Vietnam: From July 01, minimum fee applicable to a property auction contract is VND 1,000,000 per contract

11:41, 16/06/2017

According to Circular No. 45/2017/TT-BTC on bracket of property auction fees in accordance with the Law on property auction recently issued by the Ministry of Finance of Vietnam, from July 01, minimum fee applicable to a property auction contract is VND 1,000,000 per contract.

Circular No. 45/2017/TT-BTC of the Ministry of Finance of Vietnam specifies maximum auction fees equivalent to bracket of property value as follows:

No.	Value of property (starting price or stated in contract)	Maximum auction fee
1	Less than VND 50 million	8% of sold property value
2	At least VND 50 million to at most VND 100 million	VND 3.64 million + 5% of difference between hammer price and starting price
3	Greater than VND 100 million to at most VND 500 million	VND 6.82 million + 3% of difference between hammer price and starting price
4	Greater than VND 500 million to at most VND 1 billion	VND 14.18 million + 2% of difference between hammer price and starting price
5	Greater than VND 1 billion to at most VND 5 billion	VND 22.64 million + 1.5% of difference between hammer price and starting price
6	Greater than VND 5 billion to at most VND 10 billion	VND 32.45 million + 1.4% of difference between hammer price and starting price
7	Greater than VND 10 billion to at most VND 20 billion	VND 38.41 million + 1.3% of difference between hammer price and starting price
8	Greater than VND 20 billion to at most VND 50 billion	VND 40.91 million + 1.2% of difference between hammer price and starting price
9	Greater than 50 billion	VND 50 million + 1% of difference between hammer price and starting price

Maximum fee equivalent to each bracket of property value by starting price is VND 300 million per contract.

Auction fees prescribed in Clause 1 Article 3 of Circular No. 45/2017/TT-BTC excludes VAT but includes reasonable and valid expenses charged by auction companies for the property which have been put up for auction as prescribed.

In case of unsuccessful auction, the seller must pay to the auction company for reasonable and valid expenses as specified in the auction contract in accordance with Clause 2, Article 66 of the Law on property auction of Vietnam, but not exceeding the amount of auction fee in case of successful auction.

The seller shall come into an agreement with an auction company on fee and specific auction expenses and specify it in an auction contract according to the results of auction company selection and regulations on auction fees in accordance with the Law on property auction, but not exceeding the maximum and not less than the minimum of the fee bracket prescribed in Clause 1 Article 3 of Circular No. 45/2017/TT-BTC.

Within 20 working days from the date on which the closing day of auction, regardless of successful or unsuccessful case, the seller must pay to the auction company for fee or expenses associated with public notices on bulletin board, and other reasonable expenses prescribed in Clause 2, Article 66 of the Law on property auction; unless otherwise agreed upon by the parties or prescribed by law.

Circular No. 45/2017/TT-BTC of the Ministry of Finance of Vietnam takes effect from July 01, 2017.

Source: Online Vietnam Financial Times

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