Many changes to the Land Law 2024 impact land finance
The Ministry of Finance said that the Land Law 2024 passed by the 18th National Assembly at the Fifth Extraordinary Session on January 01, 2024 has major changes related to land finance and land allocation. for the Government to detail a number of contents on land finance; including content on land use fees and land rent.
The main changes in the 2024 Land Law affecting land finance include: (i) Expanding cases where the State leases land with annual land rent payment to ensure stability, sustainability of state budget revenue from land; (ii) More specific regulations on cases of land recovery for socio-economic development for national and public benefits; (iii) Regulations separating the cases of auction of land use rights and bidding to select investors using land; regulations on multi-purpose land and collection of financial obligations for this type of land; (iv) Remove the Government's land price framework; stipulates that the land price list is built according to area, location or built for each land plot on the basis of value area and standard land plot (for areas with digital cadastral maps and land price database). for the first time to announce application from January 01, 01 and be adjusted, amended and supplemented annually (instead of 2026 years like the 05 Land Law), and at the same time expanding the cases of application of the Land Price List. to calculate financial obligations related to land; Accordingly, the land price used to calculate land use fees and land rent from households and individuals when the State allocates land, leases land, or recognizes land use rights is the land price on the Land Price List (remove regulations). calculated according to specific land prices in some cases as before); (v) Decentralize the authority to decide specific land prices to the Chairman of the District People's Committee in cases of land allocation, land lease, or permission to change land use purposes under the authority of the District People's Committee as prescribed in Clause 2013 of this Article. 2, Clause 4, Article 123 of the Land Law 2024; (vi) Innovating the land price calculation process: In case the land price in the land price list is applied to calculate land use fees and land rent, the competent People's Committee must record the land price in the land allocation decision. leasing land, allowing change of land use purpose, extension of land use rights, adjustment of land use term, change of land use form; In the case of determining a specific land price to calculate land use fees or land rent, the competent People's Committee must issue a land price decision within no more than 180 days from the time of price determination. land; (vii) In cases where land use fees and land rents are exempted, there is no need to carry out procedures for determining land prices, calculating land use fees, or exempted land rents. Land users who are exempt from land use fees and land rents do not have to carry out procedures to request exemption from land use fees or land rents...
To concretize the new regulations of the Land Law 2024, the issuance of a Government Decree to detail land use fees and land rents has a legal basis.
Policies need to be improved to suit the new reality situation
The Ministry of Finance said that the policy of collecting land use fees and land rent is a part of land finance policy. In recent times, along with land finance policy in general, land use fee collection and land rent policies have gradually been institutionalized according to market principles, transparency and equality among economic sectors. ; contributing to encouraging economical and effective use of land, gradually limiting speculation, limiting wasteful land use, contributing to orienting and encouraging the real estate market to develop. Besides the important results achieved, the regulations on land use fees and land rent guiding the 2013 Land Law also reveal some shortcomings and limitations that need to be overcome.
To review and summarize the implementation of policies on land use fee collection, land rent, and water surface rent according to the 2013 Land Law, the Ministry of Finance issued Official Dispatch No. 8335/BTC-QLCS dated July 28/ 7 sent to the People's Committees of provinces and centrally-run cities to request an assessment of the implementation of policies on land use fee collection, land rent collection, and water surface rent and recommend and propose contents These policies need to be revised and supplemented.
Based on the synthesis of local reports, a number of problems arise related to:
Collect land use fees and land rent when changing land use purposes in cases where economic organizations legally receive land use rights according to land law to implement investment projects because according to regulations According to current law, a compensation and site clearance plan (hypothetical) must be established to compare with the highest amount of money (that the organization has paid to receive the transfer of land use rights or land lease rights). Deducted from land use fees and land rent; This gives rise to additional administrative procedures; In addition, there are no regulations for handling cases of receiving transfer of many types of land and then changing the purpose to implement investment projects using land in a mixed form.
Regarding the principle of exemption or reduction of land use fees and land rents (whether land allocation or land lease through auction is exempted or reduced? In the case of land allocation and resettlement when the State recovers land, is it exempted? , reduction of land use fees; post-inspection and handling of violations after exemption or reduction of land use fees and land rents are not yet specifically regulated).
Problems with areas to determine subjects and levels of exemption or reduction of land use fees for subjects eligible for land use fee incentives when being allocated land or recognizing land use rights due to the existing regulations on the List of locations investment incentives table by district-level area, but within the district-level area there are communes that are not in areas with difficult socio-economic conditions or the district-level area is not on the list of preferential areas but has communes or villages in the preferential areas, it is unclear how the calculation of incentives by area is done.
Regarding land use fee collection, land rent collection when adjusting detailed construction planning many times, changing criteria such as the basis for calculating land use fee collection, land rent changes or does not change; Land before planning adjustment was allocated land, leased through auction of land use rights.
