Decree No. 103/2024/ND-CP on land levies and land rents

DECREE

ON LAND LEVIES AND LAND RENTS

Pursuant to the Law on Governmental Organization dated June 19, 2015; Law on amendments to the Law on Governmental Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Land Law dated January 18, 2024;

At the request of the Minister of Finance;

The Government hereby promulgates a Decree on land levies and land rents.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree prescribes:

1. Land levies (including calculation, collection, payment, exemption, reduction of land levies; handling of budget for recompense, support and resettlement; deferral of land levies) specified in point a clause 1 Article 153 of the Land Law on the following cases:

a) The State allocates land with land levy collection.

b) The State grants a permission to convert the existing land to the type of land allocated by the State with land levy collection.

c) The State recognizes LURs, adjusts land allocation decisions, adjusts detailed planning, allows change of land use form, allows use of land for multiple purposes under the provisions of law, thereby incurring land levies.

2. Land rents (including calculation, collection, payment, exemption, reduction of land rents; handling of budget for recompense, support and resettlement) specified in point b clause 1 Article 153 of the Land Law on the following cases:

a) The State leases out land (including water-covered land).

b) The State grants a permission to convert the existing land to the type of land leased out by the State with land rent payment.

c) The State leases out land for construction of underground works serving business purposes which are not the underground parts of above-ground works; 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 LURs, extends land use, adjusts land use term, adjusts land lease decisions, adjusts detailed planning, allows change of land use form, allows use of land for multiple purposes according to the provisions of law in cases where land rents must be paid according to regulations.

3. Additional payments (increased land levies, increased land rents) in cases where the State allocates land, leases out land, allows land repurposing, recognizes LURs, receives LURs by conveyance to execute investment projects of which the land use is not made or behind the schedule specified in Clause 8, Article 81, Point dd, Clause 1, Article 153 of the Land Law.

Article 2. Regulated entities

1. Regulatory agencies that manage, calculate and collect land levies and land rents.

2. Land users, that are required to pay land levies or land rents in the cases prescribed in Article 4 of the Land Law where the State allocates land, leases out land, allows land repurposing, extends or adjusts land use term, adjusts land allocation/lease decisions, adjusts detailed planning, allows change of land use form, recognizes LURs.

3. Other entities relating to calculation, collection, payment and management of land levies and land rents.

Chapter II

CALCULATION, COLLECTION AND PAYMENT OF LAND LEVIES

Section 1. calculation of land levies

Article 3. Basis for land levy calculation

1. Levied land area as prescribed in Article 4 hereof.

2. Land prices on which land levy is calculated as prescribed in Article 5 hereof.

3. Policies on exemption and reduction of land levies as prescribed in Articles 17, 18 and 19 hereof.

Article 4. Levied land area

1. Levied land area in cases of land allocation, land repurposing, adjustment of detailed planning, and change of land use form is the area of land subject to land levy recorded on land allocation decisions, permission for land repurposing, adjustment of land allocation decisions, adjustment of detailed planning, land use conversion of competent regulatory agencies.

2. Levied land area in cases of recognition of LURs is the recognized area of land recorded on information sheets serving determination of land-related financial obligations (hereinafter referred to as “information sheet”) sent by land authorities to tax authorities as prescribed ion Decrees of the Government on basic land survey; registration, issuance of certificates of LURs and ownership of property affixed to land and land information systems (hereinafter referred to as “Decrees on issuance of certificates”).

The determination of limits on homestead land allocation, limits on recognition of homestead land of households and individuals shall comply with the provisions of Articles 141, 195 and 195 of the Land Law, Decrees of the Government elaborating on certain Articles of the Land Law, Decrees on issuance of certificates.

3. Levied land area is calculated as prescribed in clause 1 and clause 2 of this Article is expressed as square meters (m²).

Article 5. Levied land prices

1. Land prices on which land levy is calculated are land prices in the Land price list applied to the cases specified on points a, h and k clause 1 Article 159 of the Land Law.

2. Land prices on which land levy is calculated are specific land prices applied to the cases specified in points a, dd clause 1 Article 160 of the Land Law and are calculated according to the provisions of Decrees of the Government on land prices.

3. Land prices on which land levy is calculated are hammer prices applied to cases of LUR auctions.

4. Land prices on which land levy is calculated specified in clauses 1, 2 and 3 of this Article are expressed as VND/square meter (VND/m²).

Article 6. Calculation of land levies upon land allocation by the State

1. Land levy upon land allocation by the State with land levy collection shall be calculated as follows:

where:

– The levied land area is determined as prescribed in Article 4 hereof.

– The land price on which land levy is calculated  is determined as prescribed in Article 5 hereof.

– Time for land levy calculation is determined as prescribed in clause 3 Article 155 of the Land Law. In case of resettlement land allocation, the time for land price determination and land levy calculation is the time when a competent authority issues a decision on approving the recompense, support and resettlement arrangement specified in clause 3 Article 11 of the Land Law.

2. In case a competent regulatory agency decides to allocate land according to the progress of an investment project, progress of land expropriation, recompense, support or resettlement as prescribed in clause 4 Article 116 of the Land Law, the land levy calculation and handling of budget for recompense, support and resettlement shall be done according to each land allocation decision.

3. Where a multi-storey house affixed to land is allocated by the State to multiple users, the land levy shall be allocated to each user. The allocation of the land levy to each land user shall be as follows:

where:

The gross floor area is determined according to construction laws and housing laws.

The GFA equals the sum of carpet areas of apartments under private ownership of owners of the multi-storey house (apartment building) and the commercial and service area on which land levy is charged (excluding the gross floor area under public ownership of owners).

The land levy allocation, as prescribed in this clause, does not apply to the case of selling state-owned housing (currently is public housing according to housing laws) to current lessee.

4. When reselling a social house as an detached house after 5 years as prescribed in Point e, Clause 1, Article 89 of the Housing Law, the Government’s Decrees elaborating on certain articles of the Housing Law on development and management of social housing, in addition to the amounts payable according to the provisions of law, the seller must pay 50% of the land levy that is calculated according to the formula specified in Clause 1 of this Article; in which:

a) Levied land area is the land area recorded in the certificate of LURs and ownership of property affixed to land (hereinafter referred to as “certificate”) according to the provisions of point e clause 1 Article 89 of the Housing Law.

b) Land price on which land levy is calculated  is the land price in the Land price list.

c) Time for land levy calculation is determined according to the provisions of the Government’s Decrees elaborating on certain Articles of the Housing Law on development and management of social housing.

5. In case a payment is equivalent to the value of the bank of land on which a technical infrastructure system serving the social house construction has been developed according to the provisions of Clause 2, Article 83 of the Housing Law, the Government’s Decrees elaborating cetain Articles of the Housing Law on the development and management of social housing, the payment equivalent to the value of the bank of land on which the technical infrastructure system serving the social house construction has been developed that is payable by the project developer shall be equal to the land levy that is calculated according to the formula specified in Clause 1 of this Article, in which:

a) The levied land area is the area of homestead land within an investment project to built commercial housing on which a technical infrastructure system serving social housing construction has been developed for which the project developer is allowed to pay an equivalent amount by a competent authority.

b) The land price on which land levy is calculated  is the specific land price of the land on which a technical infrastructure system serving social housing construction has been developed.

c) Time for land levy calculation is determined according to the provisions of the Government’s Decrees elaborating on certain Articles of the Housing Law on development and management of social housing.

Article 7. Calculation of land levies upon land repurposing for project execution applied to business organizations, people of Vietnamese descent residing overseas, foreign-invested organizations

1. When a competent regulatory agency grants a permission to repurpose land for which land levy is payable according to the provisions of clause 1 and clause 2 Article 121, and Article 156 of the Land Law for execution of a commercial housing project in case where all requirements specified in clause 3 Article 122 of the Land Law, or a cemetery infrastructure investment project serving the conveyance of rights to use land affixed to infrastructure or construction of an ashes storage facility specified in clause 2 Article 119 of the Land Law, the land levy is calculated as follows:

where:

– The levy on the repurposed land is calculated as follows:

– The land levy or land rent within the project before land repurposing (hereinafter referred to as “land-related fee”) is calculated as prescribed in clause 2 and clause 3 of this Article.

– If the levy on the repurposed land is less than or equal to the land-related fee, the land levy upon land repurposing is zero (=0).

2. Land-related fee is calculated as follows:

a) If the land whose user is an organization allocated land by the State without land levy collection or leased land by the State with annual land rent payments is agricultural land or non-agricultural land not used for residential purposes before repurposing, the land-related fee is zero (=0).

If the land user has advanced land rent for a number of years according to the provisions of land law in 1993 or has advanced a recompense or site clearance payment and is permitted by a competent authority to deduct it from the annual land rent payable by converting the advanced payment into the number of years and months for which financial obligations have been fulfilled but the advanced payment was not fully deducted by the time of repurposing, the remaining number of years and months for which rent has been paid but not used up shall be converted into money according to the annual land rent per unit of area applicable when the competent authority permits the land repurposing in order to determine the land-related fee deductible from land levy of the project. b) If the land whose user has completed their financial obligations related to land levy or land rent is originated from agricultural land or non-agricultural land not used for residential purposes allocated by the State with land levy collection for a land use term or leased by the State under one-off arrangement, the land-related fee is calculated as follows:

where:

– The land price corresponding to land allocation or land lease term of the land before repurposing is the specific land price for calculation of land rent paid once for the entire lease period.

– The remaining land use term is determined by (=) the land allocation or land lease term before repurposing minus (-) the period during which the land was used before repurposing.

If the remaining land use term has an incomplete year, it shall be expressed as months; If the remaining land use term has an incomplete month, the incomplete month shall be rounded up to 01 month if it is 15 days or more, and rounded down to 0 month (no land-related fee) if it is less than 15 days.

If the land is agricultural land received by lawful conveyance from a househould or individual allocated land by the State without land levy collection before repurposing, the land-related fee is calculated as follows:

c) If the land, before repurposing, is non-agricultural land not used for residential purposes with a long and stable use term which is allocated by the State with land levy collection before July 01, 2004 (but the land user has previously fulfilled their financial obligations related to land), the land-related fee shall be calculated as (=) the land area multipled by (x) the land price of the corresponding type of non-agricultural land with a 70-year use term.

d) If the area of residential land of a commercial housing project which has multiple types of land before repurposing is not separated after repurposing, its value shall be aggregated with the land-related fee before repurposing when the competent authority issues the decision to permit land repurposing.

dd) If the project has multiple forms of land use after repurposing, land-related fee paid before repurposing under points a, b, c and d of this clause shall be settled as follows:

If the land within a project include both land allocated by the State with land levy payment and land allocated by the State without land levy collection, the entire land-related fee will be deducted from the land levy of the project.

In case the land within a project includes both land allocated by the State with land levy collection, land leased out by the State, and land allocated by the State without land levy collection, or land allocated by the State with land levy collection and land leased out by the State, the entire land-related fee will be deducted from the land levy and land rent of the project in proportion to the ratio of the area of ​​each subdivision to the total area on which land levy or land rent is paid.

3. The land price on which land-related fee is calculated in the case specified in clause 2 of this Article is the land price prescribed in clause 2 Article 5 of this Decree and is calculated at the time when the competent authority issues the decision to permit land repurposing.

4. If a business organization, person of Vietnamese descent residing overseas, or foreign-invested organization agrees to receive LURs by conveyance for project execution as prescribed in Article 127 of the Land Law but the land must be repurposed, the land levy shall be calculated according to the provisions of clauses 1, 2 and 3 of this Article.

Article 8. Calculation of land levies upon land repurposing applied to households and individuals

1. Where a household or individual is issued with a decision to permit conversion to homestead land, the land levy shall be calculated as follows:

where:

– The land levy of the land type after land repurposing is calculated as follows:

– The land levy or land rent of types of land before land repurposing (hereinafter referred to as “land-related fee”) is calculated as prescribed in clause 2 and clause 3 of this Article.

– If the levy on the repurposed land is less than or equal to the land-related fee, the land levy upon land repurposing is zero (=0).

2. The land fee before land repurposing is calculated as follows:

a) If the land, before repurposing, is agricultural land of a househould or individual that is allocated land by the State without land levy collection or agricultural land received by lawful conveyance from another househould or individual that is allocated land without land levy collection, the land-related fee shall be calculated by (=) the land are multiplied by (x) the land price of the corresponding type of agricultural land in the Land Price List.

b) If the land, before repurposing, is agricultural land leased out by the State under one-off arrangement, the land-related fee shall be calculated as follows:

where:

– The land price corresponding to the land lease term of the land before repurposing is the land price in the Land price list for calculation of land rent paid in lump sum.

– The remaining land use term is determined by (=) the land allocation or land lease term before repurposing minus (-) the period during which the land was used before repurposing.

If the remaining land use term has an incomplete year, it shall be expressed as months; If the remaining land use term has an incomplete month, the incomplete month shall be rounded up to 01 month if it is 15 days or more, and rounded down to 0 month (no land levy) if it is less than 15 days.

c) If the land, before repurposing, is agricultural land leased out by the State with annual land rent payments, the land-related fee is zero (=0).

3. If the land, before repurposing, is non-agricultural land not used for residential purposes, the land-related fee shall be calculated as follows:

a) If the land, before repurposing, is non-agricultural land whose LURs are recognized by the State for a household or individual with a stable and long use term under land laws, the land-related fee shall be calculated by the land rent paid in lump sum for the corresponding type of land used for non-agricultural business and production purposes (hereinafter referred to as “non-agricultural business and production land”) in the Land price list for a 70-year use term at the time when the competent authority issues a decision to permit land repurposing.

b) If the land, before repurposing, is land leased with annual land rent payments, the land-related fee is zero (=0).

If the land user has advanced land rent for a number of years according to the provisions of land law in 1993 or has advanced a recompense or site clearance payment and is permitted by a regulatory authority to deduct it from the annual land rent payable by converting the advanced payment into the number of years and months for which financial obligations have been fulfilled but the advanced payment was not fully deducted by the time of repurposing, the remaining number of years and months for which rent has been paid but not used up shall be converted into money according to the annual land rent per unit of area applicable at the time of land repurposing for determining the land-related fee deductible from land levy.

c) If the land, before repurposing, is non-agricultural land allocated by the State with land levy collection for a definited term, or leased out by the State under one-off arrangement, the land-related fee shall be calculated as follows:

where:

– The land price corresponding to the land allocation/lease term of the land before repurposing is the land price in the Land price list for calculation of land rent paid in a lump sum.

– The remaining land use term is determined by (=) the land allocation or land lease term before repurposing minus (-) the period during which the land was used before repurposing.

If the remaining land use term has an incomplete year, it shall be expressed as months; If the remaining land use term has an incomplete month, the incomplete month shall be rounded up to 01 month if it is 15 days or more, and rounded down to 0 month (no land levy) if it is less than 15 days.

4. The land price on which land-related fee is calculated in the cases specified in clause 2 and clause 3 of this Article is the land price prescribed in clause 1 Article 5 of this Decree and is calculated at the time when the competent authority issues the decision to permit land repurposing.

Article 9. Calculation of land levies upon issuance of certificates in the cases where land users (households and individuals) obtain instruments concerning LURs specified in clauses 4, 5, 6 and 7 Article 137 of the Land Law

1. If a househould or individual is eligible for issuance of the Certificate as prescribed in clause 4 Article 137 of the Land Law but has not yet paid a land levy, the land levy shall be calculated as follows:

a) In case where the competent authority has issued a notification of land levy payment, the land user must pay a land levy according to the notified amount; and pay late payment interest on land levy according to the provisions of law on tax administration corresponding to each period if the land user has not yet paid such land levy.

b) In case where the competent authority has not yet issued any notification of land levy payment according to regulations, the land levy payable and additional payment shall be calculated according to the principles specified in clause 2 Article 257 of the Land Law and the provisions of clause 2 Article 50 of this Decree; in which, the time for land levy calculation is determined according to the time recorded on the instruments concerning LURs according to the provisions of clause 4 Article 137 of the Land Law. If the time recorded on the instruments concerning LURs is before January 01, 2005, the land levy shall be calculated according to the land price of 2005 in the Land price list.

If land levy and additional payment prescribed in this point exceeds the land levy payable under policies and the land price at the time of submission of the satisfactory application for the Certificate, the latter shall apply.

2. Households and individuals thats are eligible for issuance of the Certificate as prescribed in clause 5 Article 137 of the Land Law shall fulfill obligations on taxes, fees, and charges (if any) according to the provisions of law on taxes, fees and charges. The individuals and households applying for the Certificate must pay not only taxes, fees and charges but also land levies calculated according to the provisions of clause 1 of this Article if they are named on the instruments concerning LURs according to the provisions of clause 4 Article 137 of the Land Law but have not yet paid land levies.

3. If a household or individual is eligible for issuance of a Certificate under clause 6 Article 137 of the Land law but land levy has been resolved under an official document including court’s judgment or decision, commercial arbitral award in Vietnam, judgment enformcent decision of a judgment enforcement agency, land-related dispute/complaint/denunciation settlement decision issued by a competent authority, such official document shall apply.

In case the land levy resolution was not stated in the above-mentioned documents, depending on origin, document and time of using land, obligations regarding land levies, taxes, fees and charges (if any) shall be calculated according to the provisions of Clause 6, Article 137 of the Land Law and the corresponding provisions of Clauses 1, 2 and 4 of Article 9, Articles 10, 11, 12 and 13 of this Decree.

4. A househould or individual that is eligible for issuance of a Certificate as prescribed in clause 7 Article 137 of the Land Law shall pay a land levy as follows:

a) The household or individual that is issued with a certificate as prescribed in clauses 1, 2, and 3 Article 137 of the Land Law but is not required to pay a land levy shall fulfill obligations regarding taxes, fees, and charges (if any) according to the provisions of law on taxes, fees and charges and relevant laws when being issued with the certificate.

b) If the applicant is eligible for issuance of the Certificate according to the provisions of clause 4, clause 5 Article 137 of the Land Law but the conveyor has not paid land levy, the applicant shall pay land levy calculated according to the provisions of clause 1, clause 2 of this Article in addition to the taxes, fees and charges (if any) payable according to relevant regulations of law on taxes, fees and charges.

