Guidance on auctioning land use rights of land allocated by the State with land levy payment, leased out by the State in Vietnam

Guidance on auctioning land use rights of land allocated by the State with land levy payment, leased out by the State in Vietnam (Internet image)

Guidance on auctioning land use rights of land allocated by the State with land levy payment, leased out by the State in Vietnam

According to Article 55 of Decree 102/2024/ND-CP stipulating the auction of land use rights of land allocated by the State with land levy payment, leased out by the State in Vietnam as follows:

- Organizations participating in the auction of land use rights in Vietnam must meet the following conditions:

+  Ensure  the  conditions  specified  in  Clause  3,  Article  125  of  the  Land  Law  2024;

+  Groups  of  companies  that  are  economic  groups,  or  parent  companies,  subsidiary  companies  in  accordance  with  the  law  on  enterprises,  when  participating  in  the  auction  of  one  land  parcel  or  land  zone  or  a  project  consisting  of  one  or  more  parcels,  must  agree  to  nominate  one  company  from  the  group  to  participate  in  the  auction  of  land  use  rights;

+  Must  deposit  an  advance  of  20%  of  the  total  value  of  the  land  parcel  or  land  zone  calculated  according  to  the  starting  price  to  auction  land  use  rights;

+  Not  be  prohibited  from  participating  in  auctions  according  to  the  provisions  of  the  law;

+  Meet  the  conditions  stipulated  by  the  law  on  housing  and  real  estate  business  for  cases  of  auctioning  land  use  rights  to  implement  housing  projects,  and  other  real  estate  business  projects.

- Conditions for individuals participating in the auction of land use rights

+  Ensure  compliance  with  the  provisions  of  Clause  4,  Article  125  of  the  Land  Law  2024;

+  In  cases  where  individuals  participate  in  the  auction  of  land  use  rights  to  implement  investment  projects,  they  must  commit  to  establishing  an  economic  organization  ensuring  the  conditions  specified  in  Clause  1,  Article  55  of  Decree  102/2024/ND-CP.  The  establishment  of  economic  organizations  is  carried  out  according  to  the  provisions  of  the  law  on  investment,  the  law  on  enterprises,  the  law  on  bidding,  and  other  related  laws.

- Developing a plan for auctioning land use rights

A plan for auctioning land use rights includes the following main contents:

+  Location,  area,  type  of  land,  assets  attached  to  the  land  parcels  or  land  zones  for  auction  (if  any);

+  Form  of  land  allocation,  land  lease,  duration  of  using  land  parcels  or  land  zones  when  auctioning  land  use  rights;

+  Expected  time  for  organizing  the  auction;

+  Subjects  and  conditions  for  participating  in  the  auction;

+  Costs  for  organizing  the  auction;

+  Expected  starting  price,  advance  deposit  to  be  paid  when  participating  in  the  auction,  and  other  fees  as  stipulated  by  law;

+  Other  contents  decided  by  the  competent  authority  in  accordance  with  the  law  and  the  actual  situation  of  the  locality.

- Appraisal and approval of the plan for auctioning land use rights

+  In  case  the  auction  of  land  use  rights  falls  under  the  authority  to  allocate  land,  lease  land  of  the  district-level  People's  Committee,  the  district-level  land  management  agency  shall  check  and  complete  the  dossier  and  submit  it  to  the  district-level  People's  Committee  for  approval  of  the  plan  for  auctioning  land  use  rights;

+  In  case  the  auction  of  land  use  rights  falls  under  the  authority  to  allocate  land,  lease  land  of  the  provincial-level  People's  Committee,  the  provincial-level  land  management  agency  shall  check  and  complete  the  dossier  and  submit  it  to  the  provincial-level  People's  Committee  for  approval  of  the  plan  for  auctioning  land  use  rights.

