Circular No. 83/2007/TT-BTC of July 16, 2007, providing guidelines for implementation of Decision 09/2007/QD-TTg of The Prime Minister of January 19, 2007 on re-arranging and dealing with state owned housing and land.

THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness
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No. 83/2007/TT-BTC

Hanoi, July 16, 2007

 

 

CIRCULAR

PROVIDING GUIDELINES FOR IMPLEMENTATION OF DECISION 09/2007/QD-TTG OF THE PRIME MINISTER DATED 19 JANUARY 2007 ON RE-ARRANGING AND DEALING WITH STATE OWNED HOUSING AND LAND

Pursuant to Decree 77/2003/ND-CP of the Government dated 1 July 2003 stipulating the functions, duties, powers and organizational structure of the Ministry of Finance;
Pursuant to Decision 09/2007/QD-TTg of the Prime Minister dated 19 January 2007 on re-arranging and dealing with State owned housing and land;
The Ministry of Finance hereby provides the following guidelines on re-arranging and dealing with State owned housing and land in accordance with Decision 09/2007/QD-TTg of the Prime Minister dated 19 January 2007 (hereinafter referred to as Decision 09):

I. GENERAL PROVISIONS

1. The applicable entities and governing scope as set out in article 1 of Decision 09 shall be as follows:

1.1. The applicable entities set out in article 1.1 of Decision 09 shall comprise:

(a) Administrative bodies and public professional units under the management of central and local authorities (hereinafter collectively referred to as administrative bodies and professional units); socio-political organizations, socio-occupational political organizations, social organizations and socio-occupational organizations (hereinafter collectively referred to as organizations);

(b) State companies under the management of central and local authorities consisting of State corporations and State companies (hereinafter collectively referred to as State companies);

(c) Economic organizations (excluding the State companies stipulated in paragraph (b) of this clause) which are required to move due to environmental pollution in accordance with a decision of the authorized State body (hereinafter referred to as economic organizations required to move).

1.2. The types of housing and land within the governing scope as set out in article 1.1. of Decision 09 shall comprise:

(a) Land allocated by the State without collection of land use fees; land leased by the State to professional units, organizations and State companies;

(b) Land allocated by the State with collection of land use fees but [the land user] has been exempted from land use fees or the land use fees as paid were sourced from the State budget;

(c) Land for which [the land user] received an assignment of the land use right and the money paid was sourced from the State budget;

(d) Housing in which investment [and] construction was funded by capital sourced from the State budget;

(dd) Housing and land for which the authorized State body has not yet made a decision allocating the right to manage or use, but in the category for which the creation of State ownership is required by law;

(e) Housing in which investment [and] construction was funded by capital of a program or project funded by State budget capital, including projects funded by official development assistance (ODA) or non-refundable aid belonging to the State budget and of projects the operation of which has terminated;

(g) Housing in which investment [and] construction was funded by capital sourced from the State budget and which was allocated for management and use to an economic organization [now] required to move;

(h) Land the State has allocated without collection of land use fees to an economic organization required to move, or which the State has leased or allocated with collection of land use fees but [the land user] has been exempted from land use fees.

1.3. With respect to bodies and units belonging to the Ministry of National Defence [or] the Ministry of Police:

The Ministry of National Defence [or] the Ministry of Police shall, on the basis of Decision 09 and the guidelines in this Circular, prepare a plan for re-arranging and dealing with premises and land under its management in each province or city under central authority and obtain opinions from the Ministry of Finance and the peoples committee of the province or city under central authority (hereinafter referred to as the provincial peoples committee) of the locality in which the premises and land are situated in order to make a general report and submit it to the Prime Minister for his decision.

1.4. The Office of the Party Central Committee shall, on the basis of Decision 09 and the guidelines in this Circular, send a submission to the authority for a decision on re-arranging and dealing with premises and land under the formers management.

1.5. With respect to State companies:

(a) Any State company with a plan for conversion of ownership (by way of equitization, sale of all or part of [the company], or transfer of [the company] to its labour collective in order to convert into a shareholding company or co-operative) which was approved by the relevant authority before the effective date of Decision 09 shall make a declaration and report on all the premises and land which it currently manages and uses in order to carry out allocation or lease of land in accordance with the law on land; and the management and use of such premises and land shall be implemented in accordance with the law on land and shall not be subject to Decision 09 and the guidelines in this Circular; and units which are required by law to move due to environmental pollution in accordance with a decision of the authorized State body shall be subject to Decision 09 and the guidelines in this Circular.

(b) Any State company with a plan for conversion of ownership which was available but not yet approved by the authority on the effective date of Decision 09 shall be subject to Decision 09 and the guidelines in this Circular.

1.6 The following shall not be within the applicable entities and governing scope [of Decision 09 and shall not be] re-arranged or dealt with in accordance with Decision 09:

(a) Housing not owned by the State and [which is] currently leased or borrowed by any administrative body, professional unit, organization or State company.

(b) State owned housing and land of any unit [or] State company where the authorized State body has permitted the value of such premises or the land use right to be used as joint venture capital contribution in accordance with the law before the effective date of Decision 09; upon expiry of the duration of [or time-limit for] the joint venture capital contribution, [such housing and land] shall be rearranged and dealt with in accordance with Decision 09 and the guidelines in this Circular.

(c) Housing and land leased by any State company in an industrial zone, export processing zone, hi-tech zone or economic zone.

2. The following specific guidelines shall apply to the principles for re-arranging and dealing with premises and land managed and used by administrative bodies, professional units, organizations and State companies as set out in article 2 of Decision 09:

2.1. Administrative bodies, professional units, organizations and State companies shall carry out the re-arrangement of premises and land in accordance with the designated use purpose and in compliance with the land use zoning approved by the authority in order to ensure that [such premises and land] are used economically and effectively for the correct purpose in accordance with the stipulated standards and limits.

2.2. Heads of administrative bodies, professional units, organizations and State companies directly managing and using premises and land must make a declaration and report in accordance with Decision 09 and the guidelines in this Circular, and shall be liable for any use of such premises and land contrary to the regulations.

