Determination of land levy and land rent in land reclamation projects from April 16, 2024 in Vietnam

Determination of land levy and land rent in land reclamation projects from April 16, 2024 in Vietnam (Image from the internet)

Regarding this issue, LawNet provides the following explanation:

On April 16, 2024, the Government of Vietnam promulgated Decree 42/2024/ND-CP on land reclamation.

Determination of land levy and land rent in land reclamation projects from April 16, 2024 in Vietnam

Article 9 of Decree 42/2024/ND-CP stipulates the determination of land levy and land rent as follows:

- The specific land price to calculate land levy and land rent shall be determined according to the provisions of the land law. In cases where the surplus method is applied to determine the specific land price, the estimated total development cost must include the land reclamation cost approved by the competent state authority as specified in Article 6 of Decree 42/2024/ND-CP;

In cases where the total development cost exceeds the total development revenue, the difference is included in the cost of the land reclamation project or the investment project that has a land reclamation item.

- Within no more than 180 days from the completion date of land reclamation, the investor of the land reclamation project or the investment project that has a land reclamation item must prepare a dossier requesting the settlement of land reclamation costs and submit it to the specialized construction agency under the provincial People's Committee for evaluation.

Within no more than 90 days from the date of receiving the complete settlement dossier from the investor, the specialized construction agency under the provincial People's Committee shall settle the land reclamation costs and submit them to the provincial People's Committee for approval.

- The handling of the difference between the settled land reclamation costs and the land reclamation costs included in the total development cost when determining the specific land price, in cases where the surplus method is applied (hereinafter referred to as the difference), shall be carried out as follows:

+ If the settled land reclamation costs are less than the land reclamation costs included in the total development cost, the investor must pay the difference;

+ If the settled land reclamation costs exceed the land reclamation costs included in the total development cost, the difference is included in the cost of the land reclamation project or the investment project that has a land reclamation item.

Decision and approval of investment guidelines, investor selection for investment projects that involve land reclamation in Vietnam

The decision and approval of investment guidelines, and investor selection for investment projects that involve land reclamation in Vietnam are stipulated in Article 5 of Decree 42/2024/ND-CP as follows:

- The decision and approval of investment guidelines of investment projects that involve land reclamation shall be carried out according to the provisions of the law on investment, public investment, and investment in the form of public-private partnership.

- The selection of investors to execute investment projects that involve land reclamation using non-state budget capital shall be carried out according to the provisions of the law on investment, bidding, land, and public-private partnership investment.

- Land reclamation activities in investment projects that involve land reclamation are established as a land reclamation project or a land reclamation item of the investment project as specified in Article 6 of Decree 42/2024/ND-CP.

Nguyen Ngoc Que Anh

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