Proposing additional mechanisms for determining land prices and handling additional revenue in the draft

Photo caption — Illustration photo: Tuan Anh/VNA

Accordingly, VNREA commented on 5 contents; in which it proposed to amend 3 contents which are provisions already stipulated in the draft and add 2 contents not yet stipulated in the draft Resolution.

With 2 additional proposed contents, VNREA cited that Article 5 of the Draft Resolution stipulates the application of land price list to determine land use fees and land rents of all projects when land is allocated, leased, or land use purpose is changed in all cases.

However, according to VNREA's analysis, in reality, there are investment projects in newly developed areas or projects with large land use scale and no land price list or if there is a land price list, the application of the land price list will not be appropriate. In this case, it is necessary to determine specific land prices according to the land price determination methods prescribed in the current Land Law to calculate land use fees and land rents.

VNREA proposes to supplement regulations on cases of applying specific land prices to calculate land use fees and land rents of projects when the State allocates land, leases land, or changes land use purposes, including: projects with large land use scale of 100 hectares or more and investment projects in newly developed areas without land price lists.

In addition, VNREA proposed to add regulations on calculating additional fees for the period of undetermined land price. Because based on Point d, Clause 2, Article 257 of the 2024 Land Law, Decree 103/2024/ND-CP stipulates the collection of additional fees for cases where people have a decision to allocate/lease land before August 1, 2024 but the land price has not been determined, they will have to pay an additional fee calculated at 5.4%/year (expected to be adjusted down to 3.6%/year) of the land use fee/land rent payable for the period of undetermined land price.

The reason is that when the land use fee/land rent is not paid, the investor benefits from the unpaid amount. This point of view is incorrect and inappropriate – VNREA emphasized. Currently, the obligation to determine land prices is the responsibility of the state agency, not dependent on the land user.

The requirement that land users be held responsible in this case is unfounded. When land users have not paid land use fees and land rent, they have not been able to exercise their rights as land users: the right to buy, sell/transfer/mortgage… because according to regulations, these rights can only be exercised after financial obligations regarding land have been fulfilled, VNREA analyzed.

Therefore, VNREA recommends adding provisions on the handling of additional collection fees based on the determination of a number of specific cases. In cases where there has been a decision on land allocation, land lease, permission to change land use purposes, permission to change from annual land lease to one-time land lease for the entire lease term, land use extension, land use term adjustment, detailed planning adjustment according to the provisions of the law on land and other relevant provisions of law before the effective date of this Law but the land price has not been decided, the determination of land rent and land use fees shall be implemented according to the provisions at points a, b, c, clause 2, Article 257 of the 2024 Land Law.

At the same time, land users must pay additional fees for the period of time not yet calculated for land use fees and land rents as prescribed in points a, b, c, Clause 2, Article 257 of the Land Law if the land users have put the land area granted land use rights into exploitation, business and use.

Land users are not required to pay additional fees for the period of time not yet calculated for land use fees and land rent as prescribed in Points a, b, c, Clause 2, Article 257 of the Land Law if the land users have not yet put the land area granted land use rights into exploitation, business, or use. In case the land users have paid additional fees for the period of time not yet calculated for land use fees and land rent, they will be refunded the additional fees paid or deducted from other financial obligations to the State...

Regarding the 3 proposed amendments, VNREA cited: Clause 7, Article 3 on land recovery, compensation, support, and resettlement stipulates: "The deduction of compensation, support, and resettlement money that the investor has advanced from the land use fee and land rent payable shall be implemented according to the provisions of Clause 2, Article 94 of the Land Law and shall be calculated for the entire project".

However, according to VNREA, the Land Law currently stipulates that in case the investor advances compensation, support, and resettlement money, it will be deducted from the land use fee and land rent of the project. In case there is still money left after deducting from the land use fee and land rent of the projects, it will be counted in the total investment capital of the project.

Therefore, this regulation has not really guaranteed rights and has not really attracted investors to participate in pre-paying compensation, support, and resettlement; especially in the case of projects that are exempted or reduced from land use fees and land rents - VNREA analyzed.

Therefore, VNREA proposes to allow investors to continue deducting advance payments for compensation, support, and resettlement from other financial obligations that investors must pay.

At the same time, at Point d, Clause 1, Article 5, the basis for calculating land use fees includes: infrastructure construction costs for the land area that the investor hands over to the State; infrastructure construction costs specified at this point are determined according to the provisions of the law on construction.

According to VNREA, the Draft only stipulates the calculation of infrastructure construction costs for the land area that the investor hands over to the State, which is inappropriate. Because the nature of the land price list is a general regulation and the land price in the land price list is often built based on existing land plots. Infrastructure development investment projects but do not have an area handed over to the State (such as industrial park infrastructure development investment projects) will not be deducted for infrastructure costs.

Or investment projects depending on geological conditions and scale will have different infrastructure investment costs, especially investment projects in new areas, reclaimed areas... have very large investment costs for leveling and infrastructure construction. Therefore, if only calculating infrastructure costs for the land area that investors hand over to the State, it will not ensure fairness.

From this reality, VNREA proposes that when determining land prices, it is necessary to calculate the infrastructure costs of the entire project, not just the land area that the investor hands over to the State. At the same time, it is necessary to supplement regulations on handling land reclamation costs for land reclamation projects when determining land prices (according to current regulations, land reclamation costs are included in project development costs when determining land prices using the surplus method).

Another content that VNREA commented on is that at Point b, Clause 13, Article 3, the transitional provisions for land recovery, compensation, support, and resettlement clearly state: "In case before the effective date of this Resolution, there is no decision approving the compensation, support, and resettlement plan, land recovery, compensation, support, and resettlement shall be carried out in accordance with the provisions of the Land Law and the provisions of this Article".

According to VNREA, the use of the phrase "in the case where there is no decision before the effective date of this Resolution" does not accurately determine the time of the event. There will be cases where there is no decision approving the compensation plan before the effective date of the Resolution, but by the time the Resolution comes into effect, there is a decision approving the compensation plan. Therefore, VNREA proposes to adjust it to "In the case where there is no decision until the effective date of this Resolution...".

Source: https://baotintuc.vn/bat-dong-san/de-xuat-them-co-che-xac-dinh-gia-dat-xu-ly-tien-thu-bo-sung-trong-du-thao-20251027203731475.htm