Stable period of unit price of leased land and leased water surface of projects paying annual land rents in Vietnam

Stable period of unit price of leased land and leased water surface of projects paying annual land rents in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Stable period of unit price of leased land and leased water surface of projects paying annual land rents in Vietnam

Stable period of unit price of leased land and leased water surface of projects paying annual land rents in Vietnam according to Article 14 of Decree 46/2014/ND-CP is as follows:

- The annual unit price of leased land, unit price of leased land used for building the underground constructions, unit price of leased land with water surface of each project shall be stable in 05 years from the approval of the State for the land lease, change in land use purposes, switch from land allocation to land lease, and recognition of right to enjoyment of land.

After a stable period ends, the Directors of the provincial Departments of Taxation and Directors of the Sub-departments of taxation shall adjust the unit price of leased land, unit price of leased land used for building the underground constructions, unit price of leased land with water surface in the next period in accordance with the regulations in Articles 4, 5 and 6 of Decree 46/2014/ND-CP.

- The annual unit price of the leased water surface of each project shall be stable in 05 years from the approval of the State for the water surface lease. After a stable period ends, the People’s Committee of provinces shall adjust the unit price of the leased water surface in the next period in accordance with the regulations in Articles 7 of Decree 46/2014/ND-CP.

- The unit price of the leased land, land used for building the underground constructions, land with water surface and leased water surface shall be adjusted if:

= The stable period of any project which has paid the land rent and water surface rent expires in accordance with the regulations in Clause 1 and Clause 2 of Article 14 of Decree 46/2014/ND-CP.

= The land use purpose of any project is changed (the unit price shall be adjusted according to the new purpose at the time the purpose is changed).

- In case of any entity using land for the purposes subject to land lease under the regulations of the Land Law 2013 without the Decision on land lease and land lease contract, the unit price shall not be stable in accordance with the regulations in Clause 1 Article 14 of Decree 46/2014/ND-CP.

2. Entities leasing land from the State and paying annual land rents or lump sum land rents in Vietnam

According to Clause 1, Article 2 of Decree 46/2014/ND-CP, the entities leasing land from the State and paying annual land rents or lump sum land rents are:

- Households and individuals using land for the purposes of agricultural production, forestry, aquaculture or salt making.

- Households and individuals that wish to continue using the agricultural land beyond the allocation limits prescribed in Article 129 of the Land Law 2013.

- Households and individuals that use the commercial land; land for mineral extraction; land for the production of building materials and ceramics; non-agriculture land.

- Households and individuals that use land for the construction of public works serving business purposes.

- Households and individuals that use salt making land to make salt beyond the local limits on land allocation and economic organizations, overseas Vietnamese, foreign-invested enterprises that use land for investment projects on salt making in accordance with the regulations in Clause 1 Article 138 of the Land Law 2013.

- Households and individuals who are not directly involved in agricultural production, forestry, aquaculture, salt making, allocated non-levied land and required to switch over to the land lease in case they use land for farming in accordance with the regulations in Point b Clause 1 Article 142 of the Land Law 2013;

Households and individuals using land for farming must and required to switch over to land lease if they change the land use purposes in accordance with the Clause 3 Article 142 of the Land Law 2013.

- Economic organizations, overseas Vietnamese, foreign-invested enterprises using land to carry out investment projects on agricultural production, forestry, aquaculture and salt making;

Non-agricultual production and business land; land used for building public works serving business purposes; land for the investment projects on houses for lease.

- Economic organizations, overseas Vietnamese, foreign-invested enterprises leasing land to invest in underground constructions under the regulations in Clause 2 Article 161 of the Land Law 2013.

- Economic organizations, self-financing public service provider, overseas Vietnamese, foreign-invested enterprises using land to build public works.

- Foreign diplomatic missions using land to build their headquarters.

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