Responded by units: The Ministry of Natural Resources and Environment People's Committees of provinces / cities under central authority

Official letter: 6471/ VP - KT; 3955/UBND - KH&ĐT, dated: 2017-07-11

Responded contents:

To assign the Department of Natural Resources and Environment advises and recommends

• Hanoi People's Committee

Regarding the regulations of the Government for determination of land prices based on land use levy:

At Point -b, c, Clause 3, Article 3 of the Government's Decree No. 45/2014 / ND-CP dated May 15,

“b) he specific land price determined by the method of direct comparison, deduction, income or surplus prescribed in the Government’s Decree on land prices shall be applied in the following cases:

- Determining land use levy in case the land use levy-liable area of the land parcel or land lot is valued (calculated at the land price in the Land Price Table) at VND 30 billion or more, for centrally run cities; VND 10 billion or more, for mountainous and highland provinces; or VND 20 billion or more, for other provinces, in the following cases: Organizations are allocated land not through auction of land use rights or have land use purpose changed or land use rights recognized; households and individuals are allocated land not through auction of land use rights, have land use rights recognized or have land use purpose changed for the over-quota area of residential land.

- Determining the reserve price for auction of land use rights when the State allocates land with land use levy through auction of land use rights.

 c) The specific land price determined by the method of land price adjustment coefficient shall be applied in case the land use levy-liable area of the land parcel or land lot is valued (calculated at the land price in the Land Price Table) at under VND 30 billion, for centrally run cities; under VND 10 billion, for mountainous and highland provinces; or under VND 20 billion, for other provinces, for determining land use levy in the following cases:

- Organizations are allocated land by the State with land use levy not through auction of land use rights or have land use rights recognized or land use purpose changed;

- Households and individuals are allocated land by the State not through auction of land use rights;

- Households and individuals have land use rights recognized or land use purpose changed by the State for the over-quota area of residential land.

Annually, provincial-level People’s Committees shall provide the land price adjustment coefficient for application in the cases specified at this Point.

Hàng năm, ủy ban nhân dân cấp tình quy định hệ số điều chỉnh giá đất để áp dụng cho các trưâmg hợp quy định tại Điểm này”.

* Determining land prices for land plots with a value of less than VND 30 billion in Hanoi city:

Implementation of the Land Law 2013, the Decrees guiding the implementation of the Land Law of the Government and the circulars of the Ministry of Finance and the Ministry of Natural Resources and Environment; on the basis of results of the market price survey conducted by the land price consultancy unit in comparison with the land price list, the Hanoi People's Committee shall promulgate a decision on the land price adjustment coefficient as a basis for calculation, use the land for a number of cases prescribed by law.

Ha Noi Tax Department is based on land price according to price list, annual land price regulation issued by the City People's Committee (Decision No. 188 / QD-UBND dated January 14 2016 and Decision No. 2050 / QD-UBND dated April 3, 2017 of the Hanoi People's Committee) to determine and notify the payable land use levy to units and organizations using land.

For cases where the value of a parcel of land or land lot is more than VND 30 billion, the specific land price shall be determined according to the comparison method, the extraction method, the income method and the surplus method (according to Circular No. 36/2014 / TT-BTNMT).

However, there are some inadequacies in the implementation of the policy. Therefore, the Hanoi People's Committee prepared an Official Document No. 1260 / UBND-KT on March 21, 2017 to report to the Prime Minister for assigning the Ministry Natural Resources and Environment, the Ministry of Finance shall study and evaluate the factors affecting the specific land prices at the time of land use levy and land rent for projects (construction density, land use coefficient, between the floor area used / the floor, the purpose of land use ...) the percentage of impact of the above factors on the specific land prices of the projects from that guiding the formula development on determination of the adjustment coefficient for the detailed land price based on the factors affecting the specific land prices used as a basis for calculating land use levies and land rents, for cases where the State allocates or leases land, permits the change of land use purpose, land use right; meanwhile, permits application of the land price adjustment coefficient to determine the specific land price used as a basis for collection of land use levies or land rent, not separate whether the land area is valued at the land price index under VND 30 billion or from VND 30 billion or more.