An administrative body, professional unit or organization must register the right to manage and use premises and land as its working office [or] as the establishment for its professional operation in accordance with Government regulations on management of State assets. The contents, order and procedures for registration of the right to manage and use a working office [or] an establishment for the professional operation shall be subject to article 7 of Decree 137/2006/ND-CP of the Government dated 14 November 2006 on delegation of State management of State assets at administrative bodies and public professional units, and assets for which State ownership is created (hereinafter referred to as Decree 137) and the guidelines in Circular 35/2007/TT-BTC of the Ministry of Finance dated 10 April 2007; any breach of the regulations on registration of the right to manage and use State assets shall be dealt with in accordance with the above-mentioned legal instruments.

2.3. Premises and land managed and used by administrative bodies, professional units, organizations and State companies shall be re-arranged and dealt with after ministries, ministerial equivalent bodies, Government bodies, other central bodies, State corporations in which the Prime Minister makes the decision on establishment, socio-political organizations, socio-political and occupational organizations, social organizations and socio-occupational organizations (hereinafter collectively referred to as central line bodies) or specialized bodies under provincial peoples committees, peoples committees of districts, cities or provincial towns, State companies or State corporations under provincial peoples committees (hereinafter collectively referred to as local line bodies) prepare and report a plan for re- arrangement and dealing with all premises and land under their management in the locality of each province and city under central authority.

Where any premises or land for which there is already a clear and effective plan for dealing with them need to be dealt with specifically, the Ministry of Finance shall make a decision to deal with such premises or land when they are under the management of a central authority, or the provincial people’s committee shall make a decision to deal with such premises or land when they are under the management of a local authority on the basis of a proposal of the line body.

The method of dealing with such premises and land shall be subject to articles 5 and 6 of Decision 09.

3. The following specific guidelines shall apply to a plan for re-arranging and dealing with premises and land as set out in article 3 of Decision 09:

3.1 A plan for re-arranging and dealing with premises and land under central authority management as set out in article 3.1 of Decision 09 shall be prepared by [each] central line body in respect of all the premises and land of administrative bodies, professional units, organizations and State companies under its management within the locality of each province and city under central authority; and the following items shall be specified in the plan:

– Following each form [of the applicable entity]: administrative body, professional unit, organization, State company [and/or] State corporation;

– Following each item [of premises and land] proposed to be dealt with: recovery [of premises and land] because their use fails to comply with the regulations; delivery of a block being premises and land which was arranged for use as residential housing to the provincial people’s committee of the locality in which such premises and land are situated for the latter to deal with in accordance with the regulations; moving households or individuals out of a block being premises and land; transferring [a block being premises and land]; selling assets on land [and] assigning the land use right; retaining [premises and land] to continue their use; converting land use purpose; moving due to environmental pollution in accordance with a decision of the authorized State body; and otherwise dealing with [premises and land] (if there is any such other case).

3.2 An economic organization required to move shall prepare a plan for moving as set out in article

3.2 of Decision 09 applicable to each block being premises and land required to move, and the plan shall contain the following basic items:

– Opinions of the Department of Natural Resources and Environment, the Department of Construction and the Department of Zoning and Architecture (in the case of any locality which has the latter department) on land use zoning or construction zoning in respect of premises and land currently used by the organization required to move;

– New location to which the office [or] the establishment for the professional operation [of the economic organization] will be moved; and the plan for and timing of such move;

– Other relevant documents (if any).

3.3 A plan for re-arranging and dealing with premises and land under local authority management as set out in article 3.3 of Decision 09 shall be prepared by [each] local line body in respect of all the premises and land of administrative bodies, professional units, organizations and State companies under its management within the locality of each district, city or provincial town; and the items specified in sub-clause 3.1 of this clause shall be specified in the plan.

II. SPECIFIC PROVISIONS ON RE-ARRANGING AND DEALING WITH PREMISES AND LAND MANAGED AND USED BY ADMINISTRATIVE BODIES, PROFESSIONAL UNITS, ORGANIZATIONS AND STATE COMPANIES

1. The following specific guidelines shall apply to the order for undertaking the re-arranging and dealing with premises and land as set out in article 4 of Decision 09:

1.1 A provincial people’s committee shall issue a decision establishing a provincial steering committee for re-arranging and dealing with State owned housing and land (hereinafter referred to as the 09 Steering Committee) with its composition to comprise a head of the provincial people’s committee as the head of the committee, a head of the Department of Finance as the deputy head of the committee, representatives of the Department of Natural Resources and Environment, the Department of Planning and Investment, the Department of Construction and the Department of Zoning and Architecture (in the case of any locality which has the latter department) and other members to be determined by the provincial people’s committee consistent with the actual conditions of its locality; where numerous premises and land under the management of a central authority are situated within the locality of the provincial people’s committee, then such provincial people’s committee shall agree with the Ministry of Finance on assignment of an official from the Ministry of Finance to join the 09 Steering Committee.

With respect to localities in which the number of State owned premises and land is not large [and] where the re-arranging and dealing with such State owned premises and land is not complicated, the establishment of a 09 Steering Committee shall not be required; and the provincial people’s committee shall directly instruct, or it shall assign the Department of Finance to preside over and assist the provincial people’s committee to instruct, implementation of re-arranging and dealing with premises and land in its locality.

1.2 An administrative body, professional unit, organization or State company directly managing and using premises and land (hereinafter referred to as the entity using the premises and land) shall:

(a) Prepare a report and declaration for each premises and land allocated to it for management and use on the basis of the current status of management and use in accordance with Form 01-HC-SN-DN (attached to this Circular).

The original accounting book value of each premises and land on Form 01-HC-SN-DN shall comprise the original value of assets on the land as monitored in the accounting books and the value of the land use right determined and included in the value of assets of the body or entity in accordance with Decree 13/2006/ND-CP of the Government dated 24 January 2006 on calculation of value of land use rights to be included in the value of assets of organizations to which the State allocates land without collection of land use fees (hereinafter referred to as Decree 13).

