Ho Chi Minh City Introduces New Land Price Framework
Standardizing Land Use Taxes and Fees Across the City
Ho Chi Minh City (HCMC) is set to implement a new land price framework on October 31, 2024, as outlined in Decision 79. This update replaces the previous Decision 02/2020 and aims to standardize land value assessments and related taxes across the entire city, eliminating the previous distinctions between urban and suburban areas. The new framework will impact financial obligations for land transactions, including land use fees, personal income tax, and transfer fees, ensuring a uniform approach for residential, commercial, and non-commercial land.
Under Decision 79, the outdated land value caps and case-by-case property price assessments are removed. Instead, fees for land-use conversion will be calculated based on the difference between the new usage valuation and the land’s previous value. Additionally, lease durations for certain land categories are extended from 50 to 70 years. Special-use or non-commercial land may qualify for reduced fees according to regional percentage formulas. For residential land conversions, fees will be determined by subtracting the original land-use or lease value from the updated valuation, while ownership transfers will follow the guidelines set in Articles 9 through 12 of Decree 103 introduced in August.
This comprehensive overhaul aims to streamline the land transaction process, enhance financial transparency, and reduce administrative complexities in HCMC’s real estate sector. By standardizing the calculation of land use fees and extending lease durations, the new framework supports sustainable urban development and provides clearer financial guidelines for residents and businesses alike.
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Under Decision 79, the outdated land value caps and case-by-case property price assessments are removed. Instead, fees for land-use conversion will be calculated based on the difference between the new usage valuation and the land’s previous value. Additionally, lease durations for certain land categories are extended from 50 to 70 years. Special-use or non-commercial land may qualify for reduced fees according to regional percentage formulas. For residential land conversions, fees will be determined by subtracting the original land-use or lease value from the updated valuation, while ownership transfers will follow the guidelines set in Articles 9 through 12 of Decree 103 introduced in August.
This comprehensive overhaul aims to streamline the land transaction process, enhance financial transparency, and reduce administrative complexities in HCMC’s real estate sector. By standardizing the calculation of land use fees and extending lease durations, the new framework supports sustainable urban development and provides clearer financial guidelines for residents and businesses alike.
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