When carrying out procedures for granting red books (land use right certificates), not all cases of land users must pay land use fees immediately.
According to the provisions of the 2024 Land Law, this financial obligation only arises in specific cases, depending on the origin of the land, legal documents and time of land use.
The current land law stipulates that land users with valid documents on land use rights established before October 15, 1993, who are using land stably and without disputes, do not have to pay land use fees when making a red book. These documents can be land contracts, real estate sale documents or have names in the land registration book according to regulations.
In case there are no documents on land use rights, people may still not have to pay land use fees if they fully meet the conditions according to the law, such as land in stable use, not violating land law, not being subject to unlicensed land allocation and being confirmed by the People's Committee at the commune level as a land without dispute.
In addition, some cases of land allocated by the State under policies, such as residential land allocated to poor households, policy households or some types of agricultural land, also do not have the obligation to pay land use fees when making a red book according to the provisions of law.
According to the 2024 Land Law, land use fees are only determined and collected when there is a land allocation decision with a fee collection, a decision allowing the change of land use purpose or a decision recognizing residential land use rights by a competent authority. Before this time, the issuance of red books did not mean that land users had to pay land use fees immediately.
However, the law also clearly stipulates that when there is a notice of payment of land use fees, if the land user is late in fulfilling financial obligations, the late payment fee will be calculated.
According to Decree 125, the current late payment fee is 0.05% per day, calculated on the late payment amount, from the date immediately following the deadline for payment according to the announcement of the tax authority to the date of full payment.
Notably, the calculation of late payment fees does not depend on the land price at the time of payment, but is based on the time of financial obligations arising according to regulations. Therefore, if the delay is long, the amount to be paid can increase significantly.
The 2024 Land Law allows many cases to not have to pay land use fees immediately upon making a red book, but at the same time tightens the responsibility to pay on time when financial obligations have been determined. Land users need to fully monitor the notices of competent authorities to avoid unnecessary late payment fees.
