Circular No. 02/2015/TT-BTC amends and supplements Circular No. 48/2012/TT-BTC dated March 16, 2012, issued by the Minister of Finance, guiding the determination of initial auction prices and financial regulations in the auctioning of land use rights for the transfer of land with payment of land use fees or for lease of land.

CIRCULAR

Amending and supplementing Circular No. 48/2012/TT-BTC dated March 16, 2012, issued by the Minister of Finance guiding the determination of initial prices and financial regulations in the auction of land use rights for transferring land with payment of land use fees or leasing land.

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Based on the Land Law number 45/2013/QH13 dated November 29, 2013;

BASED ON Decree No. 17/2010/NĐ-CP dated March 4, 2010 of the Government on auctioning assets;

On the basis of Decision No. 44/2014/NĐ-CP dated May 15, 2014, of the Government on land prices;

Pursuant to Decree No. 45/2014/NĐ-CP dated May 15, 2014 of the Government on the collection of land use fees;

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

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the State Asset Management Agency,

The Minister of Finance issues this Circular amending and supplementing Circular No. 48/2012/TT-BTC dated March 16, 2012, issued by the Minister of Finance, guiding the determination of initial prices and financial regulations in the auction of land use rights for transferring land with payment of land use fees or leasing land (hereinafter referred to as Circular No. 48/2012/TT-BTC).

Article 1. Amending and supplementing some articles of Circular No. 48/2012/TT-BTC

1. Amend Article 1 as follows:

"1. This Circular guides the determination of initial prices and financial regulations in the auction of land use rights for transferring land with payment of land use fees or leasing land as stipulated in Clause 1, Article 118 of the Land Law 2013.

2. The determination of initial prices and financial regulations in the auction of land use rights attached to state-owned assets of agencies, organizations, units, and enterprises (except cases where the State recovers due to reorganization or disposal of office premises, public service facilities, production and business bases) does not fall within the scope of regulation of this Circular."

2. Amending and supplementing Article 3 as follows:

"Article 3. Determination of Initial Auction Price for Land Use Rights

1. The initial auction price for land use rights for transferring land with payment of land use fees shall be determined as follows:

Where:

a) The area of land is the area subject to land use fee collection according to the laws on land use fee collection;

b) The specific land price is the land price for the purpose of land use auction determined according to Clause 1, Article 4 of this Circular.

2. The initial auction price for land use rights for leasing land with one-time payment of rent for the entire lease period shall be determined as follows:

Where:

a) The area of land is the area subject to one-time payment of land rent for the entire lease period according to the laws on land rent collection;

b) The specific land price is the land price for the purpose of land use auction with the same duration determined according to Clause 1, Article 4 of this Circular.

3. The initial auction price for land use rights for leasing land with annual payment of rent shall be determined as follows:

Where:

a) The area of land is the area subject to annual payment of land rent according to the laws on land rent collection;

b) The initial unit price shall be determined as follows:

c) The land price for rent calculation is the land price for the purpose of land use auction determined according to Clause 2, Article 4 of this Circular;

d) The rent rate (%) for calculating the land rent price is specified by the People's Committee of provinces and centrally-administered cities (hereinafter collectively referred to as provincial level) according to each area and road corresponding to each land use purpose as stipulated at Point a, Clause 1, Article 4 of Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government on land rent and water surface rent.

4. The initial auction price for land use rights for leasing land for underground construction projects (excluding underground parts of above-ground construction projects) shall be determined according to Clauses 2 and 3 of this Article multiplied by (x) the rate (%) for calculating the land rent price for underground construction projects decided by the People's Committee of the provincial level according to Point c, Clause 1, Article 5 of Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government on land rent and water surface rent.

5. The initial auction price for land use rights for leasing land with water surfaces belonging to the group of lands defined in Article 10 of the Land Law 2013 shall be determined as follows:

a) For the part of the land without water surfaces, the initial auction price for land use rights shall be determined according to Clauses 2 and 3 of this Article;

b) For the part of the land with water surfaces, the initial auction price for land use rights shall be determined according to Clauses 2 and 3 of this Article multiplied by (x) the specific collection rate specified by the People's Committee of the provincial level according to Point c, Clause 1, Article 6 of Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government on land rent and water surface rent.

6. The total initial auction price for land use rights in cases where there are assets attached to the land as stipulated in Point e, Clause 1, Article 118 of the Land Law 2013 shall be determined as follows:

Where:

a) The initial price of land use rights is the initial auction price for land use rights determined according to Clauses 1, 2, 3, 4, and 5 of this Article;

b) The value of assets attached to the land is the value of assets attached to the land determined according to Clause 3, Article 4 of this Circular."

3. Amend and supplement Article 4 as follows:

"Article 4. Determination of Specific Land Prices, Land Prices for Rent Calculation, and Values of Assets Attached to the Land as Basis for Determining Initial Auction Prices for Land Use Rights

1. The specific land price as basis for determining the initial auction price for land use rights for transferring land with payment of land use fees or leasing land with one-time payment of rent for the entire lease period is the specific land price decided by the People's Committee of the provincial level determined according to the direct comparison, deduction, income, and residual methods prescribed in Decree No. 44/2014/NĐ-CP dated May 15, 2014 of the Government on land prices.

