Transfer of socialization projects in Vietnam accordance with Circular No. 156/2014/TT-BTC

Transfer of socialization projects in Vietnam accordance with Circular No. 156/2014/TT-BTC

The transfer of a private investment project shall be implemented as follows:

- During the implementation of a project, if, for objective reasons, it is not possible to continue the project on the land leased by the State, the entity implementing the private investment may transfer this project in accordance with the law on real estate business and land law, provided that the competent state authority approves the transfer of the project in writing.

The entity receiving the project transfer must commit to ensuring the continued implementation of the private investment project in accordance with the project's objectives and land use purposes; the transferee will continue to enjoy the land incentives as per the private investment policy applicable to the transferor for the remaining land lease duration from the date of receiving the project transfer.

- The value of the transferred project is agreed upon by both parties, including:

- Assets on the land for projects that are fully exempt from land rent or projects for which the State leases land with annual land rent payment;- Assets on the land and the entire value of land use rights for projects required to fully pay land rent (no exemption or reduction) in cases where the land rent is paid once for the entire lease period;- Assets on the land and a portion of the land use rights value corresponding to the land rent already paid to the state budget for projects with land leased by the State with a one-time land rent payment for the entire lease period.

- The completion of land lease procedures between the old investor and the new investor when transferring a private investment project shall be carried out in accordance with land law regulations.

More details can be found in Circular 156/2014/TT-BTC, which comes into effect in Vietnam from December 15, 2014.

Thuy Tram

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