Summary of jurisprudence dissertation the current law on financial obligations of land users to the state in vietnam

Research focus Firstly, researching the economic theories of ground rent by Karl Marx, the theory of land taxation by Adam Smith and Henry George to form the premise for the theory of

VIETNAM ACADEMY OF SOCIAL SCIENCES

GRADUATE ACADEMY OF SOCIAL SCIENCES

-

NGUYEN THI THANH XUAN

THE CURRENT LAW ON FINANCIAL OBLIGATIONS

OF LAND USERS TO THE STATE IN VIETNAM

Major: Economics laws Code: 9380107

SUMMARY OF JURISPRUDENCE DISSERTATION

HANOI - 2020

The dissertation is completed at:

VIETNAM ACADEMY OF SOCIAL SCIENCES

GRADUATE ACADEMY OF SOCIAL SCIENCES

Science instructors: Assoc Prof PhD PHAM THI GIANG THU Assoc Prof PhD NGUYEN THI NGA

The dissertation will be defended in front of the Academy -level Dissertation Evaluation Committee

At … o’clock date month year……

The dissertation can be found at:

- National Library of Vietnam

- The library of Graduate Academy of Social Sciences

THE AUTHOR'S WORKS RELATED TO THE DISSERTATION

TOPIC HAVE BEEN PUBLISHED

1 Nguyen Thi Thanh Xuan, (2018), Proposing to amend regulations on collection of land use fees in the 2013 Land Law, Industry and Trade Mangazine, No 2 – February in 2018

2 Nguyen Thi Thanh Xuan, (2018), Amending regulations on land use tax

in the context of land financial reform, Journal of Democracy and Law, March (312) in 2018

INTRODUCTION

1 The urgency of the research

Land is an important resource for the economic development of all countries In Vietnam, land is public property and the State's right to manage and benefit from public property is determined by the law on land Land is exploited and used effectively or not depending on the level of capitalization to convert resources into assets and capital Ensuring equal rights in access to and use of public property of all entities in the economy

is to ensure both economic and social equity of entities in land relation Of the four management tools of current land management theories, the land finance plays the role of balancing the interests of the parties in the most direct way

Resolution of the Sixth Conference of the Party Central Committee (Session XI) - Resolution No 19-NQ/TW dated October 31st, 2012 identified the completion of the law on land finance as a necessary content need to be performed in the period of comprehensive promotion of the renovation and creating a foundation for our country to basically become a modern-oriented industrial country Continuing to achieve this goal, Resolution No 11-NQ/TW dated June 3, 2017 of the Central Conference 5 Session XII on the improvement of market economy institutions in Vietnam has oriented reform requirements with clear criteria; in particular,

"vigorously reforming financial policies on land towards simplicity, stability, publicity, transparency and fairness" is one of the immediate tasks

As of the end of December 31st, 2018, the land area put into use in our country is 93.7% of the total natural land area [88] The budget revenue from land is in the period of 2013-2018, accounting for an average of about 14.4% of domestic revenue Since the 2013 the Land Law came into effect, the ratio of budget revenue from land on total domestic revenue has increased significantly in terms of both total revenue and percentage; specifically, from 11.1% (in 2013), 11.4% (in 2014) to 13.3% (in 2015), 15.9% (in 2016), 16.8% (in 2017) and 17.9% (in 2018) The content of

budget revenue from land currently focuses mainly on the financial obligations of the land users to the State Although the results of revenue from land have always increased in recent years, the revenue source having the decisive factor is unstable and unsustainable The land tax has a stable revenue base, but the rate is low The ratio of land tax on total land revenue

is less than 1.3%, lower than tax administration expenses

According to a study by the World Bank, Vietnam's tax administration expenses account for 2% of total tax revenue Thus, the current land tax is not enough to offset the taxation expenses In contrast, land use fee is the land budget revenue comprising the largest proportion with an average of about 70% of budget revenues coming from land, but the revenue base is not sustainable Most recently, the State Audit's report No 42/BC-KTNN dated May 11th, 2020 on the budget finalization in 2018 showed that the budget revenue in 2018 was equal to 110.7% in 2017, but the results of domestic revenue increase mainly come from collection of land use fees Land use fees are collected only once for a specific land area, not annually With a high proportion of natural land put into use as at present, in the future, the land collection will fall sharply, which will not ensurethe economic rights of the land owners

