Deadline for payment of land use fees
Pursuant to Clause 3, Article 55 of the Law on Tax Administration 2019 and Decree 126/2020/ND-CP detailing the Law on Tax Administration, the deadline for paying land use fees is prescribed as follows:
- No later than 30 days from the date of issuance of the notice of land use fee payment, the land user must pay 50% of the land use fee according to the notice.
- No later than 90 days from the date of issuance of the notice of land use fee payment, the land user must pay the remaining 50% of the land use fee according to the notice.
- No later than 30 days from the date of issuance of the Notice of Land Use Fee Payment, land users must pay 100% of the land use fee according to the notice in case the amount of land use fee to be paid is re-determined after 5 years from the date of the decision on land allocation for resettlement but the household or individual has not paid the full amount of land use fee owed.
How to calculate late payment
Point b, Clause 2, Article 3 of the 2019 Law on Tax Administration stipulates that land use fees are one of the other revenues of the state budget managed by the tax administration agency. Taxpayers or those paying other revenues are obliged to pay fully and on time as notified by the tax authority.
According to Point a, Clause 2, Article 59 of the Law on Tax Administration 2019, when the deadline is overdue, people must pay late payment fees according to the following formula:
- Formula for calculating late payment by day:
Late payment fee 1 day = 0.03% x unpaid amount
- Formula for calculating total late payment
Total late payment = (0.03% x unpaid amount) x number of days late
For example: Mr. A is granted a certificate but must pay land use fees of 100 million VND. If Mr. A fails to pay the land use fees within the deadline, the late payment fee will be 30,000 VND per day (100 million VND x 0.03%) x 1 year, then the late payment fee will be 10.95 million VND.
Thus, when people do not pay land use fees, there will be no "interest" but they will have to pay late payment fees at a rate of 0.03%/day.