Article 10. Calculation of land levies upon issuance of certificates in the cases where land users (households and individuals) obtain no instrument concerning LURs but do not violate land laws and do not fall under the cases that land is allocated ultra vires specified in clauses 1, 2, and 3 Article 138 of the Land Law

1. A household or individual that used land before December 18, 1980 and is currently issued with a Certificate specified in point a and point d clause 1 Article 138 of the Land Law shall pay a land levy calculated as follows:

a) Regarding the land area exceeding the homestead land recognition limits specified in Point a, Clause 1, Article 138 of the Land Law:

b) Regarding the area of land currently used as agricultural land whose land user requests recognition and issuance of a Certificate for use as non-agricultural land according to the provisions of Point d, Clause 1, Article 138 of the Land Law:

2. A household or individual that used land from December 18, 1980 to the date before October 15, 1993 and is currently issued with a Certificate specified in clause 2 Article 138 of the Land Law shall pay a land levy calculated as follows:

a) Regarding the land area that is beyond the homestead land recognition limits to which a Certificate is now granted as prescribed in point a clause 2 Article 138 of the Land Law:

b) Regarding the area of land currently used as agricultural land whose land user requests recognition and issuance of a Certificate for use as non-agricultural land according to the provisions of Point d, Clause 2, Article 138 of the Land Law:

3. A household or individual that used land from October 15, 1993 to the date before July 01, 2004 and is currently issued with a Certificate for use as homestead land according to the provisions of clause 3 Article 138 of the Land Law shall pay a land levy calculated as follows:

a) Regarding the recognized area of land within the homestead land allocation limits as prescribed in Clause 2, Article 195, Clause 2, Article 196 of the Land Law to which a Certificate is currently granted for use as homestead land according to the provisions of Point b Clause 3, Article 138 of the Land Law:

b) Regarding the land area recognized beyond the homestead land allocation limits prescribed in Clause 2, Article 195, Clause 2, Article 196 of the Land Law to which a Certificate is now granted for use as homestead land according to the provisions of Point b Clause 3, Article 138 of the Land Law:

c) Regarding a land parcel used for non-agricultural production and business purposes or trading and service purposes that is currently recognized to which a Certificate is now granted for use as non-agricultural production establishment land or commercial land according to the provisions of point c clause 3 Article 138 of the Land Law:

d) Regarding the area of land currently used as agricultural land whose land user requests recognition and issuance of a Certificate for use as non-agricultural land according to the provisions of Point d, Clause 3, Article 138 of the Land Law:

4. A household or individual that used land from October 01, 2004 to the date before July 01, 2014 and is currently granted a Certificate for use as homestead land according to the provisions of clause 3 Article 138 of the Land Law shall pay a land levy calculated as follows:

a) Regarding the land area recognized within the homestead land allocation limits as prescribed in Clause 2, Article 195, Clause 2, Article 196 of the Land Law to which a Certificate is now granted for use as homestead land is currently issued according to the provisions of Point b Clause 3, Article 138 of the Land Law:

b) Regarding the recognized area of land beyond the homestead land allocation limits prescribed in Clause 2, Article 195, Clause 2, Article 196 of the Land Law to which a Certificate is now granted for use as homestead land according to the provisions of Point b Clause 3, Article 138 of the Land Law:

c) Regarding a land parcel used for non-agricultural production and business purposes or trading and service purposes that is currently recognized to which a Certificate is now granted for use as non-agricultural production establishment land or commercial land according to the provisions of point c clause 3 Article 138 of the Land Law:

d) Regarding the area of land currently used as agricultural land whose land user requests recognition and issuance of a Certificate for use as non-agricultural land according to the provisions of Point d, Clause 3, Article 138 of the Land Law:

5. Land price on which land levy is calculated  in the cases specified in clauses 1, 2, 3 and 4 of this Article is the land price as prescribed in clause 1 Article 5 of this Decree at the time when the land user submits a satisfactory application.

Article 11. Calculation of land levies upon issuance of certificates in the cases where land users (households and individuals) violate land laws before July 01, 2014 specified in clauses 1, 2 and 3 Article 139 of the Land Law

1. A household or individual that used land before December 18, 1980 and is currently issued with a Certificate by a competent authority for use as homestead land according to the provisions of clause 1, point c clause 2, point a clause 3 Article 139 of the Land Law shall pay a land levy calculated as follows:

a) Regarding the land area to which a Certificate is granted within the homestead land recognition limits as prescribed in clause 5 Article 141 of the Land Law:

b) Regarding the land area to which a Certificate is granted beyond the homestead land recognition limits as prescribed in clause 5 Article 141 of the Land Law:

c) Regarding the land area to which a Certificate is now issued for use as non-agricultural land (if any) as prescribed in Decrees on issuance of certificates:

2. A household or individual that used land from December 18, 1980 to the day before October 15, 1993 and is currently issued with a Certificate by a competent authority for use as homestead land according to the provisions of clause 1, point c clause 2, point a clause 3 Article 139 of the Land Law shall pay a land levy calculated as follows:

a) Regarding the land area to which a Certificate is granted within the homestead land recognition limits as prescribed in clause 5 Article 141 of the Land Law:

b) Regarding the land area to which a Certificate is granted beyond the homestead land recognition limits as prescribed in clause 5 Article 141 of the Land Law:

c) Regarding the land area to which a Certificate is now issued for use as non-agricultural land (if any) as prescribed in Decrees on issuance of certificates:

3. A household or individual that used land from October 15, 1993 to the day before July 01, 2004 and is currently issued with a Certificate by a competent authority for use as homestead land according to the provisions of clause 1, point c clause 2, point a clause 3 Article 139 of the Land Law shall pay a land levy calculated as follows:

a) Regarding the land area to which a Certificate is granted within the homestead land allocation limits as prescribed in clause 2 Article 195 and clause 2 Article 196 of the Land Law:

b) Regarding the land area that is beyond the homestead land allocation limits as prescribed in clause 2 Article 195 and clause 2 Article 196 of the Land Law:

c) Regarding the land area to which a Certificate is now issued for use as non-agricultural land (if any) as prescribed in Decrees on issuance of certificates:

4. A household or individual that used land from July 01, 2004 to the day before July 01, 2014 and is currently issued with a Certificate by a competent authority for use as homestead land according to the provisions of clause 1, point c clause 2, point a clause 3 Article 139 of the Land Law shall pay a land levy calculated as follows:

a) Regarding the certified homestead land area (within or beyond the homestead land allocation limits as prescribed in clause 2 Article 195 and clause 2 Article 196 of the Land Law):

b) Regarding the land area to which a Certificate is now issued for use as non-agricultural land (if any) as prescribed in Decrees on issuance of certificates:

5. Land price on which land levy is calculated in the cases specified in clauses 1, 2, 3 and 4 of this Article is the land price as prescribed in clause 1 Article 5 of this Decree at the time when the land user submits a valid application.

Article 12. Calculation of land levies upon issuance of Certificates in the cases of using land that was allocated ultra vires prescribed in Article 140 of the Land Law

1. A househould or individual issued with a Certificate by a competent authority as prescribed in clause 1 Article 140 of the Land Law shall pay a land levy as follows:

a) If the Certificate is issued to the land area that was allocated within the homestead land recognition limits as prescribed in clause 5 Article 141 of the Land Law, clause 2 Article 138 of the Land Law shall be complied with.

b) If the Certificate is issued to the land that was allocated beyond the homestead land recognition limits as prescribed in clause 5 Article 141 of the Land Law, and the land area that is currently used as agricultural land is recognized as non-agricultural land, the land levy shall be calculated according to the provisions in clause 2 Article 10 hereof. If there is documentary evidence for payment for land use as prescribed in clause 5 of this Article, the land levy is not required.

2. A househould or individual issued with a Certificate by a competent authority as prescribed in clause 2 Article 140 of the Land Law shall pay a land levy calculated as follows:

a) If there is no documentary evidence for payment for land use, the land levy shall be calculated according to the provisions of clause 3 Article 138 of the Land Law and clause 3 Article 10 of this Decree.

b) If there is documentary evidence for full payment for land use as prescribed in clause 5 of this Article, the land levy is not required.

c) If there is documentary evidence for payment for land use but the amount paid for land use is less than the amount stipulated by law at the time of payment, the paid amount shall be converted into a percentage of the land area for which land levy has been paid fully according to the policies and land price at the time of payment; the land levy on the remaining land area shall be calculated according to the provisions of point a of this Clause under policies and the land price at the time of submitting a valid application.

3. A househould or individual issued with a Certificate by a competent authority as prescribed in point a clause 3 Article 140 of the Land Law shall pay a land levy calculated as follows:

a) If there is no documentary evidence for payment for land use, the land levy on the certified homestead land area is:

b) If there is documentary evidence for full payment for land use as prescribed in clause 5 of this Article, the land levy is not required.

c) If there is documentary evidence for payment for land use but the amount paid for land use is less than the amount stipulated by law at the time of payment, the paid amount shall be converted into a percentage of the land area for which land levy has been paid fully according to the policies and land price at the time of payment; the land levy on the remaining land area shall be calculated according to the provisions of point a of this Clause under policies and the land price at the time of submission of a satisfactory application.

4. In case a household or individual is granted a Certificate as prescribed in clause 4 Article 140 of the Land Law, the land levy payable shall be calculated as 100% of the land levy on the homestead land area to which the Certificate is granted at the time of submission of a satisfactory application according to the homestead land price specified in clause 1 Article 5 of this Decree. If there is documentary evidence for payment for land use according to regulations, the paid amount will be deducted from the land levy payable; the deduced amount must not exceed the land levy payable.

5. Documentary evidence for payment for land use to an agency or organization upon land levy calculation as prescribed in clauses 1, 2, 3 and 4 of this Article includes:

a) Receipts, invoices for land use and compensation made according to Decision No. 186/HDBT dated May 31, 1990 of the Council of Ministers on compensation for damage to agricultural land and forest land when being converted to other uses.

b) Receipts and invoices made according to Circular No. 60/TC-TCT dated July 16, 1993 of the Ministry of Finance guiding the collection management regime applicable to the sale of state-owned houses, grant of rights to use land for construction of housing and construction works.

c) Receipts, invoices proving payment for land use from the third-level People’s Committee or from the agency or organization that allocated the land ultra vires.

d) If the documents specified in points a, b and c of this clause are lost or misplaced, but documents (files) recording the payment by the land user for land use are still available at the third-level People’s Committee or the agency or organization that allocated the land ultra vires, the land user will request the third-level People’s Committee to provide confirmations or copies. The confirmations or copies specified in this point are recognized as documentary evidence for payment for land use to the agency or organization like the documents specified in points a, b and c of this clause.

6. Land price on which land levy is calculated  in the cases specified in clauses 1, 2, 3 and 4 of this Article is the land price as prescribed in clause 1 Article 5 of this Decree at the time when the land user submits a valid application.

Article 13. Calculation of land levies upon adjustment to land allocation decisions specified in point c clause 3 Article 155 of the Land Law, replacement of Certificates according to the provisions of clause 6 Article 135 of the Land Law

1. For the case, other than the case specified in clause 2 of this Article, where a competent authority adjusts a land allocation decision according to the provisions of point c clause 3 Article 155 of the Land Law, thereby increasing levied land area, the land levy on the increased land area shall be calculated as the increased land area multiplied by (x) the land price at the time when the competent authority adjusts the land allocation decision. If the levied land area is decreased (not subject to land expropriation by the State), thereby decreasing the paid land levy, this decreased amount shall be deducted from the investment capital of the project.

2. If a competent authority adjusts a land allocation decision according to the provisions of point c clause 3 Article 155 of the Land Law due to changes in detailed planning, the land levy shall be calculated according to the formula specified in Article 14 of this Decree at the time when the competent authority issues a decision to adjust the land allocation decision.

3. After replacement of the Certificate of a household or individual, if the land area measured in reality is larger than than written on the issued Certificate and the boundary of the land parcel remains unchanged (according to regulations of the Decree on issuance of Certificates), the land user shall pay land levy on the increase in land area in excess of homestead land limit that was applicable when the previous Certificate was issued.

Article 14. Calculation of land levies upon issuance of decisions to adjust detailed planning as prescribed in point d clause 3 Article 155, point dd clause 1 Article 160 of the Land Law

1. In case an applicant (land user) is issued with a decision to adjust detailed planning of a project as prescribed by law by a competent authority, thereby changing land use structure or location of each land type or land use coefficient, the land levy shall be calculated as follows:

1.1. If the project, before adjusting detailed planning, was not eligibile for land allocation by the State through LUR auction:

a) If the land user has fulfilled their obligations regarding LURs before the decision to adjust detailed planning is issued:

a1) When the decision to adjust the overall detailed planning of the project is issued by a competent authority, the land user shall pay a land levy equal to the difference between the land levy on the entire project area according to the detailed planning after adjustment and the land levy on the entire project according to the detailed planning before adjustment as prescribed by law at the same time when the competent authority issues the decision to adjust the overall detailed planning of the project (if any).

a2) When the decision to adjust the partial detailed planning of the project is issued by a competent authority, the land user shall pay a land levy equal to the difference between the land levy on the adjusted project area according to the detailed planning after adjustment and the land levy on the adjusted project area according to the detailed planning before adjustment as prescribed by law at the same time when the competent authority issues the decision to adjust the partial detailed planning of the project (if any).

If the land levy on the adjusted land area is not required or can not be allocated, the land levy shall be imposed on the entire project area as prescribed in the paragraph a1 of this point.

b) If the land user has not yet fulfilled their legal obligations regarding land levies before the decision to adjust the detailed planning of the project (only applicable to projects which are developed on land allocated before the effective date of the 2024 Land Law but their detailed planning is now adjusted) is issued, the land user must:

b1) If the notification of land levy calculated according to the detailed planning before adjustment has been issued, the land user must pay full amount of land levy determined according to the detailed planning before adjustment plus late payment interest on land levy (if any) according to the provisions of law on tax administration.

In case of no land price decision, the land user shall calculate and pay a land levy as prescribed in clause 2 Article 257 of the Land Law and additional payment as prescribed in clause 2 Article 50 of this Decree.

b2) The additional payment shall be equal to the difference between the land levy payable according to the planning after adjustment and the land levy payable according to the planning before adjustment determined at the same time when the competent authority issues a decision to adjust the planning as prescribed in the paragraph a of this point (if any).

1.2. If the project, before adjusting its detailed planning, was eligible for land allocation by the State through LUR auction and the land user has fulfilled their obligations regarding land levy, the land levy upon adjustment to the detailed planning shall be calculated as follows:

a) When the decision to adjust the overal detailed planning of the project is issued by a competent authority:

b) When a decision to adjust the partial detailed planning of the project is issued by a competent authority, the land levy shall be calculate as follows:

If the land levy on the adjusted land area is not required or can not be allocated, the land levy shall be imposed on the entire project area as prescribed in point a of this clause.

2. In case, at the request of the manager, a competent authority issues a decision to adjust the detailed planning of a project as prescribed by law, thereby changing land use structure or location of each land type or land use coefficient of the project and then increasing or decreasing land levy, the following regulations shall be applied:

a) In case the land levy calculated according to the detailed planning after adjustment is greater than the land levy calculated according to the detailed planning before adjustment at the same time when the competent authority issues the decision to adjust planning, the land user shall pay an additional amount equal to the difference between the land levy calculated according to the detailed planning after adjustment and the land levy calculated according to the detailed planning before adjustment. The calculation of land levies according to the detailed planning before and after adjustment shall comply with the provisions of Article 6 of this Decree.

b) In case the land levy calculated according to the detailed planning after adjustment is smaller than the land levy calculated according to the detailed planning before adjustment at the same time when the competent authority issues the decision to adjust the planning, the land user is entitled to a refund of the land levy. The refund of the land levy shall be equal to the difference between the land levy calculated according to the detailed planning after adjustment and the land levy calculated according to the detailed planning before adjustment determined at the same time when the competent authority issues a decision to adjust the planning. The calculation of land levies according to the detailed planning before and after adjustment shall comply with the provisions of Article 6 of this Decree.

The refund of the land levy to the land user specified in this point shall comply with the provisions of law on state budget and law on tax administration.

3. If a project, after adjustment to the detailed planning, has multiple land use forms (land allocation with land levy collection, land allocation without land levy collection, land lease), the land levy or land rent on the entire project area (or on the adjusted area) shall be equal to the difference between the total land levy or land rent calculated according to the planning after adjustment and the total land levy or land rent calculated according to the planning before adjustment at the same time when the competent authority issues a decision to adjust the planning.

4. If a business organization, person of Vietnamese descent residing overseas, or foreign-invested organization has agreed to receive LURs by conveyance for project execution as prescribed in Article 127 of the Land Law but the project’s detailed planning must be adjusted, the land levy shall be calculated according to the provisions of clauses 1, 2 and 3 of this Article.

5. If a land zone or land parcel on which a commercial housing project is developed is homestead land that is lawfully conveyed from a household or individual specified in point b clause 1 Article 127 of the Land Law, the land levy on the land zone or parcel before adjustment to the planning shall be determined as that in case of recompense or support in terms of homestead land of the household or individual as prescribed in Decrees on recompense, support and resettlement upon land expropriation by the State and Decrees on land prices.

Article 15. Calculation of additional payments upon project extension as prescribed in clause 8 Article 81 and point dd clause 1 Article 153 of the Land Law

1. If the project developer is permitted to extend the land use term of a project according to the provisions of clause 8 Article 81 of the Land Law, in addition to the land levy payable, an additional amount must be paid to the State calculated as follows:

If the extended period of time has an incomplete month, the incomplete month shall be rounded up to 01 month if it is 15 days or more, and rounded down to 0 month (no additional payment) if it is less than 15 days.

2. The regulations on deduction of budget for recompense, support and resettlement and the regulations on exemption and reduction of land levies do not apply to the amount specified in Clause 1 of this Article.

Article 16. Handling of budget for recompense, support and resettlement according to the provisions of Article 94 of the Land Law, determination of residual land values according to the provisions of Article 107 of the Land Law

1. In case the Land Development Fund advances capital for creation of a land bank to a unit or organization in charge of recompense, support or resettlement provision to allocate land with land levy collection or the state budget has allocated to provide recompense, support and resettlement, the budget for recompense, support and settlement shall be handled as follows:

The land user that is allocated land by the State with land levy collection and is not entitled to exemption from land levies shall pay a land levy to the state budget according to the provisions of law. The refund of budget for recompense, support and resettlement to the Land Development Fund shall comply with the provisions of law on land development banks and law on state budget.

If the land user is allocated land by the State with land levy collection and is exempt from land levy, the budget for recompense, support and resettlement must be refunded to the state budget and included in the investment cost of the project according to the provisions of clause 2 Article 94 of the Land Law. The refund of budget for recompense, support and resettlement to the Land Development Fund shall comply with the provisions of law on land development banks and law on state budget.

2. The deduction of budget for recompense, support and resettlement, in case the land user is allocated land by the State with land levy collection but the project executor volluntarily gives an advance on budget for recompense, support and resettlement to the unit or organization in charge of recompense, support or resettlement provision specified in clause 2 Article 94 of the Land Law, shall be made as follows:

a) The land user shall cooperate with the unit or organization in charge of recompense, support or resettlement provision in preparing and submitting an application for deduction of budget for recompense, support and resettlement enclosed with a dossier on determination of financial obligations regarding land levies at a land registry or a land authority or an interconnected one-stop division. The application includes:

a1) Written proposal of the project executor for deduction of budget for recompense, support and resettlement: 01 original;

a2) Arrangement for recompense, support and resettlement approved by a competent authority; 01 copy;

a3) Record of money transfer from the project executor to the unit or organization in charge of recompense, support and resettlement provision: 01 copy;

a4) List of payments of budgets for compensation, support and resettlement prepared by the unit or organization in charge of recompense, support, and resettlement provision; including the amount paid, number of payment records, date and month of payment, and recipient: 01 original.

b) Land registry or land authority or interconnected one-stop division shall transfer the documents specified in point a of this clause to the second-level People’s Committee.

c) Based on the documents and application specified in point b of this clause, within 30 days, the second-level People’s Committee shall review and send a written confirmation of the amount of recompense, support and resettlement deducted from the land levy to the tax authority which will deduct the advance payment from the land levy.

d) The unit or organization in charge of recompense, support and resettlement provision shall be responsible for the accuracy of the data and information specified in point a of this clause, except for documents included in the application which have been previously approved, decided or processed by other competent authorities, organizations and persons. The second-level People’s Committee shall be responsible for the accuracy of data on the amount of recompense, support and resettlement deducted from the land levy serving the basis for the tax authority to deduct the advance payment from the land levy as specified in point c of this clause, except for documents included in the application which have been previously approved, decided or processed by other competent authorities, organizations and persons.

3. In case the State allocates land with land levy collection, or leases out land, if the project executor is voluntarily advances the budget for recompense, support and resettlement in accordance with the arrangement for recompense, support and resettlement which has been approved by a competent authority according to the provisions of clause 2 Article 94 of the Land Law and the investment project has multiple land use forms (land allocation without land levy collection, land allocation with land levy collection, land lease), the deduction of the budget for recompense, support and resettlement according to the arrangement approved by the competent authority shall be made according to each type of area. The budget for recompense, support and resettlement of the land area used for public purposes and allocated without land levy collection shall be allocated to portions of land area for land levy/land rent calculation according to the ratio of the area of each portion to the total area on which a land levy or land rent is imposed to serve the deduction as prescribed.

