ENTERPRISES USING LAND HAVE MANY NEW RIGHTS FROM 2025

The Land Law 2024 has been promulgated with many expanded regulations on the legal rights and interests of enterprises in the process of using land for investment and business. In addition, some conditions have also been tightened to ensure transparency and limit violations. Then, from 2025, in accordance with the effect of the new law, what should enterprises using land pay attention to?

1. Enterprises using land can be exempted or reduced in land use fees and land rent for implementing projects to renovate and rebuild apartment buildings

The case of projects to renovate and rebuild apartment buildings according to the provisions of the law on Housing is one of the cases that can be applied for exemption or reduction of land use fees and land rent. This regulation is also applied to the investment projects to build social housing and worker accommodation in industrial parks.

In this case, the land user will not have to carry out procedures for determining land prices, calculating the exempted amount of land use fees, and land rent; procedures to request exemption from land use fees or land rent.

2. Enterprises using land that violate land laws can still be entitled to exercise land use rights

This content clarifies the conditions applicable to subjects with demands to allocate land, lease land, or allow change of land use purpose. In the previous regulations, if there is a violation of land regulations, the above request will not be approved.

However, under the new Law, subjects with a history of violations during land use can still be approved for land allocation, land lease, and permission to change land use purposes. It should be noted that, at the time of requesting land allocation, land lease, or permission to change land use purpose, this subject must complete compliance with the legally effective decision and judgment of the competent authority.

3. Enterprises using land are allowed to choose to change the form of land rent payment

The right to choose to switch to renting land with annual land rent collection from the one-time land rent collection regime for the entire collection period, for cases where land is being leased by the State, is a completely new regulation in the Land Law 2024.

Previously, in the 2013 Land Law, the right to choose the form of land rent payment only applied to the case of switching from paying annual land rent to paying land rent once for the entire lease period.

4. Enterprises can receive transfer of paddy land use rights from 01 January 2025

Accordingly, economic organizations including enterprises from 01 January 2025 are entitled to receive transfer of agricultural land use rights. Note, enterprises must have a plan to use agricultural land and be approved by the competent authority, regarding:

– Location, area, land use purpose;

– Plan on agricultural production and business;

– Investment;

– Term of land use;

– Land use progress.

5. Foreign-invested enterprises are expanded on land use rights to implement projects

Land using enterprises as foreign-invested enterprises have right to sell and lease assets owned by them attached to land and lease rights (in addition to the right to sell and lease assets owned by them attached to land under a lease contract, as in the previous regulations).

In addition, this subject is also entitled to sublease land use rights in the form of annual land rental payments (for land that has completed infrastructure construction in cases where investment in infrastructure construction and business is allowed for land in industrial parks, industrial clusters, and high-tech parks).

>> REDUCTION ON FEES OF PASSPORT ISSUANCE FROM JANUARY 01, 2024 https://linconlaw.vn/reduction-on-fees-of-passport-issuance-from-january-01-2024/

>> NOTES IN SALE AND PURCHASE APARTMENT UNDER CONSTRUCTION https://linconlaw.vn/notes-in-sale-and-purchase-apartment-under-construction/

6. Foreign-invested enterprises are expanded on land use rights to implement projects

Compared with the Land Law 2013, the land policies for economic organizations with foreign capital, including foreign-invested enterprises, are as follows:

– Economic organizations with foreign investment are entitled to receive land use rights transfer in industrial parks, industrial clusters, and high-tech zones.

– Economic organizations and economic organizations with foreign investment capital receive capital contributions in the form of land use rights (previous regulations, the subject receiving transfer of investment capital is the value of land use rights).

In addition, enterprises also need to pay attention to the following contents:

Regarding the conditions for changing land use purposes to implement commercial housing construction investment projects, enterprises that are allocated land, leased land, or allowed to change land use purposes by the State to implement investment projects must meet the following conditions to:

– Make a deposit or other prescribed forms of security;

– Meet financial capacity to ensure land use according to project schedule;

– Have no violations or have completed compliance and remediation of land violations;

– Subjects who are allowed by the State to change land use purposes have the right to use land;

– Comply with planning and plans of competent authorities;

– Be approved with investment policy and investor approval.

Changes in the method to calculate taxable income from real estate transfers

Previously stipulated in the Personal Income Tax Law 2007 (amended and supplemented by the revised Personal Income Tax Law 2012), taxable income from real estate transfer is determined as the transfer price each time.

However, according to the new regulations, taxable income from real estate transfer is determined according to the transfer price each time; In case of transfer of land use rights, the revenue is calculated according to the land price in the land price list.