- Determining the starting price for auctioning land use rights

+  The  unit  assigned  to  organize  the  auction  of  land  use  rights  is  responsible  for  preparing  the  dossier  of  the  land  parcels  or  land  zones  for  auction.  The  dossier  includes  information  on  planning,  land  use  plans,  and  detailed  construction  planning  related  to  the  auction  land  parcel  approved  by  a  competent  state  agency;  an  excerpt  of  the  cadastral  map  or  a  cadastral  survey  map  of  the  auction  parcel  or  cadastral  survey  of  the  auction  parcel  in  case  there  is  no  cadastral  map;

+  The  land  management  agency  organizes  the  determination  of  the  starting  price  in  accordance  with  the  law.

- Decision to auction land use rights

+  The  agency  assigned  the  task  of  auctioning  land  use  rights  shall  prepare  the  auction  dossier  and  send  it  to  the  land  management  agency,  including:  the  approved  plan  for  auctioning  land  use  rights;  the  written  approval  of  the  starting  price  of  the  auction  land  parcel  according  to  Point  c,  Clause  1,  Article  229  of  the  Land  Law  2024;  draft  presentation  and  decision  on  auctioning  land  use  rights;

+  The  land  management  agency  shall  check  and  complete  the  dossier  and  submit  it  to  the  competent-level  People's  Committee  for  approval  of  the  plan  for  auctioning  land  use  rights  stipulated  in  Clause  4,  Article  55  of  Decree  102/2024/ND-CP  to  issue  a  decision  on  auctioning  land  use  rights.

- The selection of units and organizations to conduct the auction of land use rights is carried out in accordance with the law on bidding. The procedures for conducting the auction of land use rights are implemented according to Clause 2, Article 229 of the Land Law 2024 and the Law on Asset Auction 2016.

- The recognition of the results of the auction of land use rights is carried out according to Clause 3, Article 229 of the Land Law 2024.

- Paying land levy and land rent after receiving the decision recognizing the winning results of the auction of land use rights

+  Within  no  more  than  5  working  days  from  the  date  of  receiving  the  decision  recognizing  the  winning  results  of  the  auction  from  the  competent-level  People's  Committee,  the  tax  authority  shall  send  a  written  notice  of  paying  land  levy  or  land  rent  to  the  auction  winner  in  accordance  with  the  law  on  tax  management;

+  The  auction  winner  is  responsible  for  paying  the  land  levy  according  to  the  tax  authority's  notice;

+  From  the  time  of  announcing  the  winning  results  of  the  auction,  the  advance  deposit  and  interest  (if  any)  shall  be  converted  into  a  deposit  to  ensure  the  financial  obligations  of  the  land  user.

In case the auction winner does not pay or does not fully pay the auction winning amount according to the provision in Point b of this Clause, within 120 days from the date of approval of the auction winning results, the tax authority is responsible for notifying the land management agency to submit to the competent-level People's Committee to cancel the decision recognizing the auction winning results, and the auction winner is not entitled to receive back the deposit. For cases where the auction winner has paid more than the deposit amount, the State shall refund the excess amount compared to the deposit according to regulations;

+  The  tax  authority  shall  notify  the  land  management  agency  about  the  completion  of  paying  land  levy,  land  rent  by  the  auction  winner.

- After receiving the notice from the tax authority about the completion of paying land levy, land rent by the auction winner, the land management agency shall carry out the tasks specified in Clause 5, Article 229 of the Land Law 2024.

- In cases where an individual participates in the auction of land use rights to implement an investment project, the competent state agency shall allocate or lease the land to the economic organization registered by the individual who won the auction for land use rights according to Point b, Clause 2, Article 55 of Decree 102/2024/ND-CP.

When the period for paying land levy or land rent according to Clause 9, Article 55 of Decree 102/2024/ND-CP expires and if the individual who won the auction for land use rights to implement the investment project does not establish the economic organization according to Point b, Clause 2, Article 55 of Decree 102/2024/ND-CP, the land management agency shall submit to the competent-level People's Committee to issue a decision to cancel the decision recognizing the auction winning results. Handling of the deposit amount is carried out according to Point c, Clause 9, Article 55 of Decree 102/2024/ND-CP.

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