Circular No. 175/2009/TT-BTC Amending and Supplementing Circular No. 83/2007/TT-BTC dated July 16, 2007 of the Ministry of Finance guiding the implementation of Decision No. 09/2007/QĐ-TTg dated January 19, 2007 of the Prime Minister on the reorganization and handling of state-owned real estate.

CIRCULAR

Regarding the amendment and supplementation of Circular No. 83/2007/TT-BTC dated July 16, 2007 of the Ministry of Finance guiding the implementation of Decision No. 09/2007/QĐ-TTg dated January 19, 2007 of the Prime Minister on the reorganization and handling of state-owned real estate.

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Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 09/2007/QĐ-TTg dated January 19, 2007 of the Prime Minister on the reorganization and handling of state-owned real estate;

Pursuant to Decision No. 140/2008/QĐ-TTg dated October 21, 2008 of the Prime Minister amending and supplementing Decision No. 09/2007/QĐ-TTg dated January 19, 2007 of the Prime Minister on the reorganization and handling of state-owned real estate;

The Ministry of Finance guides the amendment and supplementation of certain contents regarding the reorganization and handling of state-owned real estate stipulated in Circular No. 83/2007/TT-BTC dated July 16, 2007 of the Ministry of Finance as follows:

Article 1. Amend Point b Clause 1.1 Section 1 Part I as follows:

“b) State-owned enterprises under central and local management, including: State-owned corporations, State-owned companies, and limited liability companies wholly owned by the state (hereinafter collectively referred to as state-owned enterprises);”

Article 2. Amend Point b Clause 4.1 Section 4 Part II as follows:

“b) The starting price for selling assets on land and transferring land use rights through public auction shall be determined as follows:

The sale price of assets on land must ensure compatibility with the remaining actual value according to the reassessment results, not lower than the construction cost of new similar assets issued by the provincial People's Committee multiplied by the remaining quality ratio at the time of determining the sale price of assets on land. The transfer price of land use rights shall be determined closely to the actual market transfer price of land use rights at the time of transferring land use rights according to the new purpose of use, not lower than the land price of the same type prescribed and announced by the provincial People's Committee on January 1st each year.

Agencies and units having state-owned real estate are permitted to hire organizations with the necessary conditions to operate asset valuation to determine the sale price of assets on land and the transfer price of land use rights, which shall be submitted to the Department of Finance to lead and coordinate with relevant agencies for review and submit to the Chairman of the Provincial People's Committee. In case it is not possible to hire an organization with the necessary conditions to operate asset valuation, the Department of Finance shall lead and coordinate with relevant agencies to establish a Board to determine the sale price of assets on land and the transfer price of land use rights, and submit to the Chairman of the Provincial People's Committee.

The Chairman of the Provincial People's Committee shall approve or authorize the Director of the Department of Finance to approve the starting price and the result of the public auction.”

Article 3. Amend Clause 4.2 Section 4 Part II as follows:

“4.2. The sale of assets on land and the transfer of land use rights through designation as provided for in Clause 4, Article 1 of Decision No. 140/2008/QĐ-TTg shall be specifically guided as follows:

4.2.1. The competent state agency authorized to decide on the sale of assets on land and the transfer of land use rights as provided for in Article 19 of Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on Management and Use of State Assets, decides on the sale of assets on land and the transfer of land use rights through designation in the following cases:

a) After the public announcement period for auction as prescribed, only one organization or individual has registered to purchase assets on land or accept the transfer of land use rights;

b) Organizations or individuals registering to purchase assets on land or accept the transfer of land use rights for socialized purposes in education, vocational training, healthcare, culture, sports, and environmental protection that comply with approved planning shall be allowed to purchase through designation. If multiple organizations or individuals register to purchase assets on land or accept the transfer of land use rights for socialized purposes in the aforementioned fields, a public auction shall be conducted among the participating registrants as prescribed by law;

c) Organizations or individuals registering to purchase assets on land or accept the transfer of land use rights from premises leased by organizations with the function of leasing real estate (property management companies, warehouse companies, public service companies) for use in accordance with approved planning and the plan for reorganization and handling of state-owned real estate of the leasing organization approved by the Provincial People's Committee.

In addition to the above cases, if it is necessary to sell assets on land or transfer land use rights through designation, the central competent authority or the Provincial People's Committee (for premises under central management) or the Provincial People's Committee (for premises under local management) shall propose to the Ministry of Finance to report to the Prime Minister for consideration and decision.

