According to the 2024 Land Law, the land price list issued by the provincial People's Committee will be adjusted annually according to the principle of approaching market prices, instead of being stable for a long time as before. This change not only affects the real estate market but also directly affects many types of taxes, fees and financial obligations on land.
First of all, land use fees are the most obvious impacts. According to Articles 152 and 153 of the 2024 Land Law, land use fees are determined based on land prices in the land price list when the State allocates land with money collection, recognition of residential land use rights or permission to change land use purposes. When the new land price list is adjusted to increase and be closer to market price, the amount of land use fees that people have to pay can also increase accordingly.
In addition, registration fees when registering land use rights and house ownership rights are also directly affected. According to Decree 10/2022/ND-CP, the registration fee for land is calculated at 0.5% of the land value, in which the land price used as the basis for calculating the fee is the price in the land price list. Therefore, when the new land price list increases, the registration fee will also increase.
The new land price list also affects personal income tax from land use rights transfer. According to the Law on Personal Income Tax and Circular 111/2013/TT-BTC, in cases where the purchase price and valid cost cannot be determined, personal income tax is calculated at 2% of the transfer price, but the transfer price must not be lower than the land price in the land price list. When the land price list increases, the minimum taxable price also increases.
In addition, land rent for cases where the State leases land with annual or one-time payment is also determined based on the land price list. This content is stipulated in Article 157 of the 2024 Land Law, accordingly, the land price list is an important basis for determining the financial obligations of organizations and individuals leasing land to the State.
The land price list is also the basis for calculating non-agricultural land use tax according to the provisions of the law on tax. When the land price in the price list is adjusted, the amount of tax payable annually will also change accordingly.
In addition to the above provisions, the land price list is also used to determine a number of land fees and charges according to the Law on Fees and fees and resolutions of the Provincial People's Council, such as fees for granting Certificates, measurement fees, and cadastral maps.
Note: According to legal regulations, the new land price list not only affects a single collection amount, but also affects many types of taxes, fees and financial obligations related to land. When carrying out land procedures, people need to monitor the issuance time and apply the new land price list to proactively calculate costs, avoiding unexpected financial obligations.