There are no specific regulations on deduction of compensation and site clearance for each type of project with mixed land use; How to calculate the amount of compensation and reimbursement in case of land allocation without collection of land use fees, or land allocation without land use fees.
Regulations on transitional processing are lacking in some cases in practice,...
Thereby, the Ministry of Finance has compiled, evaluated and sent documents to the Ministry of Natural Resources and Environment to study and complete the draft in the process of developing the Land Law 2024. At the same time, the Ministry of Finance sees that it is necessary to complete (replace the above-mentioned Decrees guiding the 2013 Land Law) to resolve problems arising during the implementation of the current Decrees on land use fee collection and land rent collection ( Decree No. 45/2014/ND-CP, Decree No. 46/2014/ND-CP, Decree No. 135/2016/ND-CP, Decree No. 123/2017/ND-CP of the Government) accordingly With the new reality situation, reform administrative procedures, ensure effective mobilization of land use fees and land rents into the state budget; contributing to promoting effective exploitation and use of land, contributing to socio-economic development.
Regarding regulations on exemption and reduction of land rent
The Ministry of Finance said that on the principle of land rent exemption and reduction: The Land Law 2024 does not specifically stipulate what is land rent exemption and what is land rent reduction. However, throughout the process of developing the draft Land Law and expressed in the design content of the articles on cases where auctions and bidding for projects using land must be carried out, the principle is shown: Exemption Land rent allows land users not to have to pay land rent for the entire lease period; The remaining is a reduction in land rent. Therefore, in Article 39 and Article 40, the draft Decree stipulates exemption and reduction of land rent based on the principle: (i) Land rent exemption allows land users not to have to pay land rent for the entire term. rental space; (ii) Reducing land rent allows land users not to have to pay a specific amount calculated as a percentage of the land rent payable.
Regarding cases of exemption from land rent: Clause 1 and Clause 2, Article 157 of the Land Law 2024 specifically stipulates cases of exemption or reduction of land use fees and land rent; At the same time, the Government's authority regulations stipulate other cases of exemption or reduction of land use fees and land rents that are not specified in Clause 1, Article 157 after receiving the consent of the National Assembly Standing Committee. . Therefore, the Draft Decree specifically stipulates cases of land rent exemption; Design land rent reduction levels according to investment incentive fields and investment incentive areas according to the provisions of the law on investment, basically similar to the current regulations in Decree No. 46/2014/ ND-CP (amended and supplemented in Decree No. 135/2016/ND-CP, Decree No. 123/2017/ND-CP).
In Article 157 of the Land Law 2024, there are only regulations on exemption or reduction of land use fees and land rents in cases of using land for production and business purposes in investment incentive fields or in priority areas. Investment incentives (regardless of socialized fields such as the 2013 Land Law). Therefore, in Articles 39 and 40 of the draft Decree, there are only general regulations on preferential levels of exemption and reduction of land use fees for projects in fields and areas with investment incentives without establishing incentives. Special incentives for projects using land to build public works for business purposes (socialization).
At the same time, Clause 6, Article 50 stipulates transitional provisions for land use fees. Clause 14, Article 51 stipulates transitional provisions for land rent collection, abolishing regulations on exemption and reduction incentives. Land rent for projects in the social sector according to the provisions of Decree No. 69/2008/ND-CP dated May 30, 5 and Decree No. 2008/59/ND-CP dated June 2014, 16 of Government.
Order and procedures for exemption and reduction
Regarding the order and procedures for exemption and reduction: In Clause 3, Article 157 of the Land Law 2024, it is stipulated that in cases of exemption from land use fees or land rents, procedures for determining land prices and calculating land use fees are not required. Land and land rent are exempted. Land users who are exempt from land use fees and land rents do not have to carry out procedures to request exemption from land use fees or land rents.
Therefore, to ensure supervision of the implementation of conditions for exemption from land use fees and land rent according to regulations; Ensuring the exemption of land use fees and land rents for the right subjects, avoiding loss of state budget revenue, ensuring the effectiveness of state preferential policies...), in the draft Decree stipulating the exemption of historical records Land use and land rent are stated in the land lease decision; At the same time, it stipulates the responsibilities of: (i) Tax authorities in calculating the amount of reduced land use fees and land rents, submitting to the People's Committee at the same level to decide to recover the reduced land use fees made by them; (ii) The natural resources and environment agency is responsible for collecting statistics and summarizing cases of land rent exemption. During the implementation process, the natural resources and environment agency periodically checks, reviews and determines the satisfaction of the conditions for land rent exemption incentives, if it is discovered that people who have been exempted from land rent do not meet the requirements. Conditions for exemption from land rent must be reported to the People's Committee at the same level to decide to revoke the exemption from land rent and transfer information to the tax authority to coordinate the calculation, collection and payment of land rent payable ( not exempted) according to the policy and land price at the time of the land lease decision and an amount equivalent to late payment of land rent according to the provisions of law on tax administration.
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