Circular No. 139/2016/TT-BTC dated September 16, 2016 of the Ministry of Finance guiding the exemption from land use levy or land rental, refund to or clearing against financial obligations of social housing investors, and method of determination of land use levy payable by buyers or lessees-buyers when they are permitted to re-sell their social houses

CIRCULAR

Guiding the exemption from land use levy or land rental, refund to or clearing against financial obligations of social housing investors, and method of determination of land use levy payable by buyers or lessees-buyers when they are permitted to re-sell their social houses[1]

Pursuant to the Government’s Decree No. 60/2003/ND-CP of June 6, 2003, detailing and guiding the implementation of the State Budget Law;

Pursuant to the Government’s Decree No. 100/2015/ND-CP of October 20, 2015, on social housing development and management;

Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Public Asset Management;

The Minister of Finance promulgates the Circular guiding the exemption from land use levy or land rental, refund to or clearing against financial obligations of social housing investors, and method of determination of land use levy payable when buyers or lessees-buyers are permitted to re-sell their social houses under the Government’s Decree No. 100/2015/ND-CP of October 20, 2015, on social housing development and management.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular guides the implementation of a number of articles of the Government’s Decree No. 100/2015/ND-CP of October 20, 2015, on social housing development and management (below referred to as Decree No. 100/2015/ND-CP) regarding:

1. Exemption from land use levy and land rental for non-state funded social housing projects as prescribed in Clause 1, Article 9 of Decree No. 100/2015/ND-CP;

2. Refund to or clearing against financial obligations (payable land use levy or land rental upon implementation of other investment projects) toward the State of investors that have paid land use levy for the land area used for social housing construction allocated by the State or acquired through receiving lawful land use rights transferred by organizations, households or individuals as prescribed in Clause 1, Article 9 of Decree No. 100/2015/ND-CP.

3. Determination of the value of land use levy payable to the state budget by social housing buyers or lessees-buyers when they are permitted to sell their social houses under Clause 4, Article 19 of Decree No. 100/2015/ND-CP.

Article 2.Subjects of application

This Circular applies to organizations, households, individuals and state management agencies involved in social housing development and management under Decree No. 100/2015/ND-CP.

Chapter II

Section I

EXEMPTION FROM LAND USE LEVY AND LAND RENTAL FOR NON-STATE FUNDED SOCIAL HOUSING CONSTRUCTION PROJECTS

Article 3.Exemption from land use levy and land rental

The exemption from land use levy and land rental for non-state funded social housing construction projects prescribed in Clause 1, Article 9 of Decree No. 100/2015/ND-CP is guided as follows:

1. To exempt from land use levy or land rental for the entire land area allocated or leased by the State for social housing construction, including the land area for construction of business and trade works already approved by competent authorities within a social housing construction project.

2. To exempt from land use levy or land rental for the entire land area slated for social housing construction which uses the 20% land area of commercial housing development projects and urban development investment projects as prescribed by the housing law, including the 20% land area for construction of business and trade works already approved by competent authorities within a social housing construction project.

3. The investor of a social housing construction project shall carry out procedures for requesting exemption from land use levy or land rental in accordance with the land law.

Section II

REFUND OR CLEARING AGAINST FINANCIAL OBLIGATIONS TOWARD THE STATE OF INVESTORS OF SOCIAL HOUSING CONSTRUCTION PROJECTS

Article 4.Principles of refund or clearing against financial obligations toward the State of investors of social housing construction projects

1. An investor may be considered for refund or clearing against financial obligations (land use levy or land rental) toward the State of the land use levy amount already paid for the land area used for social housing construction which is allocated by the State or acquired through receiving lawful land use rights transferred by organizations, households and individuals in case the investor implements another investment project and the social housing construction project in the same province.

2. Based on the budget capacity, provincial-level People’s Committee chairpersons shall decide on clearing or refund for investors (after reaching agreement with the standing bodies of provincial-level People’s Councils) at the proposal of provincial-level Finance Department directors.

Article 5.Refund or clearing against financial obligations toward the State of investors of social housing construction projects

The refund or clearing against financial obligations toward the State of investors of social housing construction projects as prescribed in Clause 1, Article 9 of Decree No. 100/2015/ND-CP is guided as follows:

1. In case an investor has paid the land use levy for the land area used for social housing construction which is allocated by the State, the investor may have the paid land use levy refunded or cleared against financial obligations (land use levy or land rental) payable to the State when implementing another investment project. The investor’s paid land use levy amount to be refunded or cleared is the land use levy amount the investor has paid according to a competent agency’s notice or document as prescribed by the land law.

