From November 15, 2016, exemption from land levies, land rents for social housing investors when constructing social housing shall be carried out as guided in Circular No. 139/2016/TT-BTC of the Ministry of Finance of Vietnam.
Article table of contents
According to Circular No. 139/2016/TT-BTC of the Ministry of Finance of Vietnam, exemption from land levies, land rents for social housing projects prescribed in Decree No. 100/2015/ND-CP shall apply to investors that are not funded by state budget. To be specific:
- Exemption of land levies and land rents for the land area allocated or leased out by the State, including land area for construction of commercial works approved by a competent authority within the social housing project;
- The People’s Committee of the province shall consider refunding the land levies paid by the investor when receiving land from the State or receiving land use right (LUR) from another organization, household, or individual which is used for construction of social houses, or land levies paid by the investor for 20% land are, or deduct such amount from the investor’s financial obligations to the State;
- 20% of the total land area within the social housing project may be used for construction of commercial works;
- If the detailed planning of the project approved by a competent authority does not have a separate land area for commercial works, the investor may use 20% of the total floor area of the project for sale, lease, lease purchase at commercial prices.
The commercial area must be included in the project and ensure conformity with maximum profit principle as set out in Article 21 of Decree No. 100/2015/ND-CP of Vietnam’s Government.
Moreover, the investor has the responsibility to use an area to serve daily life of residents of the project. This area is determined according to applicable standards, regulations, and architectural planning approved by a competent authority.
Circular No. 139/2016/TT-BTC stipulates that the exemption from land levies, land rents shall be carried out as follows:
- Exemption from land levies, land rents for the entire land area allocated, leased out by the state for social housing projects including land funds for business and trade works approved by competent authorities within the scope of social housing projects.
- Exemption from land levies, land rents for the entire land area used for social housing projects from 20 percent of the land fund for development of commercial housing projects and urban development projects according to the law on housing, including 20 percent of the land area used for business and trade works approved by competent authorities within the scope of social housing projects.
- The social housing investor shall fulfill procedures to apply for exemption from land levies, land rents according to the law on lands.
