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

DECREE

Amending and supplementing a number of articles of the Decrees on collection of land use levy, land rental and water surface rental^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 29, 2013 Land Law;

Pursuant to the November 25, 2014 Housing Law;

Pursuant to the November 26, 2014 Law on Investment;

At the proposal of the Minister of Finance;

The Government promulgates the Decree amending and supplementing a number of articles of the Decrees on collection of land use levy, land rental and water surface rental.

Article 1. Scope of regulation

This Decree amends and supplements a number of articles of Decree No. 45/2014/ND-CP of May 15, 2014, on collection of land use levy, and Decree No. 46/2014/ND-CP of May 15, 2014, on collection of land rental and water surface rental.

Article 2. To amend and supplement a number of articles of Decree No. 45/2014/ND-CP of May 15, 2014, on collection of land use levy

1. To add the following Point d to Clause 3, Article 3:

“d/ The People’s Committee of a province or centrally run city (below referred to as provincial-level People’s Committee) shall promulgate the land price adjustment coefficient for application from January 1 every year. Surveys to formulate the land price adjustment coefficient shall be conducted from October 1 every year. Expenses related to the formulation of the land price adjustment coefficient (including the expense for hiring a consultancy organization when necessary) shall be covered by the state budget in accordance with the law on the state budget. The selection of consultancy organizations to conduct surveys and formulate land price adjustment coefficients must comply with the bidding law.

If the provincial-level People’s Committee has not yet promulgated the land price adjustment coefficient under regulations by the time of determination of land use levy, the previous year’s land price adjustment coefficient shall be used to determine payable land use levy, and the provincial-level People’s Committee shall take responsibility for any loss of state budget revenue due to its late promulgation of the land price adjustment coefficient.”

2. To amend Point c, Clause 4 of, and add Clause 5 to, Article 4 as follows:

“c/ The unit rate of land rental used to determine payable land use levy under Points a and b of this Clause shall be determined based on the land price in the land price table as suitable to the land use purpose of the project, the land price adjustment coefficient for land use levy calculation, and the percentage (%) used to calculate the unit rate of land rental applicable to land used for commercial or service purposes promulgated by the provincial-level People’s Committee.

5. Order and procedures for determining the reserve price for auction of land use rights for allocation of land with land use levy

a/ The order and procedures for determining the reserve price for auction of land use rights in case the area subject to land use levy of the land parcel or land plot is valued (according to the land price in the land price table) at VND 30 billion or more for centrally run cities, VND 10 billion or more for mountainous and highland provinces, or VND 20 billion or more for other provinces, must comply with the Government’s regulations on land prices and amendments and supplements thereto (if any); the provincial-level Department of Natural Resources and Environment shall determine specific land prices and submit them to the local land price appraisal council with the provincial-level Department of Finance acting as the standing body for appraisal and submission to the provincial-level People’s Committee for approval.
        b/ The order and procedures for determining the reserve price for auction of land use rights in case the area subject to land use levy of the land parcel or land plot is valued (according to the land price in the land price table) at under VND 30 billion for centrally run cities, under VND 10 billion for mountainous and highland provinces, or under VND 20 billion for other provinces, are prescribed below: