Handling of Establishments Undertaking Private Investment in Improper Land Use

Handling of establishments performing private investment in land use for improper purposes (Illustrative image)

The handling of establishments performing private investment in land use for improper purposes is implemented as follows:

- In case a competent state authority detects an establishment performing private investment in land use for the first time in an improper manner, it shall be subjected to administrative penalties in the field of land and must remit the following amounts to the state budget:

- Land rent for the period of improper land use according to the land price and land rent policy at the time of the decision on land lease;- Late payment charge calculated on the land rent during the period of improper land use as prescribed by the provisions of tax management law.

- In case, after being administratively fined for land violations, the establishment performing private investment in continues to utilize the land improperly, the State shall recover the land; the State will not refund the land rent already paid for the remaining lease period (if any) and shall not compensate for the value of assets attached to the land of the revoked project.

Thus, the land use of establishments performing private investment in must be proper, consistent with planning and in compliance with the legal regulations on land. Upon the expiration of the land lease term, if the establishment performing private investment in has no further need for land use or is dissolved or relocated, they must return the leased land to the State.

More details can be found in Circular 156/2014/TT-BTC, effective from December 15, 2014.

Thuy Tram

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