Some notable new features of the 2024 Land Law
(Baonghean.vn) - The Nghe An Provincial Tax Department has just issued Official Letter No. 2839/CT-NVDTPC regarding the implementation of the 2024 Land Law.
The 2024 Land Law, passed by the 15th National Assembly at its 5th extraordinary session, consists of 16 chapters and 260 articles, including amendments and additions to 180 out of 212 articles of the 2013 Land Law and the addition of 78 new articles.
This law stipulates the land ownership regime, the rights and responsibilities of the State as the representative of the people's land ownership and unified land management, the land management and use regime, and the rights and obligations of citizens and land users with respect to land within the territory of the Socialist Republic of Vietnam.
The Tax Department is implementing several key provisions of the 2024 Land Law as follows:
1. Regarding land users
According to Article 5 of the 2013 Land Law, land users include households.
“2. Domestic households and individuals (hereinafter collectively referred to as households and individuals)”;
Clause 25, Article 3, Land Law 2024, Explanation of terms: “25. A household using land consists of individuals who are related by marriage, blood, or adoption as stipulated by the law on marriage and family, are living together, and have the right to use the land jointly at the time the State allocates, leases, recognizes the right to use the land, or receives the transfer of the right to use the land before the effective date of this Law.”
Clause 3, Article 4 of the 2024 Land Law stipulates the land users, but excludes households:
“3. Individuals in Vietnam and Vietnamese people residing abroad who are Vietnamese citizens (hereinafter referred to as individuals).”
2. Regarding exemptions and reductions in land use fees and land lease fees.
Clause 3, Article 157 of the 2024 Land Law stipulates the exemption and reduction of land use fees and land lease fees:
3. In cases where land use fees and land rent are exempted, the procedure for determining land prices and calculating the exempted land use fees and land rent does not need to be carried out. Land users exempted from land use fees and land rent do not need to apply for exemption.
Based on this regulation, land users are exempt from land use fees and land rent and do not need to go through the procedure of requesting exemption from land use fees and land rent.
3. Regarding the transfer or donation of land use rights for rice cultivation.
According to Clause 3, Article 191 of the 2013 Land Law:
3. Households and individuals who do not directly engage in agricultural production are not permitted to receive the transfer or donation of the right to use land for rice cultivation.
Clause 7, Article 45, Section 5, Chapter III of the 2024 Land Law, regarding the conditions for exercising the rights of land users, stipulates:
"Individuals who do not directly engage in agricultural production and receive the transfer or gift of the right to use rice cultivation land exceeding the limit stipulated in Article 176 of this Law must establish an economic organization and have a plan for the use of rice cultivation land including the contents as prescribed in Clause 6 of this Article, and have it approved by the People's Committee of the district level, except in cases where the recipient of the gift is an heir."
4. Regarding land prices
Land prices are regulated separately in Section II, Chapter XI of the 2024 Land Law, comprising 5 articles (specifically from Article 158 to Article 162), which include several points that need attention.
4.1. Regarding land valuation methods:
- The 2013 Land Law does not specify a method for land valuation.
The land valuation methods stipulated in Article 4 of Decree 44/2014/ND-CP include: the direct comparison method, the deduction method, the income method, the surplus method, and the land price adjustment coefficient method.
Clause 5, Article 158 of the 2024 Land Law stipulates five methods for land valuation, including:
+ Comparative method.
+ Income method.
+ The surplus method.
+ Land price adjustment coefficient method
+ The Government may prescribe other land valuation methods besides the four methods above after obtaining the approval of the Standing Committee of the National Assembly.
4.2. Regarding the Land Price List:
According to Clause 1, Article 114 of the 2013 Land Law, land price tables are compiled periodically every five years and publicly announced on January 1st of the first year of the period.
According to Clause 3, Article 159 of the 2024 Land Law, the Provincial People's Committee shall develop and submit to the Provincial People's Council for approval the initial land price list for publication and application from January 1, 2026. Annually, the Provincial People's Committee is responsible for submitting to the Provincial People's Council for approval adjustments, amendments, and supplements to the land price list for publication and application from January 1 of the following year.
If adjustments, amendments, or additions to the land price list are necessary during the year, the Provincial People's Committee is responsible for submitting them to the Provincial People's Council for decision.
4.3. Regarding land price framework:
- Clause 2, Article 18 of the 2013 Land Law stipulates:
2. The State issues land price frameworks, land price tables, and determines specific land prices.
The 2024 Land Law does not stipulate a framework for land prices.
