Valuation of Asset of Investment Projects in Vietnam according to Circular 156/2014/TT-BTC

Valuation of Asset of Investment Projects in Vietnam according to Circular 156/2014/TT-BTC

The value of land use rights is included in the value of the investment project's assets and the land rights of the entity conducting private investment in Vietnam as follows:

- When the State leases land with a one-time land rent payment for the entire lease period and exempts land rent for the entire project duration or leases land with annual land rent payment, the entity conducting private investment is not allowed to include the value of land use rights in the value of the investment project's assets and is not allowed to convert, transfer, donate, lease the land use rights; nor to inherit, mortgage, guarantee, or contribute capital using the leased land use rights.

- When the State leases land with a one-time land rent payment for the entire lease period and exempts land rent for a certain number of years, the entity conducting private investment is allowed to include the value of land use rights based on the paid land rent amount in the value of the investment project's assets. The entity conducting private investment is allowed to transfer, donate, lease the land lease rights; inherit, mortgage, or contribute capital using the leased land use rights equivalent to the value of the land use rights corresponding to the land rent amount payable during the land rent payment period. The entity conducting private investment is permitted to exercise these rights from the time the land rent is paid to the state budget.

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

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE