Circular No. 05/1999/TT-BXD guiding the calculation of land use fee support for persons with meritorious service to the Revolution according to Decision No. 118/TTg dated February 27, 1996 of the Prime Minister

CIRCULAR

Guidelines for calculating the land use fee to be supported

for persons who have rendered meritorious service to the Revolution according to Decision No. 118/TTG

dated February 27, 1996 of the Prime Minister

Pursuant to Decision No. 118/TTg dated February 27, 1996 of the Prime Minister on supporting persons who have rendered meritorious service to the Revolution to improve their housing conditions, to resolve some difficulties in calculating the supported land use fee, after reaching consensus with the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Construction hereby provides guidance as follows:

1. Clause c, Clause 2, Article 2 of Decision No. 118/TTg stipulates that persons who have rendered meritorious service to the Revolution, if purchasing a single-story house or a multi-story house with one household belonging to state ownership, shall be supported from 65% to 100% of the land use fee.

The levels of support for the land use fee from 65% to 100% mentioned above are calculated based on 100% of the land use fee according to the land price list issued by the People's Committee of provinces and centrally governed cities within the framework of the government's price range (not calculated based on 40% of the land price as prescribed in Decree No. 61/CP dated July 5, 1994 of the Government).

2. Clause 6, Article 2 of Decision No. 118/TTg stipulates that in a family with multiple members eligible for preferential treatment regarding housing, if they are considered for support to improve their housing, the preferential benefits of each individual will be combined into the preferential benefit of the entire household, but the maximum level of support shall not exceed the highest preferential level prescribed in Decision No. 118/TTg.

The principle of combining preferential benefits of multiple individuals requires adding the difference between the level of support for each individual and the general exemption rate (60% as prescribed in Decree No. 61/CP) into the preferential benefit of the entire household.

Example: In a family with two individuals eligible for preferential treatment, Mr. A and Mrs. B, Mr. A is supported at a rate of 70% of the land use fee, while Mrs. B is supported at a rate of 65% of the land use fee.

According to Decree No. 61/CP, everyone purchasing a house belonging to state ownership only needs to pay 40% (after being exempted by 60%) of the land use fee, thus Mr. A receives an additional reduction of 10%, and Mrs. B receives an additional reduction of 5% of the land use fee compared to those who purchase houses without considering the support system.

According to Decision No. 118/TTg, the family of Mr. A and Mrs. B will receive a reduction of 10% + 5% = 15% of the land use fee, and still need to pay 40% - 15% = 25% of the land use fee when purchasing a house according to Decree No. 61/CP.

If a family has multiple individuals who have rendered meritorious service to the Revolution and are eligible for support of the land use fee when purchasing a house belonging to state ownership, the calculation method will also be implemented similarly as described above.

3. During the process of implementation, the People's Committees of provinces and centrally governed cities must direct subordinate levels and sectors to strictly comply with the provisions of Decision No. 118/TTg dated February 27, 1996 of the Prime Minister and this circular. If there are any difficulties during the implementation process, please report them to the Ministry of Construction and the Ministry of Labor, War Invalids and Social Affairs for resolution.