WLT ALERT
The Ministry of Municipal and Rural Affairs and Housing has introduced significant amendments to the White Land Tax (WLT) Law. These changes are designed to increase land development, optimize urban expansion, and address the shortage in residential supply.
This Tax Alert provides a comparative overview of the key changes under the New Law versus the Previous Law.
- White Land Fee Rate: The amended law introduces a progressive annual fee of up to 10% of the land value owned by one or more natural or legal persons, except for state properties. This rate has been increased from the previous flat rate of 2.5%.
- Vacant Property Fee Rate: The amended law introduces an annual property fee of up to 5% based on estimated rental value with some exception, adjustable to 10% by ministerial approval.
- Targeted Phases: The targeted phases have been unified under the new amendment, with the Minister setting the fee scope to apply to minimum land areas of no less than 5,000 square meters, replacing the previous city-specific phased approach.
- Land usage classification: The amendments expand the land use scope which covers all developable vacant land within urban boundaries, not just residential or commercial uses as previous law.
- Executive regulations for White Land Fees will be issued within 90 days, while those for Vacant Property Fees will be issued one year after the official publication of the amendments approved by the Council of Ministers on 29 April 2025.
The Takeaway
Landowners and developers are encouraged to proactively review their assets and begin preparations for compliance with the revised tax framework. Further details will be issued upon finalization of the implementing regulations.
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