Decision No. 71/2014/QD-TTg Amending and supplementing Clause 5 of Article 1 of Decision No. 140/2008/QD-TTg dated October 21, 2008 of the Government on the reorganization and handling of state-owned real estate.

Pursuant to …;

Amending and supplementing Clause 5, Article 1 of Decision No. 140/2008/QĐ-TTg dated October 21, 2008 of the Prime Minister on the reorganization and handling of state-owned real estate 

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

Pursuant to the Law on Land 2013;

Pursuant to the Law on State Budget dated December 16, 2002;

Pursuant to the Law on Management and Use of State Property dated June 3, 2008;

Pursuant to 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 Property;

At the proposal of the Minister of Finance,

The Prime Minister issues this Decision to amend and supplement Clause 5, Article 1 of Decision No. 140/2008/QĐ-TTg dated October 21, 2008 of the Prime Minister on the reorganization and handling of state-owned real estate.

Article 1. Amending and supplementing Clause 5, Article 1 of Decision No. 140/2008/QĐ-TTg dated October 21, 2008 of the Prime Minister on the reorganization and handling of state-owned real estate (hereinafter referred to collectively as Decision No. 140/2008/QĐ-TTg) as follows:

"5. Amend and supplement Article 8 as follows:
1. For administrative agencies and public service units:
a) The proceeds from selling assets on land and transferring land use rights must be deposited into a temporary account at the State Treasury managed by the Ministry of Finance (for central-level administrative agencies and public service units); or a temporary account at the provincial State Treasury managed by the Department of Finance (for local-level administrative agencies and public service units) within ninety days from the date the competent authority approves the auction results (in the case of auction sale) or the Department of Finance issues the Notice on the price for selling assets on land and transferring land use rights (in the case of designated sale). If the amount is not fully deposited into the temporary account within this period, penalties will be imposed according to the laws on tax management.

The specific payment deadlines and late payment penalties are stipulated in the Auctioned Asset Purchase Contract (in the case of auction sale) or the Asset Purchase Contract (in the case of designated sale).
b) Within fifteen working days from the date of depositing the proceeds from selling assets on land and transferring land use rights into the temporary account, the administrative agency or public service unit shall compile related expenses and submit them to the Department of Finance (where the property is located) to determine the expenses that can be paid from the proceeds of selling assets on land and transferring land use rights according to regulations.
c) Within fifteen working days from the date of receiving all documents, the Department of Finance (where the property is located) shall determine and issue a Notice on the review of related expenses that the agency or unit can pay from the proceeds of selling assets on land and transferring land use rights.
The proceeds from selling assets on land and transferring land use rights remaining in the temporary account after deducting the related expenses determined by the Department of Finance shall be handled as follows:

- For central-level administrative agencies and public service units:

+ They may retain the entire amount (100%) of the proceeds from selling assets on land; and 70% of the proceeds from transferring land use rights.

+ The Ministry of Finance shall transfer 30% of the proceeds from transferring land use rights into the local budget where the property is located.

- For local-level administrative agencies and public service units: They may retain the entire amount (100%) of the proceeds from selling assets on land and transferring land use rights.

d) The proceeds from selling assets on land and transferring land use rights specified in Point d of this Clause shall be used in the following order:

- To implement investment projects for constructing, upgrading, and renovating office premises and public service facilities approved by the competent authority, including costs for compensation, land clearance, and support according to the law for receiving land at new locations (if applicable).

Management and payment shall be carried out according to the laws on managing and paying capital for basic construction projects funded by the state budget.

- To assist in relocating households and individuals who have been arranged housing within the premises of other properties of administrative agencies and public service units under the jurisdiction of ministries, sectors, and localities (if applicable).

- To invest in building and improving local infrastructure (for the proceeds from selling assets on land and transferring land use rights of administrative agencies and public service units under local management).

- To deposit into the state budget according to the laws on the state budget.

e) After twenty-four months from the date the proceeds from selling assets on land and transferring land use rights are deposited into the temporary account; the Ministry of Finance (for central-level administrative agencies and public service units) or the Department of Finance (for local-level administrative agencies and public service units) shall deposit into the state budget according to the laws on the state budget in cases where the administrative agency or public service unit has not had an approved investment project and has not commenced construction; has not requested relocation assistance for households and individuals who have been arranged housing within the premises of other properties under the jurisdiction of ministries, sectors, and localities; does not have an infrastructure investment project at the local level or has an approved infrastructure investment project but has not used up the funds in the temporary account.
2. For state-owned companies:
a) The proceeds from selling assets on land and transferring land use rights must be deposited into a temporary account at the State Treasury managed by the Ministry of Finance (for centrally-managed state-owned companies) or a temporary account at the provincial State Treasury managed by the Department of Finance (for locally-managed state-owned companies) within ninety days from the date the competent authority approves the auction results (in the case of auction sale) or the Department of Finance issues the Notice on the price for selling assets on land and transferring land use rights (in the case of designated sale). If the amount is not fully deposited into the temporary account within this period, penalties will be imposed according to the laws on tax management.

