Mr. Duong The Ngoc (Dong Thap) asked, in case of land change registration in the category of land use not for the right purpose (the State assigned, leased, recognized land use rights before July 1, 2014), now being considered for granting a Certificate according to the provisions of Decree No. 101/2024/ND-CP, which formula for calculating land use fees in Decree No. 103/2024/ND-CP will the tax authority base on to determine financial obligations?

Regarding this issue, Dong Thap Provincial Tax Department has the following opinion:

At Point a, Clause 3, Article 139 of the 2024 Land Law, it is stipulated:

"3. In case a household or individual is using land due to encroachment or occupation of land not falling under the cases specified in Clause 1 and Clause 2 of this Article and in case of using land for purposes other than those for which the State has allocated land, leased land, or recognized land use rights, the case shall be handled as follows:

a) In case a person is using land stably, in accordance with the district-level land use planning or general planning or zoning planning or construction planning or rural planning, he/she shall be considered for granting a Certificate of land use rights, ownership of assets attached to land and must fulfill financial obligations according to the provisions of law;".

Article 11 of Decree No. 103/2024/ND-CP dated July 30, 2024 of the Government regulating land use fees and land rent stipulates:

"Article 11. Calculation of land use fees when granting Certificates for cases where households and individuals using land have violated land laws before July 1, 2014 as prescribed in Clauses 1, 2 and 3, Article 139 of the Land Law

1. For households and individuals using land before December 18, 1980, who are now granted a Certificate by a competent state agency for residential land purposes as prescribed in Clause 1, Point c, Clause 2, Point a, Clause 3, Article 139 of the Land Law, the land use fees are calculated as follows:

a) For the land area granted a Certificate within the residential land recognition limit as prescribed in Clause 5, Article 141 of the Land Law Land:

Land use fee = Land area granted a Certificate within the limit of residential land recognition x Residential land price specified in the Land Price List x 10%

b) For the land area granted a Certificate exceeding the limit of residential land recognition as prescribed in Clause 5, Article 141 of the Land Law:

Land use fee = Land area granted a Certificate exceeding the limit of residential land recognition x Residential land price specified in the Land Price List x 30%

c) For the land area now granted a Certificate for non-agricultural land purposes (if any) as prescribed in the Decree on granting certificates:

Land use fee = Land area of the recognized land type x Land price of the recognized land type specified in the Land Price List x 40%

2. For households and individuals using land from December 18, 1980 to before October 15, 1993, now granted a Certificate by a competent state agency For residential land purposes as prescribed in Clause 1, Point c, Clause 2, Point a, Clause 3, Article 139 of the Land Law, land use fees are calculated as follows:

a) For the land area granted a Certificate within the residential land recognition limit as prescribed in Clause 5, Article 141 of the Land Law:

Land use fees = Land area granted a Certificate within the residential land recognition limit x Residential land price prescribed in the Land Price List x 20%

b) For the land area granted a Certificate exceeding the residential land recognition limit as prescribed in Clause 5, Article 141 of the Land Law:

Land use fees = Land area granted a Certificate exceeding the residential land recognition limit x Residential land price prescribed in the Land Price List x 50%

c) For the land area now granted a Certificate for non-agricultural land purposes (if any) as prescribed in the Decree on granting Certificates:

Land use fees = Land area of the recognized land type x Land price of recognized land types specified in the Land Price List x 60%

3. For households and individuals using land from October 15, 1993 to before July 1, 2004, and now being granted a Certificate by a competent state agency for residential land purposes according to the provisions of Clause 1, Point c, Clause 2, Point a, Clause 3, Article 139 of the Land Law, land use fees are calculated as follows:

a) For the land area granted a Certificate within the residential land allocation limit as prescribed in Clause 2, Article 195, Clause 2, Article 196 of the Land Law:

Land use fees = Land area granted a Certificate within the residential land allocation limit x Residential land price prescribed in the Land Price List x 30%

b) For the land area exceeding the residential land allocation limit as prescribed in Clause 2, Article 195, Clause 2, Article 196 of the Land Law:

Land use fees = Land area granted a Certificate exceeding the residential land allocation limit x Residential land price Residential land specified in the Land Price List x 60%

c) For the land area now granted a Certificate for non-agricultural land purposes (if any) according to the provisions of the Decree on granting Certificates:

Land use fee = Land area of the recognized land type x Land price of the recognized land type specified in the Land Price List x 70%

4. For households and individuals using land from July 1, 2004 to before July 1, 2014, now granted a Certificate for residential land purposes by a competent state agency according to the provisions of Clause 1, Point c, Clause 2, Point a, Clause 3, Article 139 of the Land Law, the land use fee is calculated as follows:

a) For the land area granted a Certificate for residential land (within the residential land allocation limit, exceeding the residential land allocation limit according to the provisions of Clause 2, Article 195, Clause 2, Article 196 of the Land Law):

Land use fee Land = Land area granted a Certificate of residential land x Residential land price specified in the Land Price List x 80%

b) For the land area now granted a Certificate for non-agricultural land purposes (if any) according to the provisions of the Decree on granting Certificates:

Land use fee = Land area of recognized land type x Land price of recognized land type specified in the Land Price List x 80%

5. Land price for calculating land use fees in the cases specified in Clauses 1, 2, 3 and 4 of this Article is the land price specified in Clause 1, Article 5 of this Decree at the time the land user submits a complete and valid dossier as prescribed".

In Clause 1, Article 5 of Decree No. 103/2024/ND-CP, it is stipulated:

"Article 5. Land price for calculating land use fees

1. Land price for calculating land use fees is the land price in the Land Price List applicable to the cases specified in Points a, h and k, Clause 1, Article 159 of the Land Law".

Based on the above provisions, in case a household or individual uses land for a purpose other than the purpose for which the State has allocated land, leased land, recognized land use rights, and is using land stably, in accordance with the land use planning, and is considered for the issuance of a Land Use Rights Certificate, the financial obligations regarding land will be determined on a case-by-case basis according to the provisions in Article 11 of Decree No. 103/2024/ND-CP and the land price for calculating land use fees is the land price in the Land Price List issued by the Provincial People's Committee.