Notable points in the new regulations on exemption and reduction of land use fees

The Government has issued Decree 103/2024/ND-CP regulating land use fees and land rents. It clearly states regulations on exemption and reduction of land use fees.

For land use fee exemption

The Decree clearly states that land use fees are exempted in the following cases:

Land use fees are exempted when competent state agencies allocate land, permit change of land use purpose, recognize land use rights (issue certificates) within the residential land limit for land users in the following cases:

To implement housing and land policies for war invalids or sick soldiers who are unable to work, and families of martyrs who no longer have the main labor force.

Poor people, households or individuals who are ethnic minorities living in areas with especially difficult socio-economic conditions, border areas and islands.

Residential land for people who have to relocate when the State reclaims land due to risks threatening human life.

Allocating residential land to households and individuals when the State recovers land attached to houses and has to move their residence but is not eligible for compensation for residential land and has no other residence within the commune-level administrative unit where the land is recovered.

Land area at the cemetery infrastructure investment project for transferring land use rights associated with infrastructure, building a facility to store ashes that the investor arranges to serve the burial of social policy beneficiaries according to the provisions of law on construction, management, and use of cemeteries and crematoriums.

Exemption from land use fees within the residential land allocation limit when granting the first Certificate for land due to change of use purpose from non-residential land to residential land due to household separation for ethnic minority households, poor households in areas with especially difficult socio-economic conditions, ethnic minority and mountainous areas according to the List of areas with especially difficult socio-economic conditions prescribed by the Government and the Prime Minister.

Exemption from land use fees for residential land within the residential land allocation limit (including land allocation, change of land use purpose, granting of Certificates to current land users) for households and people with meritorious services to the revolution who are eligible for exemption from land use fees according to the provisions of the law on people with meritorious services.

Exemption from land use fees for implementing investment projects to build social housing, housing for the people's armed forces, renovate and rebuild apartment buildings according to the provisions of the law on housing.

Exemption from land use fees in other cases prescribed in Clause 2, Article 157 of the Land Law shall be proposed by ministries, branches, and provincial People's Committees to the Ministry of Finance for synthesis and submission to the Government for regulation after receiving the approval of the National Assembly Standing Committee.

During the implementation process, if the competent authority or person discovers that a person who has been exempted from land use fees does not meet the conditions for exemption from land use fees (if any), the competent authority or person shall send the competent land management agency to coordinate with relevant authorities to inspect, review and determine the satisfaction of the conditions for exemption from land use fees.

If the person who has been exempted from land use fees does not meet the conditions for exemption from land use fees, the competent land management agency shall report to the People's Committee of the same level to decide to revoke the exemption from land use fees and transfer the information to the tax authority to coordinate in calculating, collecting and paying the amount of land use fees payable (not exempted) according to the policy and land price at the time the competent state agency issues the land allocation decision and the amount of money equivalent to the late payment of land use fees according to the provisions of the law on tax management.

For land use fee reduction

According to the decree, land use fees will be reduced by 50% when competent state agencies allocate land, change land use purposes, or recognize land use rights for the poor, households, or individuals who are ethnic minorities in areas not specified in point (*) above.

50% reduction in land use fees for residential land for subjects specified in Point a and Point b, Clause 3, Article 124 of the Land Law who are working in border communes, islands or island districts without commune-level administrative units in areas with especially difficult socio-economic conditions.

30% reduction in land use fees for residential land for subjects specified in Point a and Point b, Clause 3, Article 124 of the Land Law who are working in border communes, islands or island districts without commune-level administrative units in areas with difficult socio-economic conditions.

The Decree clearly states that land use fees for residential land within the residential land allocation limit (including land allocation, land use purpose conversion, and issuance of land use certificates to current land users) shall be reduced for people with meritorious services to the revolution who are eligible for land use fee reduction according to the provisions of the law on people with meritorious services.

Land use fee reduction according to the provisions of investment law and relevant laws for cases of land use to implement cemetery infrastructure investment projects to transfer land use rights associated with infrastructure, construction of facilities to store ash according to the provisions of Point a, Clause 1, Article 157 of the Land Law:

50% reduction in land use fees in case the project is invested in an area with particularly difficult socio-economic conditions.

30% reduction in land use fees in case the project is invested in an area with difficult socio-economic conditions.

20% reduction in land use fee in case the project is not located in the areas specified in Point a and Point b of this Clause.

The list of areas with difficult socio-economic conditions and areas with especially difficult socio-economic conditions is regulated according to the provisions of the law on investment.

The Decree clearly states that, based on the records and documents on land transferred by the state land management agency according to the provisions of law, the tax authority shall calculate the amount of land use fee payable and the amount of land use fee to be reduced.

The reduction of land use fees is carried out together with the calculation of land use fees payable according to the provisions of Article 20 of this Decree.

The reduction of land use fees in other cases prescribed in Clause 2, Article 157 of the Land Law shall be proposed by ministries, branches, and provincial People's Committees to the Ministry of Finance for synthesis and submission to the Government for regulation after receiving the approval of the National Assembly Standing Committee.

On the authority to calculate and decide on the amount of land use fee to be reduced

The Decree stipulates that the Director of the Tax Department determines and issues decisions to reduce land use fees for economic organizations, people of Vietnamese origin residing abroad, and organizations with foreign investment capital.

The Head of the Tax Department and the Regional Tax Department shall determine and issue decisions to reduce land use fees for households and individuals.

The Decree takes effect from August 1, 2024.