Real Estate

How is Land Use Fee Calculated When Issuing ‘Red Book’ for Land Used for the Wrong Purpose?

The tax authority has recently clarified the calculation method for land use fees when households or individuals with land law violations prior to July 1, 2014, are considered for land title issuance.

Administrator

20 October, 2025

126

A citizen inquires about the calculation of land use fees for cases where land is registered for changes in land use purposes, specifically for land that was allocated, leased, or recognized for use before July 1, 2014, and is now eligible for a land use right certificate under Decree No. 101/2024. How will the tax authority determine the land use fee in such cases?

In response, the Tax Department of Dong Thap Province refers to Article 139, Clause 3(a) of the 2024 Land Law, which states: Individuals or households using land stably and in accordance with district-level land use plans, general plans, detailed plans, construction plans, or rural planning are eligible for land use right certificates (red books). However, they must fulfill their financial obligations as prescribed.

For land used for purposes other than originally intended, the land use fee calculation varies based on the specific period of land use. Illustrative image.

According to Decree No. 103/2024, the land use fee calculation for households or individuals who violated land laws before July 1, 2014, is divided into four periods:

Before December 18, 1980

For land area within the recognized residential land limit: Land use fee = Area within the limit × Residential land price (as per the land price table) × 10%.

For land area exceeding the recognized residential land limit: Land use fee = Excess area × Residential land price × 30%.

For non-agricultural land purposes (if applicable): Land use fee = Recognized land area × Recognized land price × 40%.

From December 18, 1980, to October 15, 1993

For land area within the recognized residential land limit: Land use fee = Area within the limit × Residential land price × 20%.

For land area exceeding the recognized residential land limit: Land use fee = Excess area × Residential land price × 50%.

For non-agricultural land purposes (if applicable): Land use fee = Recognized land area × Recognized land price × 60%.

From October 15, 1993, to July 1, 2004

For land area within the allocated residential land limit: Land use fee = Area within the limit × Residential land price × 30%.

For land area exceeding the allocated residential land limit: Land use fee = Excess area × Residential land price × 60%.

For non-agricultural land purposes (if applicable): Land use fee = Recognized land area × Recognized land price × 70%.

From July 1, 2004, to July 1, 2014

For residential land (within or exceeding the allocated limit): Land use fee = Residential land area × Residential land price × 80%.

For non-agricultural land purposes (if applicable): Land use fee = Recognized land area × Recognized land price × 80%.

Based on these regulations, the Tax Department of Dong Thap Province confirms that households or individuals using land for purposes other than originally intended but have been allocated, leased, or recognized by the State, and are using it stably in accordance with planning, will have their financial obligations calculated as outlined above when applying for land use right certificates.

The land price used for calculating the land use fee is the price listed in the land price table issued by the Provincial People’s Committee at the time of certificate issuance.

Nguyễn Lê

– 09:00 19/10/2025