sectors and trades eligible for special investment incentives in areas with extremely difficult socio-economic conditions.

g/ To exempt land rental for the projects specified in Clause 15, Article 38 of this Decree at levels determined by provincial-level People’s Councils.

4. Land rental exemption after the period of land rental exemption for the period of capital construction under Clause 2 of this Article for investment projects in economic zones using land under Point a, Clause 1, Article 157 of the Land Law is as follows:

a/ To exempt land rental for 11 (eleven) years for investment projects not on the List of projects eligible for investment incentives (below referred to as the List of sectors and trades eligible for investment incentives) that are invested in economic zones in district-level areas not on the List of geographical areas eligible for investment incentives.

b/ To exempt land rental for 13 (thirteen) years for projects not on the List of sectors and trades eligible for investment incentives that are invested in economic zones in district-level areas on the List of geographical areas with difficult socio-economic conditions.

c/ To exempt land rental for 15 (fifteen) years for projects not on the List of sectors and trades eligible for investment incentives that are invested in economic zones in district-level areas on the List of geographical areas with extremely difficult socio-economic conditions; projects on the List of sectors and trades eligible for investment incentives that are invested in economic zones in district-level areas not on the List of geographical areas eligible for investment incentives.

d/ To exempt land rental for 17 (seventeen) years for projects on the List of sectors and trades eligible for investment incentives that are invested in district-level economic zones in areas with difficult socio-economic conditions.

dd/ To exempt land rental for 19 (nineteen) years for projects on the List of sectors and trades eligible for investment incentives that are invested in economic zones in district-level areas with extremely difficult socio-economic conditions. 

e/ To exempt land rental for the entire lease period for investment projects on the List of sectors and trades eligible for investment incentives (except the cases specified at Point g of this Clause).

g/ Investors that are leased land by the State for investment in construction and trading of infrastructure of functional quarters in economic zones are entitled to land rental exemption:

- For 11 (eleven) years, in case their investment projects are in district-level areas not on the List of geographical areas eligible for investment incentives.

- For 15 (fifteen) years, in case their investment projects are in district-level areas not on the List of geographical areas with difficult socio-economic conditions.

- For the entire lease land period, in case their investment projects are in district-level areas on the List of geographical areas with extremely difficult socio-economic conditions.

In case an economic zone is located in more than one district, land rental exemption shall be determined for its land area in each district.

5. Land rental exemption after the period of land rental exemption for the period of capital construction under Clause 2 of this Article for investment projects in hi-tech parks in cases of land use specified at Point a, Clause 1, Article 157 of the Land Law is as follows:

a/ Land rental exemption for 15 (fifteen) years for investment projects not on the List of sectors and trades eligible for investment incentives; investment projects on construction and commercial operation of hi-tech park infrastructure.

b/ Land rental exemption for 19 (nineteen) years for projects on the List of sectors and trades eligible for investment incentives.

c/ Land rental exemption for the entire lease period for projects on the List of sectors and trades eligible for special investment incentives (except investment projects on construction and commercial operation of hi-tech park infrastructure).

6. Land rental exemption for other cases specified in Clause 2, Article 157 of the Land Law shall be proposed by ministries, sectors and provincial-level People’s Committees to the Ministry of Finance for summarization and submission to the Government for decision after obtaining the National Assembly Standing Committee’s approval.

7. In case of land rental exemption without requiring procedures for requesting land rental exemption and determining land prices and calculating exempted land rental amounts under Clause 3, Article 157 of the Land Law, when carrying out procedures for land lease, agencies with the land management function shall make statistics and summarize cases eligible for land rental exemption. In case of land lease by the State with annual payment of land rental and exemption of land rental for a number of years under Clause 2 of this Article, before the expiration of the 6-month period of land rental exemption, land users shall carry out procedures for determining and paying land rental amounts under this Decree.

In the course of implementation, if competent agencies and persons detect that persons entitled to land rental exemption no longer satisfy the conditions for land rental exemption, they may coordinate with agencies with the land management function in examining, reviewing and determining the satisfaction of conditions for land rental exemption.

In case persons entitled to land rental exemption no longer satisfy the conditions for land rental exemption, agencies with the land management function shall report such to same-level People’s Committees for decision on cancellation of land rental exemption and forward information to tax agencies for calculation, collection and remittance of payable land rental amounts (ineligible for exemption) under regulation and land prices at the time the State issues land lease decisions and amounts equivalent to late land rental payment interests in accordance with the tax administration law.

Article 40. Land rental reduction

Land rental reduction in case of land lease by the State under Clause 1, Article 157 of the Land Law is as follows:

1. In case of land lease with annual payment of land rental:

a/ To reduce by 80% annual land rental amounts for the entire lease period for land areas for construction of other auxiliary facilities directly serving train operation, passenger boarding and deboarding and cargo loading and unloading; land areas for construction of facilities for aviation and non-aviation services specified at Point b, Clause 1, and Point b, Clause 2, Article 208 of the Land Law.

b/ To reduce by 50% annual land rental amounts for the entire lease period for public non-business units under Point c, Clause 3, Article 120 of the Land Law.

c/ To reduce annual land rental amounts for the entire lease period according to the proportion of national defense and security task performance revenues to total revenues for land areas not classified as national defense and security land but used for national defense and security purposes, and revenues for other land use purposes in case it is impossible to separate land areas used for national defense and security purposes from those used for other purposes. In case it is impossible to determine the proportion of national defense and security task performance revenues to total revenues for land areas not classified as national defense and security land but used for national defense and security purposes, and revenues for other land use purposes, annual land rental amounts shall be reduced by 30% for the entire lease period for all land areas used for purposes for which the land is leased by the State.

d/ To reduce land rental amounts by the levels specified at Point b of this Clause for cases of land use for implementation of investment projects in the form of public-private partnership in the fields and geographical areas eligible for investment incentives on the List of sectors and trades eligible for investment incentives; sectors and trades eligible for special investment incentives; geographical areas with difficult socio-economic conditions, and geographical areas with extremely difficult socio-economic conditions in accordance with the investment law, except the cases specified at Point h, Clause 1, Article 39 of this Decree.

