1. Legal Framework for the New Land Price Schedule under the 2024 Land Law
Pursuant to Article 159 of the 2024 Land Law, Vietnam’s land valuation framework has undergone several significant reforms.
Abolition of the Government-Issued Land Price Framework
The previous nationwide land price framework issued by the Government has been abolished. Instead, each Provincial People’s Committee is responsible for preparing a provincial Land Price Schedule based on statutory land valuation principles and methodologies, which must be approved by the corresponding Provincial People’s Council.
The first Land Price Schedule under the new regime will take effect on 1 January 2026.
Annual Adjustment of the Land Price Schedule
Unlike the 2013 Land Law, under which the Land Price Schedule was updated once every five years, the 2024 Land Law requires provincial authorities to review, amend, and update the schedule annually to ensure that land prices more accurately reflect prevailing market conditions.
The new Land Price Schedule serves as the basis for determining financial obligations in various circumstances, including:
- Calculation of land use fees when the State recognizes land use rights (issuance of the initial Land Use Rights Certificate (“LURC”)) or permits a change in land use purpose;
- Calculation of Personal Income Tax (PIT) arising from real estate transfers;
- Calculation of registration fees payable upon the transfer of land use rights;
- Determination of compensation and support payments when land is recovered by the State; and
- Assessment of land use tax and land rental obligations.
2. Financial Implications of the New Land Price Schedule
2.1. Impact on Land Title Transfer Costs (Personal Income Tax and Registration Fees)
As the Land Price Schedule becomes more closely aligned with actual market values, the costs associated with transferring land use rights—including transfers by sale, gift, or inheritance—are expected to increase.
Registration Fee
Pursuant to Articles 7 and 8 of Decree No. 10/2022/ND-CP, the registration fee applicable to houses and land is 0.5% of the taxable property value.
Where the transfer price stated in the notarized transfer agreement is lower than the land value prescribed in the provincial Land Price Schedule, the tax authority will calculate the registration fee based on the Land Price Schedule.
Accordingly, an increase in the Land Price Schedule will directly result in higher registration fees.
Personal Income Tax on Real Estate Transfers
Pursuant to Article 14 of the Law on Personal Income Tax (as amended) and Circular No. 92/2015/TT-BTC, PIT arising from the transfer of real estate is generally calculated at 2% of the transfer price.
In practice, some taxpayers previously declared transfer prices below the actual transaction value in order to reduce their tax liabilities.
Under the new valuation regime, however, tax authorities may rely on the updated Land Price Schedule—which is intended to approximate market value—as the minimum valuation benchmark. Consequently, the widespread practice of maintaining “dual pricing” (i.e., declaring an artificially low contractual price while agreeing on a higher actual purchase price) is expected to be significantly curtailed, resulting in tax liabilities that more accurately reflect the true value of the property.
2.2. Impact on the Cost of Obtaining an Initial Land Use Rights Certificate and Converting Land Use Purposes
This category is expected to experience the most significant financial impact following the increase in official land prices.
Initial Issuance of a Land Use Rights Certificate (LURC)
Land use fees payable upon the State’s recognition of land use rights are determined based on the land area and the applicable Land Price Schedule in effect on the date a valid application is submitted.
Accordingly, higher official land prices will substantially increase the land use fees payable by applicants seeking the initial issuance of a Land Use Rights Certificate, particularly in respect of land lacking formal documentation.
Conversion of Agricultural Land to Residential Land
Where land users apply to convert agricultural land into residential land, land use fees are generally determined based on the difference between the residential land price and the agricultural land price under the applicable Land Price Schedule.
As residential land values are expected to increase significantly under the new schedule, the financial cost of converting land use purposes will likewise increase.
2.3. Impact on Compensation for State Land Acquisition
Conversely, the revised Land Price Schedule is expected to provide greater protection for individuals whose land is acquired by the State.
Pursuant to Articles 91 and 160 of the 2024 Land Law, compensation payable for land recovered by the State for socio-economic development, national defence, or security purposes is determined on the basis of specific land prices established in accordance with market valuation principles.
By bringing official land prices closer to actual market values, the new framework is expected to improve the adequacy of compensation and resettlement support, thereby reducing disputes and long-standing complaints concerning land acquisition compensation.
3. Summary of the Financial Impact of the New Land Price Schedule
| Financial Obligation | Applicable Rate | Expected Impact of Market-Aligned Land Prices |
| Registration Fee | 0.5% × Land Value | Increase, as the taxable value of land increases |
| Personal Income Tax on Real Estate Transfers | 2% × Transfer Price | Increase, as minimum taxable values more closely reflect actual market prices and under-reporting becomes less feasible |
| Land Use Fees for Initial LURC Issuance or Land Use Conversion | Based on the applicable Land Price Schedule | Significant increase in land use fees and the cost of obtaining land titles or converting land use purposes |
| Compensation upon State Land Acquisition | Based on market-oriented land valuation | Improvement in compensation levels, resulting in fairer compensation for affected land users |
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Nguyen Thuy Duong