Where the entity using the premises and land has not yet determined the value of the land use right to be included in the value of its assets in accordance with the provisions of Decree 13, then such entity using the premises and land shall make a request in writing to the Department of Finance to determine the value of the land use right on the basis of the land area and the land price stipulated and published by the provincial people’s committee on 1 January each year according to the use purpose as at the time of the report and declaration. The land price shall be calculated in accordance with article 4 of Decree 13 in the case of land for construction of the office of a body, works of a professional unit, or land used as a production or business site; or land used for production, experimental research on agriculture, forestry, aquaculture or salt production as at the time of the report and declaration.

Where the entity using the premises and land is under the management of a central authority and is not required to determine the value of the land use right to be included in the value of its assets in accordance with Decree 13, but such premises and land must be recovered because the use thereof fails to comply with the regulations; [or the premises and land] are transferred between ministries, branches or localities; [or] assets on such land are sold [and] the land use right is assigned, then the entity using such premises and land shall make a request in writing to the Department of Finance to determine the value/of the land use right in accordance with this clause.

(b) The plan for re-arranging and dealing with each block being premises and land shall be proposed on the basis of the current status of the management and use of such premises and land, [and on] the functions, assigned duties and approved staff, business lines, standards and limits of use of offices in accordance with the regulations and method of dealing with [premises and land] stipulated in articles 5 and 6 of Decision 09.

Where the entity using the premises and land proposes the sale of assets on the land, assignment of the land use right or conversion of land use purpose and has a need to use the proceeds for investment, then [the plan] must be accompanied by a plan for use of money and relevant documents.

(c) One copy of the file shall be submitted to the line body; and the file shall comprise:

– Report and declaration and proposal for a plan for dealing with [the premises and land] in accordance with paragraphs (a) and (b) of this clause;

– Consolidated statement on all currently used and managed premises and land in accordance with Form 02-TH (attached to this Circular);

– Copies of documents (if any) relating to the premises and land covered by the report.

(d) One copy of the file shall be kept at the entity using the premises and land.

1.3 The line body shall:

(a) Co-ordinate with the 09 Steering Committee (in the case of any locality in which there is a steering committee) or co-ordinate with the Department of Finance (in the case of any locality without a steering committee) to collect [data], inspect and prepare a record of inspection of the current status of premises and land in accordance with Form 03-BB (attached to this Circular) in respect of each block being premises and land declared in the report.

(b) Prepare a consolidated statement on premises and land in accordance with Form 04-TH (attached to this Circular) on the basis of the locality of each province or city under central authority in respect of premises and land under management of a central authority; [or] on the basis of the locality of each district, city or provincial town in respect of premises and land under management of a local authority.

(c) Submit the record of inspection (on Form 03-BB), the consolidated statement (on Form 04-TH), the explanatory statement on the plan for re-arranging and dealing with premises and land (if any) and relevant documents to the 09 Steering Committee or to the Department of Finance.

1.4 The 09 Steering Committee or the Department of Finance shall:

(a) Consider any plan for re-arranging and dealing with [premises and land] from entities using premises and land under the management of a central authority or submit [the plan] to the provincial people’s committee to give its official opinion in writing to the relevant central line body and to the Ministry of Finance.

(b) Consider any plan for re-arranging and dealing with [premises and land] from entities using premises and land under the management of a local authority, and submit it to the provincial people’s committee.

1.5 The central line body shall finalize any plan for re-arranging and dealing with premises and land on the basis of the opinion of the provincial people’s committee and submit it together with relevant documents to the Ministry of Finance.

Where the central line body and the provincial people’s committee have different opinions about a plan for dealing with premises and land, the Ministry of Finance shall make a decision within its authority or submit the issue to the Prime Minister for his consideration and decision.

1.6 The authorized State body shall make a decision dealing with premises and land in accordance with the method and authority stipulated in articles 5 and 6 of Decision 09 and the guidelines provided in sections 2 and 3 of this Part [of this Circular].

2. The following specific guidelines shall apply to the method and authority for dealing with premises and land managed and used by administrative bodies, professional units and organizations as set out in article 5 of Decision 09:

2.1 Compensation shall be paid and assistance granted in accordance with the law on land in respect of premises and land which are recovered by the State to be used for objectives of national defence or security, the public interest or for economic development as set out in article 5.1 of Decision 09.

2.2 Where vacated or lent premises and land are dealt with in accordance with article 5.2(a) of Decision 09, the provincial people’s committee shall make a decision on recovery (in respect of premises and land under the management of a local authority); or request the Ministry of Finance to make a decision or submit the issue to the Prime Minister for his decision on recovery (in respect of premises and land under the management of a central authority) in accordance with article 10 of Decree 137.

The authorized State body shall make a decision on recovery of premises and land either before or after the line body reports on the plan for re-arranging and dealing with premises and land under its management.

2.3 Where all or part of premises are being leased (regardless of whether the leased part of the premises is dependent or independent), compensation for actual losses caused by the early termination of the lease contract (if any) upon termination of the lease contract in accordance with article 5.2(b) of Decision 09 shall be paid in accordance with the law on economic contracts. Where a contract is not terminated within a period of six (6) months from the effective date of Decision 09, the authorized State body stipulated in article 10 of Decree 137 shall make a decision on recovery of all or part of the premises and land being leased and the head of the body or unit shall be administratively liable and, if loss is caused, shall compensate for such loss in accordance with the regulations and shall be dealt with in the ways [penalty forms] stipulated in the anti-corruption laws.

The body managing State assets and capital under the Ministry of Finance (in respect of premises and land under the management of a central authority) or the Department of Finance (in respect of premises and land under the management of a local authority) shall be responsible to prepare a plan for management and use and dealing with each premises and land for which a decision on recovery has been made, and shall submit [such report] to the authority to deal with in accordance with the law.

2.4 Where [premises and land] have been re-arranged for use as residential housing [and/or] residential land as set out in article 5.2(c) of Decision 09 and if all stipulated conditions are satisfied, the local or central line body shall make a request in writing to the provincial people’s committee (of the locality in which the premises and land are situated) to receive and deal with [such premises and land] in accordance with the regulations on residential housing and residential land before 31 December 2007; and the receipt of such residential housing and residential land may be carried out before the line body reports on a plan for re-arranging and dealing with the premises and land. If the transfer is not carried out or if the managing body or entity is not identified by such deadline, then the provincial people’s committee shall deal with [such premises and land] in accordance with the law on land.

