Determination of Starting Price for Auctioning Land Use Rights

The new circular supplements regulations on determining the starting price for auctioning land use rights to allocate land with land levy.

To be specific, in cases where the land use fee of the parcel or land auction area is valued below 30 billion VND for centrally-run cities; below 10 billion VND for mountainous and highland provinces; below 20 billion VND for other provinces, the starting price is the specific land price determined by financial agencies based on the land price in the Land Price Table, and the land price adjustment coefficient issued by the Provincial People's Committee.

The land price adjustment coefficient to determine the starting price is the land price adjustment coefficient issued by the Provincial People's Committee to determine the land price for calculating land use fees in cases of land allocation with land use fees without going through the auction form.

In cases where the parcel or land auction area belongs to urban areas, traffic hubs, concentrated residential areas with advantages and profitability, based on the actual situation in the locality, the Department of Finance shall report to the Provincial People's Committee to decide on adjusting and increasing the land price adjustment coefficient to determine the starting price.

In cases where the land use fee of the parcel or auction area is valued at 30 billion VND or more for centrally-run cities; 10 billion VND or more for mountainous and highland provinces; 20 billion VND or more for other provinces, the starting price is the specific land price determined by the Department of Natural Resources and Environment, transferred to the local Land Price Appraisal Council with the Department of Finance as the standing council to organize the appraisal.

The circular also supplements some cases of land use fee reduction for cemetery and graveyard infrastructure projects to transfer land use rights associated with the infrastructure.

Allocated land from December 27, 2015, to February 10, 2017, subject to incentives under Decree 118/2015/ND-CP and has submitted an application for a land use fee reduction to enjoy incentives as prescribed in Circular 76/2014/TT-BTC.

50% reduction of land use fee for projects located in areas with extremely difficult socio-economic conditions; or with capital of 6,000 billion VND or more, having disbursed at least 6,000 billion VND within 3 years from the date of issuance of the investment registration certificate or investment approval.

30% reduction of land use fee for projects located in areas with difficult socio-economic conditions; or in rural areas using at least 500 laborers.

20% reduction of land use fee for projects not falling into the two aforementioned cases.

Circular 332/2016/TT-BTC takes effect from February 10, 2017.

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