Decree No. 13/2006/ND-CP on determining the value of land use rights to be included in the asset value of organizations granted land by the State without payment of land use fees

DECREE

On determining the value of land use rights to be included in the asset value of organizations granted land without payment of land use fees

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THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Land Law dated November 26, 2003;

Pursuant to the State Enterprise Law dated November 26, 2003;

Considering the proposal of the Minister of Finance.

DECREE

PART I

GENERAL PROVISIONS

Article 1. Scope of Application

Land for which the value of land use rights must be determined to be included in the asset value of organizations granted by the State without payment of land use fees shall include: This Decree includes:

1. Land for constructing offices of state administrative agencies, political organizations, socio-political organizations, socio-professional organizations, social organizations, social-professional organizations, economic organizations, economic-socio organizations, public service units (service units), state-owned companies, people's armed forces units, and other organizations (hereinafter referred to collectively as organizations) granted by the State without payment of land use fees.

2. Land granted by the State with payment of land use fees, where the land use fees have been paid, or land use rights transferred where the transfer fees have been paid from state budget funds.

3. Land used by organizations for agricultural research, experimentation, and trials, forestry research, aquaculture, salt production, granted by the State without payment of land use fees (except cases where organizations acquire land use rights through transfer using non-state budget funds).

4. Land used by Agricultural Cooperatives for constructing cooperative headquarters, drying yards, warehouses; building service facilities directly serving agricultural, forestry, aquaculture, and salt production activities.

5. Protective forest land and special-use forest land allocated to organizations.

6. Land granted by the State to organizations for use with payment of land use fees but exempted from such fees according to Article 12 of Decree No. 198/2004/NĐ-CP dated December 3, 2004 of the Government on land use fee collection.

7. Land granted by the State to state-owned enterprises after implementing shareholding reform without payment of land use fees or with payment of land use fees but exempted from such fees according to Article 12 of Decree No. 198/2004/NĐ-CP dated December 3, 2004 of the Government on land use fee collection.

Article 2. Basis for determining the value of land use rights

The basis for determining the value of land use rights is the area of land and the land price:

1. The area of land subject to determination of the value of land use rights is the actual area currently being used, which has been allocated according to decisions of competent state authorities, or acquired through transfer of land use rights. In cases where there is a discrepancy between the current land area being used and the area recorded in the land allocation decision or land right transfer document, the value of land use rights shall be determined based on the actual land area used, confirmed by the Department of Natural Resources and Environment.

2. The land price for determining the value of land use rights is the land price issued by the People's Committee of the province or centrally-administered city (hereinafter referred to collectively as the provincial-level People's Committee) according to Decree No. 188/2004/NĐ-CP dated November 16, 2004 of the Government on methods for determining land prices and price ranges for various types of land (hereinafter referred to as Decree No. 188/2004/NĐ-CP). In cases where the actual price received upon acquisition of land use rights through transfer or the winning bid price in a land use rights auction is higher than the land price set by the provincial-level People's Committee, the land price for determining the value of land use rights shall be the actual price received upon acquisition of land use rights or the winning bid price. Land use rights are state assets

Article 3. 1. Land granted by the State to organizations without payment of land use fees; land granted by the State to organizations with payment of land use fees but exempted from such payments; land granted with payment of land use fees, where the land use fees have been paid, or land use rights transferred where the transfer fees have been paid from state budget funds are state assets allocated to organizations.

2. The value of land use rights is the value of state assets, which is the state investment capital allocated to organizations.

3. The transfer and recovery of land use rights shall be carried out in accordance with laws on land and laws on state asset management.

Determining the land price for calculating the value of land use rights

Chapter II

SPECIFIC PROVISIONS

Article 4. 1. Land for constructing offices and public works shall be determined according to the residential land price issued by the provincial-level People's Committee according to Decree No. 188/2004/NĐ-CP.

2. Land for production and business purposes shall be determined according to the non-agricultural land price (excluding residential land) issued by the provincial-level People's Committee according to Decree No. 188/2004/NĐ-CP.