Where households and individuals are required to move out of premises and land, the head of an administrative body, professional unit or organization shall prepare a plan for effective use of the premises and land for the correct purpose upon [such households and individuals] moving.

The deadline for completion of the relocation shall be prior to 30 June 2008; if relocation is not completed by such deadline, the authorized State body stipulated in article 10 of Decree 137 shall make a decision on recovery and on management and use in accordance with law.

2.5 Where premises and land are not used correctly in accordance with other regulations and must be dealt with in accordance with article 5.2(d) of Decision 09 such as where a joint venture or business co-operation does not comply with the regulations, or the premises and land are being trespassed upon and so forth, then the head of the administrative body, professional unit or organization shall co-ordinate with the relevant bodies in the locality to recover such premises and land in order to use them correctly in accordance with the regulations before 31 December 2007; if the entity does not recover such premises and land by such deadline for use correctly in accordance with the regulations, then the authorized State body stipulated in article 10 of Decision 137 shall issue a decision recovering them.

2.6 With respect to premises and land being transferred in accordance with article 5.3 of Decision 09:

(a) In the case of transfer of premises and land between various ministries and branches; between various localities and between a central body and local body in accordance with article 5.3(a) of Decision 09, the Minister of Finance shall, on the basis of the original accounting book value (comprising the original value of assets on the land and the value of the land use right) of each premises and land, make a decision transferring premises and land with an original accounting book value below one hundred (100) billion dong or submit the matter to the Prime Minister for his decision on transferring premises and land with an original accounting book value of one hundred (100) billion dong or more.

In the case of transfer of premises and land between various administrative bodies or professional units under the management of the same ministry or branch in accordance with article 5.3(b) of Decision 09, the head of the central line body shall make a decision in accordance with law after reaching agreement with the Ministry of Finance.

The chairman of a provincial people’s committee shall make a decision on the transfer of premises and land between various administrative bodies or professional units under its local management in accordance with law.

(b) The transfer of premises and land to an administrative body, professional institution or organization shall be carried out when the body receiving such transfer does not yet have a working office or an establishment for its professional operation or its current working area is below 70 of the stipulated standard or limit and fails to meet its working requirements.

(c) Premises and land managed and used by an administrative body, professional unit or organization shall not be transferred to an enterprise area [zone].

(d) With respect to State owned premises and land which are managed by a local organization with the function of leasing out land and housing and which are currently being leased by an administrative body or professional unit under central authority, the chairman of the provincial people’s committee shall consider and make a decision to transfer the right to manage such premises and land to the administrative body or professional unit which is the current lessee upon the proposal of the central line body and the Ministry of Finance; if such body or entity no longer has a need to use [such premises and land] or is not using them correctly in accordance with the regulations, then the chairman of the provincial people’s committee shall make a decision on recovery or assign the local organization with the function of leasing out land and housing to terminate the lease or use in order for [such premises or land] to be managed and used in accordance with law.

The transfer of the right to manage premises and land to an entity which is the current lessee shall not apply to premises and land of socio-political and occupational organizations, of social organizations and of socio-occupational organizations.

2.7 With respect to premises and land the assets on which are sold [and] the land use right is assigned as stipulated in article 5.4 of Decision 09, the Minister of Finance shall, on the basis of the original accounting book value (comprising the original value of assets on the land and the value of the land use right) of each premises and land, the written opinion of the provincial people’s committee (in respect of administrative bodies, professional units and organizations under the management of a central authority), [and] the plan for re-arranging and dealing with the premises and land of the line body, make a decision on sale of the assets on the land [and] assignment of the land use right in respect of premises and land under the management of a central authority with an original accounting book value of below one hundred (100) billion dong or submit the sale of assets on the land [and] assignment of the land use right in respect of premises and land under the management of a central authority with an original accounting book value of one hundred (100) billion dong or more to the Prime Minister for his decision; the chairman of a provincial people’s committee shall make a decision on sale of assets on the land [and] assignment of the land use right in respect of premises and land under the management of local authority in accordance with law.

The party receiving the assignment of the land use right shall be issued with a certificate of land use right and shall have the rights and obligations stipulated by the law on land.

2.8 Any premises and land which are retained to continue use as a working office [or] as the establishment for the professional operation as stipulated in article 5.5 of Decision 09 (without change of the house or land user) must be used for the correct purpose in accordance with law and in compliance with the land use zoning of the locality and the stipulated standards and limits, and must satisfy the requirements of construction zoning for offices and the operational requirements of and the duties assigned to such administrative body, professional unit or organization.

The central line body shall, on the basis of agreement with the Ministry of Finance, provide written approval for retention of [premises and land] for continued use in order for the administrative body, professional unit or organization to use such approval as the basis for contacting the Department of Natural Resources to carry out land allocation or lease in accordance with the law on land.

3. The following specific guidelines shall apply to the method and authority for dealing with premises and land managed and used by State companies as set out in article 6 of Decision 09:

3.1 With respect to the sale of redundant assets on land [and] assignment of the right to use [redundant] land or land from which [the occupier] is required to move due to environmental pollution as set out in article 6.3(a) of Decision 09, the Minister of Finance shall, on the basis of the original accounting book value (comprising the original value of assets on the land and the value of the land use right) of each premises and land, the written opinion of the provincial people’s committee (in respect of State companies under the management of a central authority), and the plan for re-arranging and dealing with premises and land of the line body, make a decision on sale of assets on the land [and] assignment of the land use right in respect of premises and land under the management of a central authority with an original accounting book value of below one hundred (100) billion dong or submit the sale of assets on the land [and] assignment of the land use right in respect of premises and land under the management of a central authority with an original accounting book value of one hundred (100) billion dong or more to the Prime Minister for his decision; the chairman of the provincial people’s committee shall make a decision on sale of assets on the land [and] assignment of the land use right in respect of premises and land under the management of a local authority in accordance with law.

The party receiving the assignment of the land use right shall be issued with a certificate of land use right and shall have the rights and obligations stipulated by the law on land.

3.2 The conversion of land use purpose as set out in article 6.4 of Decision 09:

(a) The conversion of land use purpose shall only be conducted in order to construct offices and apartments for sale or lease in compliance with land use zoning and shall only apply to State companies with the function of real estate business to which the authorized State body issues a business registration certificate in accordance with law.