The amount of recompense, support and resettlement specified in this clause shall not be allocated to the land rent on the land area for construction of an underground work (not the underground part of an above-ground construction work) or on the area for construction of the underground part of an above-ground construction work which extends beyond the surface land area.

The remaining budget for recompense, support and resettlement which has not yet been deducted from the land levy or land rent (if any) shall be included in the investment cost of the project.

4. If the land, before being expropriated, is the land allocated by the State with land levy collection but an advance payment for the budget for recompense, support and resettlement was included in the project’s investment capital and the land user was given land-related recompense, the residual land value as prescribed in point d clause 2 Article 107 of the Land Law, clause 6 Article 17 of Decree No. 88/2024/ND-CP shall be zero (=0).

Section 2. Exemption and reduction of land levies

Article 17. Principles for giving exemption or reduction of land levies to subjects entitled to land levy exemption or reduction

1. Any household or individual subject to land levy exemption or reduction as prescribed in Article 18 and Article 19 of this Decree shall only be exempted or reduced once in the case where they are allocated land for housing by the State or granted a permission to convert the land used for other purposes to homestead land or granted a recognition of the land for residential uses as prescribed by land law.

2. For a household which has many members subject to land levy reduction, the reduction of the whole household can be the total of reductions of each member, but it must not exceed the land levy payable.

3. A land user who is legally subject to both land levy exemption and reduction shall be exempt from land levy. A land user who is subject to land levy reduction with many different reduction levels shall be given the highest reduction.

4. The land levy exemption or reduction when the State allocates land, grants permission to land repurposing or recognizes LURs shall be only given directly to the subjects entitled to the exemption or reduction.

The land levy shall be reduced on the basis of the land levy payable according to the provisions of Articles 6, 7, 8, 9, 10, 11 and 12 of this Decree. The land user shall submit documents proving that he/she is eligible for land levy reduction according to the provisions of law.

5. The land levy exemption or reduction shall not be applicable in the case of LUR auction for land allocation with land levy collection.

The land levy exemption or reduction in case of resettlement land allocation shall comply with the provisions of the Decree on recompense, support and resettlement upon land expropriation by the State.

6. In case a competent authority discovers that a land user has been exempted or reduced from land levy but does not meet the legal conditions for land levy exemption or reduction (if any), uses the land for unintended purposes stated in the land allocation decision but is not subject to land expropriation according to the provisions of land law, or the land user requests not to receive incentives because they no longer meet the conditions for exemption or reduction, the amount of land levy that has been exempted or reduced must be paid to the state budget. The recovery of the land levy that has been exempted or reduced shall be made as follows:

a) The land levy to be exempted or reduced required to be recovered equals (=) the land price in the Land price list at the time the State issues the land allocation decision plus (+) an amount equivalent to the late payment interest on land levy according to the provisions of law on tax administration from time to time.

b) The time for calculating the late payment interest specified in Point a of this Clause is from the time of land levy exemption or reduction to the time the competent authority issues the decision to recover the land levy that has been exempted or reduced.

c) The tax authority recovers the land levy that has been exempted or reduced.

7. If the land user is required to refund the land levy that has been exempted or reduced according to the provisions of Clause 6 of this Article, it is allowed to deduct (in case the land levy has been exempted) or continue to deduct (in case the land levy has been reduced) the advanced payment for the budget for recompense, support and resettlement (if any) from the land levy required to be refunded according to the provisions of Clause 2, Article 94 of the Land Law and Clauses 2 and 3 Article 16 of this Decree. The budget for recompense, support and resettlement which has been included in the project’s investment cost shall not be deducted from the land levy.

8. Regarding the determination of exemption or reduction of land levies imposed on households and individuals, areas (regions) with severely disadvantaged socio-economic conditions, areas (regions) with disadvantaged socio-economic conditions specified in Article 18 and Article 19 of this Decree shall be villages, communes and rural districts according to regulations or decisions of the Government, Prime Minister or agencies and persons assigned, decentralized or authorized by the Government or Prime Minister.

The poor shall be determined according to the Prime Minister’s decisions; households or individuals that are ethnic minorities shall be determined according to regulations or decisions of the Government or Prime Minister.

9. The land levy exemption for execution of investment projects to build social housing, housing for the people’s armed forces, renovate and rebuild apartment buildings shall comply with the provisions of housing law.

The land levy exemption or reduction for implementation of housing and homestead land policies for people with meritorious services to the revolution shall comply with the provisions of law on people with meritorious services.

10. Where a domestic organization has been legally exempted or reduced from land levy but now conveys or contributes capital with LURs or conveys both the investment project and LURs, it shall be handled as follows:

a) The domestic organization that has been legally exempted or reduced from land levy but now conveys or contributes capital with LURs in accordance with the provisions of law (including cases where the project developer resells social housing after 10 years of rental according to the provisions of Clause 9, Article 88 of the Housing Law, Decrees elaborating certain articles of the Housing Law on development and management of social housing) must pay an amount of money equal to the land levy that was exempted or reduced when the State allocates land or grants a permission to repurpose land as prescribed in point b clause Clause 3, Article 33 of the Land Law to the State, and pay an additional amount for the period from the date of land levy exemption or reduction to the date of conveyance or capital contribution with LURs that is equivalent to the late payment interest on the land levy according to the provisions of law on tax management from time to time.

The calculation of the land levy that has been exempted or reduced payable to the State shall comply with the provisions of Article 6 and Article 7 of this Decree according to the policy and land price at the time of land allocation or land repurposing.

b) In case of conveyance of a cemetery infrastructure investment project serving the conveyance of rights to use land affixed to infrastructure or construction of an ashes storage facility associated with conveyance of LURs:

b1) If the land levy that has been exempted or reduced is not included in the price for conveyance and the conveyee continues executing the project, the conveyee will continue to be exempted or reduced from land levy according to the provisions of law on investment for the remaining period of the project.

b2) If the conveyee does not continue executing the project, he/she must pay a land levy according to the provisions for the project after conveyance. If the conveyor has fulfilled a part of their financial obligations regarding to land levy, the conveyee may inherit the portion of the obligations that the conveyor has paid.

Article 18. Exemption from land levies

A land levy shall be exempted in the following cases:

1. The land levy shall be exempted when a competent authority allocates land, permits land repurposing or recognizes LURs (issues Certificate) within the homestead land limits to a land user in the following cases: 

a) The land user uses land for implementing housing and homestead land policies applicable to war invalids or sick soldiers who are unable to work, or families of martyrs who no longer have the main labor force;

b) The poor, households or individuals are ethnic minorities living in areas with severely disadvantaged socio-economic conditions, borders, and islands.

c) Homestead land for displaced people/refugees when the State expropriates land due to a threat to human life.

d) Homestead land is allocated to households or individuals who have to relocate when the State expropriates land affixed to housing but are not eligible for homestead land-related recompense and have no other accommodation in the third-level administrative division to which the expropriated land belongs;

dd) The land area on which a cemetery infrastructure investment project serving the conveyance of rights to use land affixed to infrastructure or construction of an ashes storage facility is developed is arranged by the project developer to social policy beneficiaries according to the provisions of law on construction, management and use of cemeteries and cremation facilities.

2. The Government and the Prime Minister shall provide for exemption of land levy within homestead land allocation limit upon issuance of the first Certificate after converting non-homstead land into homestead land due to household division. Such exemption shall only be granted to households of ethnic minorities, poor households in divisions with extremely disadvantaged socio-economic conditions, ethnic and mountainous areas on the List of divisions with extremely disadvantaged socio-economic conditions.

3. The land levy on homestead land within homestead land allocation limits (including land allocation, land repurposing, issuance of certificate for the current land user) shall be exempted for households and people with meritorious services that are eligible for exemption from land levy according to the provisions of law on people with meritorious services.

Levies on land for execution of investment projects to build social housing, housing for the people’s armed forces, renovatetion and rebuilding for apartment buildings in accordance with the provisions of housing law shall be exempted.

4. The land levy exemption in the other cases specified in clause 2 Article 157 of the Land Law shall be proposed by the Ministries, central authorities and the first-level People’s Committees and submitted to the Ministry on Finance which will consolidate and propose it to the Government for issuing regulations after receiving the consent of the Standing Committee of National Assembly.

5. For cases of land levy exemption without having to apply for exemption and without having to complete procedures for determination of land price and calculation of land levy to be exempted according to the provisions of Clause 3, Article 157 of the Land Law, when following procedures for land allocation, the land authority is responsible for collecting statistics and synthesizing cases of land levy exemption.

During implementation, if a competent authority or person discovers that a person who has been exempted from land levy does not meet the conditions for land levy exemption (if any), the competent authority or person shall send a request to the land authority to cooperate with relevant authorities in inspecting, reviewing and determining the satisfaction of conditions for land levy exemption.

If the person who has been exempted from land levy does not meet the conditions for land levy exemption, the land authority shall send a report to the People’s Committee at the same level on the decision to revoke the land levy exemption and transfer information to the tax authority to cooperate in the calculation, collection and payment of land levy payable (not exempted) according to the policy and land price at the time the competent authority issues the land allocation decision and amount of money equivalent to late payment interest on land levy according to the provisions of law on tax administration.

Article 19. Reduction of land levies

1. 50% reduction in land levy shall be given to poor people, households or individuals who are ethnic minorities in areas other than those specified in Point b, Clause 1, Article 18 of this Decree when a competent authority allocates land, repurposes land, or recognizes LURs.

2. 50% reduction in land levy shall be given to the subjects specified in point a and point b clause 3 Article 124 of the Land Law that are working in border communes, islands or island districts without third-level administrative divisions in areas with severely disadvantaged socio-economic conditions.

3. 30% reduction in land levy shall be given to the subjects specified in point a and point b clause 3 Article 124 of the Land Law that are working in border communes, islands or island districts without third-level administrative divisions in areas with disadvantaged socio-economic conditions.

4. The land levy on homestead land within homestead land allocation limits (including land allocation, land repurposing, issuance of certificate for the current land user) shall be reduced for people with meritorious services to the revolution that are eligible for land levy reduction according to the provisions of law on people with meritorious services.

5. The land levy reduction shall comply with investment laws and relevant laws in case of using land for execution of a cemetery infrastructure investment project serving conveyance of rights to use land affixed to infrastructure, or construction of an ashes storage facility according to the provisions of point a clause 1 Article 157 of the Land Law:

a) 50% reduction in land levy shall be given in case the project is invested in an area with severely disadvantaged socio-economic conditions.

b) 30% reduction in land levy shall be given in case the project is invested in an area with disadvantaged socio-economic conditions.

c) 20% reduction in land levy shall be given in case the project is not developed in any of the areas specified in point a and point b of this clause.

The list of divisions with disadvantaged socio-economic conditions, and the list of areas with severely disadvantaged socio-economic conditions specified in this clause shall comply with the provisions of law on investment.

6. On the basis of dossiers and documents concerning land transferred by the land authority as prescribed by law, the tax authority shall calculate the land levy payable and the land levy to be reduced. The land levy reduction shall be made together with the calculation of land levy payable as prescribed in Article 20 hereof.

7. The land levy reduction in the other cases specified in clause 2 Article 157 of the Land Law shall be proposed by the Ministries, central authorities and the first-level People’s Committee and submitted to the Ministry on Finance which will consolidate and propose it to the Government for issuing regulations after receiving the consent of the Standing Committee of National Assembly.

8. Authority to calculate and decide the land levy to be reduced:

a) The Directors of Tax Departments shall determine and issue decisions to reduce land levies on business organizations, persons of Vietnamese descent residing overseas, and foreign-invested organizations.

b) The Directors of Tax Sub-Departments and the Regional Tax Sub-Departments shall determine and issue decisions to reduce land levies on households and individuals.

Section 3. CALCULATION OF LAND LEVIES PAYABLE

Article 20. Calculation of land levies payable

1. In case the land user is not exempted or reduced from land levy, and is not eligible for reimbursement of budget for recompense, support and resettlement, the land levy payable is the land levy calculated according to the provisions of Articles 6, 7, 8, 9, 10, 11, 12, 13, 14 and 15 of this Decree.

2. If the land user receives a reduction in land levy, reimbursed for budget for recompense, support and resettlement, the land levy must be paid as follows:

Section 4. Collection and payment OF LAND LEVIES

Article 21. Procedures for calculation, collection and payment of land levies

1. For a business organization or a foreign-invested business organization or a person of Vietnamese descent residing overseas:

a) On the basis of the land allocation decision, land repurposing decision, decision to adjust detailed planning, decision to change land use form, demands for LUR recognition, and the application that the land user has submitted at a competent authority according to the provisions of Decrees on issuance of certificates, the land registry or land authority or interconnected one-stop division shall transfer an information sheet to the tax authority for land levy calculation as prescribed by law.

For the case specified in clause 5 Article 6 hereof, in addition to the information sheet, the project developer must submit documents as prescribed in Decrees of the Government elaborating certain Articles of the Housing Law in terms of development and management of social housing.

b) The tax authority shall base on the documents transferred by the land registry or land authority or interconnected one-stop division, including:

b1) The information sheet (information on the land user, land area, land location, land use purpose, land use origin and specific land price in case the determination of specific land price is required).

b2) Land allocation decision, decision to permit land repurposing, decision to approve specific land price on which land levy is calculated  of the project, or land price list.

b3) Written confirmation of the second-level People’s Committee of the budget for recompense, support and resettlement that is deducted from the land levy (in case the project executor advances a budget for recompense, support and resettlement). In this case, the confirmation shall be made in accordance with the provisions of Clause 2 Article 16 hereof.

b4) The land user’s written request for land levy reduction and documents proving the land user’s eligibility for land levy reduction using the Form specified in law on tax administration (if the land user is eligible for land levy reduction).

Within 07 working days from the date of receipt of all documents specified in this clause, the tax authority shall calculates the land levy payable, issue a notification of land levy payment using Form No. 01a or Form No. 01b in Appendix I enclosed herewith).

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

c) In case there is not enough basis to calculate the land levy and other amounts payable, within 05 working days from the date of receiving the dossier, the tax authority must send a written notification of supplementation of the dossier to the land registry, land authority or the interconnected one-stop division and a written notification to the second-level People’s Committee (in case there is a request to deduct the budget for recompense, support, and resettlement) for supplementation of the dossier; After receiving all valid documents, the tax authority must calculate and issue a notification of land levy payment no later than 05 working days from the date of receiving all additional documents. At the same time, the tax authority shall prepare a record on the land levy collection and payment using Form No. 04 in Appendix I enclosed herewith.

The record of the submission of notification of fulfillment of land-related financial obligations shall be made using Form No. 04 in Appensix II enclosed herewith.

d) The land user shall pay the land levy to the state budget according to the notification of the tax authority under the provisions of law on tax administration.

dd) In case the land is allocated with land levy collection, after collecting the land levy, the state budget collection agency shall transfer information on the collection and payment to the tax authority in accordance with law on tax administration so that the tax authority can transfer it to the land authority to serve as a basis for informing the competent authority of allocation of land to the land user. The land shall only be allocated if the land user has fully paid the prescribed land levy.

2. For a household or individual:

a) On the basis of the land allocation decision, decision to permit land repurposing, decision to change land use form, written request for recognition of LURs of the household or individual and other documents according to the provisions of Decrees on issuance of certificates, the land registry or land authority or interconnected one-stop division shall transfer an information sheet to the tax authority for land levy calculation as prescribed by law on issuance of certificates.

b) On the basis of the information sheet (information on the land user, land area, land location, land use purpose, land use origin) transferred by a land registry, land authority or interconnected one-stop division; on the basis of the land price list, land levy reduction determined or approved (if any) by the competent authority, within 05 working days from the date of receipt of a valid dossier, the tax authority shall calculate the land levy payable, land levy to be reduced or issue a notification of land levy payment, a decision on land levy reduction (if the land user is eligible for land levy reduction) and send it to the household or individual or send it to the authority which has transferred the information sheet. <0} The decision on land levy reduction shall be made using Form No. 02 of Appendix I enclosed herewith.

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

c) In case there is not enough basis to calculate the land levy and other amounts payable, within 05 working days from the date of receiving the dossier, the tax authority must send a written notification of supplementation of the dossier to the land registry, land authority or the interconnected one-stop division and a written notification to the second-level People’s Committee (in case there is a request to deduct the budget for recompense, support, and resettlement) for supplementation of the dossier; After receiving all valid documents, the tax authority must issue a notification of land levy payment, a decision on land levy reduction (if the land user is eligible for land levy reduction) within 05 working days from the date of receiving all additional documents. At the same time, the tax authority shall prepare a record on the land levy collection and payment using Form No. 04 in Appendix I enclosed herewith.

d) The land user shall pay the land levy to the state budget according to the notification of the tax authority under the provisions of law on tax administration.

dd) After collecting the land levy, the state budget collection agency shall transfer information on the budget collection and payment to the tax authority in accordance with law on tax administration so that the tax authority can transfer it to the land authority to serve as a basis for the land allocation to the land user. The land shall only be allocated when the land user has fully paid the prescribed land levy (in case the State allocates land with land levy collection).

3. The land registry or land authority or interconnected One-stop Division shall be responsible for the accuracy of the data and information provided to the tax authority. The tax authority shall be responsible for the calculation and issuance of the notification of land levy payment.

4. The time limit for land levy payment in case the land levy is calculated according to specific land price or hammer price of LURs:

a) If the land user is allocated land by the State through purchase at LUR auction, the deadline for payment of auction winnings of LURs shall comply with the provision of Decrees of the Government elaborating certain Articles of the Land Law.

If the successful bidder violates the obligation to pay the auction winnings, leading to the decision to recognize the auction results being canceled, the provisions of the Government’s Decrees elaborating certain articles of the Land Law, law on property auctions, law on tax administration shall be applied.

b) If the land levy is calculated according to the specific land price and is not in the case of being allocated land by the State through auction as prescribed in Clause a of this Article, the time limit for land levy payment shall comply with the provisions of law on tax administration but must not exceed 180 days from the date on which the decision to approve the land price on which land levy is calculated  is issued by a competent authority.

After 180 days from the date on which the decision to approve the land price on which land levy is calculated  is issued, if the land user fails to fully pay the land levy, the land will not be allocated according to regulations (in cases where land is allocated by the State). If the land user fails to fully pay land levy to the state budget by the time limit for land levy payment according to the tax authority’s notice, they must pay late payment interest on land levy according to the level prescribed by law on tax administration.

If the land user does not comply with tax enforcement according to regulations, the tax authority will transfer the dossier to the land authority which will submit it to the competent authority for consideration and handling of this land allocation decision according to the provisions of the Government’s Decrees elaborating certain articles of the Land Law.

5. Time limit for land levy payment in case the land levy is calculated according to land price in the Land price list

a) In case the land levy is calculated according to the land price in the Land price list, the time limit for land levy payment shall comply with the provisions of law on tax administration. If the land levy is not paid by the time limit for land levy payment, the land user shall pay an interest on the unpaid land levy according to tax administration laws, unless land levy payment is deferred according to clause 2 Article 22 of this Decree.

6. In case it is required to refund the land levy that has been exempted or reduced as prescribed in clause 6 and clause 7 Article 17 of this Decree, the land levy to be refunded shall be calculated according to the policies and land price at the time of land allocation, permission for land repurposing, recognition of LURs. The tax authority shall recover the land levy that has been exempted or reduced after the report is submitted and approved by the People’s Committee at the same level.

Article 22. Deferral of land levy

1. Eligibility of land users for deferral of land levy payment, deferred land levy amount, deferral period shall comply with the provisions of Decrees on recompense, support, and resettlement upon land expropriation by the State, Decrees on issuance of certificates.

