Vietnam: Guiding the elaboration of transition provision specified in Decree No. 139/2017/NĐ-CP

Specifically, according to the Circular No. 03/2018/TT-BXD of the Ministry of Construction of Vietnam, in addition to the imposition of administrative penalties, illegal benefits, which are obtained from the acts of executing the construction work inconsistently with the building permit; executing the construction work without having a building permit as prescribed by law; executing the construction work inconsistently with the approved construction design, the approved construction planning or the approved urban design in case of building permit exemption, must be transferred to state budget provided that all of the 6 following conditions are met:

- The act of violation has been committed within the period from January 04, 2018 to January 15, 2018 but discovered by a competent officer after January 15, 2018 or before January 15, 2018 with the availability of either of the following documents: The record of administrative violation, the decision on imposition of administrative penalties, the decision on enforcement of remedial measures or the decision on enforcement of additional remedial measures;

- There is not violation against regulations on construction elevations;

- The existing construction work does not affect any adjoining buildings;

- There is no dispute;

- The construction work is located on the land area with legal use right;

- The construction work is found to be conformable with the construction planning approved by a competent authority.

The amount of illegal benefits obtained by the violating entity from the violation prescribed above shall be determined as follows:

- If the construction work is built to serve business purposes: The amount of illegal benefits equals total floor area (m2) built inconsistently with law regulations multiplied by the product of the unit price per square meter, which is specified in the signed sales and transfer contract and not lower than the investment rate of the construction work at the same grade and of the same type, and 50%;

- If the construction work is built to serve non-business purposes: The amount of illegal benefits equals total floor area (m2) built inconsistently with law regulations multiplied by the product of the building cost per square meter, which is specified in the approved construction cost estimate and not lower than the investment rate of the construction work at the same grade and of the same type, and 50%;

- In case of unavailability of the signed sales and transfer contract or approved cost estimate, the amount of illegal benefits equals total floor area (m2) built inconsistently with law regulations multiplied by the product of the investment rate of the construction work at the same grade and of the same type and 50%;

- The officer competent to impose administrative penalties shall apply the investment rate announced at the time of issuing the decision on imposition of administrative penalties and assume responsibility to determine the amount of illegal benefits payable by the violating entity.

View more details at Circular No. 03/2018/TT-BXD of the Ministry of Construction of Vietnam, effective from June 12, 2018.

-Thao Uyen-

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