Implement new land rental prices starting from August 15

The Ministry of Finance has just issued Circular No. 94/2011/TT-BTC amending and supplementing Circular No. 120/2005/TT-BTC dated December 30, 2005 of the Ministry of Finance guiding the implementation of Decree No. 142/2005/ND-CP dated November 14, 2005 of the Government on land and water surface rent collection.

Accordingly, from August 15, 2011, the unit price for land lease with annual land rent payment shall be calculated at 1.5% of the land price according to the purpose of land lease as prescribed or decided by the Provincial People's Committee according to regulations.

For land in urban areas, commercial centers, service centers, traffic hubs, concentrated residential areas with special profit-making potential, advantages in using land as production, business, trade and service premises, based on local reality, the Provincial People's Committee shall decide the rate to calculate the land rental price, but not more than twice the prescribed rate.

In case of land lease with one-time payment for the entire lease term, the land rent payable shall be calculated as the land use fee payable as in the case of land allocation with land use fee collection with the same location, same land use purpose and land use term.

Also according to the Circular, the principle of adjusting land rental prices is as follows: Land rental prices of each project are stabilized for 5 years. After the stabilization period, if the land price regulated by the Provincial People's Committee increases by less than 20% compared to the land price for calculating land rental at the time of determining the previous land rental price, the land price list regulated by the Provincial People's Committee at the time of adjusting the land rental price shall be applied to determine the land rental price of the next stabilization period (5 years), but must not be lower than the land rental price of the immediately preceding stabilization period.

In case the land price regulated by the Provincial People's Committee increases by 20% or more compared to the land price for calculating land rent at the time of determining the previous land rent unit price, the Department of Finance shall preside over determining the land price adjustment coefficient according to regulations.

After the stabilization period (5 years) ends but due to objective reasons the land rental price has not been adjusted, the land rental price of the previous stabilization period shall continue to be applied to temporarily pay land rental for that period; when the competent authority adjusts the land rental price for each adjustment, the policy and land price shall be applied to collect the corresponding land rental at each adjustment and at the same time collect the outstanding land rental for the temporary payment period (if any).

According to VNA