Decision 18/2021/QD-UBND on land price adjustment coefficients in 2021 in Ho Chi Minh

DECISION

Defining land price adjustment coefficients in 2021 in Ho Chi Minh City

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THE PEOPLE’S COMMITTEE OF HO CHI MINH CITY

Pursuant to the Law on Organization of the Government dated June 19, 2015; Law on Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Promulgation of Legal Documents dated June 22, 2015, the Law on Amending and Supplementing a Number of Articles of the Law on Promulgation of Legal Documents dated June 18, 2020;

Pursuant to the Law on Land dated November 29, 2013;

Pursuant to the Government’s Decree No. 43/2014/ND-CP dated May 15, 2014 on detailing the implementation of a number of articles of the Law on Land;

Pursuant to the Government’s Decree No. 44/2014/ND-CP dated May 15, 2014 on land prices;

Pursuant to the Government’s Decree No. 45/2014/ND-CP dated May 15, 2014 on providing the collection of land use levy;

Pursuant to the Government’s Decree No. 46/2014/ND-CP dated May 15, 2014 on collection of land rental and water surface rental;

Pursuant to the Government’s Decree No. 135/2016/ND-CP dated September 09, 2016 amending and supplementing a number of articles of the decrees on collection of land use levy, land rental and water surface rental;

Pursuant to the Government’s Decree No. 01/2017/ND-CP dated January 6, 2017 amending and supplementing a number of decrees detailing the implementation of the Land Law;

Pursuant to the Government’s Decree No. 35/2017/ND-CP dated April 3, 2017 prescribing the collection of land use levy, land rental and water surface rental in economic zones and hi-tech zones;

Pursuant to the Government’s Decree No. 123/2017/ND-CP dated November 14, 2017 amending and supplementing a number of articles of the Decrees on collection of land use levy, land rental and water surface rental;

Pursuant to the Government’s Decree No. 151/2017/ND-CP of December 26, 2017, on detailing a number of articles of the Law on Management and Use of Public Property;

Pursuant to the Government’s Decree No. 91/2019/ND-CP dated November 19, 2019 on sanctioning of administrative violations against regulations on land;

Pursuant to the Government’s Decree No. 96/2019/ND-CP dated December 19, 2019 on land price brackets;

Pursuant to the Circular No. 76/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance guiding a number of articles of the Government’s Decree No. 45/2014/ND-CP dated May 15, 2014, providing the collection of land use levy;

Pursuant to the Circular No. 77/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance guiding a number of articles of the Government’s Decree No. 46/2014/ND-CP dated May 15, 2014, on the collection of land rental and water surface rental;

Pursuant to the Circular No. 36/2014/TT-BTNMT dated June 30, 2014 of the Ministry of Natural Resources and Environment detailing methods of land valuation; development and adjustment of land price tables; specific land price determination and consultancy on land price determination;

Pursuant to the Circular No. 332/2016/TT-BTC dated December 26, 2016 of the Ministry of Finance amending and supplementing a number of articles of the Circular No. 76/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance guiding a number of articles of the Government’s Decree No. 45/2014/ND-CP dated May 15, 2014, providing the collection of land use levy;

Pursuant to the Circular No. 333/2016/TT-BTC dated December 26, 2016 of the Ministry of Finance amending and supplementing a number of articles of the Circular No. 77/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance guiding a number of articles of the Government’s Decree No. 46/2014/ND-CP dated May 15, 2014, providing the collection of land use levy;

Pursuant to the Circular No. 89/2017/TT-BTC dated August 23, 2017 of the Ministry of Finance guiding a number of articles of the Government’s Decree No. 35/2017/ND-CP dated April 3, 2017 prescribing the collection of land use levy, land rental and water surface rental in economic zones and hi-tech zones;

Pursuant to the Circular No. 33/2017/TT-BTNMT dated September 19, 2017 of the Ministry of Natural Resources and Environment detailing the Government’s Decree No. 01/2017/ND-CP dated January 6, 2017 amending and supplementing a number of decrees detailing the implementation of the Land Law; and amending and supplementing a number of articles of circulars detailing the implementation of the Land Law;