2. Procedures for deferral of land levy of a household or individual:

a) In the case of deferral of land levy payment by a person being resettled prescribed in Clause 3, Article 111 of the Land Law, the land user applying for deferral of land levy payment shall submit an Application for deferral of land levy payment and documentary evidence of eligibility for deferral of land levy payment attached to the application for a Certificate according to the provisions of law (including: Decision on resettlement land allocation and recompense, support and resettlement arrangement approved by a competent authority) at a Land registry or land authority or interconnected one-stop division.

b) In the case of deferral of land levy payment other than the provisions of point a of this clause, the land user shall comply with the procedures for deferral of land levy payment (if any) as prescribed in Decrees on issuance of certificates.

c) The land registry or land authority or interconnected one-stop division shall review and inspect the application of the person eligible for deferral of land levy payment specified in point a or point b of this clause and submit an information sheet including the land user eligible for deferral of land levy payment and deferral period as prescribed in clause 1 of this Article to the tax authority and relevant authorities according to regulations; and give a Promissory note to the person eligible for deferral according to regulations.

d) On the basis of the information sheet sent by the land registry or land authority or interconnected one-stop division, the tax authority shall consider and send a notification to the household or individual, the land authority and relevant authorities (if any) within 05 working days from the date on which the notification is issued. The notification must include:

d1) Total amount of land levy payable by the household or individual.

d2) Deferred land levy amount.

d3) Non-deferrable land levy amount (if any).

d4) Time limit for the household or individual to make payment; including:

Time limit for payment of non-deferrable land levy amount (if any) which is according to the time limit prescribed by tax administration laws;

Time limit for payment of deferred land levy amount which is according to the provisions in clause 1 of this Article.

dd) On the basis of the tax authority’s notification, the household or individual shall pay the non-deferrable land levy amount (if any) to the state budget according to the notification and submit the receipt at the land registry, land authority or interconnected one-stop division to be granted a Certificate.

e) The state budget collection agency, under the provisions of law on tax administration, is responsible for collecting land levy according to the tax authority’s notification and providing the receipt to the household or individual; and transferring information about the amount of money collected from the household or individual to relevant agencies according to regulations.

g) On the basis of the receipt submitted by the household or individual, the land registry or land authority or interconnected one-stop division shall provide a certificate which includes the deferred land levy amount and deferral period as prescribed in clause 1 of this Article to the household or individual.

3. Procedures for payment and cancellation of deferred land levy amount of a household or individual eligible for deferral of land levy payment:

a) On the basis of the deferral period as prescribed by Decrees on recompense, support and resettlement upon land expropriation by the State, Decrees on issuance of certificates, the household or individual shall pay the deferred land levy in a lump sum to the state budget according to the provisions of law on tax administration.

The state budget collection agency, under the provisions of law on tax administration, is responsible for collecting the deferred land levy amount recorded in the certificate or notified by the tax authority and providing the receipt to the household or individual; and transferring information about the amount of money collected from the household or individual to relevant agencies according to regulations.

The tax authority shall issue a Notice of confirmation of completion of financial obligations regarding land levy collection using Form No. 03 in the Appendix I enclosed herewith.

b) After completing the deferred land levy payment prescribed in point a of this clause, the household or individual shall submit an application, including the original certificate, the original receipt of land levy payment or the original notice of confirmation of completion of financial obligations regarding land levy collection at the land registry or land authority or interconnected one-stop division to have the deferred land levy written on the certificate cancelled. If the receipt is lost or misplaced, the household or individual may ask for confirmation of the land levy amount that has been paid at the state budget collection agency according to the provisions of law on tax administration.

c) The land registry or land authority or interconnected one-stop division shall review and compare the application for cancellation of deferred land levy submitted by the household or individual and written on the certificate and provide the certificate to the household or individual within 01working days from the date on which the household or individal submits the application in point b of this Clause.

Chapter III

CALCULATION, COLLECTION AND PAYMENT OF LAND RENTS

Section 1. CALCULATION OF LAND RENTS

Article 23. Basis for calculation of land rents

1. Land area on which rent is charged as prescribed in Article 24 hereof.

2. Land lease term, land use extension term as prescribed in Article 25 hereof.

3. Land rent per unit of area as prescribed in Article 26 hereof.

4. Land lease by the State with annual land rent payments, or land lease by the State under one-off arrangement.

5. Policies on land rent exemption or reduction of the State.

Article 24. Land area on which rent is charged

1. The land area on which rent is charged is the area of land for which rent must be paid recorded on a land lease decision, decision to adjust land lease decision, decision to permit land repurposing, decision to extend the land use term, decision to adjust land use term, decision to adjust detailed planning, or decision to allow change of land use form which is subject to land rent payment (hereinafter collectively referred to as “decision about land lease”). In case the area recorded in the land lease contract is larger than the area recorded in the decision about land lease, the land area on which rent is charged shall be determined according to the area recorded in the land lease contract.

2. The area on which rent is charged in case of recognition of rights to use the leased land is the recognized area of land recorded in the information sheet determining financial obligations regarding land sent by a land authority to a tax authority according to Decrees on issuance of certificates or the land lease contract that was signed.

3. Land area on which rent is charged as prescribed in clause 1 and clause 2 of this Article is calculated in square meters (m²).

Article 25. Land lease term

1. Land lease term (except for the case specified in Clause 2 of this Article) shall be the term stated on a decision about land lease issued by a competent authority or a Certificate or a land lease contract. In case the land lease term stated on the above documents is different, the land authority shall determine the term as a basis for land rent calculation.

2. In case of recognition of rights to use leased land, the land lease term shall be the term stated on the information sheet sent by a land authority to a tax authority according to Decrees on issuance of certificates or the land lease contract that was signed.

Article 26. Land rent per unit of area

1. If the land is leased out with annual payments without action:

Annual land rent per unit of area = percentage (%) for calculation of land rent per unit of area multiplied by (x) land price on which land rent is calculated. where:

a) Percentage (%) for calculation of annual land rent per unit of area is from 0,25% to 3%.

On the basis of the actual situation of a first-level division, the first-level People’s Committee shall regulate the percentage (%) for calculation of land rent per unit of area in each zone or route corresponding to each land use purpose after asking for opinions from the People’s Council at the same level.

b) The land price on which land rent is calculated is the land price in the Land price list (according to the provisions of point b, point h clause 1 Article 159 of the Land Law); is determined in VND/square meter (VND/m2).

2. If the land is leased out under one-off arrangement without auction:

a) In case of calculating land rent when the State recognizes LURs in the form of land lease under one-off arrangement for a household or individual as prescribed in Point h Clause 1 Article 159 of the Land Law, the land rent per unit of area under one-off arrangement shall be calculated as follows:

b) In case of calculating land rent for the cases specified in Points b and dd, Clause 1, Article 160 of the Land Law, the land rent per unit of area under one-off arrangement is the specific land price determined according to the provisions of Decrees on land prices.

3. In case of LUR auction, the land rent per unit of area shall be the unit price for which LURs are sold corresponding with the land lease by the State annual land rent or land rent undder one-off arrangement.

Article 27. Rent per unit of area of land for underground works

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

2. The rent per unit of area of land leased out by the State for underground works (not the underground part of above-ground works) according to the provisions of Clause 1, Article 120 of the Land Law, shall be calculated as follows:

a) If land rent is paid annually, the land rent per unit of area must not exceed 30% of the rent per unit of area of land on the surface which is also paid annually for the same purpose.

b) If land rent is paid in a lump sum, the land rent per unit of area must not exceed 30% of the rent per unit of area of land on the surface which is also paid in a lump sum for the same purpose and with the same land use term.

c) On the basis of the actual situation of a first-level division, the first-level People’s Committee shall regulate the land rent per unit of area specified in point a or point b of this clause after asking for opinions of the People’s Council at the same level.

3. For land for underground works attached to the underground part of above-ground works, whose area exceeds the area of land on the surface allocated by the State with land levy collection or leased out by the State to the land user, the rent per unit of area of this excess area shall be determined according to the provisions of Clause 2 of this Article.

Article 28. Rent per unit of area of water-covered land

1. For the area of land uncovered by water, annual land rent per unit of area and lump-sum land rent per unit of area shall be calculated according to the provisions of Article 26 hereof.

2. For the water-covered land area, annual land rent per unit of area or lump-sum land rent per unit of area shall be calculated at a rate not lower than 20% of the annual land rent per unit of area or lump-sum land rent per unit of area for the adjacent land with the assumption of the same land use purpose and land use term as the water-covered land.

3. On the basis of the actual situation of a first-level division, the first-level People’s Committee shall regulate the land rent per unit of area specified in clause 2 of this Article after asking for opinions of the People’s Council at the same level.

Article 29. Agency determining land rent per unit of area

1. In case of land lease without LUR auction, on the basis of specific land prices decided by the Chairpersons of the competent People’s Committees, land prices in the Land Price List, percentage ( %) for calculation of land rent per unit of area, rent per unit of area of land for underground works, rent per unit of area of water-covered land, information sheets sent by land authorities, Tax Departments (for organizations, persons of Vietnamese descent residing overseas, foreign-invested organizations), Tax Sub-Departments and Regional Tax sub-Departments (for the remaining cases) shall determine annual land rent per unit of area and lump-sum land rent per unit of area.

Notifications of land rent per unit of area shall be made using Form No. 03 in Appendix II enclosed herewith.

2. In case of land lease with LUR auction, starting prices and hammer prices shall be determined as prescribed in Decrees elaborating certain articles of the Land Law.

Article 30. Calculation of land rents

1. In case land is leased out with annual land rent payments, the land rent per year shall be:

2. In case land is leased out under one-off arrangement:

a) The lump-sum land rent shall be:

b) The lump-sum rent for water-covered land shall be:

where: The rent for the area of land uncovered by water and the rent for the area of land covered by water shall be calculated according to the provisions of point a of this clause.

3. In case a public service provider leases land from the State with annual land rent payments according to the provisions of Clause 3, Article 30 of the Land Law, the land rent shall be calculated according to the provisions of this Decree.

In case a public service provider does not lease land from the State with annual land rent payments, but uses houses and works affixed to the land for business, lease, joint venture or association according to regulations of the law on management and use of public property, they must fulfill their financial obligations in accordance with the provisions of law on management and use of public property and do not have to pay land rent according to the provisions of this Decree.

4. If the project developer is permitted to extend the land use term of a project according to the provisions of clause 8 Article 81 of the Land Law, in addition to the land levy payable, the project developer must pay an additional amount to the State which is calculated as follows:

a) If the project developer is permitted to extend the land use term of a project according to the provisions of clause 8 Article 81 of the Land Law, in addition to the land levy payable, the project developer must pay an additional amount to the State which is calculated as follows:

where:

– The land price in the land price list and the percentage (%) for calculation of land rent per unit of area are determined corresponding to the purpose of using the land leased out by the State.

– If the extended period of time has an incomplete month, the incomplete month shall be rounded up to 01 month if it is 15 days or more, and rounded down to 0 month (no additional payment) if it is less than 15 days.

b) The regulations on deduction of budget for recompense, support and resettlement and the regulations on exemption and reduction of land rents do not apply to the amount specified in point a of this Clause.

5. In case the land lessee who pays annual land rent has a voluntary application for return of land according to the provisions of Clause 2, Article 82 of the Land Law, the land user must pay the land rent until a land expropriation decision is issued by a competent regulatory agency as prescribed in Decrees elaborating the implementation of certain articles of the Land Law; In case the land expropriation deadline as prescribed in Decrees elaborating the implementation of certain articles of the Land Law has passed and the competent regulatory agency has not yet issued a land expropriation decision, the land user shall not be required to pay land rent for this period if the land user does not continue using the land.

6. In case the land user has used the land before the competent regulatory agency issued the land lease decision or before the land lease contract is signed (in case the right to use the leased land is recognized) but has not yet paid the land rent for the period of use, he/she must pay the annual land rents for this period. The annual land rent is calculated according to the percentage (%) for calculation of land rent per unit of area and land price for calculation of land rent for each year of land use until the State issues the land lease decision. The land rent from the time the State issues the land lease decision onwards shall be calculated, and collected or paid in accordance with the provisions of this Decree.

7. In case a competent regulatory agency decides to lease out land according to the progress of an investment project, progress of land expropriation, recompense, support or resettlement as prescribed in clause 4 Article 116 of the Land Law, the land rent calculation and handling of budget for recompense, support and resettlement shall be done according to each land lease decision.

8. In case an organization is using land leased out by the State as prescribed in Article 120 of the Land Law and is granted a Certificate as prescribed in Point a, Clause 2, Article 142 of the Land Law, the land rent shall be calculated according to provisions of Clauses 1 and 2 of this Article.

9. When replacing a Certificate of LURs for a household or individual, if the land area measured in reality is larger than that written on the issued Certificate and the boundary of the land parcel in use remains unchanged in comparison with the boundary of the land parcel determined at the time of obtaining the Certificate issued according to Decrees on issuance of Certificates, the land user shall pay a land levy on the increase in land area according to laws enforced when issuing the previous certificate.

Article 31. Handling of budget for recompense, support and resettlement; determination of residual land values according to the provisions of Article 107 of the Land Law

1. In case the Land Development Fund advances capital for creation of a land bank to a unit or organization in charge of recompense, support or resettlement provision to lease out land or the state budget has allocated to provide recompense, support and resettlement, the budget for recompense, support and settlement shall be handled as follows:

a) In case a land user leases land from the State under one-off arrangement and is not exempted from land rent or is exempted from land rent but wishes to pay land rent during the lease period (no incentives) as prescribed in Clause 5, Article 38 of this Decree, the land user must pay land rent to the state budget according to the provisions of law. The refund of budget for recompense, support and resettlement to the Land Development Fund shall comply with the provisions of law on land development banks and law on state budget.

In case a land lessee leases land with annual land rent payments and is not exempted from land rent, the land user must pay in advance a budget for recompense, support, and resettlement to the state budget; This amount will be converted into the number of years and months for which obligations to pay annual land rent have been fulfilled when the land lease decision is issued; If the period for conversion for which obligations to pay annual land rent have been fulfilled, the land lessee will continue to pay land rent according to regulations. The refund of budget for recompense, support and resettlement to the Land Development Fund shall comply with the provisions of law on land development banks and law on state budget.

b) If the land user is leased out land by the State and is exempt from land rent, the budget for recompense, support and resettlement shall be refunded to the state budget by the land user and included in the investment cost of the project according to the provisions of clause 2 Article 94 of the Land Law. The refund of budget for recompense, support and resettlement to the Land Development Fund shall comply with the provisions of law on land development banks and law on state budget.

2. In case a person is leased out land by the State and is eligible for and advance on budget for recompense, support and resettlement according to the provisions of clause 2 Article 94 of the Land Law, the application for deduction of budget for recompense, support and resettlement shall comply with the provisions of clause 2 Article 16 of this Decree. The deduction of budget for recompense, support and resettlement shall comply with the principles specified in Clause 1 of this Article.

3. The budget for recompense, support, and resettlement for an investment project with multiple land use forms (land allocation with land levy collection, land allocation without land levy collection, land lease) shall be handled according to the provisions of Clause 3, Article 16 of this Decree.

4. In case a land user leases land from the State with annual land rent payments and is allowed to convert the advance budget for recompense, support, and resettlement to the period for which obligations to pay annual land rent have been fulfilled when the land lease decision is issued, during the period of time when the competent authority confirms that the financial obligations regarding annual land rent have been fulfilled, the lessee has all the rights to the piece of land in the same manner as land leased out by the State where land rents are paid annually.

5. In case a person leases land from the State with annual land rent payments but has fulfilled their financial obligations to a number of years due to deduction of advance payment for recompense, support and resettlement or land-related fee as prescribed in clause 3 Article 34 of this Decree from the land rent payable according to the provisions of law, when conveying the project or conveying the property under their ownership affixed to the leased land according to the provisions of law, the conveyee may inherit and continue to have the remainder of the advance payment for recompense, support and resettlement or land-related fee corresponding to the period for which the conversion is carried out but the deduction from land rent is not completed deducted.

6. The refund and handling of budgets for recompense, support, and resettlement for the cases specified in Clauses 1, 2, and 3 of this Article are determined at the same time as calculation of land rents by competent regulatory agencies according to regulations.

7. In case the land rent of a land user has been exempted or reduced but the land user does not meet the conditions for land rent exemption or reduction and the exempted or reduced land rent amount has been recovered as prescribed in Clause 9, Article 38 of this Decree, the budget for recompense, support, and resettlement shall be handled according to the provisions of Clauses 1, 2 and 3 of this Article; The amount of budget for recompense, support, and resettlement that has been included in the project’s investment cost according to the provisions of Clause 2, Article 94 of the Land Law cannot be deducted from the land rent.

8. On the basis of the actual situation of a first-level division, the People’s Committee of the first-level division shall propose to the People’s Council at the same level to decide on allowing a land user who is allocated land by the State without land levy collection or leased out land in a hi-tech park by the State to not refund the budget for recompense or site clearance that has been allocated by the State from the state budget to the state budget (excluding cases of capital advance from the Land Development Fund) for the following cases:

a) the land user leases land with annual land rent payments and is eligible for land rent exemption or reduction but he/she wishes not to enjoy land rent exemption or reduction incentives.

b) the land user uses land and water-covered land to build traffic works, technical infrastructure, green areas, or parks for public use according to general planning and construction zoning planning.

c) The Management Board of the hi-tech park and units under the Management Board use land to build headquarters, public works, and works serving the management and use of infrastructure of the hi-tech park.

d) the land user is allocated land without land levy/land rent collection and has the land handed over by the Management Board of the hi-tech park before July 1, 2014.

9. In case the person whose land is expropriated receives recompense for the residual land value according to the provisions of Point d, Clause 2, Article 107 of the Land Law, or Clause 6, Article 17 of Decree No. 88/2024/ND-CP , the residual land value shall be determined as follows:

a) The budget for recompense, support and resettlement that has been advanced in accordance with the recompense, support and resettlement arrangement which has been approved by a competent regulatory agency but has not yet been deducted fully from the land rent payable (hereinafter referred to as “undeducted budget”) shall be determined as follows:

a1) In case the land, before expropriation, is leased out by the State under one-off arrangement but the advance budget for recompense, support and resettlement has been included in the investment capital of the project and the land user has received recompense relating to land, the undeducted budget shall be zero (=0)

a2) In case the land, before expropriation, is leased out by the State with annual land rent payments and the budget for recompense, support and resettlement is being deducted by converting it to the number of years and months for which the obligations regarding land rent have been fulfilled, the undeducted budget shall be determined as follows:

Where, the annual land rent per unit of area is determined according to the provisions of clause 1 Article 26 of this Decree.

a3) In case the land, before expropriation, is leased out by the State with annual land rent payments and the budget for recompense, support and resettlement is being deducted by gradually deducting it from the land rent payable, the undeducted budget shall be determined as follows:

b) In case the annual land rent has been paid in advance for many years but the remaining period during which the advance payment has been made still does not begin, the residual land value shall be determined as follows: <0}

where:

– The land rent per year is determined as prescribed in clause 1 Article 20 of this Decree according to the policies and land price at the time when the State decides on approval for the recompense, support and resettlement arrangement.

– The remaining period during which the land rent has been paid in advance equals (=) the period during which the land rent has been paid in advance minus (-) the period during which the land has been used until the time when the State decides on approval for the recompense, support and resettlement arrangement.

Article 32. Stabilization of annual land rent

1. The annual land rent (including the annual land rent in case of LUR auction) shall be applied stably according to the provisions of clause 2 Article 153 of the Land Law.

2. The determination of land rent for the next cycle shall comply with the provisions of Clause 1, Article 26, Clause 1, Article 30 of this Decree. In case the land rent for the next period does not increase in comparison with the previous period, the land rent does not have to be adjusted; In case of increase in comparison with the previous period, the adjustable rate of the annual land rent as prescribed in Clause 2, Article 153 of the Land Law shall be equal to (=) the total annual national consumer price index (CPI) of the 5-year period immediately preceding the time of adjustment.

In case the CPI increases by at least 10% for 5 consecutive years, the Ministry of Finance shall cooperate with relevant ministries and central authorities in submiting reports to the Government which will regulate the adjustment to the adjustable rate of the annual land rent of the next period accordingly.

