Clarifying the percentage level for calculating land rent

Comrade Luu Van Ban, Permanent Vice Chairman of the Provincial People's Committee requested to amend Decision No. 02/2015/QD-UBND dated February 11, 2015 of the Provincial People's Committee in the direction of clarifying the percentage rate to calculate land rent, creating a clear legal corridor in the province's investment attraction policy, suitable for practice.

On the morning of June 22, comrade Luu Van Ban, member of the Provincial Party Standing Committee, Permanent Vice Chairman of the Provincial People's Committee chaired the regular meeting of June (6th time) of the Provincial People's Committee to review and discuss the content of reports and submissions of a number of departments and branches.

The Department of Finance submitted to the Provincial People's Committee to issue "Regulations on the percentage rate for calculating land rental prices, land rental prices for underground construction, land rental prices for land with water surface in Hai Duong province". After listening to the opinions of the delegates, the Standing Vice Chairman of the Provincial People's Committee Luu Van Ban concluded that the Provincial People's Committee agreed with the content of the submission of the Department of Finance. Assign the Department of Finance to receive the opinions of the delegates, complete the submission, in which the understanding is agreed, the regulations on the calculation level remain unchanged. The amendment of Decision No. 02/2015/QD-UBND dated February 11, 2015 of the Provincial People's Committee in the direction of clarifying the percentage rate for calculating land rental creates a clear legal corridor in the province's investment attraction policy, suitable for practice.

Director of the Department of Finance Nguyen Trong Tue reported at the meeting.

According to the Department of Finance, the percentage rate for calculating land rental prices, land rental prices for underground construction, land rental prices for land with water surface is issued by the Provincial People's Committee specifically for each area, route corresponding to each land use purpose and publicly announced during the implementation process. In Hai Duong province, the Provincial People's Committee issued Decision 02/2015/QD-UBND dated February 11, 2015, stipulating the percentage rate for calculating land rental prices. However, during the implementation of the regulations, in some locations, there were different interpretations. For land lease projects to invest in building industrial parks, the Provincial Tax Department applies a rate of 0.5% - 0.6%/year to determine the land rental price, but from October 2022, the Provincial Tax Department applies a rate of 1.2%/year to determine the land rental price for the An Phat 1 high-tech industrial park project. The reason is that according to the current regulations on calculation rates, there will be 2 ways to understand when applying the policy.

The first understanding is that the land area leased to implement the project of construction and business of industrial park infrastructure is the land area used as production and business premises of a project with special investment incentives, so the percentage is determined to calculate the annual land rental price according to the provisions of Point d, Clause 1, Article 1 of Decision No. 02/2015/QD-UBND of the People's Committee of Hai Duong province (applying the rate of 0.5% or 0.6% depending on the project location). The second understanding is that the land area leased to implement the project of construction and business of industrial park infrastructure is a project with special investment incentives, but the investor of the industrial park leases it to secondary units, so it is understood as real estate business activities. Therefore, it falls under the cases stipulated in Points a, b, c, Clause 1, Article 1 of Decision No. 02/2015/QD-UBND of the People's Committee of Hai Duong province (applying the rate of 1.2%). Through reference, some neighboring provinces and cities regulate and apply different percentage rates to calculate land rent for organizations that are leased land by the State to invest in construction and business of industrial park infrastructure...

Also at the meeting, the Provincial People's Committee agreed with the content of the presentation of the Department of Finance to stipulate the level of budget allocation to ensure the work of drafting legal documents, perfecting the legal system and some contents and spending levels to ensure the work of inspection, processing, reviewing and systematizing legal documents in the province.

PHAN ANH

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