Learn about the 2013 Land Law.

Ask:Land users who are allocated land by the State, have their land use purpose changed, or have their land use rights recognized must pay land use fees as stipulated in the Land Law. What is the basis for determining these fees?

Reply:According to Article 3 of Decree 45/2014/ND-CP (Decree regulating land use fee collection), it is stipulated that:

Land users who are allocated land by the State, have their land use purpose changed, or have their land use rights recognized must pay land use fees as stipulated in the Land Law, which are determined based on the following criteria:

1.Land area that has been allocated, repurposed, or had its land use rights recognized.

2.Land use purpose.

3.Land prices used for calculating land use fees:

a)Land prices are determined according to the Land Price Table stipulated by the People's Committee of the province or centrally-governed city (hereinafter referred to as the Provincial People's Committee) in cases where households and individuals are granted land use rights or change the land use purpose for residential land within the prescribed limit.

Determining the land area within the allocated limit at this point must ensure that each household (including households formed by splitting households as prescribed by law) and individual is only entitled to have their land area within the allocated residential land limit or recognized residential land limit determined once, and within the scope of one province or centrally-governed city.

In cases where a household or individual owns multiple plots of land within the same province or centrally-governed city, the household or individual may combine the land areas of these plots to determine the land area within the residential land allocation limit or the residential land recognition limit, but the total land area selected must not exceed the residential land allocation limit or the residential land recognition limit in the locality where the land is selected.

Households and individuals are legally responsible for the truthfulness and accuracy of the declared land area within the land allocation limit or the recognized residential land limit used for calculating land use fees; if fraudulent declarations are discovered, they will be required to pay back the land use fees according to land law regulations and will be penalized according to tax law regulations.

b)Specific land prices are determined according to the direct comparison, deduction, income, and surplus methods stipulated in the Government Decree on land prices, applicable in the following cases:

- Determine land use fees for cases where the area subject to land use fee calculation of a land parcel or land area has a value (calculated according to the land price in the Land Price Table) of 30 billion VND or more for centrally-governed cities; 10 billion VND or more for mountainous and highland provinces; and 20 billion VND or more for other provinces in the following cases: Organizations allocated land without auctioning land use rights, changing land use purposes, or recognizing land use rights; households and individuals allocated land without auctioning land use rights; and those whose land use rights are recognized or whose land use purposes are changed for residential land exceeding the permitted limit.

- Determining the starting price for auctioning land use rights when the State allocates land with land use fees collected through land use right auction.

c)The specific land price is determined using the land price adjustment coefficient method applied to cases where the area subject to land use fee calculation of the land parcel or land area has a value (calculated according to the land price in the Land Price Table) of less than 30 billion VND for centrally-governed cities; less than 10 billion VND for mountainous and highland provinces; and less than 20 billion VND for other provinces. This method is applied to determine land use fees in the following cases:

- Organizations to which the State allocates land with payment of land use fees without auctioning land use rights, recognizing land use rights, or permitting land use conversion;

- Households and individuals to whom the State allocates land without auctioning the land use rights;

- Households and individuals whose land use rights are recognized by the State may be permitted to change the land use purpose for residential land exceeding the prescribed limit.

Annually, the provincial People's Committee stipulates the land price adjustment coefficient to be applied to the cases specified in this point.

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