If you require documentation to complete the process of obtaining Land Use Rights (L.U.R, also known as the ‘Pink Book’), please refer to the article below for information on associated fees.
The issuance of a ‘Pink Book’ for land users incurs costs that vary depending on the specific case, with different amounts imposed by each province and city.
Clause 3, Article 98 of the 2013 Land Law states that:
‘Land users, house owners, and other owners of land-attached assets shall receive certificates of land use rights, house ownership, and other land-attached assets only after they have fulfilled their financial obligations in accordance with the law.’
According to Clause 1, Article 63 of Decree 43/2014/ND-CP, financial obligations include land use fees, land rents, taxes related to land, and registration fees, which are determined by the tax office.
Note that if financial obligations have been exempted or paid, and in the case of leasing land with annual rental payment, the certificate will be issued immediately after approval by the competent authority.
Upon issuance of the certificate, the land user is required to pay the following fees as noted by the tax authority:
- Land Use Fees
According to Clause 21, Article 3 of the 2013 Land Law, land use fees are the fees paid by land users to the State when the State allocates land and collects land use fees, permits the change of land use purpose, or recognizes land use rights.
1.1. Land Use Rights Recognition
Clause 9, Article 3 of the 2013 Land Law states that the State recognizes land use rights by granting land use right certificates, land ownership of houses, and other land-attached assets to current stable land users without having their land allocated or leased by the State. Thus, only a few cases are required to pay land use fees when recognizing land use rights.
1.2. Land Delivery
According to Article 55 and Point b, Clause 1, Article 99 of the 2013 Land Law, land users must pay land use levies when they are granted certificates in the following cases:
- Households and individuals are allocated residential land;
- Economic organizations assigned land to implement investment projects on the construction of houses for sale or for sale in combination with leasing;
- Vietnamese residing overseas and foreign-invested enterprises are allotted land to implement housing construction projects for sale or for sale in combination with leasing;
- Economic organizations assigned land to carry out investment projects on infrastructure of cemeteries and graveyards to transfer land use rights associated with infrastructure.
- Land Rental
According to Article 56 and Point b, Clause 1, Article 99 of the 2013 Land Law, land users must pay land rent annually or as a lump sum for the entire lease term when the land is leased by the State.
- Registration Fee
According to Decree 140/2016/ND-CP and Circular 301/2016/TT-BTC, as amended by Decree 20/2019/ND-CP, the registration fee upon the grant of a Certificate is calculated as follows:
Registration fee = (Price of 1m2 of land at Land price list x Area) x 0.5%
The land price is determined by the land price table issued by the provincial People’s Committee at the time of registration fee declaration. The land area is the entire lawful ownership area of an organization or individual provided to the tax agency by the land registration office.
For one-off rental payment for the entire lease term, the formula can be calculated as follows:
Land price of the period of land rental with registration fee calculation = Land price in the land price table / 70 years x Land lease term
- Certificate Issuance Fee
According to Clause 5, Article 3 of Circular 85/2019/TT-BTC, the certificate issuance fee is determined by the provincial People’s Council, so the fees may vary by province or city.
The above information covers the costs associated with obtaining a “pink book” in 2020 for cases where land use rights are recognized for ancestral land that has been used stably and long-term, or for allocated or leased land from the State. These financial obligations must be fulfilled by land users in order to obtain the L.U.R. certificate.