5. Expand the limit on the transfer of agricultural land use rights to individuals.
According to Clause 1, Article 130 of the 2013 Land Law,1. Limits on the transfer of agricultural land use rights to households and individuals."Land allocation limits for agricultural land to households and individuals for each type of land as stipulated in Clauses 1, 2 and 3 of Article 129 of this Law."
Clause 1, Article 177 of the 2024 Land Law stipulates the limit on the amount of agricultural land use rights that individuals can receive through transfer.
Limits on the transfer of agricultural land use rights to individuals.not more than 15 timesThe land allocation limits for agricultural land granted to individuals for each type of land are stipulated in Clauses 1, 2, and 3 of Article 176 of this Law.
6. Article 247 of the 2024 Land Law amends and supplements Clause 1, Article 14 of the Personal Income Tax Law No. 04/2007/QH12, which has been amended and supplemented by several articles under Law No. 26/2012/QH13 and Law No. 71/2014/QH13.
- Clause 1, Article 14 of the Personal Income Tax Law No. 04/2007/QH12, as amended and supplemented by Law No. 26/2012/QH13 and Law No. 71/2014/QH13, stipulates:
Taxable income from the transfer of real estate is determined by the transfer price for each transaction.
- Article 247 of the 2024 Land Law amends Clause 1, Article 14 of the Personal Income Tax Law as follows:
1. Taxable income from the transfer of real estate is determined as the transfer price for each transaction; in the case of transferring land use rights, taxable income is calculated according to the land price in the land price table.
7. Regarding land prices when calculating non-agricultural land use tax, Clause 3, Article 6 of the Law on Non-Agricultural Land Use Tax No. 48/2010/QH12 is amended and supplemented as follows:
- According to Clause 3, Article 6, Law on Non-Agricultural Land Use Tax 2013
“1. The price of 1m2 of land is the land price according to the intended use as stipulated by the People's Committee of the province or centrally-governed city and shall be stable for a period of 5 years, starting from the date this Law comes into effect.”
- Article 249 of the 2024 Land Law amends Clause 3, Article 6 of the 2010 Law on Non-Agricultural Land Use Tax regarding the price of 1 m².2When calculating non-agricultural land use tax, the following applies:
3. Price of 1 m2"Land prices are determined according to the land price table corresponding to the intended use and are stable for a 5-year cycle."
8. Add Chapter VIII on the development, management, and exploitation of land resources.
The 2024 Land Law has added provisions on the development, management, and exploitation of land resources from Article 112 to Article 115.
9. Supplementing regulations on the rights and obligations of citizens regarding land.
Besides the rights and obligations of land users, the 2024 Land Law also supplements regulations on the rights and obligations of citizens regarding land in Articles 23 and 25 of the 2024 Land Law.
10. Expanding the jurisdiction of commercial arbitration in resolving land disputes.
According to Clause 5, Article 236 of the 2024 Land Law, disputes between parties arising from commercial activities related to land shall be resolved by the Court in accordance with the provisions of the law on civil procedure or by the Vietnam Commercial Arbitration Tribunal in accordance with the provisions of the law on commercial arbitration.
11. Regarding the effective date
Article 252 of the 2024 Land Law stipulates the effective date as follows:
“1. This Law shall come into effect on January 1, 2025, except as provided in paragraphs 2 and 3 of this Article.
2. Articles 190 and 248 of this Law shall come into effect on April 1, 2024.
3. The preparation and approval of land use plans will continue to be carried out in accordance with the provisions of Resolution No. 61/2022/QH15 dated June 16, 2022, of the National Assembly on continuing to strengthen the effectiveness and efficiency of implementing policies and laws on planning and some solutions to overcome difficulties and obstacles, accelerate the progress of preparation and improve the quality of planning for the period 2021 - 2030.
Clause 9, Article 60 of this Law shall take effect from the date Resolution No. 61/2022/QH15 expires.
4. The Land Law No. 45/2013/QH13, as amended and supplemented by Law No. 35/2018/QH14 (hereinafter referred to as Land Law No. 45/2013/QH13), shall cease to be effective from the date this Law comes into force.”
The above are some of the outstanding new points of the 2024 Land Law, which the Tax Department is notifying to all Tax Offices and Sub-departments. The Tax Department requests that all Tax Offices and Sub-departments carefully study the contents of the 2024 Land Law to disseminate and explain it to tax officials and taxpayers for their awareness and implementation. During the study and application of this document, if any difficulties arise, the Tax Offices and Sub-departments should send their feedback to the Tax Department.