2. In case of land lease with one-off payment of land rental for the entire lease period, the land rental amount to be reduced shall be calculated as follows:

3. The competence for calculation of and decision on land rental amounts to be reduced complies with Clause 2, Article 41 of this Decree.

4. Land rental reduction in other cases specified in Clause 2, Article 157 of the Land Law shall be proposed by ministries, sectors and provincial-level People’s Committees to the Ministry of Finance for summarization and submission to the Government for decision after obtaining the National Assembly Standing Committee’s approval. 

Article 41. Order and procedures for land rental exemption or reduction

1. Land users eligible for land rental exemption are not required to carry out procedures for determining land prices and calculating the to-be-exempted land rental amounts as specified in Clause 3, Article 157 of the Land Law; and are not required to carry out procedures for requesting land rental exemption.

2. For land users eligible for land rental reduction, tax agencies shall, based on the land users’ land rent dossiers transferred from land registration offices or agencies with land management function, eligible subjects, and land rental reduction levels under regulations, calculate payable land rental amounts and reducible land rental amounts and issue decisions on land rental reduction, specifically as follows:

a/ Directors of provincial-level Tax Departments shall issue decisions on land rental reduction for land users being domestic organizations, people of Vietnamese origin residing abroad, and foreign-invested organizations.

b/ Heads of district-level Tax Branches and regional Tax Branches shall issue decisions on land rental reduction for land users being households and individuals.

Decisions on land rental reduction shall be made according to Form No. 02 provided in Appendix II to this Decree.

 

 

Section 3

LAND RENTAL COLLECTION AND PAYMENT

Article 42. Order and procedures for land rental calculation

1. Based on cadastral dossiers on land lease (information on land area, position, purpose and form of land rent, and land lease period); provincial-level People’s Committees’ decisions on land prices and unit prices for land lease for construction of underground works; land price lists, and the rates(%) for land rental calculation as specified by provincial-level People’s Committees, tax agencies shall organize the calculation, collection and payment of land rental, specifically as follows:

a/ Within 5 working days after receiving an information slip from the land registration office or agency with land management function (information slip-sending agency), the tax agency shall determine the unit rate of land rental and calculate the payable land rental amount and issue a notice of land rental payment and send it to the person obliged to pay land rental and also to the information slip-sending agency.

The notice of land rental payment shall be made according to Form No. 01a or Form No. 01b provided in Appendix II to this Decree.

b/ In case there are insufficient grounds for calculating land rental, within 5 working days after receiving the information slip, the tax agency shall send a notice thereof to the information slip-sending agency for supplementation; within 5 working days after receiving a complete cadastral dossier under regulations, the tax agency shall determine the unit rate of land rental, calculate the payable land rental amount, and issue a notice of land rental payment and send it to the person obliged to pay land rental and also to the information slip-sending agency.

2. Every year, the tax agency shall directly send a notice of land rental payment to the person obliged to pay land rental for land rental collection and payment during the period of stable application of land rental. In case there is a change in the grounds for calculating land rental, the tax agency shall recalculate the payable land rental amount and notify such to the person obliged to pay land rental.

Land rental payment shall be calculated based on the calendar year, from January 1 through December 31 of a year. In case the first year or last year of the land lease period is shorter than full 12 months, the land rental amount for such year shall be calculated according to the number of months of land lease. In case the first month or last month of the land lease period is shorter than one full month:

a/ If the number of days of land lease is between 15 days and full 1 month (≥15 days, it shall be rounded up to 1 month.

b/ If the number of days of land lease is shorter than 15 days (< 15 days), land rental shall not be calculated.

3. After the period of stable application of land rental specified in Clause 2, Article 153 of the Land Law ends, the tax agency shall coordinate with the agency with land management function in order to determine the adjusted amount of land rental for the next period of stable application of land rental and notify such to the land lessee in accordance with law at the time of adjustment. In case there is a change in cadastral information (location, road section, area...), the agency with land management function or land registration office shall send the information thereon to the tax agency for use as a basis for determining the unit rate of land rental for the next period of stable application of land rental under regulations.

4. Tax agencies shall formulate dossiers for monitoring the collection and payment of land rental, made according to the form provided by the Ministry of Finance.

Books for delivery of notices of payment of land-related financial obligations shall be made according to Form No. 04 provided in Appendix II to this Decree.

Article 43. Land rental collection and payment

1. Land rental shall be paid to the state budget in Vietnam dong (VND); in case foreign organizations and individuals, and overseas Vietnamese pay land rental in foreign currencies, foreign currency amounts shall be converted into VND in accordance with law at the time of payment.

2. Land rental payment is as follows:

a/ The tax agency shall send a notice of land rental payment to the land lessee, and concurrently to the land registration office or agency with land management function and the State Treasury office of the same level (for monitoring and accounting under regulations).

b/ The land lessee shall pay land rental to the state budget according to the tax agency’s notice in accordance with the law on tax administration.

c/ In case of land lease with one-off payment of land rental for the entire lease period, after collecting the land rental amount in one-off for the entire lease period, the agency in charge of collecting state budget revenues shall transfer the information on budget collection and payment to the tax agency in accordance with the law on tax administration for the latter to transfer it to the agency with land management function for use as a basis for allocation of land to the land lessee under regulations. Land allocation shall only be carried out when the land lessee has fully paid the land rental amount in one-off for the entire lease period under regulations.