The situation of land using and management in localities from 2013

to 2020 through the inspection of the Government Inspectorate and the audit of the State Audit showed that there exist limitations in the regulations

on financial obligations of the land users and violation in law enforcement

In most localities, there is a situation of loss of revenue from land, commonly incorrectly determining the financial obligations of the land user

to the State, inaccurate and insufficient calculation, late collection of fee, late payment without penalty of late payment, and so on The cause of the above situation stems from the incomplete law of the financial obligations

of the land users to the State Regulations on determining financial obligations such as land type, unit price, price cycle, tax rate and others are still inadequate The current law on the land users’ financial obligation to

the State still has many loopholes and legal gaps leading to fraud, evasion

of law enforcement In implementing the law, there is a situation of compliance and failure to enforce the law on the side of the land users and incorrect law application from the land administration and tax authorities The land users evade the financial obligations, arbitrarily change the land use purpose, and fail to carry out legal procedures to evade the obligation of land use fee and income tax payment Land management and tax agencies when applying the law still have many mistakes such as not signing land lease contracts, not making a form for cadastral information transfer, which makes it impossible to determine the financial obligations of the land users,

non-as well non-as the inaccurate and insufficient calculation of land use fee, land rent, tax, the application of exemption or reduction regulations to the wrong subjects, etc All of the above situations have caused a loss of State budget revenue from residential land in Vietnam

Research to perfect the law on the Financial obligations of the

land users to the State in Vietnam is now very urgent This study will

contribute to solving shortcomings in the current legal situation and law enforcement on land finance Completed financial tools in land management will promote land resources, promote effective land capitalization

2 Research purpose and topic

2.1 Research purpose

The research purpose of the dissertation is to perfect the law on financial obligations of the land users to the State and propose solutions to improve the efficiency of law implementation in Vietnam

2.2 Research topic

Firstly, to systematize and clarify the theoretical issues of financial

obligations and theories about the law on financial obligations of the land users to the State: Specifically, analyzing and clarifying the theoretical basis

of financial obligations of the land users to the State; the role of land finance in land management, legal characteristics of financial obligations of

the land users; criteria, source of law, content structure of the law on financial obligations of the land users to the State

Secondly, analyzing and assessing the current legal status and the real

implementation of the law on the financial obligations of the land users in the context of land finance reform towards perfecting the market economy institution with socialist orientation The dissertation focuses on analyzing the content of regulations on the time of arising obligations, scope of obligations, deadline for performing obligations, and order of procedures for each type of money in the financial obligation group of the land users to the House country

Thirdly, on the basis of analyzing the current situation of the law and

the difficulties, limitations, causes, requirements for legal adjustment, the dissertation provides orientation and solutions to perfect the law on financial obligations of the land users to the State

3 Research focus and scope in the dissertation

3.1 Research focus

Firstly, researching the economic theories of ground rent by Karl

Marx, the theory of land taxation by Adam Smith and Henry George to form the premise for the theory of the current law on financial obligations

of the land users to the State in Vietnam

Secondly, researching the legal financial obligations regulations of

the land users from the Land Law in 1987 to the current law and legal status

Thirdly, researching the practical implementation of law on

financial obligations of the land users to the State in a number of provinces and the results of nationwide land finance collection

3.2 Reseach scope

Due to the complexity and vastness of the project, the dissertation limits the research scope in deep analysis and understanding of the current regulations on the financial obligations of the land users to the State,

including land use fee, land rent, income tax from transfer of land use right, land use tax and registration fee

In terms of space: researching the law implementation on a national scale;

In terms of time: Since the State budget finalization is made about two (02) years slower than the year of collection, the data of budget revenue from the land is used in the period from 2013 to 2018

