Vietnam: Calculation of land rent under Circular 207/2014/TT-BTC

Vietnam: Calculation of land rent under Circular 207/2014/TT-BTC (Illustrative image)

The unit price for calculating land rent is determined according to Circular 207/2014/TT-BTC as follows:

1. The unit price for calculating annual land rent in Vietnam is determined as follows

Unit price for calculating annual land rent = Percentage rate (%) multiplied (x) by Land price for calculating land rent.

Where:

- The percentage rate (%) for calculating the unit price is 0.5%;

- Land price for calculating land rent = (Land price according to the corresponding use purpose in the Land Price Table prescribed by the Provincial People's Committee) x (Land price adjustment coefficient issued by the Provincial People's Committee at the time of determining the unit price for calculating land rent)

Where the leased land area falls within different locations, regions, or positions with different land prices and land price adjustment coefficients, the land price for calculating land rent is determined according to the weighted average price for the entire leased land area.

2. The unit price for calculating land rent paid once for the entire lease term is determined as follows

The unit price for calculating land rent paid once for the entire lease term = Land price according to the corresponding use purpose of the lease term prescribed by the Provincial People's Committee in the Land Price Table x Land price adjustment coefficient issued by the Provincial People's Committee at the time of determining the unit price for calculating land rent.

Where the leased land area falls within different locations, regions, or positions with different land prices and land price adjustment coefficients, the unit price for calculating land rent paid once for the entire lease term is determined according to the weighted average price for the entire leased land area.

Where the lease term differs from the term prescribed in the Land Price Table, the land price for determining the unit price for calculating land rent is calculated according to the following formula:

Land price of the lease term = (Land price in the Land Price Table x Lease term)/Land type term in the Land Price Table

More details can be found in Circular 207/2014/TT-BTC effective from February 15, 2015.

Thuy Tram

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