3. Time limits for land rental payment

a/ In case of land lease by the State through auction of land use rights, the time limit for payment by the auction winner shall be specified in the plan on land use rights auction or decision recognizing the auction-winning result in accordance with the law on property auction for implementation by the auction winner, which, however, must not exceed the time limit for land rental payment in accordance with the law on tax administration.

In case the auction winner commits a violation related to the payment obligation, leading to the annulment of the decision recognizing the auction-winning result, the handling thereof must comply with the law on property auction, the Decree detailing a number of articles of the Land Law, and the law on tax administration.

b/ In case of land lease by the State not through auction of land use rights, the time limit for land rental payment must comply with the law on tax administration, which, however, must not exceed 180 days after the issuance of a competent state agency’s decision approving the land price for calculation of land rental (in case of one-off payment of land rental for the entire lease period based on the specific land price). Past this 180-day time limit, if the land lessee fails to make the full payment, land shall not be allocated. Past the deadline for land rental payment stated in the tax agency’s notice, if the land lessee fails to fully pay the land rental amount to the state budget, it/he/she shall pay a late-payment interest on the payable land rental amount at the rate prescribed in the law on tax administration.

In case the land lessee fails to comply with the land rental payment enforcement, the tax agency shall transfer the dossier to the agency with land management function for submission to the competent authority for consideration and handling of such land lease decision under the Decree detailing a number of articles of the Land Law.

c/ In case of land lease by the State with annual payment of land rental, if the land lessee wishes for  and requests advance payment of land rental, it/he/she may pay the land rental amount in advance for several years of the period of stable application of land rental (not exceeding 5 years) and have the rights of a land user in the form of land lease by the State with annual payment of land rental.

4. The Ministry of Finance shall specify declarations, documents, and books for monitoring land rental collection and payment.

 

Chapter IV

RESPONSIBILITIES OF AGENCIES AND LAND USERS

Section 1

RESPONSIBILITIES OF AGENCIES AND LAND USERS IN DETERMINING AND COLLECTING AND PAYING LAND USE LEVY AND LAND RENTAL

Article 44. Responsibilities of agencies and land users

1. Finance agencies:

To assume the prime responsibility for formulating, and submit to provincial-level People’s Committees for stipulation, the specific rates (%) for determining unit rates of land rental; the rates (%) for calculating land rental for land used for construction of underground works, and underground works located outside the land use spaces determined for land users, and land with water surface as specified in Articles 26, 27 and 28 of this Decree.

2. Agencies with land management function and land registration offices:

a/ To identify the land locations, positions, areas, types, and use purposes, time of calculating land use levy or land rental (including also time of actual land handover for cases of calculating additional payments as specified in Clause 2, Article 50 and Clause 9, Article 51 of this Decree), land lease periods, unit rates of land rental specified in Clause 2, Article 29 of this Decree, specific land prices in all cases in which financial obligations related to land use levy or land rental arise (including also cases of determining land use levy or land rental amounts of the land types before the land repurposing or before the adjustment of detailed master plans or land allocation or land lease decisions), and additional payments as specified in this Decree.

b/ Annually, to compile statistics of and synthesize cases eligible for land use levy or land rental exemption and notify such to related agencies for carrying out examination, inspection and audit according to their assigned functions and tasks.

c/ To perform other tasks as specified in this Decree and relevant regulations.

3. Tax agencies:

a/ Based on this Decree and the information slips sent from agencies with land management function and other agencies, to calculate land use levy, land rental, rental of land with water surface, rental of land for construction of underground works, and underground works located outside the land use spaces as specified in Clause 3, Article 27 of this Decree, and reducible land use levy or land rental amounts, and notify such to land users in accordance with this Decree.

b/ To organize the implementation, guide and answer questions, and settle complaints about the calculation, collection and payment of land use levy and land rental under this Decree, the law on tax administration, and other relevant laws.

c/ To determine unit rates of land rental with annual payment of land rental and unit rates of land rental with one-off payment of land rental for the entire lease period as specified in Article 26 of this Decree.

d/ To review cases in which land users had their owed land use levy amounts recorded but have yet to fully pay the owed amounts so as to notify them of the owing, payment or write-off of land use levy under this Decree.

dd/ To perform other tasks as specified in this Decree and relevant regulations.

4. State Treasury offices, collecting agencies, or credit institutions (banks) authorized for collection of land use levy and land rental in accordance with the law on tax administration:

a/ In case land users pay land use levy or land rental at State Treasury offices:

a.1/ State Treasury offices shall fully collect the land use levy or land rental amounts according to competent agencies’ notices of payment of land use levy or land rental and may not refuse to collect such amounts for any reasons.

a.2/ State Treasury offices may not delay the collection to the next day after the persons responsible for performing the obligation related to land use levy or land rental have completed the payment procedures.

a.3/ State Treasury offices shall transfer information on state budget collection and payment of land users to tax agencies for the latter to transfer such information to agencies with land management function for use as a basis for reporting to competent state agencies for allocation or lease of land to land users under regulations.

a.4/ To perform other tasks as specified in this Decree and relevant regulations.

b/ In case land users pay land use levy or land rental at collecting agencies or credit institutions (banks) authorized for collection of land use levy and land rental in accordance with the law on tax administration:

The collecting agencies or credit institutions (banks) authorized for collection of land use levy and land rental shall fully collect the land use levy or land rental amounts according to competent agencies’ notices of payment of land use levy or land rental; remit such amounts to the state budget and transfer the information on state budget collection and payment of the land users in accordance with the law on tax administration.

