Notes on Calculating Land Use Fees According to the New Price Schedule in Ho Chi Minh City

According to the Ho Chi Minh City Tax Department, significant changes have been made to the regulations for calculating land use fees. These changes are implemented in accordance with Decision No. 79/2024 of the Ho Chi Minh City People's Committee, following the release of the new land price schedule, effective from October 31. The land use term is also stipulated to be 70 years, aiming to ensure transparency and efficiency in land management, thereby assisting families and individuals in more comprehensively and accurately grasping information. These changes are part of the government’s long-term strategy to improve the land management system and promote economic and social development of the city, especially in the context of rapid urbanization and increased demand for land.

1. Method for Calculating Land Use Fees When Changing Land Use Purpose

For families or individuals wishing to change the land use purpose to residential, land use fees will be determined according to the following formula: the land use fee after changing the purpose minus the land use fee or land rent of the land before the change (if applicable). This means that the financial obligation to be paid will depend on the value difference of the land after changing the use purpose, helping residents optimize costs during the conversion process.

This policy is implemented in accordance with Government Decree No. 103/2024, effective from August 1. The decree also clearly stipulates the procedures and processes for changing the land use purpose, including requirements for application materials, processing time, and necessary assessment steps. These specific and detailed provisions help residents easily understand and comply with the regulations, reducing legal risks and avoiding unnecessary errors during the process of exercising land use rights.

Calculating financial obligations based on these value differences helps establish a fair legal framework, ensuring that residents only pay costs corresponding to the benefits they gain from converting land use purposes. This is not only an effective measure for managing land but also helps balance the interests between the state and land users.

2. Regulations on Land Use Fee Calculation

As of August 1, the regulations on land prices for changing the land use purpose will no longer differentiate between land within or beyond the quota, will not consider values exceeding 30 billion VND, and will no longer apply specific land price cases. This means that all cases of changing the land use purpose will be uniformly calculated, thereby creating a fair and transparent environment in determining financial obligations. Removing the previous limitations related to land value helps simplify the calculation process and reduce unnecessary complexity for residents and businesses.

Not distinguishing between land within or beyond the quota also helps to reduce disputes that may arise due to differences in the method of calculating land values. This ensures that every family and individual has equal access to land use rights, regardless of the size of their property value, thus promoting social equity in accessing and utilizing land resources.

By adopting a unified regulatory system, the calculation of land value and determination of financial obligations will become more transparent, ensuring consistency and reducing legal loopholes that residents or businesses could exploit. This is a strategic step towards improving the efficiency of urban land management.

3. Timing for Calculating Land Use Fees

According to Decision No. 79/2024 of the Ho Chi Minh City People's Committee, the timing for calculating land use fees is stipulated as follows:

• For changing the land use purpose, the calculation time is when the state issues a decision allowing the change. This means that the land use fee will be determined at the time of the official decision by the competent authority. This helps residents easily determine their financial obligations, avoiding difficulties in calculation and financial preparation due to delays.

• For cases of recognizing land use rights, the calculation time is when the family or individual submits qualified application materials. This ensures that the process of recognizing land use rights proceeds smoothly and quickly, without hindering the rights of residents.

Clearly stipulating the timing for calculating land use fees helps all relevant parties, including residents and government departments, perform subsequent steps more clearly and transparently. This also helps reduce ambiguity regarding the timing for submitting financial obligations, creating stability and trust for residents while promoting transparency in administrative procedures related to land.

4. Procedures and Processes for Determining Land Financial Obligations

Tax authorities will continue to implement relevant procedures and processes through the existing electronic interconnection system. In cases where there is insufficient basis to calculate land use fees or other payable amounts, within five working days from receiving the application, the tax authority must notify the competent agency in writing to supplement the required information. This regulation aims to ensure that the process of determining financial obligations proceeds smoothly without causing delays, thereby helping residents quickly fulfill their financial obligations.

After receiving complete and qualified application materials, the tax authority will issue a notice to pay land use fees no later than five working days. This process not only ensures transparency but also enhances residents' trust in government agencies. Notifying and fulfilling financial obligations according to regulations helps residents have a clear financial plan and be prepared for the expenses to be paid.

On October 30, tax branches will also close the system for receiving applications for determining land financial obligations through the electronic interconnection system to ensure that processes are resolved in a timely manner according to legal regulations. This system closure ensures that all received applications are processed on time, avoiding backlogs and delays, thereby enhancing administrative efficiency.

The regulations regarding the deadlines for handling application materials and the steps for interconnection between competent agencies also help residents better understand the process, making it easier to prepare necessary documents and complete subsequent steps quickly and effectively. This transparency and adherence to regulations help improve residents' satisfaction and trust while enhancing the efficiency of land management.

5. Requirements for Competent Agencies

The Ho Chi Minh City Tax Department requires tax branches, the Land Tax Management Division, and the Information Technology Division to thoroughly and uniformly implement the above-mentioned contents, ensuring timely and legal resolution of applications for land financial obligations. This is not only to ensure the processing of residents' applications but also to improve the management efficiency of government departments.

In addition to following the correct procedures, competent agencies must also ensure transparency and accountability when receiving and processing applications. Implementing electronic interconnection procedures helps reduce instances of lost applications and speeds up resolution progress, thereby creating favorable conditions for residents and businesses in fulfilling their financial obligations related to land.

Strengthening the application of information technology and interconnection between competent agencies also helps improve residents' experience, reduce complex administrative procedures, and create favorable conditions for the land management and usage process. This aligns with the city's goals of modernization and improving administrative efficiency, ensuring that all stakeholders benefit from these improvements.

Close cooperation and proper execution of procedures between competent agencies not only contribute to effective land resource management but also help ensure social equity and create a solid foundation for the sustainable development of Ho Chi Minh City in the future. This reflects the city's strong commitment to improving the quality of state management and better serving the needs of residents, thereby enhancing Ho Chi Minh City's position as a smart, modern, and livable city.