3. In case a budget for recompense, support, resettlement is deducted or the amount paid to receive LURs by conveyance is deducted from the land rent by converting it to the number of years and months for which the obligations regarding land rent have been fulfilled, it is not required to follow the procedures for adjustment to land rent according to the provisions of Clause 2 of this Article within the period for which the obligations regarding land rent have been fulfilled. After ending the above-mentioned period for which the obligations regarding land rent have been fulfilled, the adjustment to land rent shall comply with the provisions of clause 2 of this Article in order to calculate the land rent for the next period.

Article 33. Calculating land rent in case the land lease form is changed as prescribed in clause 1 or clause 2 Article 30 of the Land Law

1. Changing from land lease with annual land rent payments to land lease under one-off arrangement:

a) In case the land user receives the State’s decision to permit the land user to change from land lease with annual land rent payments to land lease under one-off arrangement, the land rent must be paid in lump sum for the remaining land lease term according to the provisions of clause 2 Article 30 of this Decree. The lump-sum land rent per unit of area shall be determined accoding to the provisions of clause 2 Article 26 of this Decree; where than land price for calculation of land rent per unit of area is the land rent determined at the time when the State issues the decision to permit the land user to change to land lease under one-off arrangement.

b) In case the land user is having the budget for recompense, support and resettlement or the amount paid to receive LURs by conveyance deducted from the land rent by converting it to the number of years and months for which obligations regarding land rent have been fulfilled, the remaining amount which has not been deducted shall be deducted from the lump-sum land rent.

The deducted amount mentioned above shall be equal to (=) the land rent calculated according to the annual land rent per unit of area at the time when the State issues the decision to permit the land user to change to land lease under one-off arrangement multiplied by (x) the period for which obligations regarding the remaining annual land rent (which has not been deducted) have been fulfilled.

2. Changing from land lease under one-off arrangement to land lease with annual land rent payments:

a) In case obligations regarding land rent have been fulfilled, the land user is not required to pay annual land rents for the remaining land lease period.

b) In case obligations regarding land rent have not been fulfilled, the land user shall pay annual land rents from the time when the State issues the decision to permit the land user to change from land lease under one-off arrangement to land lease with annual land rent payments. For the period during which the land has been used:

b1) If the land rent has not been paid, the land user shall pay the land rent for the period during which the land has been used:

At the same time, the land user must pay late payment interest on land rent calculated on the land rent payable in accordance with tax administration laws from the time when a competent regulatory agency decides to lease the land to the time when the conversion from land lease under one-off arrangement to land lease with annual land rent payments.

b2) In case a part of the land rent has been paid but the amount paid is less than the amount payable as prescribed in paragraph b1 of this point (excluding late payment interest), the land user must pay the outstanding amount and the amount of late payment interest on land rent calculated on the outstanding amount according to the provisions of law on tax administration; In case the amount paid is greater than the amount payable according to the provisions of paragraph b1 of this point (excluding late payment interest), the increase amount will be deducted from the annual land rent by converting it to the number of years and months for which obligations regarding annual land rent calculated according to the annual land rent per unit of area that is determined according to the land price at the time when the State issues a decision to permit the land user to change from land leae under one-off arrangement to land lease with annual land rent payments.

Article 34. Calculation of land rent in case of land repurposing

1. In case a land user is issued with a competent regulatory agency’s decision to permit land repurposing as prescribed in clause 1 Article 121 of the Land Law and is eligible for land lease, the land rent shall be calculated as follows:

a) In case agricultural land or non-agricultural land allocated by the State without land levy collection is converted to non-agricultural land leased out by the State, the land user must pay an annual land rent or a lump-sum land rent according to the repurposed land which is calculated according to the provisions of Article 30 hereof.

b) In case the land use purpose is changed but the land use form is not changed:

b1) In case the land is still leased out under one-off arrangement after it is repurposed and the land user has fulfilled his/her obligations regarding land rent for the land before repurposing, the land rent shall be calculated as follows:

b2) If the land is still leased out with annual land rent payments after it is repurposed, the land user shall pay an annual rent for the repurposed land according to the provisions of clause 1 Article 30 hereof.

c) In case the land is repurposed and the land lease under one-off arrangement for the entire land lease period for which obligations regarding land rent have been fulfilled is converted to land lease with annual land rent payments, the annual land rent payable for the new purpose shall be calculated according to the regulations at the time when the competent regulatory agency issues the decision to permit the land repurposing in combination with change of the land lease form.

The lump-sum land rent for the remaining land lease period of the type of land before repurposing shall be calculated according to the policies and land price at the time when the competent regulatory agency issues a decision to permit land repurposing and is converted to a period for which obligations regarding annual land rent calculated according to the annual land rent per unit of area for the repurposed land at the time when the competent regulatory agency issues the decision to permit land repurposing have been fulfilled.

2. For the case of land repurposing specified in clause 1 Article 121 of the Land Law, when the land which is allocated by the State for a definited term with land levy collection before July 01, 2014 for which obligations regarding land rent have been fulfilled is converted to the land falling into a case of land lease as prescribed in Article 120 of the Land Law, the land rent shall be calculated as follows:

a) The lump-sum land rent shall be calculated as follows:

where: The land levy paid is equal to (=) the lump-sum land rent for the remaining land use period of the type of land before repurposing which is calculated according to the provisions of clause 2 Article 30 of this Decree at the time when the State issues the decision to permit land repurposing.

b) In case the land is leased out with annual land rent payments, the land rent upon land repurposing shall be calculated according to the provisions of point a of this clause; where, the land rent is calculated according to the land use purpose of the type of land after repurposing in accordance with clause 1 Article 30 hereof. The land levy paid shall be deducted from the land rent upon land repurposing and calculated according to the provisions of point a of this clause. This amount shall be converted to the period for which obligations regarding annual land rent calculated at the time when the competent regulatory agency issues the decision to permit land repurposing have been fulfilled.

3. In case a business organization which legally receives LURs by conveyance from an organization or individual to carry out an investment project in accordance with land use planning and plans as prescribed in Article 127 of the Land Law is required to repurpose land after receiving LURs by conveyance and fulfill obligations regarding land rent according to the provisions of clause 1 and clause 2 Article 121 of the Land Law, the land rent shall be calculated as follows:

a) The rent for land within the project shall be calculated according to the use of the repurposed land on the basis and at the time of land rent calculation prescribed in Article 155 of the Land Law, Article 30 of this Decree.

b) Regarding the amount of money paid by the business organization to receive LURs by conveyance before land repurposing (hereinafter referred to as “land-related fee”) shall be determined and handled as follows:

b1) In case the business organization legally receives LURs by conveyance from an organization (not falling into a case where land is leased out by the State with annual land rent payments or land is allocated without land rent collection), the land-related fee shall be equal to (=) the lump-sum land rent for the remaining land use period calculated at the time when the State issues the decision to permit land repurposing according to the provisions of clause 2 Article 30 hereof. This amount of money shall be deducted from the land rent if the repurposed land falls into a case of land lease under one-off arrangement or converted to the period for which the land rent has been paid if the repurposed land falls into a case of land lease with annual land rent payments.

– In case the business organization receives legally LURs by conveyance from a household or individual (not falling into a case where the State leases out land or the conversion to land lease under land laws is required), the land-related fee shall be equal to (=) the LUR value of the corresponding agricultural land at the time when the State issues the decision to permit land repurposing.

b2) In case the land user that legally receives non-agricultural land (excluding homestead land) by conveyance which is originated from the land allocated by the State with land levy collection or leased out by the State under one-off arrangement has fulfilled obligations regarding land levy or land rent, the land-related fee shall be equal to (=) the lump-sum land rent for the remaining land use period calculated at the time when the State issues the decision to permit land repurposing according to the provisions of clause 2 Article 30 hereof. This amount of money shall be deducted from the land rent if the repurposed land falls into a case of land lease under one-off arrangement. In case the repurposed land falls into a case of land lease with annual land rent payments, the land-related fee shall be converted to the period for which obligations regarding annual land rent calculated at the time when the competent regulatory agency issues the decision to permit land repurposing have been fulfilled.

b3) In case the land received by conveyance is originated from the land (not agricultural land) that is allocated by the State without land levy collection or from the receipt of property on land affixed to the land leased with annual land rent payments conveyed when the land is repurposed and the land is leased out by a competent regulatory agency, the land-related fee shall be zero (=0). If the land user has advanced land rent for a number of years according to land laws or has advanced a recompense or site clearance payment and is permitted by a regulatory authority to deduct it from the annual land rent payable by converting the advanced payment into the number of years and months for which financial obligations have been fulfilled but the advanced payment was not fully deducted by the time of repurposing, the remaining number of years and months for which rent has been paid but not used up shall be converted into the land-related fee calculated according to the annual land rent per unit of area applicable at the time of land repurposing. This amount of money shall be deducted from the land rent if the repurposed land falls into a case of land lease under one-off arrangement or converted to the period for which the land rent has been paid if the repurposed land falls into a case of land lease with annual land rent payments.

b4) If the business organization receives rights to use land (not agricultural land) within a long and stable term by conveyance and has been granted a Certificate according to the provisions of law before July 01, 2014 to use the land for a non-agricultural production or business purpose, the land-related fee shall be equal to (=) the rent for the land within the project calculated according to the use of the repurposed land according to the provisions of point a of this clause.

c) In case the business organization legally receives rights to use non-agricultural business and production land (not commercial land) by conveyance; then, converts the land to commercial land according to the provisions of point g clause 1 Article 121 of the Land Law, the land-related fee shall be determined as follows:

c1) If the land is leased under one-off arrangement, the land-related fee shall be equal to (=) the lump-sum land rent for the remaining land use period applicable at the time when the State issues the decision to permit land repurposing according to the provisions of clause 2 Article 30 of this Decree.

c2) If the land is leased with annual land rent payments, the land-related fee shall be zero (=0). If the land user has advanced land rent for a number of years according to land laws in 1993 or has advanced a recompense or site clearance payment and is permitted by a regulatory authority to deduct it from the annual land rent payable by converting the advanced payment into the number of years and months for which financial obligations have been fulfilled but the advanced payment was not fully deducted by the time of repurposing, the land-related fee shall be determined according to the provisions of paragraph b3 point b of this clause.

The land-related fee shall be deducted from the land rent payable if the land user chooses to lease land under one-off arrangement. In case the lessee chooses to lease land with annual land rent payments, the land-related fee shall be converted to the period for which obligations to pay land rent have been fulfilled which is determined at the time when the competent regulatory agency issues the decision to permit land repurposing.

d) The land-related fee of a project which has multiple land use forms after land repurposing shall be settled as follows:

d1) If the land within the project can be either leased out by the State or allocated by the State without land levy collection, the entire land-related fee as prescribed in point b of this clause shall be deducted from the land rent of the project.

d2) In case the land within the project can be either allocated by the State with land levy collection or leased out or allocated by the State without land levy collection, the land-related fee as prescribed in point b of this Clause shall be deducted from the land levy or land rent payable of the project corresponding to the area of land allocated with land levy collection or the area of land leased out. The amount of money that has been paid to receive rights to use the area of land within the project allocated by the State without land levy collection shall be deducted from the land levy and land rent (if any).

4. In case a household or individual that receives legally rights to use agricultural land by conveyance to carry out an investment project in accordance with the land use planning or plan approved by a competent regulatory agency is required to repurpose the land after receiving the LURs by conveyance and fulfill financial obligations to pay land rent, the land-related fee shall be settled as prescribed in paragraph b1 point b clause 3 of this Article.

Article 35. Calculating land rent upon land use extension, adjustment to land use term as prescribed in clause 2 Article 156, adjustment to land lease decision as prescribed in point c clause 3 Article 155 of the Land Law

1. Land rent calculation upon land use extension:

When a competent regulatory agency decides to permit extension of land use period and the land user is required to pay a land rent, the land rent shall be calculated according to the policies and land price at the time when the competent regulatory agency issues the decision to extend the land lease term.

In case the land is leased with annual land rent payments, the land rent stability cycle shall be calculated from the time the competent regulatory agency issues the decision to extend the land lease period. In case the land lease period expires before the competent regulatory agency issues the decision to extend the land lease term, the land user must pay annual land rents without stability as prescribed in Article 32 of this Decree for this period.

2. Land rent calculation upon adjustment to land use term:

a) In case a land user is leasing land with annual land rent payments and a competent regulatory agency grants a permission to adjust land use term, the land rent shall be calculated according to the policies and land price applicable at the time when the decision to adjust land use term is issued by the competent regulatory agency.

If the land user has advanced a budget for recompense, support and resettlement and is permitted by a competent regulatory authority to deduct the advanced payment by converting it into the number of years and months for which obligations to pay annual land rents have been fulfilled but the advanced payment was not fully deducted by the time of adjusting the land use term of the project, the land user may continue using the land within the remaining period for which the obligations regarding annual land rent payment have been fulfilled from the time when the land user is granted permission to adjust the land use term of the project and is not required to pay land rent. When the period mentioned above ends, the land user must pay annual land rents as prescribed in clause 1 Article 30 of this Decree.

b) In case a land user is leasing land under one-off arrangement and is granted permission to adjust the land use term by a competent regulatory agency, the land rent shall be calculated as follows:

b1) If the land use term of the project is adjusted but the detailed planning of the project remains unchanged, the land rent shall be equal to (=) the difference between the lump-sum land rent for the land use term which has been adjusted according to the decision of the competent regulatory agency and the lump-sum land rent for the remaining land use period of the land lease term before adjustment.

b2) If the land use term of the project is adjusted and the detailed planning of the project is also changed, the land rent shall be equal to (=) the difference between the lump-sum land rent for the land use term which has been adjusted according to the decision of the competent regulatory agency and the lump-sum land rent for the remaining land use period of the land lease term according to the detailed planning before adjustment.

b3) The land use term that has been adjusted according to paragraph b1 or b2 of this point includes the remaining land use term of the project and the land use term that has been extended with the permission granted by the compente regulatory agency.

b4) The lump-sum land rent for the remaining land use period of the land lease term before adjustment as prescribed in paragraph b1 or b2 of this point shall be equal to (=) the lump-sum land rent for the land lease term before adjustment divided by (:) the land lease term before adjustment multiplied by (x) the remaining land use period of the land lease term before adjustment.

3. Land rent calculation upon adjustment to land lease decision as prescribed in point c clause 3 Article 155 of the Land Law:

a) For the case, other than the case specified in point b of this clause, where a competent regulatory agency adjusts a land lease decision according to the provisions of point c clause 3 Article 155 of the Land Law, thereby increasing land area on which rent is charged, the land rent for the increased land area shall be calculated according to the provisions of Article 30 of this Decree at the time when the competent regulatory agency issues the decision to adjust the land lease decision. If the land area on which rent is charged is decreased (not subject to land expropriation by the State), thereby decreasing the land rent paid, this decreased amount shall be deducted from the investment capital of the project.

b) If a competent authority adjusts a land lease decision according to the provisions of point c clause 3 Article 155 of the Land Law due to changes in detailled planning, the land rent shall be calculated according to the formula specified in Article 36 of this Decree at the time when the competent authority issues a decision to adjust the land lease decision.

c) If a competent authority adjusts a land lease decision according to the provisions of point c clause 3 Article 155 of the Land Law due to changes in the land use term, the land rent shall be calculated according to the provision of clause 2 of this Article at the time when the competent regulatory agency issues a decision to adjust the land lease decision.

Article 36. Calculating land rent when the detailed planning of a project is changed in accordance with the provisions of law but the land lease decision is not changed as prescribed in point d clause 3 Article 155, point a clause 2 Article 160 of the Land Law

1. In case an applicant (land user) is issued with a decision to adjust the detailed planning of a project in accordance with the provisions of law by a competent authority, thereby changing land use structure or location of each land type or land use coefficient, the land rent shall be calculated as follows:

1.1. If the project, before adjusting detailed planning, was not eligibile for land allocation by the State through LUR auction:

a) If the land user leases land under one-off arrangement and has fulfilled his/her obligations regarding lump-sum land rent payment before the detailed planning of the project is adjusted:

a1) When the decision to adjust the overall detailed planning of the project is issued by a competent authority, the land user shall pay a land rent equal to the difference between the land rent for the entire project area according to the detailed planning after adjustment and the land rent for the entire project according to the detailed planning before adjustment as prescribed by law as soon as the competent authority issues the decision to adjust the overall detailed planning of the project (if any).

a2) When the decision to adjust the partial detailed planning of the project is issued by a competent authority, the land user shall pay a land rent equal to the difference between the land rent for the adjusted project area according to the detailed planning after adjustment and the land rent for the adjusted project area according to the detailed planning before adjustment as prescribed by law as soon as the competent authority issues the decision to adjust the partial detailed planning of the project (if any).

If the land rent for the adjusted land area is not required or can not be allocated, the land rent shall be paid for the entire project as prescribed in the paragraph a1 of this point.

b) If the land user has not yet fulfilled their legal obligations regarding land rent payment before the decision to adjust the detailed planning of the project (only applicable to projects which are developed on land allocated before the effective date of the 2024 Land Law but their detailed planning is now adjusted) is issued, the land user must:

b1) If the notification of land rent calculated according to the detailed planning before adjustment has been issued, the land user must pay full amount of land rent determined according to the detailed planning before adjustment plus late payment interest on land rent (if any) according to the provisions of law on tax administration.

In case of no land price decision, the land user shall calculate and pay a land rent as prescribed in clause 2 Article 257 of the Land Law and additional payment as prescribed in clause 9 Article 51 of this Decree.

b2) The additional payment shall be equal to the difference between the land rent payable according to the planning after adjustment and the land rent payable according to the planning before adjustment determined as soon as the competent authority issues a decision to adjust the planning as prescribed in the paragraph a of this point (if any).

c) If the land user leases land with annual land rent payments, he/she must pay a land rent according to the policies and land price applicable at the time when the decision to adjust the detailed planning is issued by a competent regulatory agency.

1.2. If a land user is leased out land by the State through LUR auction in accordance with the provisions of law and has paid the land rent,

a) In case a land user leases land under one-off arrangement, when a decision to adjust the overall detailed planning of the project is issued by a competent regulatory agency, the land rent shall be calculated as follows:

b) In case a land user leases land under one-off arrangement, when a decision to adjust the partial detailed planning of the project is issued by a competent regulatory agency, the land rent shall be calculated as follows:

If the land rent for the partially adjusted land area is not required or can not be allocated, the land rent shall be paid for the entire project as prescribed in point a of this clause.

c) Trường hợp thuê Dất trả tiền thuê Dất hằng năm thì tiền thuê Dất hằng năm của toàn bộ dự án Dược tính lại theo quy hoạch chi tiết sau khi Diều chỉnh theo quy Dịnh của pháp luật tại thời Diểm cơ quan nhà nước có thẩm quyền quyết Dịnh Diều chỉnh quy hoạch chi tiết.

2. Trường hợp người sử dụng Dất Dã hoàn thành nghĩa vụ tài chính về tiền thuê Dất trả một lần cho cả thời gian thuê nhưng do yêu cầu quản lý, Nhà nước thực hiện Diều chỉnh quy hoạch chi tiết hoặc Diều chỉnh quy hoạch chung, quy hoạch phân khu mà làm thay Dổi quy hoạch chi tiết, làm thay Dổi cơ cấu sử dụng Dất hoặc vị trí từng loại Dất hoặc hệ số sử dụng Dất của dự án dẫn Dến làm tăng, giảm tiền thuê Dất thì xử lý như sau:

a) In case the lump-sum land rent calculated according to the detailed planning after adjustment is greater than the lump-sum land rent calculated according to the detailed planning before adjustment at the same time when the competent authority issues the decision to adjust planning, the land user shall pay an additional amount equal to the difference between the lump-sum land rent calculated according to the detailed planning after adjustment and the lump-sum land rent calculated according to the detailed planning before adjustment. The calculation of lump-sum land rents according to each detailed planning shall comply with the provisions of clause 2 Article 30 of this Decree.

b) In case the lump-sum land rent calculated according to the detailed planning after adjustment is smaller than the land rent calculated according to the detailed planning before adjustment at the same time when the competent authority issues the decision to adjust planning, the land user is entitled to a refund of the land rent. The refund of the land rent shall be equal to the difference between the lump-sum land rent calculated according to the detailed planning after adjustment and the lump-sum land rent calculated according to the detailed planning before adjustment determined at the same time when the competent authority issues a decision to adjust the planning. The calculation of lump-sum land rents according to the detailed planning before and after adjustment shall comply with the provisions of clause 2 Article 30 of this Decree.

