Is Land Use Tax Exemption Possible in 2025 and Beyond?

The Ministry of Natural Resources and Environment is proposing a case for land use fee exemption from 2025 in the Draft Decree on land use and rental fees.


## Proposed Changes to Land Use Fee Exemptions in Vietnam


Article 18 of the Draft Decree on land use fees and land rental fees has proposed several cases for exemption from land use fees when the State allocates land, changes land use purpose, or recognizes land use rights (also known as granting Land Use Right Certificates).

The proposed exemptions include:

  • War invalids/ill and disabled soldiers without labor capacity and households of martyrs without main breadwinners who are eligible for housing and land policies.

  • Individuals belonging to ethnic minorities or living in particularly difficult socio-economic conditions, or in border or island areas. This provision remains unchanged from the current regulation.

  • Land for residential purposes where people have to relocate due to life-threatening risks or natural disasters (a new proposal).

  • Allocation of residential land to households and individuals who have to move due to life-threatening risks associated with land revocation, provided they do not qualify for compensation and have no other residence in the commune, ward, or town of the revoked land (another new proposal).

The current regulation, as per Clause 1, Article 11 of Decree 45/2014/ND-CP, already includes an exemption for people with meritorious services to the revolution. The draft decree specifies this further by identifying the beneficiaries as war invalids/ill and disabled soldiers and households of martyrs.

In addition to maintaining the existing exemption for ethnic minorities and people in difficult areas, the draft decree also proposes two new cases for exemption. At the same time, it removes the exemption for land used to build social housing and for people who have to relocate due to natural disasters.

The draft decree also proposes exempting land use fees for land within the residential land allocation limit for people with meritorious services to the revolution. This includes cases of land allocation, change of land use purpose, and granting of Land Use Right Certificates to those currently using the land.

Similar to the current regulation, the draft decree retains the exemption for land within the residential land allocation limit when granting Land Use Right Certificates for the first time for land that has changed its purpose from non-residential to residential due to household separation of ethnic minority members, poor households in particularly difficult socio-economic conditions in ethnic minority and mountainous areas.

Other cases will be decided by the Minister of Finance based on proposals from ministers, heads of ministerial-level agencies, government agencies, and Chairpersons of provincial People’s Committees, as per Clause 2, Article 157 of the Land Law No. 31/2024/QH15.

Additionally, the new draft decree removes the exemption for the following cases:

  • Land allocated within the limit for fisherfolk village residents who live on rivers, waters, and lagoons and relocate to residential areas according to approved plans, schemes, and projects.
  • Land allocated within the limit for residential land allocation to arrange resettlement or for individuals and households in flooded residential clusters and lines according to approved projects.
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