Pursuant to the Circular No. 10/2018/TT-BTC dated January 30, 2018 of the Ministry of Finance on amending and supplementing a number of articles of the Circular No. 76/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance guiding a number of articles of the Government’s Decree No. 45/2014/ND-CP dated May 15, 2014, providing the collection of land use levy;

Pursuant to the Circular No. 11/2018/TT-BTC dated January 30, 2018 of the Ministry of Finance on amending and supplementing a number of articles of the Circular No. 77/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance guiding a number of articles of the Government’s Decree No. 46/2014/ND-CP dated May 15, 2014, on the collection of land rental and water surface rental;

Implementing the Resolution No. 09/NQ-HDND dated April 22, 2021 of the People's Council of Ho Chi Minh City on opinions about land price adjustment coefficients in 2021 in Ho Chi Minh City;

At the proposals of the Department of Finance and the Department of Natural Resources and Environment in the Report No. 7737/TTr-STC-STNMT dated December 3, 2020; appraisal opinions of the Department of Justice in the Official Dispatch No. 5593/STP-VB dated December 1, 2020; considering the report and proposal of the Department of Finance in the Report No. 2116/TTr-STC-QLG dated April 15, 2021 and Official Dispatch No. 2634/STC-QLG dated May 10, 2021.

DECIDES:

Article 1. Scope and subjects of application

1. This Decision provides for land price coefficients in 2021 for determination of specific land prices for the cases specified at Points a, b, c and d, Clause 4, Article 114, Clause 2, Article 172 and Clause 3, Article 189 of the Land Law, households, individuals that are using land but change the use purpose of such land according to Clause 30, Article 2 of the Government’s Decree No. 01/2017/ND-CP dated January 06, 2017, entitled to continuation in use of the land as allocated land with land use levy, reserve prices for auction of land use rights when the State allocates land with land use levy or leases land with one-off land rental payment for the entire lease term, in which the land parcel or the area of a project is valued at under VND 30 billion (according to land prices in land price tables promulgated by the City People’s Committee); cases of land lease with annual rental payment in which the unit price for land lease shall be re-determined for adjustment in the subsequent period for the land parcels or areas leased by the State for the purpose of business, service, real estate or mining of minerals that are valued at VND 30 billion or more each (according to land prices in land price tables); prices for land lease with annual rental payment (except for cases of land lease for the business, service and real estate purposes); reserve prices for auction of land use rights when the State leases land with annual rental payment; determination of the value of land use rights for inclusion in value of properties of agencies, organizations and units according to Clause 2, Clause 3, Article 101, Clause 4 Article 102 of the Government’s Decree No. 151/2017/ND-CP dated December 26, 2017; determination of illicit profits gained from committing land-related administrative violations according to Clause 1, Clause 2, Clause 3, Clause 4 Article 7 of the Government’s Decree No. 91/2019/ND-CP dated November 19, 2019 on sanctioning of administrative violations against regulations on land.

2. Provisions on land price coefficients in 2021 in hi-tech parks, for organizations and individuals that the State leases land with annual rental payment; that lease land with one-off land rental payment for the entire lease term for the purpose of non-agricultural production and business; that lease land with one-off land rental payment for the entire lease term for the purposes of business, service, business of commercial houses, offices for lease, in case the area of the land parcel or lot used for land rental calculation is valued (according to the land price in the land price table) at under VND 30 billion.

Article 2. Land price adjustment coefficients

The application of land price adjustment coefficients mentioned in Clause 1, Article 1 of this Decision varies according to groups of subjects and zones of districts and Thu Duc City and elements making land prices increases and decreases as follows:

1. Group 1: In case the State recognizes residential land use rights of households and individuals, permits their change of land use purpose from non-residential land to residential land for residential land areas exceeding the set quotas, change of land use purpose according to Clause 30, Article 2 of the Government’s Decree No. 01/2017/ND-CP dated January 06, 2017, entitled to continuation in use of the land as allocated land with land use levy: The land price adjustment coefficient shall equal 1.5 times the land prices defined and announced by the City People’s Committee.