4.2.2. The sale price of assets on land and the transfer price of land use rights through designation shall be determined as follows:

The sale price of assets on land must ensure compatibility with the remaining actual value according to the reassessment results, not lower than the construction cost of new similar assets issued by the provincial People's Committee multiplied by the remaining quality ratio at the time of determining the sale price of assets on land. The transfer price of land use rights shall be determined closely to the actual market transfer price of land use rights at the time of transferring land use rights according to the new purpose of use, not lower than the land price of the same type prescribed and announced by the provincial People's Committee on January 1st each year.

Agencies and units having state-owned real estate are permitted to hire organizations with the necessary conditions to operate asset valuation to determine the sale price of assets on land and the transfer price of land use rights, which shall be submitted to the Department of Finance. The Department of Finance shall lead and coordinate with relevant agencies to establish a Board to review the sale price of assets on land and the transfer price of land use rights, and submit to the Chairman of the Provincial People's Committee. In case it is not possible to hire an organization with the necessary conditions to operate asset valuation, the Board shall determine the sale price of assets on land and the transfer price of land use rights, and submit to the Chairman of the Provincial People's Committee.

The Chairman of the Provincial People's Committee shall approve the sale price of assets on land and the transfer price of land use rights.”

Article 4. Amend and supplement Section 5 of Part II as follows:

1. Amend Clause 5.1 as follows:

“5.1. For administrative agencies, public service units, and organizations selling assets on land, transferring land use rights:

5.1.1. The entire amount of money received from selling assets on land, transferring land use rights shall be deposited into a temporary holding account at the State Treasury of the province where the property is located (the central competent authority manages the account for administrative agencies, public service units, and organizations under central management; the Department of Finance manages the account for administrative agencies, public service units, and organizations under local management).

5.1.2. Related expenses to be paid from the proceeds of selling assets on land, transferring land use rights include:

a) Surveying costs for houses and land;

b) Costs for determining prices and organizing auction sales;

c) Relocation costs according to prescribed regulations, including:

- Costs for dismantling, transporting, and reinstalling equipment and machinery when implementing relocation and damages incurred during dismantling, transportation, and reinstallation;

- Support costs for relocating households and individuals who have been arranged housing within the premises of the real estate (if applicable).

d) Other related costs.

5.1.3. Administrative agencies, units with properties may request the Department of Finance to determine the expenses specified in Point 5.1.2 of this Clause. Specifically, relocation support costs for households and individuals already arranged housing within the premises of the property by the People's Committee on Compensation, Support, and Resettlement at the district level (where the property is located) according to specific regulations on compensation and support of the locality, submit for approval by the Chairman of the District People's Committee, and send to the Department of Finance for consolidation into the total expenses payable from the proceeds of selling assets on land, transferring land use rights.

The Department of Finance shall pay the related expenses to relevant parties for properties under local management; issue a written request to the account holder to transfer payment of related expenses to relevant parties for properties under central management.

5.1.4. The remaining amount from selling assets on land, transferring land use rights after paying the expenses specified in Point 5.1.2 of this Clause shall be managed and used in the following order:

a) To implement investment projects for constructing, upgrading, and renovating office premises, public service facilities approved by the competent authority according to regulations on basic construction investment management using state budget funds.

b) To support the relocation of households and individuals already arranged housing within the premises of other properties of administrative agencies, public service units, and organizations under the same management scope of ministries, sectors, and localities. The competent authority (central or local) shall issue a written request to the People's Committee on Compensation, Support, and Resettlement at the district level (where the property is located) to determine relocation support costs for households and individuals according to Point 5.1.3 of this Clause, submit for approval by the Chairman of the District People's Committee.

c) To deposit into the state budget according to laws on the state budget.

5.1.5. The authority to decide on the amount of money to be used as specified in Point 5.1.4 of this Clause is as follows:

a) For the amount of money to be used as specified in Subparagraph a of Point 5.1.4 of this Clause, it shall be decided by the Minister of Finance (for administrative agencies, public service units, and organizations under central management), or the Chairman of the Provincial People's Committee (for administrative agencies, public service units, and organizations under local management) based on the proposal of the central competent authority or the Department of Finance, but not exceeding the total investment amount of the project already decided by the competent authority.

b) For the amount of money to be used as specified in Subparagraph b of Point 5.1.4 of this Clause, it shall be decided by the central competent authority or the Provincial People's Committee based on the results of approving relocation support costs for households and individuals by the Chairman of the District People's Committee.