3. Land used for agricultural production, research, experimentation, forestry, aquaculture, and salt production shall be determined according to the agricultural and forestry land price (including protective forests and special-use forests), aquaculture, and salt production land price issued by the provincial-level People's Committee according to Decree No. 188/2004/NĐ-CP.

Determining the value of land use rights

Article 5. 1. In cases where organizations are granted land without payment of land use fees or are gifted land use rights, the value of land use rights shall be determined by multiplying the land area by the land price as stipulated in Article 4 of this Decree.

2. In cases where organizations are granted land with payment of land use fees but exempted from such payments, the value of land use rights shall be determined by multiplying the land area granted by the land price according to the purpose of land use and the term of land grant.3. In cases where organizations were using land before this Decree took effect, the determination of the value of land use rights shall be carried out according to the provisions of Clause 1 and Clause 2 of this Article.

Clause 2. In cases where an organization is assigned land with payment for land use but is exempted from paying the land use fee, the value of the land use right shall be determined by multiplying the area of the assigned land by the price of the land according to its purpose of use and the term of land assignment.

Clause 3. In cases where an organization uses land before this Decree takes effect, the determination of the value of the land use right shall be carried out in accordance with the provisions of Clause 1 and Clause 2 of this Article.

Article 6. Adjustment of the value of land use rights

Organizations must adjust the value of land use rights in the asset value in the following cases:

1. When the area of land used changes from the area for which the value of land use rights has been determined due to:

a) Conducting a land inventory as prescribed by the Land Law.

b) When there is a decision by a competent state agency to reclaim, allocate additional, or transfer or receive an additional portion of the land area as decided by a competent state agency according to the law.

c) Other situations that change the land area confirmed by a competent state agency.

2. Changing the purpose of land use as decided by a competent state agency.

3. The Prime Minister's decision on a comprehensive inventory and reassessment of asset values.

Article 7. Recording the value of land use rights in asset value

1. For organizations, state agencies, political organizations, social-political organizations, public service organizations, military units, and other organizations, the monetary value of land use rights is considered fixed assets included in the asset value of the organization and is state property at the organization.

2. For state-owned enterprises, the monetary value of land use rights is recorded in the asset value and constitutes part of the state capital transferred. The enterprise is responsible for maintaining the land area and managing it according to the law on state asset management.

3. The value of land use rights is recorded in the asset value and tracked as a separate item in accounting books as prescribed by the law on accounting records; the land area and land files are recorded and tracked in the asset ledger of the organization or unit.

Article 8. Recovery and transfer of land use rights

1. Land allocated to organizations without payment of land use fees will be recovered and transferred under the following circumstances: as follows:

a) Misuse of purpose, surplus due to reorganization and reallocation of office space.

b) Must relocate office space, public service facilities, production and business premises (collectively referred to as office space) according to planning due to environmental pollution.

2. The transfer can only be carried out when permission is granted to change the land use purpose to residential land, agricultural land, non-agricultural land for production and business purposes according to the law on land.

a) The Prime Minister decides or, based on the delegation of the Government, the Minister of Finance decides to recover assets including land use rights of centrally-managed organizations to sell assets including land use rights (allocating land with land use fee payment or leasing land) to the transferee.

b) The Chairman of the Provincial People's Committee decides to recover assets including land use rights of locally-managed organizations to sell assets including land use rights (allocating land with land use fee payment or leasing land) to the transferee.

3. The transfer of land use rights and sale of assets attached to land shall mainly be conducted through auction or by decision of a competent state agency (designated sale).

All proceeds from the transfer of land use rights must be deposited into the state budget as prescribed by the state budget law. In cases where new office buildings need to be constructed (due to relocation or reorganization of office space), the proceeds from the transfer of land use rights may be used to implement investment projects approved by a competent state agency; the management and distribution must comply with current regulations on the management of state budget funds in basic construction investment.

Chapter III

IMPLEMENTATION

Article 9. The procedure for determining the value of land use rights is implemented as follows:

1. The organization currently using the land as stipulated in Article 1 of this Decree prepares a report on land use and submits it to the Department of Finance of the province or centrally-administered city where the organization is located, along with the certificate of land use rights; if there is no certificate of land use rights, submit related documents on land use rights (decisions allocating land, handover records of land, production and business premises, office space); if there is no proof of land use rights, procedures must be followed to establish land use rights according to the law on land.

2. Based on the reports and documents submitted by the organization; based on the land price issued by the provincial People's Committee, the Department of Finance, in coordination with relevant sectors, determines the value of land use rights to be included in the asset value of the organization. The document determining the value of land use rights is prepared in four copies (for centrally-managed organizations) and three copies (for locally-managed organizations) to be sent to the following authorities:

a) One copy retained by the Department of Finance.

b) One copy sent to the land-using organization.

c) One copy sent to the Ministry, ministry-level agency, government agency, or other central-level organization that is the superior supervisory body of the organization (for centrally-managed land-using organizations), sent to the department, sector, district people's committee, town, or city under the province (for locally-managed organizations).

d) One copy sent to the Ministry of Finance (State Asset Management Bureau) for centrally-managed land-using organizations.

3. Based on the value of land use rights determined in Clause 2 of this Article, the land-using organization implements the recording of the value of land use rights in the asset value of the organization according to the current accounting and statistical system.

Article 10. Time limit for determining the value of land use rights

1. The first determination of the value of land use rights as prescribed in this Decree must be completed before December 31, 2007. the first time the value of the land use right is determined under this Decree must be completed before December 31, 2007.

2. The adjustment of the value of land use rights as stipulated in Article 6 of this Decree shall be carried out according to the decision of a competent state agency.

Article 11. Management of the value of land use rights for organizations allocated land without payment of land use fees, or allocated land with payment of land use fees but exempted from payment

1. Annually, when there is a change in the area of land used or a change in the purpose of land use, the organization must report to the Department of Finance of the province or centrally-administered city.

2. On the basis of reports from organizations; based on decisions adjusting land prices and decisions promulgating land prices, the Department of Finance shall adjust the value of land use rights for organizations in accordance with Clause 2, Article 9 of this Decree.

Article 12. Responsibilities of organizations directly managing and using land

1. Manage and use land for the intended purpose and within the allocated area.

2. Determine the value of land use rights for accounting purposes and adjust the value of land use rights in accordance with this Decree.

In cases where multiple organizations share the same plot of land or the same building, the organization responsible for managing the plot of land shall be responsible for determining the value of land use rights in accordance with this Decree.

3. The head of the organization, the General Director, or the Director of state-owned companies directly managing and using land shall be responsible for preserving the allocated land fund. Unauthorized use of land for purposes other than those prescribed is strictly prohibited. Any misuse of land or any loss of land due to illegal occupation by individuals, unauthorized division among individuals for housing, or improper use such as leasing or lending must be recovered, and the relevant individuals must be subject to legal sanctions.

Article 13. Responsibilities of Ministries, agencies at the ministerial level, government agencies, central agencies of mass organizations, and provincial People's Committees

1. Guide subordinate agencies, units, and state-owned companies under their management to implement the determination and adjustment of accounting for the value of land use rights in accordance with this Decree.

2. Inspect the management and use of land by organizations and state-owned companies under their management. Handle violations in land management and use within their authority or refer them to competent authorities for handling in accordance with the law.

Article 14. Responsibilities of the Ministry of Public Security

Guide and inspect Ministries, agencies at the ministerial level, government agencies, central agencies of mass organizations, provincial People's Committees, and land-using organizations to implement this Decree.

Article 15. Responsibilities of the Ministry of Natural Resources and Environment

1. Guide the resolution of issues related to the establishment of land use rights for organizations. land use right of an organization.

2. Within its functions, tasks, and powers, it shall cooperate with the Ministry of Finance to guide the implementation of this Decree.

Chapter IV

IMPLEMENTING PROVISIONS

Article 16. This Decree takes effect fifteen days after its publication in the Official Gazette. Previous regulations that conflict with this Decree are hereby abolished.

Article 17. Ministers, heads of agencies at the ministerial level, heads of government agencies, Chairmen of provincial People's Committees, and heads of relevant agencies are responsible for implementing this Decree./.