(b) Land prices for calculation and collection of land use fees upon conversion of land use purpose shall be determined as follows:

A State company which is permitted to convert land use purpose shall engage an organization with the function and capacity to evaluate prices to calculate a land price for calculation and collection of land use fees upon conversion of land use purpose. Such land price shall be calculated as close as possible to the actual market price for assignment of land use rights in normal conditions as at the time of conversion of land use purpose into the new land use purpose; and shall not be lower than the price of land of the same type stipulated and published by the provincial people’s committee on 1 January each year. Where it is not possible to engage an organization with the function and capacity to evaluate prices, the Department of Finance shall co-ordinate with the relevant bodies to calculate a land price for calculation and collection of land use fees upon conversion of land use purpose.

The Department of Finance shall preside over and co-ordinate with the Department of Natural Resources and Environment, the Department of Construction and the Department of Zoning and Architecture (in the case of any locality which has the latter department) and other relevant bodies to evaluate a land price for calculation and collection of land use fees upon conversion of land use purpose and submit it to the provincial people’s committee for approval.

3.3 Premises and land shall be permitted to be retained for continued use as the business and production establishment as stipulated in article 6.5 of Decision 09 (without change of the house or land user) when [such premises and land] are used for the correct purpose in accordance with law and in compliance with the land use zoning of the locality and the stipulated standards and limits, and they must satisfy the requirements for business and production activities and [be consistent with] the functions and duties stipulated in the operational charter of the State company.

The representative of the owner of a State company under the management of a central authority (namely the board of management in the case of a State corporation for which the Prime Minister made the decision on establishment; or the head of a ministry or branch in the case of a State corporation or State company which was established in accordance with a decision of the ministry or branch) shall, on the basis of agreement with the Ministry of Finance, provide written approval for retention of [premises and land] for continued use in order for the State company to use such approval as the basis for contacting the Department of Natural Resources to complete procedures for land allocation or lease in accordance with the law on land.

4. The following specific guidelines shall apply to the sale of assets on the land [and] assignment of the land use right as set out in article 7 of Decision 09:

4.1 The sale of assets on the land [and] assignment of the land use right as set out in article 7.1 of Decision 09/2007/QD-TTg shall be carried out as follows:

(a) An administrative body, professional unit, organization or State company which is permitted by the authority to sell assets on the land [and] assign the land use right must carry out an auction of assets on the land [and] of the land use right; and the body or entity with the premises and land shall engage an organization with the function of conducting auctions to carry out the auction in accordance with the law on auctions.

(b) The chairman of the provincial people’s committee (of the locality in which the premises and land are situated) shall approve or authorize an authorized State body to approve the proposed price and results of the auction of assets on the land and of the land use right; in the case of premises and land under the management of a central authority, the opinion of the Ministry of Finance about the proposed selling price of assets on the land shall be required before the authorized State body approves it.

4.2 The sale of assets on the land [and] assignment of the land use right as set out in article 7.2 of Decision 09/2007/QD-TTg shall be carried out as follows:

(a) The sale of assets on the land [and] assignment of the land use right by way of appointment [of a purchaser or assignee] shall be conducted in the case where:

– There is only one organization or individual registering for purchase of assets on the land and for receipt of the assignment of the land use right;

– The organization or individual registering for purchase of assets on the land and for receipt of the assignment of the land use right does so in order to use the land for purposes of socialization in the fields of education, heath care, culture, physical fitness and sports.

In a number of cases where it is necessary to sell assets on the land and assign the land use right by way of appointment [of a purchaser or assignee], the central line body and the provincial people’s committee (in the case of premises and land under the management of a central authority) or the provincial people’s committee (in the case of premises and land under the management of a local authority) shall propose that the Ministry of Finance submit the issue to the Prime Minister for his consideration and decision.

(b) Selling prices of assets on land and prices for assignment of land use rights by way of appointment [of a purchaser or assignee]:

A body or entity with premises and land shall engage an organization with the function and capacity to evaluate prices to calculate a selling price of assets on the land and a price for assignment of the land use right. The selling price of assets on the land must be consistent with the actual residual value according to the result of a re-valuation; and must not be lower than the cost of new investment and construction of assets on such land published by the provincial people’s committee multiplied by the residual quality ratio of the assets (if any). The price for assignment of the land use right shall be calculated as close as possible to the market price for assignment of land use rights as at the time of assignment of such land use right on the basis of the use purpose of the land; and shall not be lower than the price of land of the same type stipulated and published by the provincial people’s committee on 1 January each. Where it is not possible to engage an organization with the function and capacity to evaluate prices, the Department of Finance shall co-ordinate with the relevant bodies to calculate a selling price of assets on the land and a price for assignment of the land use right.

The Department of Finance shall preside over and co-ordinate with the Department of Natural Resources and Environment, the Department of Construction and the Department of Zoning and Architecture (in the case of any locality which has the latter department) and other relevant bodies to evaluate the selling price of assets on the land and the price for assignment of the land use right and submit same to the provincial people’s committee for approval.

With respect to premises and land under the management of a central authority, the selling price of assets on the land shall require an opinion from the central line body before the relevant local bodies carry out the evaluation and an opinion from the Ministry of Finance before [such price] is submitted to the provincial people’s committee for approval.

5. The following specific guidelines shall apply to the management and utilization of proceeds from sale of assets on the land and from assignment of the land used right or from conversion of land use purpose as set out in article 8 of Decision 09:

5.1 The management and utilization of proceeds from the sale of assets on the land [and] assignment of the land use right applicable to the administrative bodies, professional units and organizations set out in article 8.1 of Decision 09 shall be as follows:

(a) Relevant expenses to be deducted from proceeds from the sale of assets on the land [and] assignment of the land use right shall comprise:

– Expenses for survey of housing and land;

– Actual, valid and reasonable expenses for relocation;

– Expenses for valuation and evaluation of the selling price of assets on the land and value of the land use right;

– Expenses for holding an auction (if any);

– Other relevant expenses.