2. Group 2: In cases of determination of the annual land rental unit price for the first period of unchanged land rental unit; determination of annual land rental unit price upon adjustment of land rental unit for the subsequent period of unchanged land rental unit; determination of reserve price for the auction of land use rights for lease in the form of land lease with annual rental payment; determination of land rental unit price upon receipt of transferred assets attached to leased land according to Clause 3, Article 189 of the Land Law: The application of land price adjustment coefficients varies according to land use purpose and zones as follows:

The aforementioned zones are determined as follows:

Zone 1 includes:  Districts 1, 3, 4, 5, 10 and 11, Tan Binh and Phu Nhuan Districts;

Zone 2 includes: Thu Duc City, Districts 6 and 7, Go Vap, Binh Thanh and Tan Phu Districts;

Zone 3 includes: Districts 8 and 12, Binh Tan District;

Zone 4 includes: Binh Chanh, Cu Chi, Nha Be and Hoc Mon Districts;

Zone 5: Can Gio District.

3. Group 3: In cases the State allocates land to organizations with land use levy not through auction of land use rights, recognizes organizations’ land use rights, permits organizations’ change of land use purpose; the State allocates land to households and individuals not through auction of land use rights; in cases of determination of the land rental unit price with one-off rental payment for the entire lease term not through auction; determination of the land rental unit price in case of change from annual rental payment to one-off rental payment for the entire lease term according to Clause 2, Article 172 of the Land Law; determination of land rental unit price with one-off rental payment for the entire lease term upon equitization of state enterprises; determination of the value of land use rights for inclusion in value of properties of agencies, organizations and units according to Clause 2, Clause 3 Article 101, Clause 4 Article 102 of the Government’s Decree No. 151/2017/ND-CP dated December 26, 2017; reserve prices for auction of land use rights when the State allocates land with land use levy or leases land with one-off land rental payment for the entire lease term: The application of land price adjustment coefficients varies according to zones as follows:

Zone 1 includes: Districts 1, 3, 4, 5, 10 and 11, Tan Binh and Phu Nhuan Districts: The land price adjustment coefficient shall equal 2.5 times the land prices defined and announced by the City People’s Committee;

Zone 2 includes: Thu Duc City, Districts 6 and 7, Go Vap, Binh Thanh and Tan Phu Districts: The land price adjustment coefficient shall equal 2.3 times the land prices defined and announced by the City People’s Committee;

Zone 3 includes: Districts 8 and 12, Binh Tan District: The land price adjustment coefficient shall equal 2.1 times the land prices defined and announced by the City People’s Committee;

Zone 4 includes: Binh Chanh, Cu Chi, Nha Be and Hoc Mon Districts: The land price adjustment coefficient shall equal 1.9 times the land prices defined and announced by the City People’s Committee;

Zone 5 - Can Gio District: The land price adjustment coefficient shall equal 1.7 times the land prices defined and announced by the City People’s Committee.

4. In addition to the application of the land price adjustment coefficients mentioned in Clauses 1, 2 and 3 of this Article, depending on the location, the land use coefficients, the additionally calculated land price adjustment coefficients shall be as follows:

a) In case the land parcels or the areas subject to fulfillment of financial obligations have their frontages facing 2 roads or more (these roads are listed in the land price table), the price adjustment coefficients shall increase by 10% compared to those specified in Clauses 1, 2 and 3 of this Article.

b) For cases of land use defined in Clauses 2 and 3 of this Article, depending on the land use coefficients of the land parcels or the areas subject to fulfillment of financial obligations, the land price adjustment coefficients shall be additionally calculated as follows:

-The land parcels or the areas with the land use coefficients of under 6.0 times or the undetermined land use coefficients, to apply the land price adjustment coefficients specified in Clauses 2 and 3 of this Article;

- The price adjustment coefficients for the land parcels or the areas with the land use coefficients ranging between 6.0 times and under 8.0 times shall increase by 5% compared to those specified in Clauses 2 and 3 of this Article;

- The price adjustment coefficients for the land parcels or the areas with the land use coefficients ranging between 8.0 times and under 10.0 times shall increase by 10% compared to those specified in Clauses 2 and 3 of this Article;

- The price adjustment coefficients for the land parcels or the areas with the land use coefficients ranging between 10.0 times and under 12.0 times shall increase by 15% compared to those specified in Clauses 2 and 3 of this Article;