5. District-level People’s Committees:

a/ To certify money amounts for compensation, support and resettlement to be deducted from the payable land use levy or land rental amounts.

b/ Together with units or organizations performing the compensation, support and resettlement task, to take responsibility for the accuracy of the data and information stated in the lists for payment of money amounts for compensation, support and resettlement.

c/ To perform other tasks as specified in this Decree and relevant regulations.

6. Land users:

a/ To make declarations of land use levy or land rental payment in accordance with this Decree, and the Law on Tax Administration and guiding documents.

b/ To pay land use levy or land rental within the time limits stated in the tax agencies’ notices.

c/ Past the time limits stated in the tax agencies’ notices, to pay late-payment interests under Article 45 of this Decree if failing to fully pay the land use levy or land rental amounts.

7. The responsibilities of agencies and land users in determining and collecting and paying land use levy and land rental in case of power delegation under pilot or particular mechanisms must comply with the competent authorities’ decisions permitting the implementation of such pilot or particular mechanisms.

Article 45. Handling of late payment

In case of late payment of land use levy or land rental to the state budget, land users shall pay late-payment interests on the payable land use levy or land rental amounts at the rates prescribed by the Law on Tax Administration and guiding documents, except cases in which they have their owed land use levy amounts recorded in accordance with law.

Article 46. Complaints and settlement of complaints

Complaints and settlement of complaints about land use levy or land rental must comply with the Law on Complaints and guiding documents. Pending the settlement, complainants shall timely and fully pay the land use levy or land rental amounts as notified.

Section 2

RESPONSIBILITIES FOR STATE MANAGEMENT OF COLLECTION OF LAND USE LEVY AND LAND RENTAL

Article 47. Responsibilities of the Ministry of Finance

1. To guide and inspect the organization of implementation of this Decree.

2. To specify dossiers, declarations, and forms of books for managing the collection and payment of land use levy and land rental and decentralize the management of the collection and payment of land use levy and land rental under regulations.

3. To perform other tasks as specified in this Decree and relevant regulations.

4. To summarize and submit to the Government the regulations on land use levy and land rental exemption or reduction in other cases as specified in Clause 2, Article 157 of the Land Law as proposed by ministries, sectors and provincial-level People’s Committees after obtaining approval from the National Assembly Standing Committee.

Article 48. Responsibilities of provincial-level People’s Committees

1. To issue the rates (%) for calculating unit rates of land rental, the collection rates (%) for land for construction of underground works, and the collection rates (%) for land with water surface, and decide on specific land prices according to their competence for use as a basis for calculating land use levy and land rental.

2. To direct local functional agencies to expeditiously complete legal dossiers on land for land users for calculating land use levy and land rental.

3. To direct local functional agencies to perform the tasks specified in this Decree and relevant regulations.

4. To direct the inspection and handling of violations in declaration and application of land use levy and land rental exemption or reduction for improper subjects and not according to regulations, causing damage to the State as well as land use levy and land rental payers; to check the land users’ satisfaction of the conditions for land use levy or land rental exemption during the land use process and notify such to tax agencies for the latter to retrospectively collect (or refund) land use levy or land rental amounts in case land users or land lessees fail to satisfy the conditions for land use levy or land rental exemption during the land use process.

5. To settle complaints and denunciations about the calculation, collection and payment of land use levy or land rental in accordance with the law on complaints and denunciations.

6. Based on the order and procedures for land allocation, land lease, recognition of land use rights, extension of land use period, adjustment of land use period, land repurposing, determination of land prices for calculating land use levy or land rental as specified in the Decrees detailing a number of articles of the Land Law, and land prices, and provisions on the order and procedures for calculation, collection and payment of land use levy and land rentals of this Decree to formulate and promulgate regulations on the procedures for rotation of dossiers for determination of land-related financial obligations to suit local realities.

7. To submit to the same-level People’s Councils for decision:

a/ Preferential regimes on land rental exemption for each area and sector for projects using land for production and business purposes in the sectors eligible for investment incentives (sectors and trades eligible for investment incentives) or in areas eligible for investment incentives as specified at Point a, Clause 1, Article 157 of the Land Law that meet either of the following two conditions: projects are on the list of projects with types, scale criteria or socialization standards decided by the Prime Minister; and non-profit projects as specified in Clause 15, Article 38 of this Decree.

b/ Allowing land users allocated land by the State without collection of land use levy or leased land in hi-tech parks not to refund to the state budget the money amounts for compensation and site clearance that have been allocated by the State from the state budget (excluding cases of advance payment of capital from land development funds) as specified in Clause 8, Article 31 of this Decree.

8. To direct and review for thoroughly handling cases of owing land use levy or land rental before the effective date of the 2024 Land Law.

9. To perform other tasks as specified in this Decree and relevant regulations.

Article 49. Responsibilities of ministries and sectors

1. Related ministries and sectors shall, within the ambit of their assigned functions and tasks, coordinate with the Ministry of Finance in guiding the calculation, collection and payment of land use levy and land rental in accordance with this Decree.

2. To perform other tasks as specified in this Decree and relevant regulations.

 

Chapter V

IMPLEMENTATION PROVISIONS

Section 1

TRANSITIONAL PROVISIONS AND HANDLING OF A NUMBER OF SPECIFIC ISSUES

Article 50. Transitional provisions on land use levy

1. In case a land user that is entitled to land allocation, grant of permission for land repurposing, or recognition of land use rights, or for which/whom the land allocation decision is adjusted or the detailed master plan is permitted for adjustment, and the competent state agency has calculated and notified the payable land use levy amount under law before the effective date of the 2024 Land Law, but that has yet to fulfill the land use levy payment, it/he/she shall pay the unpaid land use levy amount and late-payment interest in accordance with the law on tax administration in each period.