(b) The central line body shall evaluate and approve the expenses set out in paragraph (a) of this clause (in respect of administrative bodies, professional units and organizations under the management of a central authority); and the Department of Finance shall evaluate the expenses set out in paragraph (a) of this clause (in respect of administrative bodies, professional units and organizations under the management of a local authority).

(c) Where an administrative body, professional unit or organization did not have any investment project for construction, upgrade or renovation of its working office [or] of its establishment for its professional operation, the proceeds from the sale of assets on the land or assignment of the land use right shall be payable to the local budget, or to the central budget in the case of proceeds from the sale of assets on the land in respect of premises and land under the management of a central authority, after deduction of relevant expenses as specified in paragraph (a) of this clause.

(d) Where an administrative body, professional unit or organization has an investment project for construction, upgrade or renovation of its working office [or] of its establishment for its professional operation which has been approved by the authority, it shall be permitted to use the proceeds from the sale of assets on the land and assignment of the land use right to perform the investment project, after deduction of relevant expenses as specified in paragraph (a) of this clause.

The sum of money for performance of the investment project shall be deposited into an escrow account at the provincial State Treasury (of the locality in which the premises and land are situated) for performance of the investment project in accordance with the regulations on management of investment and capital construction funded by capital from the State Budget; the Ministry of Finance shall be the account holder in respect of administrative bodies, professional units and organizations under the management of a central authority; and the Department of Finance shall be the account holder in respect of administrative bodies, professional institutions and organization under the management of a local authority.

The Minister of Finance (in respect of administrative bodies, professional units and organizations under the management of a central authority) or the chairman of the provincial people’s committee (in respect of administrative bodies, professional units and organizations under the management of a local authority) shall notify the sum of money which the administrative body, professional unit or organization is permitted to use for performance of the investment project upon the proposal of the line central body (in the case of administrative bodies, professional units and organizations under the management of a central authority) or the local line body (in respect of administrative bodies, professional units and organizations under the management of a local authority), but [such sum] shall not exceed the total invested capital of the project determined by the authority and the total amount of the proceeds; any difference between the remaining proceeds after deduction of relevant expenses as specified in paragraph (a) of this clause and the sum for performance of the investment project shall be paid immediately to the local budget in accordance with law.

(dd) The procedures for disbursement and finalization of a sum of money for performance of an investment project as stipulated in clause (d) of this clause shall be subject to the stipulated regime on management of investment and capital construction funded by capital from the central budget.

Any sum of money used by an administrative body, professional unit or organization for performance of an investment project under a decision of the authorized State body shall be accounted for as revenue and expenditure from the State budget in accordance with the chapters of the State Budget.

5.2 The management and utilization of proceeds from the sale of assets on the land [and] assignment of the land use right applicable to State companies as set out in article 8.2 of Decision 09 shall be as follows:

(a) State companies shall be permitted to use proceeds from the sale of assets on land as stipulated in article 8.2(a) of Decision 09 in accordance with the following regime:

– Where assets on the land are sold and the land use right is assigned by way of an auction, the sum derived from the sale of assets on the land within the successful bid price shall be calculated as equal to the book residual book value of the assets on the land as at the date the authorized State body made the decision to permit the auction of the premises and land;

– Where assets on the land are sold and the land use right is assigned by way of appointment [of a purchaser or assignee], the sum derived from the sale of assets on the land within the appointed selling price shall be the selling price of the assets on the land approved by the provincial people’s committee in accordance with the provisions of clause 4.2(b) of section 4 of this Part.

(b) Relevant expenses to be deducted from proceeds from the assignment of a land use right or conversion of land use purpose shall comprise:

– Expenses for survey of housing and land;

– Actual, valid and reasonable expenses for relocation;

– Expenses for valuation and evaluation of the selling price of assets on the land and value of the land use right;

– Expenses for holding any auction;

– Remaining reasonable expenses for investment in the land not sourced from the State Budget. These expenses must be supported by an actual and complete file and source documents and shall be calculated as equal to the total reasonable expenses for investment in the land minus an amount corresponding to the period for which the land was used. The remaining expenses for investment in the land shall comprise:

+ Land use fee for the period during which the land was unused in the case of allocation of land for a definite period and land use fees were paid in advance for the period during which the land was in fact unused (supported by a receipt for payment).

+ Expenses for levelling of the site, and expenses for improving the land from its condition when it was allocated or leased and in conformity with the land use purpose.

+ Other relevant expenses.

– The value of land use rights allocated by the State as capital;

– Other relevant expenses.

(c) The central line body shall evaluate and approve the expenses specified in paragraph (b) of this clause (in respect of State companies under the management of a central authority); and the Department of Finance shall evaluate the expenses specified in paragraph (b) of this clause and submit them to the chairman of the provincial peoples committee for approval (in respect of State companies under the management of a local authority).

(d) Where a State company is permitted to assign a land use right but does not have any investment project for construction, upgrade or renovation of its production or business establishment approved by the authority, or where a State company has premises and land but is required to move due to environmental pollution and is permitted by the authorized State body to convert the land use purpose but does not have any investment project approved by the authority, then the proceeds from the assignment of the land use right or conversion of the land use purpose shall be paid to the local budget in accordance with the law on the State budget after the relevant expenses set out in paragraph (b) of this clause have been deducted.

(dd) Where a State company which is permitted by the authority to assign a land use right and has an investment project for construction, upgrade and renovation of its production or business establishment approved by the authority, it shall be funded with the proceeds from the assignment of the land use right after the relevant expenses specified in paragraph (b) of this clause have been deducted. The funded amount shall be deposited into an escrow account at the provincial State Treasury (of the locality in which the premises and land are situated) in order to perform the project in accordance with the regulations on management of investment and capital construction funded by the State Budget; the Ministry of Finance shall be the account holder in respect of State companies under the management of a central authority, and the Department of Finance shall be the account holder in respect of State companies under the management of a local authority.

The Minister of Finance (in the case of State companies under the management of a central authority) or the chairman of the provincial peoples committee after the peoples council at the same level provides it opinion on general guidelines or makes a resolution assigning the provincial peoples committee to do so (in the case of State companies under the management of a local authority) shall make a decision on the amount for which the State company is to be funded to perform its investment project, but such amount shall not exceed the total invested capital of the project, in particular as follows:

– Not to exceed 50 of the proceeds from the assignment of the land use right in respect of premises and land in the locality of cities being a special urban area or Category I urban area.

