My company has a plan to build an apartment building, but in the Law on Housing and Decree 99, Decree 188, I see the following content: Investor of commercial housing development project, urban development investment project That market has the responsibility to directly invest in the construction of social housing on the 20% land fund (unless the State recovers 20% of the land fund to invest in the construction of social housing with the state budget capital and in the case where the owner is responsible for the construction of social housing). If the investor does not wish to participate in the construction of social housing, this land fund shall be transferred to the People’s Committee of the province where the project is located). Can this 20% be converted to cash or can it be done differently? LSX Lawfirm will give you an article about: “Invest in building social housing on 20% land in Vietnam”, as follows:
Legal grounds
Decree 100/2015/ND-CP
Invest in building social housing on 20% land in Vietnam
Accordingly, the land fund for social housing development for commercial housing development projects, urban development investment projects, includes:
Firstly
Investors of commercial housing development projects, urban development investment projects; regardless of land area size (including construction investment projects in the form of build-transfer) BT); and the form of build-operate-transfer (BOT) in urban areas of grade 3; or higher and the planned area as urban centers of grade 3 or higher; 20% of the total residential land area must set aside in the plans. detailed planning project or total site approved by a competent authority; has invested in the construction of a technical infrastructure system for social housing construction.
The investor of that commercial housing development project; or that urban development investment project has the responsibility to directly invest in the construction of social houses on the land fund of 20%; (except for cases where the State recovers 20% of the land fund) to invest in the construction of social houses with the state budget capital and in case the investor has no need to participate in the investment and construction of social houses; this land fund is transferred to the People’s Committee of the province where the investment project is located).
Second
In case a commercial housing development project, an urban development investment project; has a land use scale of less than 10 hectares; the project investor may choose the form or reserve 20%; of the land fund for housing construction society specified in Clause 1 of this Article; or transfer the housing fund equivalent to the value; of the land fund 20% calculated; according to the land price that the investor fulfills obligations to the State at the time of transfer for use as a house in society; or pay in cash equivalent to the value of the land fund 20%; of the land price that the investor fulfills obligations to the State in order to supplement the local budget for investment in construction of social housing in the area micro-locality.
For cases where 20% land fund is allocated to build social housing; not in accordance with the local planning or the 20% land fund; are allocated but do not have enough land fund for construction of social houses specified in Clause 1 of this Article. Provincial-level People’s Committees must report to the Prime Minister for consideration and approval.
For commercial housing development projects; urban development investment projects have selected investors; before the effective date of this Decree, but 20% of land fund for housing construction has not yet been allocated. In a society where; after the effective date of this Decree; such project withdrawn according to the provisions of law and assigned to another investor; the investor of that project shall have to organize the formulation and management of the project; adjust the planning to allocate an additional 20%; of the land fund for the construction of social housing as prescribed in Clauses 1 and 2 of this Article.
Tuesday
In case the State uses 20% of the land fund to build social housing with state budget capital; investors in commercial housing development projects and urban development investment projects shall have to invest in social housing construction; building a synchronous technical infrastructure system; according to the planning approved by the competent authority before handing over this land fund to the State.
When handing over the 20% land fund for the construction of social housing to the State; the project investor will refund (or deducted from the financial obligation that the investor must pay the state budget) expenses compensation; and ground clearance fees, investment costs for construction of technical infrastructure systems; and other legal expenses as prescribed by law that the investor has made for the 20% land fund handed over . The remaining amount which does not refund or deducted; (if any) included in the cost of social housing construction investment invested by the State.
Besides
You can refer to the cases where investors have to adjust construction permits in Vietnam; you can also look in the article about What is construction planning in Vietnam?. Along with clarifying “What is construction planning in Vietnam?”, we would like to send you information about types of construction planning according to current laws such as: Bases for formulating construction planning or Cases of house construction do not require a building permit in Vietnam.
Final
In case the State directly invests in the construction of social housing under projects funded by the central budget, the allocation of the land fund shall comply with the following provisions:
a) For social housing construction projects with capital from the central budget of; at least 50% of the total investment of the project; the People’s Committee of the province; where the project is located shall assume the prime responsibility coordinate with the Ministry of Construction to consider; and decide on the selection of land fund for project implementation;
b) For social housing construction projects with capital from the central budget of less than 50% of the total investment of the project; the People’s Committee of the province; where the project is located shall consider and decide on the selection of the project. land fund for project implementation.”
Accordingly
For projects under 10 hectares; the investor does not have to spend 20% of the land fund for social housing, but instead; have the right to choose to transfer the housing fund equivalent to the value of the land fund of 20%; or pay the local budget equivalent to money to invest in the construction of social housing in the locality. Projects over 10 hectares still have to spend 20% of the land fund for social housing development. So, if your construction area is less than 10 hectares; you can pay by cash; If it is over 10 hectares, 20% of the land fund must be set aside for social housing.
Related questions
Construction permit means a legal document granted by a competent state agency to a project owner for construction, repair, renovation or relocation of a work.
What does a limited building permit mean?
It means a construction permit granted for construction of a work or separate house within a given duration under the plan for implementation of the construction master plan.
According to the content of Official Letter 3700/TCT-DNK on VAT rates on tax collection for private house construction activities, then: “According to the provisions of the Law on Value-Added Tax and the Law on Corporate Income Tax. and the documents implementing the Law, then: The taxpayers of VAT and CIT are organizations and individuals engaged in production and business activities of goods and services.
Contact LSX Lawfirm
Finally, hope this article is useful for you to answer the question about: “Invest in building social housing on 20% land in Vietnam”. If you need any further information, please contact LSX Law firm : +84846175333 or Email: [email protected]
Conclusion: So the above is Invest in building social housing on 20% land in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
