Vietnam: How are fines for leasing property beyond imposed the limits?

According to Article 7 of the Decree No. 63/2019/NĐ-CP of Vietnam’s Government, a fine ranging from VND 1,000,000 to VND 5,000,000 shall be imposed for one of the following violations against regulations on property lease if the value of the property lease agreement is less than VND 100,000,000:

- Leasing property without the decision on property lease issued by a competent authority or officer;

- Leasing property beyond the limits imposed by competent authorities;

- Selecting leasing service providers against procedures or methods laid down in the law on management and use of public property and relevant laws.

A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for committing the violation prescribed in Clause 1 of this Article if the value of the property lease agreement is VND 100,000,000 or higher.

Besides fines, the violator is also compelled to return the spending amount on leasing of property that exceeds the prescribed spending limit if committing the violation prescribed above.

Also according to Decree No. 63/2019/NĐ-CP of Vietnam’s Government, the value of the property lease agreement which is used as the basis for imposing fines shall be determined as follows:

- If a specific value is specified in the property lease agreement, that value shall be used as the basis for imposing fines;

- In case of leasing property without entering into a written property lease agreement or the property lease agreement contains insufficient information for determining the value as prescribed in Clause a of this Clause, the value used as the basis for imposing fines shall be determined by the price of leasing of property of the same category or having similar standards or techniques on the market at the time of commission of violation multiplied by the leasing period counting from the commencement date of the lease to the issue date of penalty imposition decision.

The persons that have the power to impose penalties as prescribed in Article 29 and Article 30 hereof shall determine values used as the basis for imposing penalties in accordance with regulations of the law on penalties for administrative violations and shall assume responsibility for their determination.

View full text at Decree No. 63/2019/NĐ-CP of Vietnam’s Government, effective from September 01, 2019.

Thu Ba

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