After being re-calculated by the competent state agency, if the payable land use levy amount is larger than the notified land use levy amount, the land user shall pay the increased land use levy amount and the additional amount calculated on the increased amount as specified in Clause 2 of this Article, and at Point d, Clause 2, Article 257 of the Land Law, counted from the time of land use levy calculation in accordance with law in each period by the time the land user makes payment to the state budget.

2. In case the decision on land allocation, grant of permission for land repurposing or modification of the detailed master plan has been issued in accordance with the land law and other relevant laws before the effective date of the 2024 Land Law, but no decision on land prices has been issued, the calculation and collection of land use levy must comply with Clause 2, Article 257 of the Land Law.

The money amount additionally payable by land user for the period in which land use levy has not been calculated under Point d, Clause 2, Article 257 of the Land Law shall equal 5.4%/year of the payable land use levy amount which is determined under Clause 2, Article 257 of the Land Law.

3. In case a household/individual has its/his/her owed land use levy amount recorded on the Certificate as prescribed by law in each period but, by the effective date of this Decree, has not fully paid the owed amount:

a/ If the household/individual had its/his/her owed land use levy amount recorded before December 10, 2019, it/he/she shall continue to pay the unpaid land use levy amount according to the policy and land price at the time of grant of the Certificate (or based on the money amount stated on the Certificate which is determined in accordance with law). Past the payment deadline specified in the Government’s Decree No. 45/2014/ND-CP of May 15, 2014, which was amended under the Government’s Decree No. 79/2019/ND-CP of October 26, 2019, the land user shall pay the remaining land use levy amount according to the policy and land price at the time of payment.

b/ If the household/individual has its/his/her owed land use levy amount recorded in the period between December 10, 2019, and the date before the effective date of this Decree, it/he/she shall continue to pay the unpaid land use levy amount recorded in the Certificate which is determined in accordance with the Government’s Decree No. 45/2014/ND-CP of May 15, 2014, within 5 years from the date of recording of the owed land use levy amount.

Past this 5-year time limit, the household/individual shall pay the debt under Article 22 of this Decree.

4. In case a land user is eligible for land use levy exemption but has not completed the procedures for land use levy exemption, land price determination, and calculation of the exemptible land use levy amount by August 1, 2024, the tax agency shall, from the effective date of this Decree, forward the dossier to the agency with land management function for processing under Clause 3, Article 157 of the Land Law and this Decree.

5. For a land user that is eligible for land use levy reduction and currently carries out procedures for land use levy reduction at a competent state agency but for which/whom the competent state agency has not yet issued the decision on land use levy reduction, land use levy reduction must comply with this Decree. In case the reduction rate specified in this Decree is lower than the reduction rate for which the land user is carrying out the procedures for enjoyment, the higher rate shall apply.

6. For dossiers for calculation of land use levy in economic zones that have been received by competent state agencies in accordance with the regulations on collection of land use levy before the effective date of this Decree, such agencies shall forward such dossiers to functional agencies in accordance with the Land Law for implementation in accordance with the latter’s assigned competence and responsibilities.

7. In case a land user has been allocated land by the State for use for a long and stable period with collection of land use levy and for which/whom the competent state agency has issued the decision on land use levy exemption or reduction in accordance with law before the effective date of this Decree, or in case a land user has submitted a dossier to the competent state agency before the effective date of this Decree but no decision on land use levy exemption or reduction has been issued, it/he/she shall continue to be eligible for land use levy reduction or exemption in accordance with law before the effective date of this Decree.

8. In case a commercial housing project for which a competent state agency has permitted payment of an amount equivalent to 20% of the land value invested in the technical infrastructure system for construction of social houses in accordance with the housing law but, by the effective date of this Decree, such amount has not been calculated, it shall be calculated, collected and paid under this Decree; in case such amount has been calculated in accordance with law before the effective date of this Decree, it is required to collect and pay the calculated amount and pay a late-payment interest (or an amount equivalent to the late-payment interest) (if any) on the land use levy amount in accordance with the law on tax administration.

9. In case a land user is eligible for land allocation by the State not through auction of land use rights and has made an advance payment for compensation and site clearance according to the plan approved by a competent state agency under the policies on compensation, support and resettlement upon land recovery by the State before the effective date of the 2024 Land Law, the advance payment shall continue to be deducted from the payable land use levy amount in accordance with the regulations on land use levy collection in each period before the effective date of this Decree.

Article 51. Transitional provisions on land rental collection

1. A household/individual that currently uses the agricultural land area allocated before July 1, 2014, in excess of the land allocation limit at the time of land allocation shall shift to land lease for the excessive land area as specified in Clause 1, Article 255 of the 2024 Land Law, and pay land rental under this Decree.

2. An economic organization, a household, an individual or an overseas Vietnamese that has been allocated land by the State with land use levy collection for a definite term before the effective date of the 2024 Land Law and has fulfilled its/his/her financial obligation related to land use levy, but now is subject to land lease in accordance with the 2024 Land Law, may continue to use the land for the remaining land use period without having to shift to land lease. In case of wishing to shift to land lease, it/he/she is not required to pay land rental for the remaining land use period; in case of shifting to land lease in which the land lease period stated in the land lease decision is longer than the remaining land use period, it/he/she shall pay land rental for the extended period.

In case of failing to fulfill the obligation of land use levy, it/he/she shall comply with Clause 1, Article 50 of this Decree. Upon the expiration of the land use period, if such period is permitted by the competent state agency for extension under Clause 2, Article 255 of the 2024 Land Law, requiring the land user to shift to land lease, land rental shall be calculated, collected and paid under this Decree.

