Circular No. 139/2016/TT-BTC guides on exemption from land use fee, land lease fee; refund or offset against financial obligations for investors when constructing social housing and the method to determine the land use fee payable when the buyer or lessee is permitted to resell social housing.

CIRCULAR

GUIDELINES ON EXEMPTION FROM LAND USE FEES AND LAND RENTAL FEES; REFUND OR DEDUCTION FROM FINANCIAL OBLIGATIONS FOR INVESTORS WHEN INVESTING IN SOCIAL HOUSING CONSTRUCTION AND METHODS TO DETERMINE THE AMOUNT OF LAND USE FEES TO BE PAID WHEN PERMITTED TO RESALE SOCIAL HOUSING

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 100/2015/NĐ-CP dated October 20, 2015 of the Government on social housing development and management;

Pursuant to Decree No. 215/2015/NĐ-CP dated December 25, 2015 of 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 Department;

The Minister of Finance issues this Circular guiding the exemption from land use fees and land rental fees, refund or deduction from financial obligations for investors when investing in social housing construction and methods to determine the amount of land use fees to be paid when permitted to resell social housing according to Decree No. 100/2015/NĐ-CP dated October 20, 2015 of the Government on social housing development and management.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the implementation of certain provisions of Decree No. 100/2015/NĐ-CP dated October 20, 2015 of the Government on social housing development and management (hereinafter referred to as Decree No. 100/2015/NĐ-CP) and the following contents:

1. Exemption from land use fees and land rental fees for social housing construction projects not using state budget funds as provided for in Clause 1, Article 9 of Decree No. 100/2015/NĐ-CP;

2. Refund or deduction from financial obligations (land use fees or land rental fees payable when implementing other investment projects) that the investor must pay to the State which have been paid by the investor when the State grants land or legally transfers the right to use land from organizations, households, or individuals for the area of land designated for social housing construction as provided for in Clause 1, Article 9 of Decree No. 100/2015/NĐ-CP; Not deposited into temporary account The investor has already paid the land use fee when the State grants land or legally transferred the right to use land from organizations, households, or individuals for the area of land designated for social housing construction as provided for in Clause 1, Article 9 of Decree No. 100/2015/NĐ-CP;

3. Determination of the land use fee that the buyer or lessee of social housing must pay to the state budget when permitted to sell social housing as provided for in Clause 4, Article 19 of Decree No. 100/2015/NĐ-CP.

Article 2. Applicability

This Circular applies to organizations, households, individuals, and relevant state management agencies involved in social housing development and management as stipulated in Government Decree No. Decree No. 100/2015/NĐ-CP.

Chapter II

PART I. EXEMPTION FROM LAND USE FEES AND LAND RENTAL FEES FOR SOCIAL HOUSING CONSTRUCTION PROJECTS NOT USING STATE BUDGET FUNDS

Article 3. Exemption from Land Use Fees and Land Rental Fees

The exemption from land use fees and land rental fees for social housing construction projects not using state budget funds as provided for in Clause 1, Article 9 of Decree No. 100/2015/NĐ-CP shall be implemented as follows:

1. Exemption from land use fees and land rental fees for the entire area of land granted or leased by the State for the purpose of constructing social housing, including the land fund for constructing commercial facilities approved by competent authorities within the scope of the social housing construction project.

2. Exemption from land use fees and land rental fees for the entire area of land for constructing social housing using the 20% land fund of commercial housing development projects and urban development projects as stipulated by laws on housing, including the 20% land area for constructing commercial facilities approved by competent authorities within the scope of the social housing construction project.

3. Investors implementing social housing construction projects must follow the procedures prescribed by laws on land to obtain exemptions from land use fees and land rental fees.

Section II. REFUND OR OFFSET AGAINST FINANCIAL OBLIGATIONS TO BE PAID TO THE STATE BY THE INVESTOR OF SOCIAL HOUSING PROJECTS

Article 4. Principles for Refund or Offset Against Financial Obligations to be Paid to the State by the Investor of Social Housing Projects

1. The investor may be considered for refund or offset against financial obligations (land use fee or land rent) to be paid to the state with respect to the amount of land use fee already paid when the state grants land or legally transfers land use rights from organizations, households, or individuals, where such area is used for social housing construction, provided that the investor implements other investment projects (not social housing projects) within the same province where the social housing project is located.

2. Based on the budget capacity, the Chairman of the National Assembly; of the People's Committee at the provincial level shall decide on the offset or refund to the investor (after obtaining the consensus opinion of the Standing Committee of the People's Council at the same level) based on the proposal of the Director of the Department of Finance.

Article 5. Refund or Offset Against Financial Obligations to be Paid to the State by the Investor of Social Housing Projects

The refund or offset against financial obligations to be paid to the state by the investor of social housing projects as stipulated in Clause 1, Article 9 of Decree No. 100/2015/NĐ-CP shall be implemented as follows:

1. In cases where the investor has paid the land use fee when the state grants land, and such area is used for social housing construction, the investor is entitled to a refund or offset of the land use fee already paid into financial obligations (land use fee or land rent) to be paid to the state when implementing other investment projects; the amount of land use fee that the investor is entitled to a refund or offset against financial obligations (land use fee or land rent) to be paid to the state is the amount of land use fee the investor has paid according to the Notification or document of the competent authority in accordance with the laws on land.

