Vietnam: Guidance on handling of financial liabilities related to land in Hoa Lac Hi-Tech Park

According to Vietnam’s new regulations, transitional regulations on fulfillment of land-related financial liabilities by land users who receive land before August 05, 2017 but do not yet pay land rents are as follows:

- If an investor has used land before August 05, 2017 but does not receive the land lease decision and pay land rent:

+ The HHTP Management Board shall determine the land rent, exemption and reduction thereof according to the land policy and price effective at the time of issuance of the land lease decision. Land rent exemption or reduction shall be enjoyed from the time when the investor receives land handover.

+ The investor that is eligible for enjoying land rent exemption and reduction but refuses to enjoy such incentives shall pay land rents as regulated.

- If an infrastructure investor has land leased by the HHTP Management Board before August 05, 2017, has received a land use right certificate but does not yet pay land rent:

+ The HHTP Management Board shall determine the amount of land rent to be exempted or reduced according to the annual land rent per m² announced at the Official Document No. 2703/UBND-KT dated June 20, 2006 by the People's Committee of Ha Tay Province.

+ The late payment interest shall be calculated from the time of subleasing land to the time on which land rent is paid to the state budget under the law regulations applicable in each period.

View more details at Circular No. 32/2018/TT-BTC of the Ministry of Finance of Vietnam, effective from May 15, 2018.

- Thanh Lam -

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