- The price adjustment coefficients for the land parcels or the areas with the land use coefficients ranging between 12.0 times and under 14.0 times shall increase by 20% compared to those specified in Clauses 2 and 3 of this Article;

- The price adjustment coefficients for the land parcels or the areas with the land use coefficients ranging between 14.0 times and under 16.0 times shall increase by 25% compared to those specified in Clauses 2 and 3 of this Article;

- The price adjustment coefficients for the land parcels or the areas with the land use coefficients ranging 16.0 times or more shall increase by 30% compared to those specified in Clauses 2 and 3 of this Article;

c) For the land parcels or the areas fully satisfying 2 factors specified at Points a and b of this Clause, the price adjustment coefficients shall firstly increase according to Point a, and then additionally increase according to Point b of this Clause.

Article 3. Land price adjustment coefficients in hi-tech parks

1. For cases of land lease with annual rental payment according to land use purposes as follows:

a) Service and commercial business; business of commercial houses, offices for lease: The land price adjustment coefficient shall equal 1.7 times the land prices defined and announced by the City People’s Committee;

b) Non-agricultural production and business; land used for public works for business purposes: The land price adjustment coefficient shall equal 1.5 times the land prices defined and announced by the City People’s Committee;

2. For cases of land lease with one-off land rental payment for the entire lease term according to land use purposes as follows:

a) Service and commercial business; business of commercial houses, offices for lease: The land price adjustment coefficient shall equal 2.5 times the land prices defined and announced by the City People’s Committee;

b) Non-agricultural production and business: The land price adjustment coefficient shall equal 2.3 times the land prices defined and announced by the City People’s Committee.

3. In addition to the application of the land price adjustment coefficients mentioned in Clauses 1 and 2 of this Article, depending on the location, the land use coefficients, the land price adjustment coefficients shall be additionally calculated according to Clause 4, Article 2 of this Decision.

Article 4. Responsibilities of Departments, sectors, People's Committees of Thu Duc city and districts

1. The Department of Finance and Department of Natural Resources and Environment shall be responsible for: Coordinating with Departments, sectors of the City, People's Committees of Thu Duc city and districts to submit to the City People's Committee for promulgation of the land price adjustment coefficients in conformity with the situation; ensuring the time as specified.

2. The Department of Planning and Architecture shall be responsible for guiding the determination of the land use coefficients of land parcels or the areas subject to fulfillment of financial obligations for calculation of the additional coefficients as prescribed at Point b, Clause 4, Article 2 of this Decision.

3. The City Tax Department, Tax Branches of Thu Duc city and districts shall, based on the land price adjustment coefficients specified in this Decision and relevant law regulations, determine, collect and pay land use levy and land rental as prescribed.

4. The management board of hi-tech parks shall,  based on the land price adjustment coefficients specified in this Decision and relevant law regulations, determine land use levy and adjust land rental unit price as prescribed.

5. People's Committees of Thu Duc city and districts shall be responsible for:

a) Directing the Department of Natural Resources and Environment, Department of Finance, Tax Branches, People's Committees of wards, communes and townships to coordinate with relevant agencies in Thu Duc city and districts in determine, collect and pay land use levy and land rental according to this Decision and relevant law regulations;

b) Examining and handling cases of violations or cases of complaints and denunciations related to the determination, collection and payment of land use levy and land rental under their competence.

Article 5. Reporting of problems

People’s Committees of Thu Duc city and districts must promptly report any problem arising in the course of implementation of this Decision to functioning Departments and sectors for guidance of implementation; cases beyond their competence shall be submitted to the City People’s Committee for consideration and decision.

Article 6. Effect

1. This Decision takes effect on June 18, 2021.

2. This Decision replaces the Decision No. 03/2020/QD-UBND dated January 16, 2020 of the People's Committee of Ho Chi Minh City on land price adjustment coefficients in 2020 in Ho Chi Minh City.

Article 7. Organization of implementation

The Chief of the Office of the City People's Committee, the Heads of the Departments and sectors of the City, the Chairpersons of the People's Committees of Thu Duc City and districts, relevant organizations and individuals shall be responsible for the implementation of this Decision./.