Vietnam: Calculation of the amount of illegal benefits due to executing the construction work inconsistently with the building permit

According to 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; etc. must be transferred to state budget.

The amount of illegal benefits (abbreviated as N) shall be determined as follows:

- If the construction work is built to serve business purposes: 

N = Total floor area (m2) built inconsistently with law regulations x The unit price per square meter (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) x 50%

- If the construction work is built to serve non-business purposes: 

N = Total floor area (m2) built inconsistently with law regulations x The building cost per square meter (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) x 50%

- In case of unavailability of the signed sales and transfer contract or approved cost estimate:

N = Total floor area (m2) built inconsistently with law regulations x The investment rate of the construction work at the same grade and of the same type x 50%

Circular No. 03/2018/TT-BXD of the Ministry of Construction of Vietnam comes into force from June 12, 2018, replacing Circular No. 02/2014/TT-BXD.

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