- The method of systematization is used in all chapters of the dissertation to present the contents and problems in a coherent and rational layout

- The analytical method is used in all chapters of the dissertation to explain the problems raised from theory to practice about the financial obligations of the land uses to the State

- The comparative jurisprudence method is used in chapter 2 and chapter 4 of the dissertation On the basis of the regulations of the countries

in the world on the financial obligations of the land owners to the State, the dissertation draws similarities, differences, and comparisons to assess the advantages and disadvantages of the law on financial obligations of the land users to the State in Vietnam and then produces solutions to perfect the law

5 New contributions of the dissertation

On the basis of selective inheritance of research results related to financial obligations of the land users to the State, with independent and serious research, the dissertation has the following scientific contributions:

- Firstly, the dissertation has synthesized and systematically built

up theoretical issues about financial obligations and legal theories on

financial obligations of the land users to the State The economic theories of ground rent by K Mark, the theory of land taxation by Adam Smith and Henry Goerge are analyzed to explain the revenue base, the formation basis

of the financial obligations of the land users to the State Besides, the dissertation also clarifies the characteristics, legal content structure, criteria, legal sources and factors affecting the formulation and implementation of the law on the financial obligations of the land users to the State Based on the theoretical basis, the dissertation proposes the basis for building legal content structure of the financial obligations of the land users and determines the content of the term "financial collection from land" in the current law, as a basis for the formulation of regulations on specific revenues

- Secondly, the dissertation has analyzed the legal status and the

implementation of the law on the financial obligations of the land users to the State Based on the formulation of legal content structure of the financial obligations of the land users, the dissertation assesses the current status of the law on the obligations to pay land use fee, land rent, land use tax, income tax from the transfer of land use right, land charges and fees

One of the new features of the dissertation is the way to approach the legal status of the land fees that land users must pay The dissertation analyzes the legal content structure of the land user's financial obligations that the dissertation has built in the theoretical part Legal regulations on the obligation to pay land use levy, land rental, land use tax, income tax from the transfer of land use rights and land fees must be clarified according to the structure: timepoint of obligations, scope of obligations (payment rate, land price, determination), collection base, deadline for performing obligations, implementation procedures, exemption policy

From the above-mentioned reality of law implementation, the dissertation points out the shortcomings and limitations of the law on the financial obligations of land users to the State: (i) provisions on various types of financial obligations have not covered payment base, have not ensured stability, transparency, equity, and there are cheatment and loss in

collection of fee; (ii) loss of land use levy due to inadequate provisions on the obligation to pay land use fees; (iii) loss of land rent due to poor land management and lack of regulation; (iv) The current tax on income from the transfer of land use rights has an inconsistent tax basis between the Law

on Corporate Income Tax and the Law on Individual Income Tax; (v) regulations on financial obligations of land users have not timely adjusted new estate products emerging on the market today

- Thirdly, the dissertation provides orientation and solutions to

improve the law on the financial obligations of land users to the State, in line with the goals of land financial reform and perfect economic institutions The market in Vietnam today: (i) the construction of all kinds

of financial obligations with a collection base which is added value from land by tax instruments, additional tax on the added-value; (ii) additional sanctions in case of delay in determining financial obligations; (iii) completing regulations on land lease procedures to unify the timepoint of arising obligation to pay land rent; (iv) completing the regulation on price

of annual land rental payment not through auction in the direction determined by each fiscal year; (v) solutions to avoid loss of land rental; (vi) land use tax must set the tax rate at a more reasonable rate, appropriate

to the basis of collection; (vii) agree that the base of the income tax from the transfer of land use rights of individuals and businesses is the same in direction of imposing on net income to ensure consistency with this tax nature; (viii) perfecting the cadastral database and forms of payment in land transactions The solutions offered by the dissertation cover from collection base to implementation procedures, from general regulations to specific regulations