3. For organizations, households, individuals, and overseas Vietnamese that had been allocated land by the State without land use levy before July 1, 2014, and are subject to land lease in accordance with the 2013 Land Law, and now shift to land lease in accordance with Clause 3, Article 255 of the 2024 Land Law, land rental shall be calculated, collected and paid under this Decree.

For land of a public non-business unit subject to shift to land lease and eligible for land rental exemption under the 2013 Land Law but has not yet shifted to land lease or has shifted to land lease but has not yet carried out or delayed the carrying out of the procedures for land rental exemption, and the tax agency has yet to issue a notice of land rental payment, such unit is not required to pay land rental for the period it has not yet carried out or delayed the carrying out of the procedures for land rental exemption under the regulations before the effective date of the 2024 Land Law. In case the tax agency has issued a notice of land rental payment and late-payment interest thereon (if any) but the public non-business unit has not paid or has not fully paid the amount stated in the notice, it shall send a report to the managing ministry, sector or locality for summarizing, proposing a handling plan and sending it to the Ministry of Finance for summarization and reporting to the competent authority for consideration and decision. In case the land rental amount and late-payment interest (if any) have been paid before the effective date of this Decree, the State shall not refund the paid amount.

4. In case domestic organizations or agricultural/forestry companies have used land in the form of land lease with annual payment of land rental while no land lease decision is issued, they shall pay land rental according to the actual use purpose and not be entitled to stable application of land rental under Article 32 of this Decree. In case they have submitted dossiers to the competent state agencies for completion of land-related legal procedures (signing land lease contracts) but the competent state agencies delay processing the procedures or they are not eligible for signing land lease contracts while no land recovery decisions have been issued, they shall be entitled to stable application of land rental under Article 32 of this Decree, which is calculated from the time of submission of a complete and valid dossier for completion of land-related legal procedures.

5. In case of land lease by the State in accordance with the land law before the effective date of this Decree in which the current land user is eligible for land rental exemption or reduction in accordance with the land law or other regulations of the Government or the Prime Minister before the effective date of the 2024 Land Law:

a/ In case the land user is entitled to land rental exemption or reduction as permitted by a competent state agency in accordance with law before the effective date of this Decree, such land rental exemption or reduction shall continue to apply for the remaining land lease period in accordance with law before the effective date of this Decree. After the expiration of the period for land rental exemption or reduction, land rental shall be paid in accordance with this Decree.

b/ In case the land user has submitted the dossier under regulations to the competent state agency and is still in the period of land rental exemption or reduction in accordance with law before the effective date of this Decree but no decision on land rental exemption or reduction has been issued, land rental incentives (exemption or reduction) shall be applied in accordance with law before the effective date of this Decree; in case the incentive level specified in this Decree is higher than the currently applied one, the incentive level specified in this Decree shall be applied for the remaining incentive period.

c/ In case the land user has not carried out the procedures for land rental exemption or reduction but is still in the period of land rental exemption or reduction in accordance with law before the effective date of this Decree, it/he/she shall be entitled to land rental exemption or reduction under this Decree for the remaining incentive period.

d/ For the cases specified at Point b and c of this Clause in which the land user is entitled to land rental exemption, the tax agency shall return the dossier to the agencies with land management function to carry out land-related procedures (without having to carry out the procedures for land rental exemption); for other cases, the tax agency shall continue to carry out the procedures and notify the land user and agency with land management function under this Decree.

6. For economic organizations, households and individuals that use land allocated by the State and have paid land use levy before the effective date of the 2024 Land Law, and now are subject to land lease in accordance the 2024 Land Law, if wishing to shift to land lease, they are not required to pay land rental for the remaining land use period.

7. In case a land lessee is leased land by the State before the effective date of the 2024 Land Law and the tax agency has issued a notice of land rental payment, but, by the effective date of this Decree, the land lessee has not fulfilled the land rental obligation according to the tax agency’s notice:

a/ In case of land lease with one-off payment of land rental for the entire lease period, the land lessee shall continue to pay land rental according to the notified amount as well as late-payment interest in accordance with the Law on Tax Administration and guiding documents.

b/ After being re-calculated by the competent state agency, if the payable land rental amount is larger than the notified amount, the land user shall pay the increased land rental amount and an additional amount calculated on the increased amount as specified in Clause 9 of this Article, and Point d, Clause 2, Article 257 of the Land Law from the time of land rental calculation in accordance with law in each period to the time of payment to the state budget.

8. In case a land user is subject to land lease by the State not through auction of land use rights and has made an advance payment for compensation and site clearance according to the plan approved by the competent state agency under the policies on compensation, support and resettlement upon land recovery by the State in accordance with the 2003 Land Law and the 2013 Land Law, and is still in the land lease period, but the advance payment has not been deducted from the payable land rental amount or has not been fully deducted in the period during which it/he/she is considered having completed the land rental obligation (in case of land lease with annual payment of land rental) and has not yet been included in the project’s investment expense (capital) in accordance with law in each period, such amount shall continue to be deducted from the payable land rental amount in accordance with the regulations on land rental collection in each period before the effective date of this Decree.

9. In case of availability of a decision on land allocation, grant of permission for land repurposing, grant of permission for shift from land lease with annual payment of land rental to land lease with one-off payment of land rental for the entire lease period, extension of land use period, adjustment of land use period, or adjustment of a project’s detailed master plan in accordance with the land law and other relevant laws before the effective date of the 2024 Land Law, but there is no decision on land prices for calculation of the land rental amount for one-off payment for the entire lease period, the calculation of land rental must comply with Clause 2, Article 257 of the 2024 Land Law.

