An important highlight of the 2024 Land Law is its amendment regarding taxable income subject to personal income tax (PIT) from real estate transfer activities.
Previously, taxable income from real estate transfers was stipulated in Clause 1, Article 14 of the 2007 Personal Income Tax Law (amended and supplemented by Law No. 71/2014/QH13), which stated that taxable income from real estate transfers was determined as the transfer price for each transaction.
However, this provision has been amended and supplemented by Article 247 of the 2024 Land Law, effective from August 1st.
Accordingly, taxable income from real estate transfers is determined as the transfer price for each transaction; in the case of land use right transfers, taxable income is calculated according to the land price in the land price table.
Thus, the 2024 Land Law has added a provision regarding the determination of taxable personal income in the case of land use right transfers. Specifically, from August 1st, taxable income from land use right transfers is determined according to the land price in the land price table.
 People completing land-related procedures at a land registration office in Hanoi. Photo: Hong Khanh |
Meanwhile, taxable income from other real estate transfer activities (not involving land use rights) will continue to be determined based on the transfer price for each transaction.
According to the 2024 Land Law, starting in 2026, the land price table will be issued annually by the People’s Committees of the provinces to keep up with market values, instead of every five years as per the previous regulation.
Currently, in many localities, the land price table issued by the Provincial People’s Committees according to the 2013 Land Law remains in effect until December 31st, 2025.
In Ho Chi Minh City, at the end of October, after nearly three months of consulting and adjusting for suitability, the City People’s Committee officially issued a decision to adjust the 2020 land price table. This new land price table will be applied from October 31st, 2024, to December 31st, 2025.
In the newly issued table, agricultural land prices were adjusted by multiplying the 2020 land prices by corresponding adjustment coefficients (K) for each area and location. Compared to the old prices, agricultural land prices have increased slightly.
For residential land, if the 2020 land prices multiplied by the coefficient K were equivalent to 30% of market prices, the adjusted land price table now reflects about 50% of market prices.
The highest residential land price in Ho Chi Minh City is in three streets: Nguyen Hue, Dong Khoi, and Le Loi in District 1, at VND 687.2 million/m2. Compared to the 2020 land prices multiplied by the coefficient (VND 567 million/m2), the adjusted price for these streets has increased by VND 120.2 million/m2, or 21%.
However, this figure is lower than the proposed price of VND 810 million/m2 in the draft released at the end of July.
The lowest residential land price in the city is in the Thieng Lieng residential area, Can Gio District, at VND 2.3 million/m2. In the 2020 land price table multiplied by the coefficient K, the land price in this area was only VND 170,000/m2. After the adjustment, the price has increased by 13.5 times.
By Hong Khanh
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