The land rent calculated as prescribed in this Clause shall be refunded directly or offset against the organization’s financial obligations to the State according to the provisions of law on state budget and the law on tax administration.

3. If a project, after adjustment to the detailed planning, has multiple land use forms (land allocation with land levy collection, land allocation without land levy collection, land lease), the land levy or land rent on the entire project area (or on the adjusted area) shall be equal to the difference between the total land levy or land rent calculated according to the planning after adjustment and the total land levy or land rent calculated according to the planning before adjustment at the same time when the competent authority issues a decision to adjust the planning.

4. If a business organization, person of Vietnamese descent residing overseas, or foreign-invested organization has agreed to receive LURs by conveyance for project execution as prescribed in Article 127 of the Land Law but the project’s detailed planning must be adjusted, the land rent shall be calculated according to the provisions of clauses 1, 2 and 3 of this Article.

5. If a land zone or land parcel on a project is executed is the land that is lawfully conveyed from a household or individual, the land rent for the land zone or parcel before adjustment to the planning shall be equal to the land-related recompense of the household or individual as prescribed in Decrees on recompense, support and resettlement upon land expropriation by the State and Decrees on land prices.

Article 37. Calculation of land rent payable in case land rent is exempted or reduced

1. In case land is leased out with annual land rent payments:

a) If the land rent is exempted according to the provisions of Article 39 hereof, the annual land rent payable applicable at the beginning time of imposing obligations to pay land rent after the period during which the land rent is exempted ends shall be determined as follows:

b) If the land is leased out with annual land rent payment and the land rent is reduced as prescribed in clause 1 Article 40 of this Decree, the land rent applicable during the years in which the land rent is reduced shall be calculated as follows:

where: The land rent for the year in which the land rent is reduced is the land rent calculated according to the provisions of clause 1 Article 30 of this Decree.

c) If the land user voluntarily advances a budget for recompense, support and resettlement as prescribed in clause 2 Article 31 of this Decree:

c1) If the land rent is exempted for a several years as prescribed in clause 2 Article 39 of this Decree, after the period during which the land rent is exempted for a several years ends, the land lessee may continue deducting the budget for recompense, support and resettlement by converting it into the number of years and months for which obligations regarding land rent payment have been fulfilled according to the following formula:

where:

n: The number of years and months during which obligations to pay land rent are not imposed.

c2) If the land rent is reduced, after the reduced amount is deducted as prescribed in point b of this clause, the land user may continue to have the advanced payment for recompense, support and resettlement that is entitled to deduction with the competent regulatory agency’s permission deducted from the land rent payable in an absolute amount for the period during which the land rent is reduced each year; the remaining budget for recompense, support and resettlement (after it was deducted from the remaining annual land rent payable for the period during which the land rent is reduced) is further deducted by converting it into the number of years and months for which obligations to pay land rent according to land rent per unit of area applicable at the ending of the period during which the land rent is exempted pr reduced have been fulfilled according to the following formula:

where:

n is the number of years and months for which financial obligations regarding land rent have been fulfilled.

2. In case land is leased out under one-off arrangement:

a) If the land rent is exempted according to the provisions of Article 39 of this Decree

b) If the land rent is reduced as prescribed in clause 2 Article 40 of this Decree, the land rent payable shall be calculated as follows:

c) If the land user voluntarly advances a payment for recompense or site clearance as prescribed in clause 2 Article 94 of the Land Law and clause 2 Article 31 of this Decree, after the land rent is reduced as prescribed in point a or point b of this clause, the land user may continue deducting the advanced payment for recompense, support and resettlement that is entitled to deduction with the competent regulatory agency’s permission from the land rent payable.

Section 2. LAND RENT EXEMPTION AND REDUCTION

Article 38. Principles for land rent exemption and reduction

1. A land lessee must follow procedures to be entitled to a land rent reduction: 

a) In case the land lessee is eligible for a land rent reduction but he/she does not follow procedures for land rent reduction, he/she must pay a land rent as prescribed by law. In case the land lessee delays following procedures for land rent reduction, the land rent shall only be reduced within the remaining land rent reduction incentive period from the time when valid procedures for land rent reduction are followed; During the delay in following procedures, land rent will not be reduced.

b) If the period during which the land rent is reduced as prescribed in Article 40 hereof has ended at the time of following procedures for land rent reduction, the land user is not entitled to a land rent reduction.

2. In case the land user is entitled to both land rent exemption and land rent reduction as prescribed in this Decree or other relevant legislative documents, the land rent shall be exempted. In case the land user is entitled to land rent reduction and there are many different reduction levels prescribed in this Decree and other relevant legislative documents, the highest reduction prevails.

3. The land rent exemption or reduction as prescribed in Article 39 and Article 40 hereof shall be in accordance with each investment project and only be applied directly to the land lessee and calculated according to the land rent, except when the land user is eligible for exemption or reduction as prescribed in Article 157 of the Land Law but is not required to prepare an investment project. The land user shall submit documents proving that he/she is eligible for land rent reduction according to the provisions of law.

4. In case the land user is currently eligible for an incentive to exempt or reduce land rent greater than that specified in this Decree, he/she may continue to be provided with the current incentive for the remaining period; In case the current incentive is less than that specified in this Decree, he/she will continue to be provided with the incentive prescribed in this Decree for the remaining incentive payment period from the effective date of this Decree. In case the incentive payment period has ended on the effective date of this Decree, the incentive shall not be provided as prescribed in this Decree.

If the starting date for land rent calculation is before the effective date of this Decree, but the land lessee follows procedures for land rent reduction from the effective date of this Decree, the regulations on land rent reduction and other regulations as prescribed in this Decree shall be applied.

5. In case the land user is leased out land by the State under one-off arrangement and is exempted from land rent but wishes to pay land rent during the lease period (no incentives), the lump-sum land rent for the remaining land lease period shall be calculated according to the provisions of clause 2 Article 30 of this Decree and according to the policies and land price applicable at the time when the land user submits a written proposal for land rent payment which has been received by a competent authority. The land user in this case has the same land-related rights corresponding to the remaining land lease period as in the case where the land user is not exempted from land rent as prescribed in Clause 1, Article 33 of the Land Law.

6. If the land user is leased out land by the State with annual land rent payments and is being provided with an incentive to exempt or reduce land rent, if he/she conveys privately owned property affixed to the leased land as prescribed by law and the property purchaser is continuously leased out land by the State for the remaining land lease period for the same land use purpose as that upon receipt of the conveyed property, the land rent shall be exempted or reduced as follows:

a) The conveyor is not allowed to include the exempted or reduced land rent amount in the price for conveyance.

b) The conveyee will continuously have land rent exempted or reduced for the remaining incentive payment period. If the land rent is continuously reduced, the conveyee is not required to follow procedures for land rent reduction.

7. In case a land user is leased out land by the State under one-off arrangement and the land rent has been exempted or reduced according to the provisions of law but now the land user conveys or contributes capital with LURs or conveys both the investment project and LURs, it shall be handled as follows:

a) In case the land user is leased out land by the State under one-off arrangement and the land rent has been exempted or reduced according to the provisions of law but now the land user conveys or contributes capital with LURs or conveys both the investment project and LURs, the land user must pay to the State an amount of money equal to the land rent that has been exempted or reduced at the time of land lease or land repurposing as prescribed in point b clause 3 Article 33 of the Land Law and pay an additional amount for the period from the date of land rent exemption or reduction to the date of conveyance or capital contribution with LURs that is equivalent to the late payment interest on the land levy according to the provisions of law on tax management from time to time.

The calculation of the land rent that has been exempted or reduced payable to the State shall comply with the provisions of clause 2 Article 30 or Article 34 of this Decree according to the policies and land price applicable at the time of land lease or land repurposing.

b) In case the land user is leased out land by the State under one-off arrangement and the land rent has been exempted or reduced according to the provisions of law but now the land user conveys both the investment project and LURs:

b1) If the land rent that has been exempted or reduced is not included in the price for conveyance and the conveyee continues executing the project, the conveyee will continue to be exempted or reduced from land rent according to the provisions of law on investment for the remaining period of the project. If the land rent is continuously reduced, the conveyee is not required to follow procedures for land rent reduction.

b2) If the conveyee does not continue executing the project and is allowed to use the land for another purpose by a competent regulatory agency, he/she must pay a land rent according to the provisions for the project after conveyance. If the conveyor has fulfilled a part of their financial obligations regarding to land rent payment, the conveyee may inherit the portion of the obligations that the conveyor has paid.

8. If a business organization is leased out land by the State with annual land rent payments and is being provided with an incentive to exempt or reduce land rent, the business organization, after converting operating model or equitizing according to the provisions of law, will continuously be provided with an incentive to reduce or exempt land rent for the remaining incentive payment period if the land continues to be used for its intended purpose for which the land rent reduction or exemption has been granted as prescribed by law before the organization converts its operating model or performs equitization.

9. In case the competent authority discovers that the land user has a land rent exempted or reduced but does not meet the legal conditions for land rent exemption or reduction, uses the land for unintended purposes stated in the land lease decision or land lease contract but is not subject to land expropriation according to the provisions of land law, or the land user requests not to receive incentives because they no longer meet the conditions for exemption or reduction, the amount of land rent that has been exempted or reduced must be paid to the state budget. The recovery of the land rent that has been exempted or reduced is made as follows:

a) The amount of exempted or reduced land rent that must be recovered is equal to (=) the land price in the Land price list or the percentage (%) for calculation of land rent per unit of area provided by the first-level People’s Committee at the time of land rent calculation as prescribed in Clause 3, Article 155 of the Land Law plus (+) an amount equivalent to late payment interest according to the provisions of law on tax administration from time to time.

b) The time for calculating the late payment interest specified in Point a of this Clause is from the time of land rent exemption or reduction to the time the competent authority issues the decision to recover the land rent that has been exempted or reduced;

c) The tax authority recovers the land rent that has been exempted or reduced.

10. Land rent exemption or reduction shall not be granted if the commercial land is used in cases of land rent exemption or reduction prescribed in Clause 2, Clause 3, Clause 4 Article 39, Point d Clause 1 Article 40 of this Decree. The land rent exemption or reduction shall not be granted if the land is leased out by the State through LUR auction.

11. The land rent exemption or reduction as prescribed by law on investment incentives shall not be granted to investment projects in the field of production and trading of goods and services subject to excise taxes according to the provisions of the Law on Excise Tax, except for projects to manufacture cars, airplanes, and yachts.

12. The land rent exemption or reduction shall not be granted to mineral resource exploitation projects.

13. The lists of industries and professions with investment incentives; Industries and professions with special investment incentives, areas with difficult socio-economic conditions, areas with especially difficult socio-economic conditions specified in Article 39 and Article 40 of this Decree shall comply with the provisions of investment law.

The list of divisions eligible for land rent incentives only applies to divisions with specific administrative boundaries (second-level divisions).

14. The land rent exemption for execution of investment projects to build social housing for rent or investment projects to renovate and rebuild apartment buildings shall comply with the provisions of housing law.

15. On the basis of the actual conditions of a first-level division, the People’s Committee of the first-level division shall propose to the People’s Council at the same level to decide on land rent exemption incentive regulations according to each zone or field for a project within which land is used for production and business purposes in the field of investment incentives (industries and professions with investment incentives) or in an area with investment incentives as prescribed in Point a, Clause 1, Article 157 of the Land Law that meets one of two conditions: The project belongs to the list of types, scale criteria, and socialization standards decided by the Prime Minister; non-profit project.

The incentive regulations are in accordance with the principle: The land rent exemption for the entire lease period is the maximum incentive, the minimum incentive is equal to the land rent exemption incentive as prescribed in Clause 3, Article 39 of this Decree. The land user does not include the exempted land rent in the price of products and services provided to society.

16. Land rent exemption or reduction for special investment projects shall comply with the provisions of the Prime Minister’s Decision on special investment incentives issued in accordance with the provisions of Article 20 of the Investment Law and Decrees elaborating on and providing guidance on certain Articles of the Investment Law. Procedures for land rent exemption or reduction shall comply with the provisions of this Dectee and other relevant laws.

Article 39. Land rent exemption

The land rent exemption in case of land lease by the State as prescribed in clause 1 Article 157 of the Land law shall be granted as follows:

1. The land rent shall be exempted for the entire lease term in the following cases:

a) Using agricultural land for households and individuals that are ethnic minorities;

b) using land to execute investment projects to build workers’ accommodation in industrial parks;

c) using land to build dedicated railway infrastructure, build railway industrial works according to the provisions of Point b, Clause 1, Point b, Clause 2, Clause 3, Article 209 of the Land Law.

d) using land as premises to build headquarters, drying yards, warehouses, production workshops; build service facilities directly serving agriculture production, forestry production, aquaculture, salt production of cooperatives and unions of cooperatives.

dd) using land to build clean water supply, drainage, and wastewater treatment projects in urban and rural areas.

e) Using land to build maintenance and repair stations and parking lots (including ticket sales areas, administration areas, and public service areas) serving public passenger transportation activities according to the provisions of law on road traffic.

g) Using land to build airport and aerodrome infrastructure according to the provisions of Point b, Clause 1, Article 208 of the Land Law.

h) Using land to execute PPP investment projects to build transport infrastructure.

i) Using land to build social housing for rent according to the provisions of Point c, Clause 2, Article 120 of the Land Law; investment projects to renovate and rebuild apartment buildings that are exempt from land rent according to the provisions of housing law and land law.

k) Exempting land rent for areas other than defense or security land used for defense or security purposes of military and police enterprises of which land area used for defense purposes can be separated from land area used for other purposes.

2. The land rent shall be exempted for the capital construction period according to the project approved by a competent authority but within 03 years from the date on which the land lease decision is issued for projects eligible for land rent exemption as prescribed in Point a, Clause 1, Article 157 of the Land Law. In case the lessee uses land for agricultural production purposes (growing perennial crops) according to the project approved by a competent authority, the period of capital construction of a garden for which the land rent is exempted shall be applicable to each type of plants that are grown according to the technical process of planting and caring for perennials prescribed by the Ministry of Agriculture and Rural Development. The exemption of land rent during the capital construction period shall be granted according to the project in association with the land lease by the State or the conversion from land allocation without land levy collection into land lease, excluding investment project to build, renovate or expand production and business establishments and replant gardens on the land area being leased out by the State; For an investment project to build, renovate or expand production and business establishments of which the extra land area is leased out by the State to execute the project, including capital construction activities, the rent for the extra land area leased out by the State will be exempted during the capital construction period.

In case the Investment certificate or Investment license or Investment registration certificate or Investment guideline decision of a competent authority issued before the issuance date of the Land lease decision according to the provisions of law states capital construction period (project execution progress), the Investment certificate, Investment license, Investment registration certificate, or Investment guideline decision shall be the basis for determination of the capital construction period for each project but the period must be no more than 03 years from the issuance date of the Land lease decision.

3. The land rent applicable after the period during which the land rent is exempted of the capital construction period shall be exempted as prescribed in Clause 2 of this Article if the land is used according to the provisions of Point a Clause 1 Article 157 of the Land Law, except the provisions of Clauses 3 and 4 of this Article, as follows:

a) The land rent shall be exempted for 03 (three) years for production and business projects on the List of industries and professions with investment incentives.

b) The land rent shall be exempted for 07 years for production and business investment projects in areas with difficult socio-economic conditions.

c) The land rent shall be exempted for 11 years for production and business investment projects in areas with especially difficult socio-economic conditions; production and business investment projects on the List of industries and professions with special investment incentives; production and business projects on the List of industries and professions with investment incentives provided in areas with difficult socio-economic conditions.

d) The land rent shall be exempted for 15 years for production and business projects on the List of industries and professions with investment incentives provided in areas with extremely difficult socio-economic conditions; production and business projects on the List of industries and professions with special investment incentives provided in areas with difficult socio-economic conditions; for land for construction of above-ground works serving the operation, exploitation and use of underground works.

e) The land rent for the entire lease period shall be exempted for projects whose land is used for production and business purposes to execute investment projects on the List of industries and professions with special investment incentives provided in areas with extremely difficult socio-economic conditions.

g) The land rent shall be exempted for projects specified in Clause 15, Article 38 of this Decree by an amount prescribed by the first-level People’s Council.

4. The land rent applicable after the period during which the land rent is exempted of the capital construction period shall be exempted as prescribed in Clause 2 of this Article for investment projects within economic zones if the land is used as prescribed in Point a Clause 1 Article 157 of the Land Law as follows:

a) The land rent shall be exempted for 11 years for investment projects that are not on the list of investment incentives (hereinafter referred to as the List of industries and professions with investment incentives) provided in economic zones located in second-level divisions that are not on the List of divisions with investment incentives.

b) The land rent shall be exempted for 13 years for projects that are not on the list of industries and professions with investment incentives provided in economic zones located in second-level divisions with difficult socio-economic conditions.

c) The land rent shall be exempted for 15 years for projects that are not on the list of industries and professions with investment incentives provided in economic zones located in second-level divisions with extremely difficult socio-economic conditions; projects that are on the list of industries and professions with investment incentives provided in economic zones located in second-level divisions that are not on the List of divisions with investment incentives.

d) The land rent shall be exempted for 17 years for projects that are on the list of industries and professions with investment incentives provided in economic zones located in second-level divisions with difficult socio-economic conditions.

dd) The land rent shall be exempted for 19 years for projects that are on the list of industries and professions with investment incentives provided in economic zones located in second-level divisions with extremely difficult socio-economic conditions.

e) The land rent for the entire lease period shall be exempted for investment projects that are on the list of industries and professions with special investment incentives (except for the cases specified in point g of this clause).

g) Investors who are leased out land by the State to invest in construction and business of infrastructure in functional areas in Economic Zones shall be exempt from land rent as follows:

– The land rent shall be exempted for 11 years for investment projects in second-level divisions not on the List of divisions with investment incentives.

– The land rent shall be exempted for 15 years for investment projects in second-level divisions not on the list of areas with difficult socio-economic conditions.

– The land rent shall be exempted for the entire land lease period for investment projects in second-level divisions on the list of divisions with extremely difficult socio-economic conditions.

In case an economic zone is located in the area of multiple districts, the land rent exemption incentives shall be determined according to the corresponding area in each district.

5. The land rent applicable after the period during which the land rent is exempted of the capital construction period shall be exempted as prescribed in Clause 2 of this Article for investment projects within high-tech parks if the land is used as prescribed in Point a Clause 1 Article 157 of the Land Law as follows:

a) The land rent shall be exempted for 15 (fifteen) years for investment projects not on the List of industries and professions with investment incentives; investment projects on construction and business of infrastructure of high-tech parks.

b) The land rent shall be exempted for 19 years for projects on the List of industries and professions with investment incentives.

c) The land rent shall be exempted for the entire land lease term for projects on the list of industries and professions with special investment incentives (except for investment projects on construction and business of infrastructure of high-tech parks).

6. The land rent exemption in the other cases specified in clause 2 Article 157 of the Land Law shall be proposed by the Ministries, central authorities and the first-level People’s Committees and submitted to the Ministry on Finance which will consolidate and propose it to the Government for issuing regulations after receiving the consent of the Standing Committee of National Assembly.