– Not to exceed 70 of the proceeds from the assignment of the land use right in respect of premises and land within the locality of other provinces.

Any difference between the remaining amount of the proceeds after the relevant expenses specified in paragraph (b) of this clause have been deducted and the funded amount for performance of the investment project shall be paid immediately to the local budget in accordance with the law on the State Budget.

(e) Where a State company with premises and land is required to move due to environmental pollution but is permitted by an authorized State body to convert the land use purpose and has an investment project which has been approved by the authority, it shall be funded with the proceeds from the conversion of the land use purpose after the relevant expenses specified in paragraph (b) of this clause have been deducted. Such funded amount shall be deposited into an escrow account at the provincial State Treasury (of the locality in which the premises and land are situated) in order to perform the investment project in accordance with the regulations on management of investment and capital construction funded by the State Budget, and the Department of Finance shall be the account holder.

Based on the actual situation in the locality and the proceeds from the conversion of the land use purpose of premises and land of each State company, the chairman of the provincial peoples committee, after the peoples council at the same level provides its opinion on general guidelines or makes a resolution assigning the provincial peoples committee to do so, shall make a decision [on the funded amount]; in the case of State companies under the management of a central authority, written consent from the Ministry of Finance shall be required before making a decision on the amount for which the State company is to be funded to perform its investment project but [such amount] shall not exceed the total invested capital of the project, in particular as follows:

– Not to exceed 50 of the proceeds from the conversion of the land use purpose in respect of premises and land in the locality of cities being a special urban area or Category I urban area.

– Not to exceed 70 of the proceeds from the conversion of the land use purpose in respect of premises and land within the locality of other provinces.

Any difference between the remaining amount of the proceeds from the conversion of the land use purpose after the relevant expenses specified in paragraph (b) of this clause have been deducted and the funded amount for performance of the investment project shall be paid immediately to the local budget in accordance with the law on the State Budget.

(g) Procedures for disbursement and finalisation of the amount for performance of an investment project as stipulated in paragraphs (dd) and (e) of this clause shall be subject to the regulations on management of investment and capital construction funded by the State Budget; the amount which a State company is permitted to use shall be the State Budget capital invested in such State company.

The amount which a State company is permitted to use to perform its investment project in accordance with a decision of the authorized State body shall be accounted for as revenue and expenditure of the State budget in accordance with chapters of the State budget.

III. SPECIFIC PROVISIONS ON RE-ARRANGEMENT AND DEALING WITH PREMISES AND LAND MANAGED AND USED BY ECONOMIC ORGANIZATIONS REQUIRED TO MOVE

1. The following specific guidelines shall apply to the order for implementation as stipulated in article 9 of Decision 09:

1.1. An economic organization required to move on the basis of the land use zoning approved by the authority in accordance with the law on land [or] on the basis of a decision (notice) of an authorized State body requiring it to move, shall prepare a plan for relocation in accordance with clause 3.2 of Part I of this Circular.

1.2. The economic organization required to move shall submit the plan for relocation accompanied by a plan for organization of implementation and a plan for dealing with [premises and land] to the Department of Finance for evaluation and submission to the provincial peoples committee for consideration and approval.

The sale of assets on the land [and] assignment of the land use right by way of an auction [or] conversion of the land use purpose shall be carried out in accordance with Decision 09 and the guidelines in this Circular.

1.3 Compensation shall be paid and assistance granted in accordance with the law on land in respect of premises and land of economic organizations required to move when the State recovers land to be used for objectives of national defence or security, the public interest or for economic development.

2. The following specific guidelines shall apply to the management and utilization of proceeds from sale of assets on the land and from assignment of the land used right or from conversion of land use purpose as set out in article 10 of Decision 09:

2.1. Land use fees collected from the conversion of land use purpose shall be paid to the local budget in accordance with the law on land.

2.2. The proceeds from the sale of assets on the land and from assignment of the land use right in respect of each premises and land required to move as set out in article 10.2 of Decision 09 shall be as follows:

(a) The Department of Finance shall, on the basis of the report of the economic organization required to move and the law on compensation and assistance, be responsible to calculate capital expenses of the economic organization for each premises and land, including:

– Expenses which the economic organization invested in the land from capital allocated by the State but which have not yet been recovered (if any); and the remaining reasonable expenses for investment in the land not sourced from the State Budget in accordance with clause 5.2(b) of Part II of this Circular;

– Value of assets, land use fees, proceeds from the assignment of the land use right and compensation and assistance paid to the economic organization required to move which were allocated by the State as capital or which were created by the economic organization required to move and which do not belong to the State Budget;

– Actual, valid and reasonable expenses for relocation;

– Expenses relating to the sale of assets on the land and assignment of the land use right comprising expenses for survey of housing and land, expenses for sale of assets on the land and assignment of the land use right (including expenses for valuation and evaluation of a price, expenses for holding an auction and other relevant expenses).

(b) The organization shall be entitled to manage and use [the following proceeds] in accordance with law: proceeds from the sale of assets on the land in which investment was funded by capital not sourced from the State Budget or sourced from the State Budget but already allocated to the economic organization required to move.

The proceeds from the sale of assets on land sourced from the State Budget but not yet allocated to the organization and the proceeds from the assignment of the land use right in respect of each premises and land shall be paid into an escrow account at the provincial State Treasury (of the locality in which the premises and land are situated) after the expenses specified in paragraph (a) of this clause have been deducted.

(c) The Department of Finance shall, on the basis of the report of the economic organization required to move (regardless of whether or not such organization has an investment project); and on the basis of the provisions on utilization of proceeds from sale of assets on land and assignment of land use rights when an economic organization is required to move as set out in article 10 of Decision 09, be responsible to determine an amount for which the economic organization shall be funded from the sum in the escrow account at the provincial State Treasury (of the locality in which the premises and land are situated) for each premises and land but [such amount] shall not exceed 30 of the sum in the escrow account for such premises and land and the maximum shall not exceed five (5) billion Dong; and this amount shall be the amount of State Budget assistance to the economic organization.