5.1.6. Management, allocation, and settlement of the funds for implementing the investment project as specified in Subparagraph a of Point 5.1.4 of this Clause shall be carried out according to the regulations on basic construction investment management using state budget funds.

Management, allocation, and settlement of the funds for supporting the relocation of households and individuals (if applicable) as specified in Subparagraph b of Point 5.1.4 of this Clause shall be carried out according to laws on the state budget.

The account holder of the temporary holding account at the State Treasury of the province has the responsibility to manage and use the account in accordance with the law.

The amount of money that administrative agencies, public service units, and organizations use to implement investment projects and the amount of money for supporting the relocation of households and individuals (if applicable) as specified in Point 5.1.4 of this Clause shall be recorded as income and expenditure in the state budget according to the state budget classification.”

2. Amend Clause 5.2 as follows:

“5.2. For state-owned companies selling assets on land, transferring land use rights:

5.2.1. The sale price of assets on land is determined specifically in the following cases:

a) In the case of selling assets on land, transferring land use rights through auction, the sale price of assets on land in the winning bid is the starting price set by the auction organizer according to Article 2 of this Circular.

b) In the case of selling assets on land, transferring land use rights through designation, the sale price of assets on land in the designated sale price has been approved by the Provincial People's Committee according to Article 3 of this Circular.

5.2.2. State-owned companies may use the proceeds from selling assets on land as specified in Point 5.2.1 of this Clause according to laws on enterprises.

5.2.3. The proceeds from transferring land use rights shall be deposited into a temporary holding account at the State Treasury of the province where the property is located (the Ministry of Finance manages the account for state-owned companies under central management, the Department of Finance manages the account for state-owned companies under local management).

5.2.4. Related expenses to be paid from the proceeds of transferring land use rights include:

a) Surveying costs for houses and land;

b) Costs for determining prices and organizing auction sales;

c) The value of land use rights already provided by the state;

d) Relocation costs according to the prescribed regime, including:

- Costs for dismantling, transporting, and reinstalling equipment and machinery when implementing relocation and damages incurred during dismantling, transportation, and reinstallation;

- Support costs for relocating households and individuals who have been arranged housing within the premises of the real estate (if applicable).

đ) Reasonable costs invested in remaining land without a state budget origin. These costs must have complete documentation and evidence and are determined by subtracting the corresponding amount allocated for the time already used from the total reasonable costs invested in the land, including:

- Land use fees for unused periods in the case of land allocation with a term, prepaid land rental fees for unused periods (with proof of payment);

- Land leveling costs, land restoration costs.

e) Other related costs.

5.2.5. The determination and payment of the expenses specified in Point 5.2.4 of this Section shall be carried out in accordance with the provisions of Point 5.1.3 of Article 1 of this Decree.

5.2.6. The remaining transfer price of the land use right after paying the expenses specified in Point 5.2.4 of this Section shall be managed and utilized in the following order:

a) In the case where a state-owned company has an investment project for constructing, upgrading, or renovating production and business facilities that have been approved by the competent authority, it shall be supported to implement the investment project according to the regulations on managing basic construction investment from the state budget.

b) Pay into the state budget in accordance with the laws on the state budget.

5.2.7. The authority to decide and the level of support for implementing the investment project specified in Subparagraph a of Point 5.2.6 of this Section are as follows:

The Minister of Finance (for state-owned companies under central management), the Chairman of the Provincial People's Committee, after receiving opinions from the same-level People's Council on the general handling policy or having a resolution assigning the Provincial People's Committee to decide (for state-owned companies under local management) the amount of support for state-owned companies to implement the investment project but not exceeding the total investment cost of the project decided by the competent authority and not exceeding:

a) 50% of the revenue obtained (after paying related expenses) for real estate located in special-class cities or Class I cities;

b) 70% of the revenue obtained (after paying related expenses) for real estate located in other provinces.

5.2.8. The management, allocation, and settlement of the support funds for implementing the investment project specified in Subparagraph a of Point 5.2.6 of this Section shall be carried out according to the regulations on managing basic construction investment from the state budget; recorded as state budget revenue and expenditure in the state budget classification and considered as state budget investment in state-owned companies.