7. In cases where the land rent is exempted without having to apply for exemption and without having to complete procedures for determination of land price and calculation of the land rent to be exempted according to the provisions of Clause 3, Article 157 of the Land Law, when following procedures for land lease, the land authority is responsible for collecting statistics and synthesizing cases of land rent exemption. In cases where the State leases land with annual land rent payments and the land rent is exempted for a number of years according to the provisions of Clause 2 of this Article, before the expiry of the 6-month period for which the land rent is exempted, the and users is required to follow procedures for land rent determination, collection and payment according to the provisions of this Decree.

During implementation, if a competent authority or person discovers that a person who has a land rent exempted does not meet the conditions for land rent exemption, the competent authority or person shall send a request to the land authority to cooperate with relevant authorities in inspecting, reviewing and determining the satisfaction of conditions for land rent exemption.

If the person who has a land rent exempted does not meet the conditions for land rent exemption, the land authority shall send a report to the People’s Committee at the same level on the decision to revoke the land rent exemption and transfer information to the tax authority to cooperate in the calculation, collection and payment of land rent payable (not exempted) according to the policy and land price at the time the competent authority issues the land lease decision and amount of money equivalent to late payment interest on land rent according to the provisions of law on tax administration.

Article 40. Land rent reduction

The land rent reduction in case of land lease by the State as prescribed in clause 1 Article 157 of the Land law shall be granted as follows:

1. In case land is leased out with annual land rent payments:

a) 80% of the annual land rent shall be reduced during the entire land lease term for land for construction of other auxiliary works directly serving train operations, passenger pick-up and drop-off, and loading and unloading of goods of the railway; for land for construction of aviation service works and non-aviation services specified in Point b Clause 1, Point b Clause 2 Article 208 of the Land Law.

b) 50% of annual land rent shall be reduced during the entire land lease period of public service providers according to the provisions of Point c, Clause 3, Article 120 of the Land Law.

c) The annual land rent shall be reduced for the entire land lease period according to the percentage of revenue from national defense and security tasks on total revenue earned from the area of land that is used for national defense or security purposes though it is not national defense or security land and revenue earned from the area of land that is used for other purposes in cases where the land area used for defense and security purposes cannot be separated from other land use purposes. If the percentage of revenue from national defense and security tasks on total revenue earned from the area of land that is used for national defense or security purposes though it is not national defense or security land and revenue earned from the area of land that is used for other purposes cannot be determined, 30% of the annual land rent shall be reduced during the entire land lease period for the entire area of land used for its intended purpose.

d) The land rent shall be reduced by the amount specified in Point b of this Clause in case the land is used to execute an PPP investment project in the field or area eligible for investment incentives according to the List of industries and professions with investment incentives; industries and professions with special investment incentives; areas with difficult socio-economic conditions, areas with extremely difficult socio-economic conditions according to investment laws, except for the cases specified in Point h, Clause 1, Article 39 of this Decree.

2. The lump-sum land rent that is reduced shall be calculated as follows:

3. Authority to calculate and decide the land rent that is reduced shall comply with the provisions of clause 2 Article 41 of this Decree.

4. The land rent reduction in the other cases specified in clause 2 Article 157 of the Land Law shall be proposed by the Ministries, central authorities and the first-level People’s Committee and submitted to the Ministry on Finance for consolidation and submit it to the Government for issuing regulations after receiving the consent of the Standing Committee of National Assembly.

Article 41. Procedures for land rent exemption or reduction

1. In case the land rent exemption is granted, the procedures for determining the land price and calculating the land rent to be exempted as prescribed in clause 3 Article 157 of the Land Law shall not be followed. Land users who are exempt from land rents are not required to follow procedures for applying for land rent exemption.

2. In case the land rent reduction is granted, based on land lease dossiers of the lessees sent by Land registries or land authorities, the subjects and levels of reduced land rents, the tax authorities shall calculate the land rents payable, the land rents to be reduced and issue decisions to reduce land rents; To be specific:

a) The Directors of the Tax Departments shall issue decisions to reduce land rents for domestic organizations, persons of Vietnamese descent residing overseas, and foreign-invested organizations.

b) The Directors of Tax Sub-Departments and the Regional Tax Sub-Departments shall issue decisions to reduce land rents for households and individuals.

Decisions to reduce land rents shall be made using Form No. 02 of Appendix II enclosed herewith.

Section 3. COLLECTION AND PAYMENT OF LAND RENTS

Article 42. Procedures for calculation of land rents

1. On the basis of the cadastral record on land lease (information on area, location, purpose, land lease form, land lease term); decision on land price and land rent per unit of area of land for construction of an underground work issued by the first-level People’s Committee; Land price list and percentage (%) for land rent calculation prescribed by the first-level People’s Committee; a tax authority shall organize the calculation, collection and payment of land rent as follows:

a) Within 05 working days from the date of receipt of the Information sheet sent by a Land registry or a land authority (the authority which has transferred the information sheet), the tax authority shall determine the unit price, calculate the land rent payable and send a notice of land rent payment to the person obligated to pay the land rent and the authority which has transferred the information sheet.

The notice of land rent payment shall be made using Form No. 01a or Form No. 01b in Appendix II enclosed herewith.

b) In case there is not enough basis to calculate the land rent, within 05 working days from the date of receiving the information sheet, the tax authority must notify in writing the authority which has transferred the information sheet of supplementation; Within 05 working days after the valid cadastral record is submitted, the tax authority shall determine the unit price, calculate the land rent and send a notice of land rent payment to the person obligated to pay the land rent and the authority which has transferred the information sheet.

2. The tax authority shall annually send the notice of land rent payment directly to the person obligated to pay the land rent for completing the collection and payment during the land rent stability period. In case the basis for land rent calculation changes, the land rent payable must be recalculated and then notified to the person responsible for payment.

The land rent shall be paid according to the calendar year, from January 1 to December 31 every year. In case the number of months of the first year of land lease or the number of months of the last year of land lease is less than 12, the rent for the first and last year shall be calculated on the basis of the number of months for which the land is leased. In case the number of days of the first month of lease or the number of days of the last month of lease is less than the number of days of one (01) month,

a) If the number of days of land lease is from 15 or more to full month ( >= 15 days), the land rent shall be paid for 01 month.

b) If the number of land lease is less than 15 (< 15 days), the land rent shall be zero.

3. After the land rent stability period specified in clause 2 Article 153 of the Land Law, the tax authority shall cooperate with the land authority in determining and notifying the land lessee of the adjustment to the land rent for the next stability period according to the provisions of law applicable at the time of adjustment. In case cadastral information (location, road section, area, etc.) changes, the land authority or the Land registry is responsible for transferring the information to the tax authority to serve as a basis for determining the land rent per unit of area for the next stability period.

4. The tax authority shall prepare a record on the land rent collection and payment using the form prescribed by the Ministry of Finance.

The record of the submission of notification of fulfillment of land-related financial obligations shall be made using Form No. 04 in Appensix II enclosed herewith.

Article 43. Collection and payment of land rents

1. Land rent shall be paid to the state budget in Vietnamese currency (VND); In cases where foreign organizations and individuals or Vietnamese residing abroad pay land rent in foreign currency, it shall be converted into VND according to the provisions of law at the time of payment.

2. Payment of land rent is prescribed as follows:

a) A tax authority shall send a notice of land rent payment to the land lessee; and to the Land Registry or land authority and the State Treasury at the same level (for monitoring and accounting according to regulations).

b) The land lessee shall pay the land rent to the state budget according to the notification of the tax authority under the provisions of law on tax administration.

c) In case the land is leased out under one-off arrangement, after collecting the lump-sum land rent, the state budget collection agency shall transfer information on the collection and payment to the tax authority in accordance with law on tax administration so that the tax authority can transfer it to the land authority to serve as a basis for the land allocation to the land lessee. Land allocation is only carried out when the land lessee has fully paid the lump-sum land rent.

3. Deadline for land rent payment

a) In case land is leased out by the State through LUR auction, the deadline for paying LUR auction winnings must be specifically stipulated in the LUR auction plan or decision to recognize the winning bid according to the provisions of law on auctions for the successful bidder to do so, but not beyond the deadline for land rent payment according to the provisions of law on tax administration.

If the successful bidder violates the obligation to pay the auction winnings, leading to the decision to recognize the auction results being canceled, the handling shall comply with property auction laws, Decrees elaborating certain articles of the Land Law, tax administration laws.

b) If the land is leased out by the State without LUR auction, the deadline for land rent payment shall comply with tax administration laws, but must not exceed 180 days from the date on which the decision to approve the land price on which land rent is calculated is issued by a competent authority (in case the lump-sum land rent is paid according to specific land price). After 180 days from the issuance date of the decision to approve the land price for lump-sum land rent calculation, if the land lessee fails to fully pay the land rent, the land will not be legally allocated. After the deadline for land rent payment stated in the tax authority’s notice, if the land lessee fails to fully pay the land rent to the state budget, they must pay late payment interest on land rent by an amount prescribed by law on tax administration.

If the land lessee does not comply with tax enforcement, the tax authority will transfer the dossier to the land authority which will submit it to the competent authority for consideration and handling of this land lease decision according to the provisions of Decrees elaborating certain articles of the Land Law.

c) In case a person who leases land from the State with annual land rent payments applies for advance payment of land rent, he/she is allowed to pay the land rent in advance for a number of years of the land rent stability cycle (no more than 05 years) and has the rights of users of land leased out by the State with annual land rent payments.

4. The Ministry of Finance regulates declarations, documents, and rental ledgers.

Chapter IV

RESPONSIBILITIES OF AGENCIES AND LAND USERS

Section 1. RESPONSIBILITIES OF LAND USERS AND AGENCIES IN DETERMINING AND COLLECTING AND PAYING LAND LEVIES AND LAND RENTS

Article 44. Responsibilities of agencies and land users

1. Financial institutions:

Take charge in developing and proposing a specific percentage (%) for determination of land rent per unit of area; percentage (%) for calculation of rent for land for construction of underground works, underground works located outside the determined land use space for land users, water-covered land as prescribed in Article 26, 27 and 28 of this Decree to the first-level People’s Committees.

2. Land authorities, land registries:

a) Determine locations, area, types of land, land use purposes, time for calculation of land levy or land rent (including time of actual land handover in case of calculation of extra payment prescribed in Clause 2, Article 50, Clause 9, Article 51 of this Decree), land lease term, land rent per unit of area as prescribed in Clause 2, Article 29 of this Decree, specific land prices in all cases where obligations regarding land levy or land rent payment arise (including the case or determining land levies or land rents for land before repurposing, before adjustment to detailed planning, adjustment to land allocation decisions or land lease decisions) and additional payments as prescribed in this Decree.

b) Annually, produce statistics and synthesize cases eligible for land levy exemption or land rent exemption and notify relevant agencies to carry out inspection and audit according to assigned functions and tasks.

c) Perform other tasks according to the provisions of this Decree and other relevant laws.

3. Tax authorities:

a) On the basis of the provisions of this Decree and information sheets sent by land authorities and other agencies, calculate land levies, land rents, rents for water-covered land, rents for land for construction of underground works and underground works located outside the land use space as prescribed in Clause 3, Article 27 of this Decree, land levies and land rents to be reduced and notify them to land users according to the provisions of this Decree.

b) Organize implementation, provide guidance, answer problems, and resolve complaints regarding calculation, collection and payment of land levies and land rents according to the provisions of this Decree, tax administration laws and other relevant laws.

c) Determine annual land rent per unit of area and lump-sum land rent per unit of area prescribed in Article 26 hereof.

d) Review cases where land levies has been debited but has not yet been paid fully to send notices of debt recording, debt payment and land debt cancellation to debtors who still owe land levies in accordance with the provisions of this Decree.

dd) Perform other tasks according to the provisions of this Decree and other relevant laws.

4. The state treasury agencies or collection agencies or credit institutions (banks) authorized to make collection according to the provisions of law on tax administration:

a) In case land users pay land levies or land rents at the State Treasury:

a1) The State Treasury shall collect and transfer the full amount of land levies or land rents to the State Treasury according to the Notices of payment of levies or land rents from competent authorities and shall not refuse to make collection due to any reason.

a2) Do not delay the collection to the next day after receiving all payment procedures from persons having obligations to pay land levies or land rents.

a3) Transfer information on the budget collection and payment of land users to tax authorities so that the tax authorities can transfer it to land authorities to serve as a basis for the land users to submit reports to regulatory agencies competent to allocate land or lease out land to the land users.

a4) Perform other tasks according to the provisions of this Decree and other relevant laws.

b) In case land users pay land levies or land rents to collecting agencies or credit institutions (banks) authorized to make collection according to the provisions of law on tax administration:

Collecting agencies or credit institutions (banks) authorized to make collection shall collect the full amount of land levies or land rents according to notices of payment of land levies or land rents from competent authorities; make payments to the state budget and transfer information on the budget collection and payment of land users according to the provisions of law on tax administration.

5. The second-level People’s Committees:

a) Confirm the amount of budgets for recompense, support and resettlement deducted from land levies or land rents payable.

b) Cooperate with units or organizations in charge of recompense, support and resettlement provision in taking responsibilities for the accuracy of data and information on Lists of payments of budgets for compensation, support and resettlement.

c) Perform other tasks according to the provisions of this Decree and other relevant laws.

6. Land users:

a) Declare the payment of land levies or land rents according to the provisions of this Decree and the provisions of the Law on Tax Administration and guiding documents.

b) Pay land levies or land rents according to the deadlines stated on tax authorities’ notices.

c) When deadlines for payment of land levies or land rents in accordance with tax authorities’ notices expire, if land levies or land rents are not fully paid, late payment interest must be paid according to the provisions of Article 45 of this Decree.

7. Responsibilities of agencies or land users in determining and collecting land levies or land rents in cases where authority is delegated according to pilot or specific mechanisms shall comply with competent authorities’ written decisions to allow provision of pilot or specific mechanisms.

Article 45. Handling of late payment

In case the payment of a land levy or land rent to the state budget is delayed, the land user shall pay late payment interest on land levy or land rent by an amount as prescribed by the Law on Tax Administration and guiding documents, except for legal deferral of land levies.

Article 46. Complaints and handling of complaints

Complaints and handling of complaints against land levies and land rents shall comply with the provisions of the Law on Complaints and guiding documents. Pending the handling, complainants must pay the land levies and land rents mentioned in notices on time and in full.

Section 2. Responsibilities for STATE MANAGEMENT in terms of COLLECTION OF LAND levies AND LAND rents

Article 47. Responsibilities of Ministry of Finance

1. Guide and inspect the organization of this Decree.

2. Regulate documents, declarations, and book forms to manage the collection and payment of land levies and land rents and legally decentralize the management of collection and payment of land levies and land rents.

3. Perform other tasks according to the provisions of this Decree and other relevant laws.

4. Consolidate and propose to the Government to regulate the exemption and reduction of land levies and land rents in cases other than the provisions of clause 2 Article 157 of the Land Law proposed by Ministries, central authorities and the first-level People’s Committees after receiving the consent of Standing Committee of National Assembly.

Article 48. Responsibilities of the First-level People’s Committees

1. Promulgate percentage (%) for calculation of land rent per unit of area, percentage (%) of revenues from land for construction of underground works, percentage (%) of revenues from water-covered land and decide on specific land prices according to authority as a basis for calculating land levies and land rents.

2. Direct local authorities to urgently complete legal documents on land for land users to calculate land levies and land rents.

3. Direct local authorities to perform the tasks specified in this Decree and other relevant laws.

4. Direct the inspection and handling of illegal declaration, exemption and reduction of land levies and land rents for wrong subjects, causing damage to the State as well as payers of land levies and land rents; check the land users’ satisfaction of conditions for exemption from land levies and land rents in the process of land use and notify tax authorities to collect (refund) land levies and land rents if land users and lessees do not meet the conditions for exemption from land levies and land rents in the process of land use.

5. Resolve complaints and denunciations about the calculation, collection, and payment of land levies and land rent according to the provisions of law on complaints and denunciations.

6. Based on procedures for land allocation, land lease, recognition of LURs, land use extension, adjustment to land use term, land repurposing, determination of land price on which land levy/land rent is calculated according to the provisions of the Decrees elaborating certain articles of the Land Law, Decrees on land prices and regulations on procedures for calculating, collecting and paying land levies and land rents according to the provisions of this Decree to develop and promulgate Regulations on the process of transferring documents on determination of financial obligations regarding land in accordance with actual conditions of first-level divisions.

7. Propose to the People’s Councils at the same level to decide:

a) Land rent exemption incentives according to each zone or field for projects within which land is used for production and business purposes in the field of investment incentives (industries and professions with investment incentives) or in areas with investment incentives as prescribed in Point a, Clause 1, Article 157 of the Land Law that meet one of two conditions: The projects belonging to the list of types, scale criteria, and socialization standards decided by the Prime Minister; non-profit projects as prescribed in clause 15 Article 38 of this Decree.

b) Grant of allowance for land users who are allocated land by the State without land levy collection or leased out land in hi-tech parks by the State to not refund budgets for recompense or site clearance that has been allocated by the State from the state budget to the state budget (excluding cases of capital advance from the Land Development Fund) as prescribed in clause 8 Article 31 of this Decree.

8. Provide direction and conduct review to completely handle existing cases of land levies and land rent before the 2024 Land Law takes effect.

9. Perform other tasks according to the provisions of this Decree and other relevant laws.

Article 49. Responsibilities of Ministries and central authorities

1. Relevant ministries and central authorities, according to their assigned functions and tasks, shall cooperate with the Ministry of Finance in guiding the calculation, collection and payment of land levies and land rents according to the provisions of this Decree.

2. Perform other tasks according to the provisions of this Decree and other relevant laws.

Chapter V

IMPLEMENTATION PROVISIONS

Section 1. TRANSITIONAL PROVISIONS AND HANDLING OF SOME SPECIFIC ISSUES

Article 50. Transitional provisions applicable to land levies

1. In case a land user has been allocated land, allowed to repurpose land, or recognized to have LURs, or has a land allocation decision adjusted, has been allowed to adjust detailed planning, and has a land levy payable legally calculated and notified by a competent regulatory agency before the effective date of the 2024 Land Law, but has not fully paid the land levy, he/she must now pay the outstanding land levy and late payment interest according to the provisions of law on tax administration from time to time.

In case an additional amount of land levy in comparison with the land levy notified is imposed after the competent regulatory agency recalculates the land levy, the land user shall pay the additional land levy and any extra amount payable on such additional land levy as prescribed in clause 2 of this Article, Point d clause 2 Article 257 of the Land Law which are calculated from the time when the land levy is calculated as prescribed by law applicable to each period when the land user pays the amount payable to the state budget. <0}

2. In cases where the decision to allocate land, or allow land repurposing, alloư adjustment of detailed planning has been issued according to the provisions of land law and other relevant laws before the effective date of the 2024 Land Law but the land price has not yet been decided, the land levy shall be calculated and collected according to the provisions of clause 2 Article 257 of the Land Law.

The additional amount payable by the land user on the period during which the land levy has not been paid according to the provisions of point d clause 2 Article 257 of the Land Law shall be equal to 5,4% per year of the land levy payable which is determined according to the provisions of clause 2 Artcle 257 of the Land Law.

3. In case a household or individual has had their land levy debited on the Certificate according to the provisions of law applicable to each period, but before the effective date of this Decree, the land levy has not been fully paid,

a) If the household or individual has had their land levy debited before December 10, 2019, they shall continue paying the outstanding land levy according to the policy and land price at the time when the Certificate is issued (or according to the amount stated on the Certificate which has been determined in accordance with the provisions of law). In case of expiring the payment deadline prescribed in the Government’s Decree No. 45/2014/ND-CP dated May 15, 2014 amended by the Government’s Decree No. 79/2019/ND-CP dated October 26, 2019, the land user must pay the remaining land levy according to the policy and land price at the time of repayment.

b) If the household or individual has had their land levy debited from December 10, 2019 to before the effective date of this Decree, they shall continue paying the outstanding land levy according to the amount written on the Certificate which has been determined in accordance with the provisions of Decree No. 45/2014/ND-CP dated May 15, 2014 of the Government within 5 years from the date on which the land levy is debited.

