One of the new points of the 2024 Land Law is to remove the land price framework. At the same time, Article 159 of this law stipulates that provinces and centrally-run cities will announce new land prices to be applied from January 1, 2026.
Every year, the provincial People’s Committee must submit to the provincial People’s Council a decision to adjust, amend, and supplement the land price list for publication and application from January 1 of the following year.
The process of building the land price list once a year is already difficult enough, and determining the land price also requires certain stability. (Photo: Van Ngan)
In this regard, Mr. Nguyen Van Dinh – a real estate legal expert, stated that according to the Constitution, land belongs to the whole people. The land price here is the price of land use rights, not ownership rights.
There are currently 4 new points about the land price list, the first is the principle of determining according to market prices, meaning that it will no longer be based on the land price framework. Next is changing the time for issuing the land price list, which used to be once every 5 years and is now once a year. Change the basis for adjusting the land price list. Supplement the case of how the land price list is.
The specific land price is also adjusted according to when it is applied, determining the land price according to each level, area with specific land prices, how it is calculated? The land price list and specific land prices are closely related to each other and are applied according to market prices and clearly regulated in the new law.
Mr. Nguyen Van Dinh – real estate legal expert. (Photo: Van Ngan)
Mr. Nguyen Van Dinh – a real estate legal expert believes: “The land price list and land prices need to be maintained.” The reason Mr. Nguyen Van Dinh pointed out is that the land price list is the price of land to carry out our regular, continuous, and daily activities. For example, when people submit financial contributions, issue land use certificates, want to pay upfront fees, or make penalty payments…
“The role of the land price list is very important, when people transfer land use rights to each other, what is the basis for calculating taxes. Currently, we rely on the contract value, and people tend to understate the value to avoid high taxes, creating loopholes for negative activities, taking advantage of them, and causing loss of state tax revenue…” Mr. Nguyen Van Dinh raised his point of view.
According to expert Nguyen Van Dinh, in the trend of revision, state agencies will use the land price list to assess the tax rates for people’s transactions. At that time, people will have the motivation to declare the true value, thus the state will collect input data on the real estate market to build the land price list for the next year. This is very important and serves as a basis for the state to allocate land to businesses, individuals to carry out land leasing, or the state to recover land from households and individuals, thereby ensuring the rights and interests of all parties involved.
Mr. Nguyen Van Dinh believes: “Currently, there is still concern when the land price list is adjusted from once every 5 years to once a year, whether it has approached the market price volatility level yet. Currently, it is not possible to have the infrastructure to issue the land price list monthly, so once a year is already difficult enough. The process of building the land price list once a year is already difficult enough, and the determination of the land price also requires certain stability.”
