Circular No. 93/2011/TT-BTC dated June 29, 2011 of the Ministry of Finance amending and supplementing Circular No. 117/2004/TT-BTC of December 7, 2004, guiding the implementation of the Government’s Decree No. 198/2004/ND-CP of December 3, 2004, on land use levy collection

FROM AUGUST 15, LAND USE LEVY COLLECTION IS ADJUSTED

In case business organizations, households or individuals are allocated land by the State with land use levy collection not through land use right auction, land prices used for land use levy collection will be adjusted.

This is new regulations that the Ministry of Finance issued in the Circular No. 93/2011/TT-BTC dated June 29, 2011, amending and supplementing Circular No. 117/2004/TT-BTC of December 7, 2004, guiding the implementation of the Government’s Decree No. 198/2004/ND-CP of December 3, 2004, on land use levy collection.

In particular, in case business organizations, households or individuals are allocated land by the State with land use levy collection not through land use right auction, land prices used for land use levy collection are those based on land use purposes at the time of issuance of land allocation decisions of competent state agencies; in case the time of land hand-over does not coincide with the time of allocation indicated in the land allocation decision, the land price used for land use levy calculation is that based on the land use purpose at the time of actual land hand-over.

Land prices for land use levy calculation are those prescribed by provincial-level People’s Committees. In case land prices prescribed by provincial-level People’s Committees fail to match actual market land use right transfer prices under normal circumstances, provincial-level People’s Committees shall base on actual market prices to decide on specific land prices as appropriate. Particularly, in case a household or an individual has been granted a residential land use right certificate (written recognition) for a land area which is currently in use within the use (allocation) limit of residential land or is permitted for land use purpose change within the use (allocation) limit of residential land, the land price for land use levy calculation is that prescribed by the provincial-level People’s Committee at the time of declaration and submission of a complete and valid dossier of application for a land use right certificate or for permission to change land use purpose to the natural resources and environment agency.

The allocation of land use levy for construction works being high rises, apartment buildings, houses with mixed use purposes (excluding the cases specified at Point 2.2 of this Clause), land use levy shall be allocated to each user according to the allocation co-efficient multiplied by the housing area of each user as the allocation co-efficient shall be determined to be the ratio between house construction land area and total house area of users. For houses with basements, 50% of the basement area shall be added to the total house area of users for calculating the allocation co-efficient.

In case land users are permitted to shift from land lease to land allocation with land use levy collection and have paid land rents, they are allowed to subtract land rent amounts already paid for the remaining duration (if any) from payable land use levies on the principle of preservation of paid sums of money, the unsubtracted sum of money (mentioned above) shall be converted into a percentage (%) of paid land use levy at the time a land user paid land rent to the State, which, however, must not exceed the payable land use levy.