Vietnam: The method of determining land price to collect land rent in case of land use extension to be added (expected)?
- The method of determining land price to collect land rent in case of land use extension to be added in Vietnam?
- What are the regulations on determination of specific land prices by the land price adjustment coefficient method in Vietnam?
- What are the regulations on land price determination to set the reserve price of land use right auction in Vietnam?
The method of determining land price to collect land rent in case of land use extension to be added in Vietnam?
According to Clause 3, Article 2 of the Draft Decree amending and supplementing a number of Decrees detailing the implementation of the Land Law amending and supplementing Article 18 of Decree 44/2014/ND-CP as follows:
“Article 18a. Determination of land price to calculate and collect land rent in case of extension of land use term
If a land user is granted an extension of land use term by a competent state agency, the time of land price decision shall be as follows:
1. In case the decision to extend the land use term coincides with the expiration of the land use term or after the expiration of the land use term, the time of land price decision is the last day of the land use term.
2. In case a land user is entitled to an extension of the land use term due to the adjustment of an investment project, the following procedures shall be followed:
a) In case the land is used for land leased by the State with one-off rental payment for the entire lease period and the financial obligations have been fulfilled as prescribed by law, the land price shall be decided at the time of lease. The State decides to extend the land use term. The calculation of additional collection of land rent during the remaining land use term shall comply with regulations of the Ministry of Finance;
b) In case the land is used for land leased by the State with annual payment, the land price shall be decided for calculation and collection of annual land rent at the time the land use extension is decided by the State.”.
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Vietnam: The method of determining land price to collect land rent in case of land use extension to be added (expected)? (Image from the internet)
What are the regulations on determination of specific land prices by the land price adjustment coefficient method in Vietnam?
According to Article 18 of Decree 44/2014/ND-CP (amended by Clause 4, Article 3 of Decree 01/2017/ND-CP) as follows:
Article 18. Specific land pricing following the coefficient-based method.
1. The People’s Committee of the province regulates the land price coefficient to determine the specific land price depending on the common market price of land, the local social and economic conditions and the land price list.
2. The specific land price determined by the coefficient method prescribed in Clause 5 Article 4 in this Decree is applied to:
a) The cases mentioned in Points a, b, c, and d Clause 4 Article 114, Clause 2 Article 172, and Clause 3 Article 189 of the Land Law in which the plot of land is worth below VND 30 billion (applied to land in centrally-run cities), below VND 10 billion (applied to land in highlands), or below VND 20 billion (applied to other provinces); the cases in which annual rent for leased land is adjusted; reserve price at land auction when the government leases out land and collect land rent annually.
b) Cases prescribed in point dd Clause 4 Article 114 of the Land Law with regard to the adjacent plots of land having the same purpose and profitability from the such purpose.
3. Every year, the People’ Committee of the province shall regulate the land price coefficient to be applied to cases prescribed in point a Clause 2 this Article.
With regard to cases prescribed in point b Clause 2 this Article, the People’s Committee of the province shall regulates the land price coefficient to be applied to each plan at the time the land is revoked by the Government
4. Responsibility for establishment of land price coefficient
a) The Department of Finance of the province shall cooperate with the Department of Natural Resources and Environment of the province and other relevant Departments and Boards to formulate the land price coefficient and submit it to the People’s Committee of the province regulating the land price coefficient as prescribed in Point 2 Clause 2 this Article.
b) Department of Natural Resources and Environment of the province shall cooperate with the Department of Finance of the province and other relevant Departments and Boards to formulate the land price coefficient and submit it to the People’s Committee of the province for approval as prescribed in point b Clause 2 this Article.
5. Ministry of Natural Resources and Environment shall cooperate with the Ministry of Finance to give guidance on establishment of the land price coefficient."
What are the regulations on land price determination to set the reserve price of land use right auction in Vietnam?
According to Clause 3, Article 2 of the Draft Decree amending and supplementing a number of Decrees detailing the implementation of the Land Law amending and supplementing Point a, Clause 2, Article 18 as follows:
“a) In the cases specified at Points a, b, c and d, Clause 4, Article 114, Clause 2, Article 172 and Clause 3, Article 189 of the Land Law, land price determination shall be used as the reserve price for auction of land use rights when the State allocates land with collection of land use levy, leases land with one-off rental payment for the entire lease period, for which the land plot or land area of the project is valuable (calculated according to the land price in the land price list) less than 30 billion VND for centrally run cities; less than 10 billion VND for mountainous and highland provinces; less than 20 billion VND for the remaining provinces; determine the land price to serve as a basis for calculating land rent when the State leases land to collect annual land rent but must redefine the land rental unit price for adjustment for the next cycle; determine the reserve price for the auction of land use rights;
Thus, the provision that in case the land user is granted an extension of land use term by a competent state agency, the time for deciding the land price is added as above.
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