Mr. He's family made an application to change the use of garden land into residential land and was approved by the District People's Committee to convert.

When the tax file for the change of land use purpose was transferred to the Tax Department, the tax unit said that the converted land of Mr. He's family exceeded the residential land quota. The location of his family's garden land has been regulated by the District People's Committee and the price according to the land price list of the Provincial People's Committee in 2019-2024 is 1.7 million VND/m2.

Mr. He asked, according to current regulations, how much is his family exceeded? When the residential land quota is exceeded, how is the tax to be paid? In the case of your family, is the tax authority allowed to issue a tax notice when the land is exceeded or must consult the Provincial People's Committee, Department of Natural Resources and Environment?

The Tax Department of Bac Ninh province responded to this problem as follows:

At Point a, Clause 2, Article 5 of the Government's Decree No. 45/2014/ND-CP dated May 15, 2014 stipulating:

"Article 5. Collection of land use levy upon change of land use purpose

2. For households and individuals:

a) Change from garden or pond land in the same parcel of land with houses in a residential area that is not recognized as residential land as prescribed in Clause 6, Article 103 of the Land Law into residential land; moved from land that originated as garden land, ponds attached to houses but the land users separated to transfer rights or because the measurement unit, when measuring and drawing cadastral maps before July 1, 2004 measured by themselves divided into separate parcels into residential land, the land use levy shall be equal to 50% of the difference between the land use levy calculated at the residential land price and the land use levy calculated at the agricultural land price at the time of the decision to change the purpose of the residential land...".

In Clause 2, Article 17 of the Government's Decree No. 45/2014/ND-CP dated May 15, 2014 on collection of land use levy provides:

"Article 17. Responsibilities of agencies and land users in determining and organizing the collection of land use levy.

2. Natural resources and environment agency, land registration office:

Determination of location, place, area, land type, land use purpose, actual time of land handover (in case of land allocation before the effective date of the 2013 Land Law) as a basis for tax authorities to determine payable land use levy".

In Clause 4, Article 10 of the Joint Circular No. 88/2016/TTLT/BTC-BTNMT dated June 22, 2016 of the Ministry of Finance and the Ministry of Natural Resources and Environment stipulating the application documents and the order and procedures for receiving, the rotation of documents determining financial obligations on land of land users shall be regulated as follows:

"Article 10. Responsibilities of the application-receiving agency

4. Land registration offices are responsible for:

a) Make an information transfer slip (including the case where the land user dossier is submitted directly at the land registration office and the dossier is submitted by the agencies specified at Point a, Point b, Point c, Point d), Clause 2, Article 2 of this Circular to). To be responsible for the accuracy of the Information recorded on the Form...".

Determination of residential land allocation quotas for calculation of land use levy

Clause 4, Article 7 of Circular No. 76/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance stipulating:

"Article 7. Determination of residential land allocation quotas for calculation and collection of land use levy from households and individuals when permitted by the State to change the land use purpose or recognize land use rights:

4. Based on the cadastral information transfer slip provided by the natural resources and environment agency, including the determination of the land area within the quota, the land area exceeding the limit as prescribed in Point a, Clause 3, Article 3. Decree No. 45/2014/ND-CP; The tax authority shall calculate and issue a notice of payable land use levy to households and individuals...".

Based on the above regulations and guidelines, in case Mr. Tran Ngoc, he made a dossier of land use purpose conversion and was approved by the District People's Committee to change the land use purpose from garden land to residential land; Branch of Land Registration Office – Department of Natural Resources and Environment of Bac Ninh province is the competent state agency to determine: Location, land area inside and outside the quota, land use purpose, according to the specific amount of the excess area, please contact Yen Phong District Land Registry Office for more details.

Based on the information transfer form to determine the financial obligation on land transferred by the branch of the land registration office, the Tu Son-Yen Phong Regional Tax Department calculates and issues a notice of land use levy payable to households and individuals according to the land price list prescribed by the Provincial People's Committee.

Tax Department of Bac Ninh province instructs him to know and implement. In the process of implementation, if you have any problems, please contact the Tax Department of Bac Ninh province (Department of management of household businesses, individuals and other revenues - Phone: 0222 3 893 221 or the Regional Tax Department, Tu Son - Yen Phong - Contact phone: 0222 3 760 730) for instructions and answers.