(d) The Department of Finance shall report to the provincial people’s committee for the latters decision after the same level peoples council provides its opinion on the general policy or [the Department of Finance shall] send its resolution to the provincial people’s committee for the latters decision on the specific limit of assistance in respect of each parcel being housing and land required to move.

Any difference as between the amount in the escrow account for each premises and land after the expenses specified in paragraph (a) of this clause have been deducted and the amount of assistance decided by the provincial peoples committee shall be paid immediately into the local budget in accordance with the law on the State Budget.

2.3. Procedures for disbursement and finalization of amounts of assistance to economic organizations required to move as stipulated in clause 2.2 of this Part shall be subject to the stipulated regime on management of the State Budget.

The amounts of assistance to economic organization required to move shall be accounted for as revenue and expenditure of the State Budget in accordance with the chapters of the State Budget.

IV. ORGANIZATION OF IMPLEMENTATION

1. Dealing with outstanding issues regarding re-arranging and dealing with State owned premises and land:

1.1. With respect to State owned premises and land for which the authority made a decision on the plan for re-arranging and dealing with such premises and land in accordance with law before the effective date of Decision 09, such plan and the provisions of the law prior to the effective date of Decision 09 shall continue to be implemented.

Premises and land in the locality of Ho Chi Minh City which were rearranged for use as residential housing [and] residential land for households and individuals and for which complete declarations and relevant documents have been submitted to the financial body (the 80 Steering Committee) shall be subject to the law as at the time of submission of the complete file.

In the case of a State company whose plan for conversion of ownership (by way of equitization, sale of all or part of [the company], transfer of [the company] to its labour collective in order to convert into a shareholding company or co-operative) was approved by the authority before the effective date of Decision 09 and whose premises and land have been declared in a report in accordance with the regulations but the authorized body has not yet made a decision on such plan for re-arranging and dealing with the premises and land and has not yet made a decision to permit use of the proceeds from the sale of assets on the land [and] assignment of the land use right or conversion of land use purpose, then the body in charge of receipt of files, declarations and reports shall deliver them to the Department of Natural Resources and Environment, the Department of Construction and the Department of Zoning and Architecture (in the case of any locality which has the latter department) for management in accordance with the law on land; and where a company has not yet prepared its report and declaration, the provisions in clause 1.5(a) of Part I of this Circular shall apply.

1.2. With respect to State owned premises and land in the locality of Hanoi City which have been declared in a report, such report must be re-finalized in order to be implemented in accordance with Decision 09 and the guidelines in this Circular.

2. Responsibilities of bodies and entities:

2.1. Ministries, branches, State corporations for which the Prime Minister made the decision on establishment, provincial peoples committees, administrative bodies, professional units, organizations, State companies and economic organizations required to move in the locality of provinces and cities under central authority which are assigned to manage and use State owned premises and land shall be responsible:

(a) Where a ministry, branch or State corporation for which the Prime Minister made the decision on establishment has numerous State owned premises and land, the head of such ministry, branch or State corporation shall make a decision on establishment of an 09 Steering Committee at the ministerial level comprising a leader of such ministry, branch or corporation as the head of the committee and other members as determined by the ministry, branch or corporation as appropriate.

(b) To declare and report to the authority for resolution in accordance with Decision 09 and the guidelines in this Circular.

(c) To account as an increase in or reduction of assets and value of assets in accordance with law.

(d) On 31 December each year, a ministry, branch or State corporation for which the Prime Minister made the decision on establishment (applicable to administrative bodies, professional units, organizations and State companies under the management of a central authority) or the Department of Finance (applicable to administrative bodies, professional unit, organization and State companies under the management of a local authority and economic organizations required to move) shall submit a periodical report on Form 05-TH (attached to this Circular) to the Ministry of Finance.

2.2. Where an administrative body, professional unit, organization or State company directly manages and uses premises and land but fails to declare, report and implement the plan for dealing with such premises and land as determined by the authority, the State Treasury shall cease the provision of funds for investment, renovation and upgrade of its working office [or] establishment for its professional operation in respect of the premises and land in breach.

2.3. The Department of Finance shall submit to the people’s committee for promulgation, procedures for implementation (specifying time-limits for dealing with each step), and procedures for disbursing and accounting as revenue and expenditure of the State Budget sums in escrow accounts at the provincial State Treasury where the account holder is the Department of Finance in order to provide assistance for investment projects of administrative bodies, professional units, organizations and State companies under the management of a local authority and economic organizations required to move in accordance with the guidelines in this Circular.

2.4. Decisions of authorized State bodies approving plans for re-arranging and dealing with owned State owned premises and land shall be issued uniformly in accordance with Forms 06a/QD, 06b/QD, 07a/QD, 08a/QD, 08b/QD, 08c/QD, 08d/QD and 09/QD attached to this Circular.

2.5. This Circular shall be of full force and effect fifteen (15) days after the date of its publication in the Official Gazette.

The following are hereby repealed: Circular 83/2001/TT-BTC of the Ministry of Finance dated 4 October 2001 providing guidelines for implementing the re-arranging and dealing with State owned premises and land in the locality of Ho Chi Minh City; Circular 66/2005/TT-BTC of the Ministry of Finance dated 18 August 2005 providing guidelines for implementation of Decision 74/2005/QD-TTg of the Prime Minister dated 6 April 2005 on utilization of proceeds from assignment of land use rights, sale of buildings and other works when economic organizations are required to move their offices and production and business establishments in accordance with a master plan; and Circular 20/2004/TT-BTC of the Ministry of Finance dated 19 March 2004 providing guidelines for implementing the re-arranging and dealing with State owned premises in the locality of Can Tho City and Hau Giang Province.

Any previous provisions which are inconsistent with this Circular are hereby repealed.

If problems arise during the course of implementation, then ministries, ministerial equivalent bodies, Government bodies, other central bodies, State corporations for which the Prime Minister made the decision on establishment, and peoples committee of provinces and cities under central authority are requested to report such problems in a timely manner to the Ministry of Finance for its consideration and resolution.

 

 

FOR THE MINISTER
DEPUTY MINISTER

Do Hoang Anh Tuan

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