The money amount additionally payable by the land user for the period for which land rental has not been calculated under Point d, Clause 2, Article 257 of the 2024 Land Law will equal 5.4%/year of the payable land rental amount which is determined under Clause 2, Article 257 of the 2024 Land Law.

10. In case the land user is leased land before the effective of this Decree and still in the period of stable application of unit rate of land rental in accordance with the land law before the effective date of the 2024 Land Law, such unit price will continue to be applied until the end of that period. After the expiration of the period of stable application of unit rate of land rental, land rental shall be calculated under Article 30 of this Decree for application for the next period. Such land rental shall be applied stably for 5 years, after that, it shall be adjusted under Article 32 of this Decree.

11. In case of land lease with annual payment of land rental in which the time of adjusting the unit price for land lease is set to be before the effective date of this Decree but no adjustment has been made, land rental shall be calculated under Article 30 of this Decree for application for the next period. Such land rental shall be applied stably for 5 years, after that, it shall be adjusted under Article 32 of this Decree. For the period during which land has been used but no adjustment is made for the unit price for land lease, the adjustment shall be made in accordance with law in each period to serve payment and final settlement of the land rental amount.

12. In case of land lease before the effective date of this Decree in which land rental has been paid in advance for a period of several years in accordance with law, the land rental amount paid for such period is not required to be re-calculated as specified in this Decree. After such period, the land rental amount shall be adjusted under Article 30 of this Decree for application for the next period. Such land rental shall be applied stably for 5 years, after that, it shall be adjusted under Article 32 of this Decree.

13. In case a competent state agency has permitted the land lessee to use the value of the leased land use rights (land rental) to contribute capital to joint venture/association in accordance with law before the effective date of this Decree, the unit rate of land rental shall not be adjusted under this Decree. In case the period of capital contribution to joint venture/association with the value of the leased land use rights ends on the effective date of this Decree and the right to manage and use the land still belongs to the land lessee in accordance with law, the unit rate of land rental shall be re-determined under Articles 26, 27 and 28 of this Decree.

14. For dossiers for rental calculation for land in economic zones and hi-tech parks that have been received by competent state agencies in accordance with the regulations on land rental collection before the effective date of this Decree, such agencies shall forward the dossiers to the functional agencies in accordance with the 2024 Land Law for the latter to perform their assigned competence and responsibilities.

15. In case of using land under a land lease contract with a competent state agency in accordance with the land law in which no decision on land lease has been issued by a competent state agency; or in case of transformation or equitization in accordance with law, land rental shall be calculated under Article 30 of this Decree at the time it is required to re-calculated land rental, and applied stably for a 5-year period. After the expiration of the period of stable application of land rental, land rental shall be adjusted under Article 32 of this Decree.

Article 52. Handling of some specific issues

1. Calculation of land rental in case investors had been leased land by the State with annual payment of land rental for construction and commercial operation of infrastructure in industrial parks and cottage industry zones, and subleased such land with infrastructure thereon with one-off payment of land rental for the entire lease period before July 1, 2014:

a/ In case an enterprise conducting commercial operation of infrastructure had been leased land by the State before January 1, 2006, for which the investment certificate (investment license), land lease decision and land lease contract issued (or signed) by the competent state agency do not state the principle of adjustment of the unit rate of land rental, or in case one of the above-mentioned three papers states the principle of adjustment of the unit rate of land rental, but such unit rate has been adjusted under Clause 2, Article 9 of Decree No. 142/2005/ND-CP and such land had been subleased with one-off payment of land rental for the entire lease period before July 1, 2014, the land rental amount payable by the enterprise under Clause 2, Article 260 of the 2024 Land Law shall be calculated, collected and paid as follows:

a1/ The annual land rental amount shall be calculated and collected for the lease period between January 1, 2006, and December 31, 2025, based on the unit rate of land rental determined under regulations or the unit rate of land rental temporarily calculated according to the policy and land price effective at the time of issuance of the notice of temporary payment of land rental, and the land rental amount shall be finally settled based on the calculated or temporarily paid amount. In case the land rental amount had been temporarily paid according to the policy and land price effective before January 1, 2006, or the unit rate of land rental has yet to be re-determined under the Government’s Decree No. 142/2005/ND-CP, Decree No. 46/2014/ND-CP, and Decree No. 135/2016/ND-CP, the unit rate of land rental shall be adjusted under regulations effective in each period for calculation, collection and payment of land rental for the period between January 1, 2006, and December 31, 2025.

a2/ The land rental amount shall be calculated and collected in one-off for the period between January 1, 2026, and the date of expiration of the land sublease period. Such amount shall be calculated on the basis of the subleased land area, the remaining period of land sublease counted from January 1, 2026, and the annual unit rate of land rental determined under regulations effective as of January 1, 2006, plus an amount equal to the late-payment interest on the payable amount under regulations effective in each period, calculated from January 1, 2006, to the time of remittance to the state budget in case such land had been subleased before January 1, 2006, or calculated from the time of land sublease to the time of remittance to the state budget in case such land had been subleased in the period between the date after January 1, 2006, and the date before July 1, 2014.

b/ In case an enterprise conducting commercial operation of infrastructure had been leased land by the State in the period between January 1, 2006, and the date before July 1, 2014, and such land had been subleased with one-off payment of land rental for the entire lease period before July 1, 2014, the land rental amount payable by the enterprise under Clause 2, Article 260 of the 2024 Land Law shall be calculated, collected and paid as follows:

b1/ The annual land rental amount shall be calculated, collected and paid for the period from the time of land lease by the State to December 31, 2025, based on the unit rate of land rental determined under regulations or the unit rate of land rental temporarily calculated according to the policy and land price effective at the time of issuance of the notice of temporary payment of land rental, and the land rental amount shall be finally settled based on the calculated or temporarily paid amount. In case the unit rate of land rental has yet to be determined, or the annual land rental amount has been temporarily paid not according to the policy and land price effective at the time of issuance of the notice of temporary payment of land rental, the land rental amount shall be re-calculated for collection and payment for the period from the time of land lease by the State to December 31, 2025.