2. In case an investor acquires a land area through receiving lawful land use rights transferred by organizations, households and individuals and uses such land area for social housing construction, the investor may have the amount paid for such acquisition  refunded or cleared against financial obligations (land use levy or land rental) toward the State. The investor’s amount to be refunded or cleared against financial  obligations toward the State shall be determined based on the land price applicable to the use purpose of the acquired land at the time of being permitted by a competent state agency to change the land use purpose or at the time of being permitted to use the land for implementation of a social housing construction project, which, however, must not exceed the corresponding land compensation or support amount in case the State recovers land under the land law. The price of the acquired land shall be determined by the method of land price adjustment coefficient.

3. The clearable land use levy or land rental amount payable by an investor when implementing an investment project other than the social housing project shall be determined in accordance with the land law. In case the investor is leased land by the State and pays the land rental annually for such investment project, the clearable land rental amount shall be converted into a number of years and months of fulfillment of the land rental payment obligation which shall be determined as the period of having paid annual land rentals; the determination of the land rental amount in this case must comply with the land law.

Chapter III

DETERMINATION OF PAYABLE LAND USE LEVY UPON
RE-SALE OF SOCIAL HOUSES

Article 6.Payment of land use levy upon re-sale of social houses

The payment of land use levy by buyers or buyers-lessees when they are permitted to re-sell their social houses under Clause 4, Article 19 of Decree No. 100/2015/ND-CP is guided as follows:

1. For a social house being a condominium apartment, the seller shall pay to the state budget 50% of the land use levy value allocated to that apartment.

2. For a social house being a low-story semi-detached house, the seller shall pay 100% of the land use levy.

Article 7.Determination of payable land use levy upon re-sale of social houses

The land use levy payable by buyers or lessees-buyers when they are permitted to sell their social houses under Clause 4, Article 19 of Decree No. 100/2015/ND-CP shall be determined as follows:

1. The land price used for calculation of the land use levy is the land price set by the provincial-level People’s Committee in the land price bracket multiplied by (x) the land price adjustment coefficient applicable at the time a buyer or lessee-buyer resells his/her social house.

2. Payable land use levy upon re-sale of social houses:

a/A buyer or lessee-buyer that resells his/her social house being a condominium apartment shall pay the land use levy as follows:

Payable land use levy = 50% x S x Land price x Land use levy allocation coefficient for the apartment

In which:

- S is the area of the apartment for which the payable land use levy needs to be determined.

- The land price shall be determined in accordance with Clause 1 of this Article.

- The allocation coefficient for the condominium apartment shall be determined in accordance with Article 8 of this Circular.

b/ A buyer or lessee-buyer that resells his/her social house being a low-story semi-detached house shall pay 100% of the land use levy, which shall be determined to be the land price prescribed in Clause 1 of this Article multiplied by (x) the land area of the social house.

Article 8.Land use levy allocation coefficient

1. The allocation coefficient for determination of the land use levy in case of re-sale of a social house being a condominium apartment shall be determined as follows:

For a social house having (whole or part of) its basement co-owned by residents of the building, the determination of the area of the basement for allocation for each apartment must comply with the land law and such area shall be included in the total area of the apartment on sale for calculation of the allocation coefficient. In case the area of the basement belongs to the investor, it shall not be allocated to the area of apartments on sale.

2. The total floor area of a building referred to in Clause 1 of this Article excludes the area permitted for use for business and trade purposes in accordance with regulations (if any).

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 9.Effect

1. This Circular takes effect on November 15, 2016.

2. Cases that arise from December 10, 2015, on shall be settled in accordance with Decree No. 100/2015/ND-CP and this Circular.

3. In case legal documents referred to in this Circular for application are amended, supplemented or replaced, the amending, supplementing or replacing documents shall apply.

Article 10.Organization of implementation

1. Agencies and units managing state-owned houses referred to in Article 2 of this Circular; provincial-level People’s Committee and other related agencies and units shall organize the implementation of this Circular.

2. Any problems arising in the course of implementation should be reported to the Ministry of Finance for study and appropriate amendment.-

For the Minister of Finance
Deputy Minister
NGUYEN HUU CHI