The account holder temporarily holding at the provincial State Treasury is responsible for managing and using the account in accordance with the law.”

3. Supplement Section 5.3 as follows:

"5.3. For state-owned enterprises whose land use purpose is changed:

5.3.1. In the case where a state-owned company directly uses real estate permitted by the competent state agency to change the purpose of land use, it must pay the land use fee when changing the purpose of land use. The land value for calculating the land use fee when changing the purpose of land use shall be determined in accordance with the provisions of Point 4.2.2 of Section 4.2 of Article 3 of this Circular. The determination of the land use fee payable when changing the purpose of land use shall be carried out in accordance with the laws on collecting the land use fee.

5.3.2. All revenue obtained from changing the purpose of land use shall be deposited into a temporary account held at the provincial State Treasury (where the real estate is located) by the Department of Finance as the account holder.

5.3.3. Related expenses paid from the proceeds from the change of land use purpose include:

a) Surveying costs for houses and land;

b) Costs for determining the price;

c) Relocation costs according to prescribed regulations, including:

- Costs for dismantling, transporting, and reinstalling equipment and machinery when implementing relocation and damages incurred during dismantling, transportation, and reinstallation;

- Support costs for relocating households and individuals who have been arranged housing within the premises of the real estate (if applicable).

d) Other related costs.

5.3.4. The determination and payment of the expenses specified in Point 5.3.3 of this Section shall be carried out in accordance with the provisions of Point 5.1.3 of Article 1 of this Decree.

5.3.5. The remaining revenue obtained from changing the purpose of land use after paying the expenses specified in Point 5.3.3 of this Section shall be managed and utilized in the following order:

a) In the case where a state-owned company has real estate that needs to be relocated due to environmental pollution but is allowed by the competent state agency to change the purpose of land use at that location and has been approved by the competent authority for an investment project to construct, upgrade, or renovate production and business facilities at another location, it shall be supported to implement the investment project according to the regulations on managing basic construction investment from the state budget.

b) Pay into the state budget in accordance with the laws on the state budget.

5.3.6. The authority to decide and the level of support for implementing the investment project specified in Subparagraph a of Point 5.3.5 of this Section are as follows:

Based on the actual situation in the locality and the revenue obtained from changing the purpose of land use for each state-owned company's real estate, the Chairman of the Provincial People's Committee decides the amount of support for state-owned companies to implement the investment project after receiving opinions from the same-level People's Council on the general handling policy or having a resolution assigning the Provincial People's Committee to decide; specifically, for state-owned companies under central management, there must be a written agreement from the Ministry of Finance before making the decision. The support amount does not exceed the total investment cost of the project decided by the competent authority and does not exceed:

a) 50% of the revenue obtained (after paying related expenses) for real estate located in special-class cities or Class I cities;

b) 70% of the revenue obtained (after paying related expenses) for real estate located in other provinces.

5.3.7. The management, allocation, and settlement of the support funds for implementing the investment project specified in Subparagraph a of Point 5.3.5 of this Section shall be carried out according to the regulations on managing basic construction investment from the state budget; recorded as state budget revenue and expenditure in the state budget classification and considered as state budget investment in state-owned companies.

The account holder temporarily holding at the provincial State Treasury is responsible for managing and using the account in accordance with the law.”

Article 5. Amend Section 2 Part III as follows:

1. Amend Clause 2.1 as follows:

“2.1. For economic organizations that must be relocated and whose land use purpose has been changed:

2.1.1. In cases where economic organizations that must be relocated directly use premises and land which have been permitted by competent state authorities to change their land use purpose, they shall pay land use fees when changing the land use purpose. The land price for collecting land use fees when changing the land use purpose shall be determined according to the provisions of Point 4.2.2 Clause 4.2 Article 3 of this Circular. The determination of the amount of land use fees to be paid when changing the land use purpose shall be carried out in accordance with the laws on collecting land use fees.

2.1.2. The entire amount of money collected from changing the land use purpose shall be deposited into a temporary account at the State Treasury of the province (where the premises and land are located), managed by the Department of Finance.

2.1.3. Related expenses shall be paid from the amount of money collected from changing the land use purpose in accordance with the provisions of Point 5.3.3 Clause 3 Article 4 of this Circular.

2.1.4. The determination and payment of the expenses specified in Point 2.1.3 of this clause shall be carried out in accordance with the provisions of Point 5.1.3 Clause 1 Article 4 of this Circular.