6 The theoretical and practical significance of the dissertation

Firstly, theoretically, the dissertation is a scientific work that

studies systematically issues from theoretical basis to the legal status of the land user's financial obligations to the State The dissertation has synthesized and applied the theories of classical bourgeois economists such

as the economic theory of land rent, the theory of land taxation to explain

the basis of forming land financial obligations of land users Theoretical basis for the law on the financial obligations of land users to the State is also clarified by the dissertation The theoretical researches of the dissertation can contribute to helping researchers build and perfect the principles and criteria of the land user's financial obligations to the State when amending and supplementing Land Law 2013

Secondly, in terms of practice, the research results of the current

legal status and practice of the law implementation on the financial obligations of land users to the State of the dissertation have pointed out inadequacies, problems, gaps in current regulation The dissertation has proposed solutions to improve the law and the efficiency of the law implementation on the financial obligations of land users with the State; suggests reference to lawmakers as a proposed perspective for the revision

of the 2013 Land Law

7 The structure of the dissertation

The dissertation includes: Introduction; Four chapters; Conclusion and List of references;

Chapter 1: Overview of research situation and theoretical basis of the dissertation

Chapter 2: Theories about the financial obligations of land users and the law on the financial obligations of land users to the State

Chapter 3: Current state of law and assessment of the implementation of the law on the financial obligations of land users to the State in Vietnam today

Chapter 4: Orientations and solutions to improve the law and efficiency of law implementation on the financial obligations of land users

to the State in Vietnam today

Chapter 1 OVERVIEW OF RESEARCH SITUATION AND THEORETICAL

BASIS OF DISSERTATION 1.1 Overview of research related to the dissertation topic

The author divided into the following groups of studies:

The first group: Scientific researches related to theoretical issues of financial obligations of land users to the State

The second group: The sciences related to law enforcement of the financial obligations of land users to the State

1.2 The related research content is inherited by the dissertation

Firstly, the contents related to the theoretical basis of the land user's financial obligations to the State are inherited by the dissertation

First, the dissertation has received the basis of the economic theory

of land rent, the theory of land taxation by the classical bourgeois economists K Mark, Henry George This is the basis for exercising economic rights over land of land owners

Second, the Law on Financial Obligations of Land Users is an important tool to have fair in accessing to land, and to provide economic incentives among land users These works have helped the dissertation gain

a basic understanding of the role of land finance in land management in the implementation of social justice and the development of a socialist-oriented market economy in Vietnam

Third, countries with forms of land tenure different from Vietnam has had different land finance policies, but in the end, they are all based on land value and added value from land These studies also provide the dissertation with necessary information to compare with Vietnam and

evaluate the problem in a comprehensive way

Secondly, the dissertation inherits the contents related to the current legal status and the real implementation of the law on the financial obligations of the land users to the State

First, the value is added from land as profitability increases, expressed in terms of money All value added from the land will belong to the State after subtracting the value of the land user This is the State budget revenue source, which is distributed back to the whole society through the finance and budget law

Second, regulations on collection of land use fees for the case of changing land use purposes currently contribute to increasing budget revenues, effective land management; but the use of regulating tools of the primary market, direct distribution (land use fees, land rents) is not appropriate

Third, the tax policy on income tax from the transfer of land use rights has not yet effectively regulated the value added from land not created by land users

Fourth, in the legal status and implementation of the law on the financial obligations of land users, there are evasion and avoidance of financial obligations, land prices in determining financial obligations of land users which is not appropriate to the market value of the land These research results are used by the dissertation to invoke and prove when analyzing, explaining, arguing or stating the point of view of the dissertation as a consensus or contrary opinion

Thirdly, the dissertation inherits the contents related to solutions and recommendations to improve the law on financial obligations of land users to the State

First, studies have suggested that the land price in the calculation

of land allocation, lease, and tax is the land price in the market, avoiding loss of budget revenue from land Studies often focus on principles and methods of land price determination in order to achieve a price that is asymptotic to the market price The solutions of the above studies are of great value to the dissertation in determining the direction of completing the land price policy Accordingly, the dissertation will not complete the land