We are interested in the form of land assignment. Could you tell me some options to pay land use levy?
Question:
Our company is intending to invest in a residential building development project. We are interested in the form of land assignment. Could you tell me some options to pay land use levy?
Answer:
Under Circular 192/2009/TT-BTC on October 01, 2009 of the Ministry of Finance, the primary investor of the residential housing development project shall be entitled to pay the land use levy in accordance with the project implementation process approved by the competent authority. The investor shall register the project implementation process with the local Departments of Finance and Taxation to provide the basis to pay the land use levy. The land use levy shall be calculated based on the policy and land price in accordance with the regulations of the Government at the time of the decision on land assignment. If the actual time of land hand-over is different from the time stipulated in the decision on land assignment, the land use levy shall be calculated based on the land price at the actual time of land hand-over.
Your company may select to pay the land use levy in one installment or two installments.
In case that your company pay the land use levy in one installment, your company shall have to pay 100% of the land use levy within 3 months as from the date when the project satisfy the conditions to mobilize the capital from customers, i.e. the completion of the building foundation.
In case that your company pay the land use levy in two installment, the first installment of 70% of the land use levy shall be paid upon the completion of the building foundation. If the land price decided and announced by the provincial People’s Committee at the time of paying land use levy increases or decreases 20% or more in comparison with the land price at the time of decision on land assignment or land hand-over, the Department of Finance shall re-calculate 70% of the land use levy based on the actual market price of land use right transfer and provide the Department of Taxation to issue the notice of land use levy collection.
The second installment of 30% of the land use levy shall be paid upon the completion of the building but shall not exceed 18 months as from the date of paying the first installment. Same as above, 30% land use levy shall be re-calculated in case where having the change of the land price at the time of paying the second installment.