The specific payment deadlines and late payment penalties are stipulated in the Auctioned Asset Purchase Contract (in the case of auction sale) or the Asset Purchase Contract (in the case of designated sale).
b) Within fifteen working days from the date of depositing the proceeds from selling assets on land and transferring land use rights into a temporary holding account, the state-owned company shall be responsible for compiling related expenses and submitting them to the Department of Finance (where the real estate facility is located) to determine the expenses that can be paid from the proceeds of selling assets on land and transferring land use rights in accordance with the regulations.
c) Within fifteen working days from the date of receiving complete files, the Department of Finance (where the real estate facility is located) shall carry out the determination and issue a Notice of Appraisal of the related expenses that the state-owned company can be paid from the proceeds of selling assets on land and transferring land use rights.
The proceeds from selling assets on land and transferring land use rights remaining in the temporary account after deducting the related expenses determined by the Department of Finance shall be handled as follows:

- The proceeds from selling assets on land, the state-owned company may use in accordance with the laws on enterprises.

- The proceeds from transferring land use rights:

+ To retain 50% (for facilities in special-class cities or class I cities); 70% (for facilities in other provinces).

+ The Ministry of Finance (for state-owned companies under central management) or the Department of Finance (for state-owned companies under local management) shall remit 50% (for facilities in special-class cities or class I cities) or 30% (for facilities in other provinces) into the local budget (where the real estate facility is located) in accordance with the laws on state budget.
d) The proceeds from transferring land use rights as stipulated in Point d Clause of this Article shall be used in the following order:

- To implement investment projects for constructing, upgrading, and renovating production and business facilities that have been approved by competent authorities in accordance with the laws on construction using state budget funds, as approved by the Ministry of Finance (for state-owned companies under central management) and approved by the provincial People's Committee after receiving opinions from the same-level People's Council regarding general handling policies or resolutions assigning the provincial People's Committee to make decisions (for state-owned companies under local management).

Management and payment shall be carried out according to the laws on managing and paying capital for basic construction projects funded by the state budget.

- To deposit into the state budget according to the laws on the state budget.
e) After twenty-four months from the date the proceeds from transferring land use rights are deposited into the temporary holding account; the Ministry of Finance (for state-owned companies under central management) or the Department of Finance (for state-owned companies under local management) shall remit into the state budget in accordance with the laws on state budget, in cases where the state-owned company has not had an approved investment project or has not commenced investment construction, or has an approved investment project but has not fully utilized the funds in the temporary holding account.
g) The proceeds from changing the purpose of land use, which are to be deposited into a temporary holding account at the provincial State Treasury (where the real estate facility is located), managed by the Department of Finance within ninety days from the date of approval by the competent authority. If the payment is not completed within this period, the state-owned company changing the land use purpose must pay penalties in accordance with the laws on tax administration.

The management and use of the proceeds when changing the purpose of land use in cases where state-owned companies with real estate facilities need to relocate due to environmental pollution shall be carried out in accordance with Decision No. 86/2010/QĐ-TTg dated December 22, 2010 issued by the Prime Minister and guiding documents.

3. The Ministry of Finance shall provide guidance on related expenses and procedures for paying such expenses; the distribution and accounting procedures through the state budget of the proceeds for implementing investment projects and supporting relocation of households and individuals (if any) as stipulated in Clause 1 and Clause 2 of this Article.”

Article 2. Implementation clause

1. This Decision takes effect from February 15, 2015.

2. For facilities whose sale of assets on land and transfer of land use rights have been approved by competent authorities before the effective date of this Decision, the ratio of division of the proceeds from selling assets on land and transferring land use rights shall be implemented in accordance with Clause 5, Article 1 of Decision No. 140/2008/QĐ-TTg.

3. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, central-level agencies, Chairmen of Management Boards of State Capital Joint Stock Companies established by the Prime Minister, Chairmenof the National Assembly;of Provincial People's Councils, and Heads of relevant agencies are responsible for implementing this Decision./.