Government adjusts land and water surface rental collection

The Government has just issued Decree No. 123/2017/ND-CP amending and supplementing a number of articles of the Decrees regulating the collection of land use fees, land rents, and water surface rents.

Decree No. 123/2017/ND-CP amending and supplementing a number of articles of Decree No. 46/2014/ND-CP dated May 15, 2014 regulating the collection of land and water surface rents.

Regarding the determination of land rent and water surface rent, Decree No. 123/2017/ND-CP amended, in case land is used simultaneously for purposes subject to land rent and purposes not subject to land rent, the amount of land rent payable is determined based on the area allocation according to land use purposes.

Illustration photo.

» Nghe An allocates over 23,476 hectares of land for industrial development

In case the subject is leased land by the State according to the provisions of the land law and is using a house or land at a mixed-use construction project owned by the State or has a part of the area under the State's management but cannot separate the land area used for each subject, the land rent that the subject must pay is determined according to the allocation coefficient based on the floor area used.

In the case of land leased by the State and paying land rent at once for the entire lease term and having paid land rent according to the provisions of law or receiving legal transfer of land use rights and then having to switch to land lease, if the investor requests to adjust the detailed construction planning, causing financial obligations for land (if any), the investor must pay additional land rent to the state budget.

In case the financial obligation to pay land rent has not been fulfilled, if the land user requests to adjust the detailed planning, causing land financial obligations (if any), the land user must: a- Pay the full amount of land rent determined according to the detailed construction planning before adjustment plus the corresponding late payment fee according to the provisions of law; b- Pay additional land rent determined by the difference between the land rent payable according to the planning before adjustment and according to the planning after adjustment determined at the same time when the competent state agency permits the planning adjustment (if any).

Decree No. 123/2017/ND-CP further stipulates that in cases where land users are being leased land by the State and pay annual land rent, and the land plot or land area with land rent calculation area has a value (calculated according to land price in the Land Price List) of VND 30 billion or more for centrally-run cities; VND 10 billion or more for mountainous and highland provinces; VND 20 billion or more for the remaining provinces when implementing a construction investment project according to the detailed construction planning approved by a competent state agency on the leased land area (but without changing the land use purpose) and the land use coefficient (construction density, height of the building) is higher than the land use coefficient according to the current planning before implementing the project, the Provincial People's Committee shall decide to increase the land price adjustment coefficient to calculate land rent.

How to determine land revenue for public service units

In addition, Decree No. 123/2017/ND-CP also supplements regulations on how to determine land collection fees for public service units. Accordingly, public service units that are allocated land by the State without collecting land use fees or lease land are exempted from land rental fees for the entire lease term and use part or all of the land area, part or all of the house area, construction works for production, business, service, leasing, joint venture, association purposes according to the provisions of law on management and use of state assets, must pay land rental fees as follows:

a- In case of using the entire land area allocated by the State, land leased, and assets attached to the land for the purpose of production, business services, leasing, joint ventures, and associations, the land rent is determined as in the case of economic organizations being leased land by the State for production and business.

b- In case of using a part of the land area or assets attached to the land for the purpose of production, business services, leasing, joint ventures, and associations, the amount of land rent payable shall be determined based on the land price in the Land Price List, the percentage (%) for calculating the land rent unit price, the land price adjustment coefficient issued by the Provincial People's Committee and the percentage (%) of land area or house area, construction works (floor space) used for the purpose of production, business services, leasing, joint ventures, and associations.

c- In the case specified in Point b of this Clause, the area serving the purpose of production, business, services, leasing, joint ventures, and associations cannot be separated, the amount of land rent payable shall be determined according to the allocation coefficient. The allocation coefficient shall be determined by the ratio between the revenue from production, business, services, leasing, joint ventures, and associations and the total revenue estimate of the public service unit approved by the competent state agency in accordance with the provisions of law.

» Exemption and reduction of land use fees and land rent in Economic Zones

According to chinhphu.vn