DECREE 291/2025/ND-CP: REDUCTION OF THE ADDITIONAL LAND USE LEVY AND LAND RENT PAYABLE FOR THE PERIOD DURING WHICH LAND USE LEVY AND LAND RENT HAVE NOT BEEN CALCULATED

1. Supplementing guidance on determining land use levy when a project has a decision on adjustment of the detailed planning

+ Guidance for projects with multiple decisions on adjusting detailed planning:

• Where a land user requests and is approved by a competent state authority to adjust the detailed planning of the project under the law without changing the land use structure, the location of each land type, and without increasing the floor area ratio (FAR), the land user is not required to re-determine the land use levy due to the adjustment of the detailed planning.

• Where a land user requests and is approved by a competent state authority to adjust the detailed planning of the project under the law that changes the land use structure, the location of each land type, or increases the floor area ratio, the land use levy shall be calculated at each time a decision on adjustment of the detailed planning is issued to determine the total land use levy payable at the final adjustment of the project’s detailed planning.

• Where the land user has fulfilled the financial obligations regarding land use levy but, due to management requirements, a competent state authority decides to adjust the project's detailed planning, the land use levy shall be determined according to the final detailed planning and the detailed planning for which the land user has fulfilled the land use levy obligations (including the project’s initial detailed planning).

+ Additional guidance where the land user has prepaid land rent for multiple years or advanced compensation, support, and resettlement costs:

If, prior to the planning adjustment, the land user has prepaid land rent for several years under the land laws before the 2003 Land Law came into effect, or has advanced compensation, support, and resettlement costs and was allowed by the competent authority to offset such costs by converting them into the equivalent number of years or months of annual land rent payment, but has not fully used (or offset) such period by the time a competent authority decides on adjusting the detailed planning, then the remaining unused time (T) shall be converted into the number of years or months of annual land rent payment under the land rent rate determined based on the adjusted detailed planning (n).

Accordingly:

n = (Land rent unit price already prepaid or converted from advanced costs / Land rent unit price under the adjusted detailed planning) × T

2. Detailed guidance on deducting compensation, support, and resettlement expenses from the land rent payable by investors where a project involves multiple land use forms (land allocation without levy, land allocation with levy, land lease)

Under Decree 103 and previous regulations, compensation, support, and resettlement costs voluntarily advanced by investors may be deducted from the land use levy or land rent payable. Where a project involves multiple forms of land use (land allocation without levy, land allocation with levy, land lease), such deductions were allocated proportionately to each land type (with areas allocated without land use levy for public purposes being apportioned across areas subject to land use levy or land rent based on their relative proportions).

Decree 291 retains the previous rules but introduces a more convenient approach:
the deductible amount shall be directly offset against the total land use levy and land rent payable (regardless of land area type) until fully deducted, as follows:

Where the State allocates land with land use levy or leases land and the investor voluntarily advances compensation, support, and resettlement costs according to an approved compensation and resettlement plan while the project includes multiple land use forms (land allocation without levy, land allocation with levy, land lease), the compensation, support, and resettlement expenses under the approved plan shall be deducted from the total one-off land use levy and land rent payable for the entire lease term. Any remaining amount shall continue to be deducted from the annual land rent (including land rent payable for underground construction areas, if any). Remaining undeducted compensation, support, and resettlement costs (if any) shall be included in the project’s investment expenses.

3. Reduction of the additional land use levy and land rent payable for periods where land use levy or land rent has not yet been calculated

Under the 2024 Land Law, for projects where the State has issued decisions on land allocation, land lease, change of land use purpose, conversion from annual land rent to one-off land rent for the entire lease term, extension of land use term, adjustment of land use duration, or detailed planning adjustment before August 1, 2024, but no land price decision has been issued, the land user (investor) must pay an additional amount corresponding to the period during which land use levy or land rent has not yet been calculated.

Under Decree 103, the additional payable rate was 5.4%/year on the land use levy amount. This rate was widely considered high and imposed substantial financial pressure on enterprises. Numerous proposals suggested reducing this percentage to support real estate investors amid current market difficulties. Based on such feedback, Decree 291 reduces the rate to 3.6%/year to better support enterprises/investors.

Additionally, Decree 291 supplements detailed guidance for determining the period during which land rent has not been calculated:

+ For land allocation or land lease under the 1993 and 2003 Land Laws where actual land handover occurred before January 1, 2005:

The unpaid period is calculated from the time land rent is required (the date of the land-related decision; where the actual handover date differs, the period starts from the actual handover date) until the 8th working day from the date the competent authority issues the land price decision for calculating land rent.

+ For cases where actual land handover occurred from January 1, 2005 to before August 1, 2024, or where decisions on land allocation, land lease, change of land use purpose, conversion of land rent payment method, extension of land use duration, or detailed planning adjustment under the 2013 Land Law have been issued but the land price plan has not yet been submitted to the competent People’s Committee:

• Where land rent is calculated using the coefficient-based method, the unpaid period is calculated from the time land rent is required to the 8th working day from the date the competent authority issues the land price decision.

• Where land rent is calculated using the direct comparison, deduction, income, or surplus methods under pre–August 1, 2024 regulations, the unpaid period is calculated from the time land rent is required until the 8th working day after the land price decision, minus the maximum 180 days allowed for determining specific land prices and the period directly affected by force majeure (if any).

The calculation of additional land rent or land use levy payable shall be made and notified together with the land rent payment notice issued by the competent authority.

4. Households and individuals allocated residential land due to State land recovery associated with residences requiring relocation, who are not eligible for land compensation and have no other residential place in the same commune-level administrative unit, shall not be exempted from land use levy

Accordingly, Decree 291 amends Decree 103 such that households or individuals allocated residential land due to State land recovery associated with residences requiring relocation, who do not meet eligibility conditions for residential land compensation and have no other residence within the same commune-level administrative unit, are no longer exempted from land use levy; instead, they are entitled to a 50% reduction of the land use levy payable.

In addition, Decree 291 adds that land use levy exemptions or reductions for poor households or ethnic minority households apply only to households and individuals who reside (have permanent residence) in the locality where the land is situated.

Decree 291 takes effect from November 06, 2025.