b2/ The land rental amount shall be calculated, collected and paid in one-off for the period between January 1, 2026, to the date of expiration of the land sublease period for the subleased land area as follows:

- In case of land lease by the State with annual payment of land rental in the period between January 1, 2006, and the date before October 1, 2009 (the effective date of the Government’s Decree No. 69/2009/ND-CP of August 13, 2009), the land rental amount payable in one-off is the annual land rental amount at the time of land sublease multiplied by (x) the number of years of land sublease (counted from January 1, 2026, to the date of expiration of the land sublease period), plus an amount equal to the late-payment interest according to the law on tax administration in each period, calculated from the time of land sublease by the investor to the time of remittance to the state budget.

- In case of land lease by the State with annual payment of land rental in the period between October 1, 2009, and the date before July 1, 2014, the land rental amount payable in one-off is the payable land use levy amount like in case of land allocation with collection of land use levy for the same land use purpose and the same land use period (counted from January 1, 2026, to the date of expiration of the land sublease period) according to the policy and land price effective at the time of land sublease, plus an amount equal to the late-payment interest according to the law on tax administration in each period, calculated from the time of land sublease by the investor to the time of remittance to the state budget.

c/ In case an investor conducting construction and commercial operation of infrastructure has been leased land by the State with annual payment of land rental for construction and commercial operation of infrastructure in industrial parks, cottage industry zones and export processing zones, for which the investment certificate (investment license), land lease decision or land lease contract issued (or signed) by the competent state agency states the principle of adjustment of the unit rate of land rental, and such unit rate has not yet been adjusted under Clause 2, Article 9 of the Government’s Decree No. 142/2005/ND-CP of November 14, 2005, on collection of land rental and water surface rental; Decree No. 46/2014/ND-CP of May 15, 2014; and Decree No. 135/2016/ND-CP of September 9, 2016, and such land with infrastructure thereon has been subleased with one-off payment of land rental for the entire lease period, in the period between January 1, 2006, and the date before July 1, 2014, the investor shall pay the land rental amount in one-off for the entire lease period to the State, which shall be calculated in adherence to the principle specified at Point a or b of this Clause.

d/ Enterprises conducting commercial operation of infrastructure in industrial parks, cottage industry zones and export processing zones shall complete payment of the land rental amount calculated according to Point a, b or c of this Clause before December 31, 2026. Past this date, if failing to complete the payment, enterprises shall be administratively handled and pay an amount equal to the late-payment interest calculated on the unpaid amount in accordance with the law on tax administration.

2. For cases in which the 2024 Land Law allows application of policies on collection of land use levy and land rental, and land prices before the effective date of the 2024 Land Law, the order and procedures for calculation of land use levy and land rental must comply with this Decree and other Decrees guiding the Land Law.

3. In case land development funds have advanced capital for units/organizations performing the compensation, support and resettlement task to create land areas for land allocation or land lease, or the state budget funds have been allocated for compensation, support and resettlement before the effective date of this Decree but, after the effective of this Decree, the State allocates or leases land, the amounts of compensation, support and resettlement shall be handled under Articles 16 and 31 of this Decree.

4. In case the competent state agency has issued the decision on grant of permission for land repurposing for the land user before the effective date of this Decree but, by the effective date of this Decree, the land user has yet to fulfil the obligations concerning land use levy and land rental, and before being repurposed, the land is used in various forms, including being used as residential land (but such land area is not separated into a part of the project after the land repurposing) or the project involves various forms of land use after the land repurposing, the land use levy amount before the land repurposing shall be calculated in adherence to the principles specified Articles 7 and 34 of this Decree. The land rate of calculation of land use levy or land rental shall be determined at the time the competent state agency issues the decision on grant of permission for land repurposing. The land user shall pay an amount equal to the late-payment interest on the land use levy or land rental amount according to the regulations effective in each period for the period from the time of issuance of the competent state agency’s decision on grant of permission for land repurposing to the time of payment of land use levy or land rental.

Section 2

IMPLEMENTATION PROVISIONS

Article 53. Effect       

1. This Decree takes effect on August 1, 2024.

2. This Decree replaces the Government’s Decree No. 45/2014/ND-CP of May 15, 2014, on collection of land use levy; Decree No. 46/2014/ND-CP of May 15, 2014, on collection of land rental and water surface rental; Decree No. 135/2016/ND-CP of September 9, 2016; Decree No. 123/2017/ND-CP of November 15, 2017, amending and supplementing a number of articles of the Decrees on collection of land use levy and land rental and water surface rental; Decree No. 35/2017/ND-CP of April 3, 2017, on collection of land use levy and land rental and water surface rental in economic zones and hi-tech parks; and Decree No. 79/2019/ND-CP of October 26, 2019, amending Article 16 of Decree No. 45/2014/ND-CP of May 15, 2014, on collection of land use levy.

3. To annul regulations on land rental exemption or reduction for projects in the fields eligible for policies on promotion of mobilization of social resources specified in Article 6 of the Government’s Decree No. 69/2008/ND-CP of May 30, 2008; and Decree No. 59/2014/ND-CP of June 16, 2014.

Article 54. Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and those allocated or leased land by the State shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
TRAN HONG HA

* The Appendices to this Decree are not translated.