Land related finances

1. Financial revenues from land include:
(i) Land use levy upon land allocation by the State with land use levy, permission for change of land use purpose, or recognition of land use rights with land use levy;
(ii) Land rental upon land lease by the State;
(iii) Land use tax;
(iv) Income tax on transfer of land use rights;
(v) Revenue from sanction of administrative violations of the land law;
(vi) Compensation to the State for damage caused during land management and use;
(vii) Fees and charges in land management and use.
 
2. Cases of exemption and reduction of land use levy or land rental:
(i) Using land for production and business purposes in sectors or areas entitled to investment incentives, except for investment projects on construction of commercial houses;
(ii) Using land for construction of infrastructure of airports, airfields and facilities to provide air services;
(iv) Using land for construction of offices, drying grounds and warehouses.

3. Land price
(i) The Government shall promulgate land price frames once every 5 years for each type of land and for each region;
(ii) Provincial People's Committees shall develop and submit land price tables to People's Councils of the same level for review before promulgation. The land price tables shall be developed every 5 years and publicized on January 1 of the beginning year of the period. The land price tables shall be used as a basis for the following cases:
- Calculation of land use tax;
- Calculation of charges and fees in land management and use;
- Calculation of fines for administrative violations in the field of land;
- Calculation of indemnification paid to the State for damage caused in land management and use;
- Calculation of land use right value to pay to the person who voluntarily returns the land to the State in case the returned land is allocated with land use levy, recognized the land use right with land use levy or leased with full one-off rental payment for the entire lease period by the State.
(iii) Provincial People’s Committees shall decide on specific land prices. The Council for Land Price Appraisal shall comprise the chairperson of the provincial People’s Committee as the chairperson, and representatives of related agencies and organizations and the organization with the function of consultancy on land price determination. The specific land price shall be used as a basis for the following cases:
- Calculation of land use levy when the State allocates land with land use levy not through auction of land use rights, recognizes land use rights, or permits change of land use purpose for organizations that shall pay land use levy;
- Calculation of land rental when the State leases land not through auction of land use rights;
- Calculation of compensation amount upon land recovery by the State.