Could you tell me more detailed about the incentives and the some basic standards of the houses for the workers?
Question:
We knew that the investment to construct houses for workers in industrial zone should be granted a certain incentives on land, taxes... Could you tell me more detailed about the incentives and the some basic standards of the houses for the workers?
Answer:
According to Article 2 of the Decision 66/2009/QD-TTg dated April 24, 2009 promulgating the policy on development of houses for industrial zone workers to rent, the local management board of industrial zone or industrial zone infrastructure development company is currently the primary investor of infrastructure construction of houses for workers. The infrastructure development investor of the industrial zone shall have to define the workers’ demand of houses in the industrial zone, establish and submit to the competent authority for approval of construction plan of the houses for the workers in the industrial zone. Upon completing the investment of the infrastructure of houses for the workers, the primary investor may construct or transfer the land to the company in the industrial zone or investors having the function of houses business to construct the houses for workers to rent.
The investors shall be entitled to land, taxes, credit and some other incentives.
With regard to land, the investors shall be exempted from the land use levy, land rental within the project area.
With regard to taxes, the investors shall be reduced 50% of the VAT tax rate as from July 22, 2009 until December 31, 2009 for the investment and operation of houses for the workers and exempted from the corporate income tax in the year 2009 for the income arisen therefrom.
With regard to credit, the investors shall be supported by being obtained preferential credit or being compensated the interest rate in accordance with the provisions of laws, borrowing from local house development fund and other preferential loan (if any), being supported in a whole or a part of the interest upon consideration of the provincial people’s committee.
The investors shall be provided, free of charge with house designs and construction technology, to reduce the house prices. Upon meeting the capacity conditions stipulated by the laws, the investors may apply the form of self-implementation or direct appointment of contractor for the consultancy service, construction and procurement agreement. The Government shall assist the investors in investment of the technical infrastructure outside the project fence, including road, power, and water supply and drainage.
The area of houses for the workers shall not be less than 5 m2 per person. The project of construction of houses for the workers shall be entitled to increase the building density and coefficient of land utilization at 150% of the current plan standard. The rental shall be decided by the provincial people committee upon the investor’s proposal provided that the profit target shall not be more than 10% and the capital recovery period shall not be less than 20 years.