2. In case In cases where the investor legally acquires land use rights from organizations, households, or individuals, and such area is used for social housing construction, the investor is entitled to a refund or offset of this amount into financial obligations (land use fee or land rent) to be paid to the state; the amount of financial obligation that the investor is entitled to a refund or offset against to be paid to the state is determined based on the land price for the purpose of land use acquisition at the time permitted by the competent state authority to change the land use purpose or at the time permitted to use land for implementing the social housing investment project but not exceeding the compensation and support amount corresponding to the case where the state recovers land in accordance with the laws on land. The land price for the acquired land is determined using the land price adjustment coefficient method. use 3. The amount of land use fee or land rent that the investor must pay when implementing other investment projects (not social housing projects) for the purpose of offsetting is determined in accordance with the laws on land. In cases where the investor is granted land by the state and pays annual land rent for other investment projects, the amount of land rent to be offset will be converted into the number of years or months completed in fulfilling the financial obligation to pay annual land rent and is determined as the period during which the annual land rent payments have been completed; the determination of the land rent amount in this case is carried out in accordance with the laws on land.

3. The amount of land use fee and land rent that the Investor must pay when implementing other investment projects (excluding social housing projects) to be deducted shall be determined in accordance with the provisions of the Land Law. In cases where the Investor is granted land lease by the State and pays annual land rent, the amount of land rent to be deducted will be converted into the number of years and months completed for fulfilling the financial obligation of paying annual land rent, which is considered the time already completed for paying annual land rent; the determination of the amount of land rent in this case shall be carried out in accordance with the provisions of the Land Law.

Chapter III

DETERMINATION OF LAND USE FEE TO BE PAID WHEN SELLING SOCIAL HOUSING

Article 6. Payment of land use fee when reselling social housing

The payment of the land use fee by the buyer or lessee of social housing who is permitted to resell such housing according to Clause 4, Article 19 of Decree No. 100/2015/NĐ-CP shall be implemented as follows:

1. In the case of reselling social housing in the form of apartment units in a residential building, the seller must pay to the state budget 50% of the land use fee allocated to that apartment unit.

2. In the case of reselling social housing in the form of low-rise attached houses, 100% of the land use fee must be paid.

Article 7. Determination of the land use fee payable when reselling social housing

The determination of the land use fee that the buyer or lessee of social housing must pay when permitted to resell such housing according to Clause 4, Article 19 of Decree No. 100/2015/NĐ-CP shall be carried out as follows:

1. The land price for calculating the land use fee shall be determined based on the residential land price set forth in the provincial land price table multiplied by the land price adjustment factor at the time the buyer or lessee resells the social housing. of the National Assembly; 2. The land use fee payable when reselling social housing:

a) In the case where the buyer or lessee of social housing resells social housing in the form of an apartment unit, they must pay the land use fee as follows:

Land use fee payable

Where:

- The land price is determined according to the provisions of Clause 1 of this Article.

- The allocation coefficient for the apartment unit is determined according to the provisions of Article 8 of this Circular.

b) In the case where the buyer or lessee of social housing resells social housing in the form of low-rise attached houses, the seller of social housing must pay 100% of the land use fee. The land use fee is calculated by multiplying the land price specified in Clause 1 of this Article with the area of the social housing land.

Article 8. Allocation Coefficient for Land Use Fee

1. The allocation coefficient for determining the land use fee in the case of reselling social housing in the form of an apartment unit is determined as follows:

Allocation Coefficient

2. The total floor area of the building specified in Clause 1 of this Article is determined after deducting the portion of the area allowed for commercial operation according to the regulations (if applicable). (i) Name, headquarters address, contact phone number of the parties signing the contract; 1. This Circular takes effect from November 15, 2016.

2. Cases arising from December 10, 2015 shall be implemented according to the provisions of Government Decree No. 100/2015/NĐ-CP dated October 20, 2015 on the development and management of social housing and the guidance provided in this Circular.

Chapter IV

IMPLEMENTATION

Article 9. Effective Date

3. In cases where the legal normative documents cited for application in this Circular are amended, supplemented, or replaced, they shall be implemented according to those amended, supplemented, or replacement documents.

1. State-owned housing management agencies as stipulated in Article 2 of this Circular;

provincial and centrally-administered city people's committees; other relevant agencies and units have the responsibility

Article 10. The People's Organization at the provincial level shall be responsible for: a) Report to the Ministry of Natural Resources and Environment on the results of training and upgrading, including listing the teaching staff participating in teaching, evaluating the participation of trainees in the training process, the results of organizing examinations for completing the training and upgrading program on land valuation business, the issuance of Certificates and the use of Certificate codes, summarizing the feedback from trainees on the quality of the training and upgrading program on land valuation business, and other relevant matters.

to implement the provisions of this Circular. of the National Assembly; 2. During implementation, if there are difficulties or obstacles, agencies and units are requested to report to the Ministry of Finance for research and appropriate amendments. organization - Office of the Chairman

National Financial Supervisory Commission;