Upcoming Reduction of Land Levy by 20 - 50%

Circular 332/2016/TT-BTC has supplemented several cases of reduced land levy for cemetery infrastructure projects in which the right to use land associated with the infrastructure is transferred as follows:

1. Cases in which land was allocated from December 27, 2015, to February 10, 2017, to preferential subjects according to Decree 118/2015/ND-CP and with applications submitted for land levy reduction, they will enjoy the preferences as stipulated in Circular 76.

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

3. A reduction of 30% in land levy for projects implemented in difficult socio-economic areas or in rural areas employing at least 500 workers.

4. A reduction of 20% in land levy for projects not belonging to the above two adjacent cases.

Circular 332 also supplements regulations on determining the starting price for auctioning land use rights for land allocation with collection of land levy.

Specifically: in cases where the area for calculating land levy of a parcel or auction area has a value of VND 10 billion or more for mountainous and highland provinces; VND 30 billion or more for centrally-run cities; VND 20 billion or more for other provinces, the starting price is the specific land price determined by the Department of Natural Resources and Environment, forwarded to the local land valuation council headed by the Department of Finance for appraisal organization.

In cases where the area for calculating land levy of a parcel or auction area has a value of less than VND 10 billion for mountainous and highland provinces; less than VND 30 billion for centrally-run cities; less than VND 20 billion for other provinces, the starting price is the specific land price determined by the financial agency based on the land price list and the land price adjustment coefficient issued by the provincial People's Committee.

Source: Lao Dong Newspaper

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