The government is adjusting land and water surface lease fees.

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 lease fees, and water surface lease fees.

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

Regarding the determination of land and water surface lease fees, Decree No. 123/2017/ND-CP amends that, in cases where land is used simultaneously for purposes requiring land lease fees and purposes not requiring land lease fees, the amount of land lease fees payable is determined based on the allocation of area according to land use purposes.

Illustrative image.

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

In cases where the lessee is eligible to lease land from the State according to land law regulations and is using a building or land in a mixed-use construction project owned by the State, or where a portion of the land is under the State's management and the land area cannot be separated for each individual user, the land lease fee payable by the lessee shall be determined according to an allocation coefficient based on the usable floor area.

In cases where the State leases land and the land rent is paid in a lump sum for the entire lease period and the rent has been paid according to the law, or where the land use rights are legally transferred and subsequently the investor must switch to a lease arrangement, if the investor proposes adjustments to the detailed construction plan that give rise to additional land financial obligations (if any), then additional land rent must be paid into the state budget.

In cases where the land user has not fulfilled their financial obligations regarding land rent payment, if they request an adjustment to the detailed planning that gives rise to additional land financial obligations (if any), the land user must: a- Pay the full amount of land rent determined according to the detailed construction plan before the adjustment, plus the corresponding late payment penalty as prescribed by law; b- Pay additional land rent determined by the difference between the land rent payable according to the plan before the adjustment and according to the plan after the adjustment, as determined at the same time when the competent state agency allows the plan adjustment (if any).

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

How to determine land revenue for public non-profit organizations.

Furthermore, Decree No. 123/2017/ND-CP also supplements regulations on how to determine land revenue for public non-business units. Accordingly, public non-business units that are allocated land by the State without collecting land use fees or leased land with exemption from land rent for the entire lease period, and use part or all of the land area, part or all of the building area, or construction works for production, business, service, leasing, joint ventures, or partnerships as prescribed by the law on the management and use of state assets, must pay land rent as follows:

a- In cases where the entire area of ​​land allocated or leased by the State, along with assets attached to the land, is used for production, business services, leasing, joint ventures, or partnerships, the land rent shall be determined as in the case of economic organizations leasing land from the State for production and business purposes.

b) In cases where a portion of the land area or assets attached to the land are used for production, business services, leasing, joint ventures, or partnerships, the land rent payable shall be determined based on the land price in the Land Price Table, the percentage (%) rate for calculating the land rent unit price, the land price adjustment coefficient issued by the Provincial People's Committee, and the percentage (%) of the land area or the area of ​​buildings and construction works (usable floor space) used for production, business services, leasing, joint ventures, or partnerships.

c) In cases where the area used for production, business, services, leasing, joint ventures, or partnerships cannot be separately separated as stipulated in point b of this clause, the land lease fee payable shall be determined according to the allocation coefficient. The allocation coefficient is determined by the ratio between the revenue from production, business, services, leasing, joint ventures, and partnerships and the total estimated revenue of the public non-business unit approved by the competent state agency in accordance with the law.

"Exemption or reduction of land use fees and land lease fees in the Economic Zone"

According to chinhphu.vn