2. The land price for rent calculation as basis for determining the initial unit price for auction of land use rights leased with annual payment of rent is determined according to the adjustment coefficient method prescribed in Decree No. 44/2014/NĐ-CP dated May 15, 2014 of the Government on land prices as follows:

Where:

a) The land price specified in the Land Price Table is the land price specified by the People's Committee of the provincial level in the Land Price Table at the time of determining the initial price;"

b) The land price adjustment factor issued by the People's Committee of the province in accordance with point d, Clause 1, Article 3 of Circular No. 77/2014/TT-BTC dated June 16, 2014, guiding certain provisions of Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government on collecting land rental fees and water surface rental fees.

3. The value of assets attached to the land (including: houses, construction works, and other assets) is the actual remaining value of the asset based on the revaluation results.

Determining the actual remaining value of the asset must ensure consistency with reality and not be lower than the new type asset value prescribed by the People's Committee of the province (if any), multiplied by the remaining quality ratio at the time of determining the initial auction price of the assets attached to the land."

4. Amending and supplementing Article 5 as follows:

"Article 5. Procedures for determining and authority to determine the initial auction price

1. Authority to determine the initial auction price:

a) The Chairman of the People's Committee of the province decides the initial auction price for auctioning the right to use land for allocating land with payment of land use fee or leasing land;

b) Based on the actual situation in the locality, the Chairman of the People's Committee of the province may delegate or decentralize the authority to decide the initial auction price for auctioning the right to use land to the Director of the Department of Finance or the Chairman of the People's Committee of the district within their respective authorities.

2. The agency entrusted with the main responsibility for auctioning the right to use land shall send the application file for determining the initial auction price to the Department of Finance (in cases where the initial auction price is decided by the Chairman of the People's Committee of the province or the Director of the Department of Finance) or the Financial Planning Office (in cases where the initial auction price is decided by the Chairman of the People's Committee of the district).

The application file for determining the initial auction price includes:

a) The application for determining the initial auction price from the agency entrusted with the main responsibility for auctioning the right to use land: one original copy;

b) The auction plan for the right to use land approved by the competent People's Committee: one copy;

c) Land registry files (information on area, location, purpose of land use, form of land lease, lease term, etc.): one copy;

d) Files on assets attached to the land being auctioned (in cases of auctioning the right to use land as stipulated in point e, Clause 1, Article 118 of the Land Law): one copy;

đ) Decision on specific land prices issued by the People's Committee of the province (in cases of auctioning the right to use land for allocating land with payment of land use fee or leasing land with payment of land rent for the entire lease period): one copy.

All copies must bear the stamp and signature of the authorized person of the agency entrusted with the main responsibility for auctioning the right to use land. The agency entrusted with the main responsibility for auctioning the right to use land is responsible for the accuracy of the file.

3. Based on the land area subject to land use fee and land rent; specific land prices; files on assets attached to the land and other files provided by the agency entrusted with the main responsibility for auctioning the right to use land; land price list, percentage rate for calculating unit land rent, land price adjustment factor, percentage rate for calculating unit land rent for underground construction, specific collection rates for land with water surfaces, the Department of Finance (in cases where the initial auction price is decided by the Chairman of the People's Committee of the province or the Director of the Department of Finance) or the Financial Planning Office (in cases where the initial auction price is decided by the Chairman of the People's Committee of the district) shall have the responsibility to determine the initial auction price for the right to use land in accordance with Article 3 and Clauses 2 and 3 of Article 4 of this Circular within ten working days from the date of receiving the complete application file for determining the initial auction price to submit to the competent authority for decision.

In cases where there are insufficient grounds to determine the initial auction price, within five working days from the date of receipt of the file, the financial agency (Department of Finance, Financial Planning Office) must notify in writing the agency submitting the file to supplement the necessary information. After receiving the complete supplementary file, the completion deadline will be ten working days from the date of receipt of the supplementary file."

5. Amend Article 6 as follows:

"Article 6. Re-determination of the initial auction price

The principles and procedures for re-determining the initial auction price shall be implemented as prescribed for the first determination of the initial auction price.

In cases where it is necessary to re-determine the initial auction price using the adjustment factor method, the Department of Finance shall take the lead in re-determining the adjustment factor, submit to the People's Committee of the province for decision in accordance with regulations as the basis for re-determining the initial auction price."

6. Supplement Article 6a as follows:

"Article 6a. Determination of the unit land rent price of the successful bid in cases of annual land rent payment as the basis for adjusting the land rent of the next stable period

The determination of the unit land rent price of the successful bid in cases of annual land rent payment as the basis for adjusting the land rent of the next stable period shall be carried out as follows:

Article 2. Effective Date

1. This Circular takes effect from February 25, 2015.

2. During the implementation process, if any difficulties arise, please report them promptly to the Ministry of Finance for research and coordinated resolution./."