After 05 years from the date on which the land levy is debited, the household or individual shall pay the outstanding land levy according to the provisions of Article 22 of this Decree.

4. In case a land user is eligible for exemption from land levy but has not completed the procedures for land levy exemption, land price determination, calculation of land levy to be exempted before August 1, 2024, from the effective date of this Decree, the tax authority shall return the dossier to the land authority for processing according to the provisions of Clause 3, Article 157 of the Land Law and the provisions of this Decree.

5. In case a land user is eligible for land levy reduction and is applying for a land levy reduction at a competent regulatory agency, but has not yet had a decision to reduce land levy issued by a competent regulatory agency, the land levy reduction shall comply with the provisions of this Decree. In case the reduction level prescribed in this Decree is lower than the reduction level that the land user is applying for, the higher reduction level will prevail.

6. For dossiers on calculation of levy on land in economic zones that have been received by competent regulatory agencies according to the provisions of law on land levy collection before the effective date of this Decree, such agencies shall transfer the received dossiers to relevant authorities in accordance with the Land Law to assume the assigned authority and responsibilities.

7. In case a land user has been allocated land by the State for a long-term and stable land use term with land levy collection and has been legally granted a decision by a competent regulatory agency to allow land levy exemption or reduction before the effective date of this Decree or the land user has submitted their dossier to a competent regulatory agency before the effective date of this Decree but has not received any decision to exempt or reduce the land levy, their land levy will continue to be exempted or reduced according to the provisions of law before the effective date of this Decree.

8. If the commercial housing project has been permitted by a competent authority for payment of an amount equivalent to the 20% land area in which technical infrastructure for social housing construction has been developed according to housing laws but such amount is not calculated by the effective date of this Decree, such amount shall be calculated, collected and transferred in accordance with this Decree; If such amount has been calculated before the effective date of this Decree, it shall be correctly collected and transferred and  interest on late payment of land levy (if any) or an equivalent amount shall be charged in accordance with tax administration laws.

9. In case a land user is subject to land allocation by the State without LUR auction and has advanced a recompense or site clearance payment according to the arrangement approved by a competent regulatory agency according to the recompense, support and resettlement policy when the State appropriates land before the effective date of the 2024 Land Law, the land user shall continue being allowed to deduct the advanced payment from the land levy payable according to land levy collection laws before the effective date of this Decree in a way that is appropriate to each period.

Article 51. Transitional provisions applicable to land rent collection

1. For any household or individual that is using agricultural land that was allocated before July 01, 2014 beyond the land allocation limits at the time of allocation, the surplus land area will be put up for lease according to provisions of clause 1 Article 255 of the 2024 Land Law and the land user shall pay a land rent as prescribed herein.

2. Any business organization, household, individual, or Vietnamese residing abroad that has been allocated land by the State with land levy collection for a fixed term before the effective date of the 2024 Land Law, and has fulfilled their financial obligations regarding land levy payment, but is now subject to land lease according to provisions of the 2024 Land Law can continue using the land according to the remaining land use term and is not required to convert to land lease. In case the land user wishes to put the land up for lease, they are not required to pay any land rent for the remaining land use term; In case the land is put up for lease, but the land lease period stated on the land lease decision is longer than the remaining land use term before the land is put up for lease, the land rent must be paid for the extended period.

In case the obligations regarding land levy payment have not been fulfilled, the provisions of Clause 1, Article 50 of this Decree shall comply. At the end of the land use term, if the competent regulatory agency grants an extension according to clause 2 Article 255 of the 2024 Land Law, but the land must be put up for lease, the land rent shall be calculated, collected and paid according to provisions of this Law.

3. Any organization, household, individual, or Vietnamese residing abroad that has been allocated land by the State without land levy collection before July 01, 2014, and is subject to land lease according to provisions of the 2013 Land Law, and now changes to land lease as prescribed in clause 3 Article 255 of the 2024 Land Law, the land rent shall be calculated, collected and paid according to this Decree.

If a public service provider has land that is required to be put up for lease and is exempt from land rent according to the provisions of the 2013 Land Law but has not yet changed to land lease or has changed to land lease but has not followed procedures for land rent exemption or has delayed following procedures for land rent exemption, and the tax authority has not yet issued a notice of land rent payment, they are not required to pay land rent now for the period during which procedures for land rent exemption have not been followed or are delayed before the effective date of the 2024 Land Law. If the tax authority has issued a notice of payment of land rent and late payment interest on land rent (if any), but the public service provider fails to pay or fully pay the amount stated in the notice, the public service provider shall submit a report to relevant ministries, central authorities and local authorities for consolidating, proposing resolutions and submitting them to the Ministry of Finance which will consolidate and report to competent authorities for consideration and decision. If the land rent and late payment interest (if any) have been paid before the effective date of this Decree, the State shall not refund the amount that has been paid.

4. In case a domestic organization or agricultural or forestry company has used land that is leased out with annual land rent payments but has not yet received a land lease decision, the land rent shall be paid according to the actual land use purpose and not be stably applied according to the provisions of Article 32 of this Decree. If the land user has submitted a dossier to a competent regulatory agency for adopting legal procedures relating to land (signing the land lease contract) but the competent regulatory agency delays adopting procedures, or the land user does not meet requirements for entering into a land lease contract but does not receive any land expropriation decision, the land rent shall be stably applied according to Article 32 of this Decree from the submission of a valid dossier for adopting legal procedures relatinf to land.

5. In case a land user is leased out land by the State according to land laws before the effective date of this Decree, but they are eligible for land rent exemption or reduction as prescribed by land laws or other regulations of the Government or Prime Minister before the effective date of the 2024 Land Law:

a) If the land user is being legally granted permission to exempt or reduce land rent by a competent regulatory agency before the effective date of this Decree, the land rent shall continue being legally exempted or reduced within the remaining land lease term before the effective date of this Decree. When the exemption or reduction period expires, the land rent shall be paid according to the provisions of this Decree.

b) If the land user has submitted a valid dossier to a competent regulatory agency and is being granted permission to exempt or reduce land rent as prescribed by law before the effective date of this Decree, but does not receive any land rent exemption or reduction decision, a land rent exemption or reduction incentive shall be provided as prescribed by law before the effective date of this Decree; If the incentive level specified herein is higher, it will be applied for the remaining period of incentive enjoyment.

c) If the land user does not follow procedures for land rent exemption or reduction but is being legally granted permission to exempt or reduce land rent before the effective date of this Decree, the land rent shall be exempted or reduced as prescribed herein for the remaining period of incentive enjoyment.

d) In case the land user prescribed in point b or c of this clause is eligible for land rent exemption, the tax authority shall return the land user’s dossier to the land authority for following procedures relating to land (without procedures for land rent exemption); in other cases, the tax authority shall continue following procedures and notify the land user and the land authority as prescribed herein.

6. If any business organization, household or individual who uses land originated from the land allocated by the State and has paid the land levy before the effective date of the 2024 Land Law, but now is eligible for land lease as prescribed by the 2024 Land Law wishes to put the land up for lease, they are not required to pay the land rent for the remaining land use term.

7. In case the State leases out land before the effective date of the 2024 Land Law, and the tax authority has issued a notice of land rent payment, but the land lessee has not yet fulfilled their obligations regarding land rent payment according the notice by the tax authority by the effective date of this Decree,

a) if the land is leased out under one-off arrangement, the land lessee shall continue paying the land rent by an amount stated in the notice and the late payment interest by an amount prescribed by the Law on Tax Administration and guiding documents.

b) if an additional amount of land rent in comparison with the land rent notified is imposed after the competent regulatory agency recalculates the land rent, the land lessee shall pay the additional land rent and any extra amount payable on such additional land rent as prescribed in clause 9 of this Article, Point d clause 2 Article 257 of the Land Law which are calculated from the time when the land rent is calculated as prescribed by law from time to time to the time when the land lessee pays the amount payable to the state budget.

8. In case a land user is eligible for land lease by the State without LUR auction and has advanced a recompense or site clearance payment according to the arrangement approved by a competent regulatory agency according to the recompense, support and resettlement policy, when the State appropriates land according to the provisions of the 2003 Land Law or the 2013 Land Law, the land lease term does not expire, but the advanced payment was not deducted from the land rent payable or was not fully deducted from the period for which obligations regarding land rent payment have been fulfilled (in case of land lease with annual land rent payments) and has not been included in the investment (capital) costs of the project according to the provisions of law applicable to each period, the advanced payment will continue to be deducted from the land rent payable according to land rent collection laws before the effective date of this Decree in a way that is appropriate to each period.

9. In case the decision to lease out land, or allow land repurposing, or allow conversion from land lease with annual land rent payments to land lease under one-off arrangement, allow land use extension, alow adjustment of land use term, or allow adjustment of detailed planning of the project has been issued according to land laws and other relevant laws before the effective date of the 2024 Land Law, but the land price for calculation of lump-sum land rent has not yet been decided, the land rent calculation shall comply with the provisions of clause 2 Article 257 of the 2024 Land Law.

The additional amount payable by the land user on the period during which the land rent has not been paid according to the provisions of point d clause 2 Article 257 of the 2024 Land Law shall be equal to 5,4% per year of the land rent payable which is determined according to the provisions of clause 2 Artcle 257 of the 2024 Land Law.

10. In case the land is leased out before the effective date of this Decree and the land rent per unit of area is being applied stably according to land laws before the effective date of the 2024 Land Law, the land rent per unit of area shall continue being applied stably until the end of the stability period. When the stability period ends, the land rent shall be calculated according to the provisions of Article 30 hereof for the next cycle. This land rent shall be stably applied for 05 years; when land rent stability cycle is completed, the land rent shall be adjusted according to the provisions of Article 32 of this Decree.

11. In case the land is leased out with annual land rent payments, and the land rent per unit of area is required to be adjusted before the effective date of this Decree but it has not been adjusted, the land rent shall be calculated according to the provisions of Article 30 of this Decree for the next cycle. The land rent shall be stably applied for 05 years; when the stability cycle is completed, the adjustment shall comply with the provisions of Article 32 of this Decree. The adjustment shall comply with laws applicable to each period in order to settle land rent payments for the period during which the land has been used but the land rent per unit of area has not yet been adjusted.

12. In case the land is leased out before the effective date of this Decree and the land rent has been paid for many years in accordance with the provisions of law, the land rent shall not be recalculated during the period for which the land rent has been paid according to the provisions of this Decree. When the period for which the land rent has been paid ends, the land rent shall be adjusted according to the provisions of Article 30 hereof for the next cycle. This land rent shall be stably applied for 05 years; when land rent stability cycle is completed, the land rent shall be adjusted according to the provisions of Article 32 of this Decree.

13. In case a competent regulatory agency has granted permission to use contribute the value of rights to use the leased land (land rent) to joint venture or association capital according to the provisions of law before the effective date of this Decree, the land rent per unit of area shall not be adjusted according to the provisions of this Decree. If the term of joint venture or association capital contribution with LUR value expires at the effective date of this Decree, and the land user still has rights to manage and use the leased land according to the provisions of law, the land rent per unit of area must be re-determined according to the provisions of Article 26, Article 27 and Article 28 of this Decree.

14. For dossiers on calculation of rent for land in economic zones and hi-tech parks that have been received by competent regulatory agencies according to the provisions of law on land rent collection before the effective date of this Decree, such agencies shall transfer the received dossiers to relevant authorities in accordance with the 2024 Land Law to assume the assigned authority and responsibilities.

15. In case an organization is using land under a land lease contract with a competent regulatory agency according to the provisions of land law, but does not received any land lease decision by the competent regulatory agency; after converting operating model or equitizing according to the provisions of law, the land rent shall be calculated according to the provisions of Article 30 of this Decree at the time when the land rent must be recalculated and the land rent shall be stably applied for 5 years. When land rent stability cycle is completed, the land rent shall be adjusted according to the provisions of Article 32 of this Decree.

Article 52. Handling of some specific issues

1. Calculation of land rent in cases where an investor leases land from the State with annual land rent payments to invest in construction and business of infrastructure of an industrial park or industrial cluster but has subleased the land and infrastructure thereon under one-off arrangement before July 1, 2014:

a) If the land was leased by the State before January 1, 2006, and three instruments, including Investment certificate (Investment License), land lease decision and land lease contract issued or signed by a competent regulatory agency do not include principles for adjusting land rent per unit of area or one of three instruments above includes principles for adjusting land rent per unit of area that has been readjusted according to the provisions of clause 2 Article 9 of Decree No. 142/2005/ND-CP , and the land has been subleased under one-off arrangement before July 01, 2014, the land rent payable by the infrastructure business according to the provisions of Clause 2, Article 260 of the Land Law 2024 shall be calculated, collected and paid as follows:

a1) The annual land rent for the land lease period from January 1, 2006 to December 31, 2025 shall be calculated and collected according to the land rent per unit of area determined in accordance with regulations or according to the land rent per unit of area temporarily calculated according to the policy and land price at the issuance date of the Notice of temporary payment of land rent, and the amount of land rent shall be settled according to the amount that has been calculated or temporarily paid. In case the land rent is being temporarily paid according to the policy and land price applicable by January 01, 2006 or the land rent per unit of area does not redetermined according to the provisions of Decree No. 142/2005/ND-CP , Decree No. 46/2014/ND-CP , or Decree No. 135/2016/ND-CP of the Government, the land rent per unit of area must be readjusted according to the provisions of law applicable to each period to calculate, collect and pay the land rent for the period from January 1, 2006 to December 31, 2025.

a2) The lump-sum land rent for the period from January 1, 2026 to the end of the land sublease period shall be calculated and collected. This lump-sum land rent is calculated on the basis of the subleased land area, the remaining land sublease period from January 1, 2026 and the annual land rent per unit of area determined according to the provisions of law applicable on January 1, 2006, and an amount equal to late payment interest as prescribed by law applicable to each period on this amount which is calculated from January 01, 2006 to the date on which the lump-sum land rent is paid to the state budget (if the land has been subleased before January 1, 2006) or calculated from the time when the land is subleased to the time when the lump-sum land rent is paid to the state budget (if the land has been subleased from the day after January 1, 2006 to the day before July 1, 2014) is added.

b) If the land user has been leased out land by the State from January 1, 2006 to the day before July 1, 2014 and has subleased the land under one-off arrangement before July 01, 2014, the land rent payable by the infrastructure business as prescribed in clause 2 Article 260 of the 2024 Land Law shall be calculated, collected and paid as follows:

b1) The annual land rent applicable from the date when the State leases out land to December 31, 2025 shall be calculated, collected and paid according to the land rent per unit of area determined in accordance with regulations or according to the land rent per unit of area temporarily calculated according to the policy and land price at the issuance date of the Notice of temporary payment of land rent, and the amount of land rent shall be settled according to the amount that has been calculated or temporarily paid. If the land rent per unit of area has not been determined, or the annual land rent is being temporarily paid but is not in accordance with the policy and land price applicable at the issuance date of the Notice of temporary payment of land rent, the land rent for the time when the State leases out land to December 31, 2025 shall be recalculated for collection and payment.

b2) The lump-sum land rent for the period from January 1, 2026 to the end of the land sublease period corresponding to the area that has been subleased shall be calculated, collected and paid as follows:

– In case the land is leased out by the State with annual land rent payments from January 01, 2006 to the day before October 01, 2009 (the effective date of the Government’s Decree No. 69/2009/ND-CP dated  August 13, 2009), the lump-sum land rent payable shall be equal to the annual land rent applicable at the time when the land is subleased multiplied by (x) the number of years for which the land is subleased (from January 01, 2026 to the end of the land sublease period) plus (+) an amount equal to the late payment interest as prescribed by law on tax administration applicable to each period from the time when the investor subleases the land to the time when the land rent is paid to the state budget.

– In case the land is leased out by the State with annual land rent payments from October 01, 2009 to the day before July 01, 2014, the lump-sum land rent payable for the land shall be equal to the land levy payable on the land that is allocated with land levy collection with the same land use purspose and land use term (from January 01, 2026 to the end of the land sublease period) acording to the policy and land price applicable at the time when the land is subleased plus (+) an amount equal to the late payment interest as prescribed by law on tax administration applicable to each period from the time when the investor subleases the land to the time when the land rent is paid to the state budget.

c) If the investor is leased out land by the State with annual land rent payments to invest in construction and business of infrastructure of an industrial park or industrial cluster or export processing zone, but one of three instruments including Investment certificate (investment license), land lease decision, land lease contract issued or signed by a competent regulatory agency includes the principles for adjusting land rent per unit of area, and the land rent per unit of area has not been readjusted according to the provisions of clause 2 Article 9 of Decree No. 142/2005/ND-CP dated November 14, 2005 of the Government on collection of land rents and water surface rents, Decree No. 46/2014/ ND-CP dated May 15, 2014, Decree No. 135/2016/ND-CP dated September 9, 2016 of the Government, but the land and infrastructure thereon have been subleased under one-off arrangement from January 1, 2006 to the day before July 1, 2014, the investor in buiding and trading infrastructure must pay the State a lump-sum land rent that is calculated according to the principles specified in Points a and b of this Clause.

d) The enterprise doing the trade in infrastructure of the industrial park, industrial cluster or export processing zones must fully pay the land rent calculated according to the provisions of Points a, b, and c of this Clause before December 31, 2026. When this deadline expires, if the enterprise has not fully paid the land rent, administrative measures shall be imposed and an amount equal to the late payment interest on the unpaid amount shall be paid according to the provisions of law on tax administration.

2. In cases specified in the Land Law 2024 where policies on land levy collection, land rent collection and land prices applicable before the effective date of the Land Law 2024 are allowed to be applied, procedures for calculating land levies and land rents shall comply with the provisions of this Decree and other Decrees guiding the Land Law.

3. In case the Land Development Fund advances capital for creation of a land bank to a unit or organization in charge of recompense, support or resettlement provision to allocate or lease out land or the state budget has allocated to provide recompense, support and resettlement before the effective date of this Decree but the State allocates or leases out land after the effective date of this Decree, the budget for recompense, support and settlement shall be handled according to the provisions of Article 16 and Article 31 of this Decree.

4. In case a land user is issued with a decision to allow land repurposing by a competent regulatory agency before the effective date of this Decree but has not fulfilled their obligations regarding land rent or land levy payment by the effective date of this Decree, and the land before repurposing has multiple land use forms including homestead land but is not separated in the project after repurposing, or the project after repurposing has multiple land use forms, the land-related fee shall be calculated according to the provisions of Article 7 ad Article 34 of this Decree. The land price for land levy or land rent calculation shall be determined at the time when the competent regulatory agency issues the decision to allow land repurposing. The land user shall pay an amount equal to the late payment interest on land levy or land rent according to laws applicable to each period for the period from the time when the competent regulatory agency issues the decision to allow land repurposing to the time when the land levy or land rent is paid.

Section 2. Implementation clauses

Article 53. Effects

1. This Decree comes into force from August 01, 2024.

2. This Decree replaces Decree No. 45/2014/ND-CP , Decree No. 46/2014/ND-CP ; Decree No. 135/2016/ND-CP , Decree No. 123/2017/ND-CP ; Decree No. 35/2017/ND-CP ; Decree No. 79/2019/ND-CP .

3. Regulations on land rent exemption and reduction incentives for projects available for private sector investment as prescribed in Article 6 of Decree No. 69/2008/ND-CP dated May 30, 2008, Decree No. 59 /2014/ND-CP dated June 16, 2014 of the Government shall be annulled.

Article 54. Implementation

Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of the People’s Committees of provinces and central-affiliated cities, people who are allocated land or leased land by the State are responsible for the implementation of this Decree.