2.1.5. The remaining amount of money collected from changing the land use purpose after paying the expenses specified in Point 2.1.3 of this clause shall be deposited into the state budget in accordance with the laws on the state budget.”

2. Amend Clause 2.2 as follows:

“2.2. For economic organizations that must be relocated and sell assets on land, transfer land use rights:

2.2.1. The selling price of assets on land and the transfer price of land use rights shall be implemented in accordance with Article 2 of this Circular.

2.2.2. The amount of money obtained from selling assets on land and transferring land use rights shall be deposited into a temporary account at the State Treasury of the province (where the premises and land are located), managed by the Department of Finance.

2.2.3. The amounts that can be paid from the proceeds of selling assets on land and transferring land use rights include:

a) The amount of money from selling assets on land that were provided by the State with capital or created by the economic organization that must be relocated using funds not from the state budget; this amount shall be paid to the economic organization that must be relocated.

The selling price of assets on land shall be determined based on the asset's value in the initial price of the auctioned asset as stipulated in Article 2 of this Circular.

b) Expenses as prescribed in Point 5.2.4 Clause 2 Article 4 of this Circular.

2.2.4. The determination and payment of the expenses specified in sub-item b Point 2.2.3 of this clause shall be carried out in accordance with the provisions of Point 5.1.3 Clause 1 Article 4 of this Circular.

2.2.5. The remaining amount of money obtained from selling assets on land and transferring land use rights after paying the amounts specified in Point 2.2.3 of this clause shall be managed and used in the following order:

a) Supporting economic organizations that must be relocated (regardless of whether they have investment projects or not).

b) Pay into the state budget in accordance with the laws on the state budget.

2.2.6. The authority to decide and the level of support specified in sub-item a Point 2.2.5 of this clause are as follows:

Based on the report of the economic organization that must be relocated and the regulations on the use of money from selling assets on land and transferring land use rights in Article 10 Decision No. 09/2007/QĐ-TTg, the Department of Finance is responsible for determining the amount of support that the economic organization that must be relocated will receive from the money in the temporary account at the State Treasury of the province (where the premises and land are located) for each premises and land, but not exceeding 30% of the remaining amount of money obtained from selling assets on land and transferring land use rights (after paying related expenses) of that premises and land, and the maximum amount does not exceed five billion (VND 5,000,000,000) dong, this is the amount of support from the state budget for the economic organization that must be relocated.

The Department of Finance reports to the People's Committee of the province to decide the specific level of support for each premises and land that must be relocated after receiving opinions from the People's Council at the same level regarding the general handling policy or having a resolution delegating the People's Committee of the province to make the decision.”

3. Amend Clause 2.3 as follows:

“2.3. The amount of support for economic organizations that must be relocated specified in sub-item a Point 2.2.5 Clause 2 of this Decree shall be managed, issued, settled according to the regulations on state budget management; recorded as income and expenditure in the state budget according to the state budget classification.”

Article 6. Handling issues arising during the transitional period

1. For administrative agencies, public service units, and organizations that have been approved by competent state authorities to implement reorganization and disposal plans before this Circular takes effect but have not yet completed the relocation of households and individuals who have been arranged housing out of the premises (if any), shall be handled in accordance with this Circular.

2. For state-owned enterprise property bases undergoing ownership conversion, they shall be handled as follows:

a) In cases where the ownership conversion plan has been approved by competent state authorities before this Circular takes effect, it shall be implemented according to the approved plan. The new legal entity established under the ownership conversion plan must complete land use rights procedures in accordance with the laws on land before December 31, 2009.

b) In cases where the ownership conversion plan for state-owned enterprises has not been approved by competent state authorities by the time this Circular takes effect, when approving the ownership conversion plan, the competent state authorities shall base it on the reorganization and disposal plan for state-owned property that has already been approved; if such a plan has not been approved, priority shall be given to its implementation to ensure the progress of ownership conversion for state-owned enterprises.

Article 7. Implementation Provisions

1. This Circular shall take effect 45 days from the date of signature.

2. Repeal Clause 3.2 Item 3 Part II of Circular No. 83/2007/TT-BTC dated July 16, 2007 of the Ministry of Finance guiding the implementation of Decision No. 09/2007/QĐ-TTg dated January 19, 2007 of the Prime Minister on the reorganization and disposal of state-owned property.

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