How do investors in social housing construction projects that do not use state budget capital enjoy land use fee incentives?
Incentives for investors of social housing construction projects are specified in Article 58 Housing Law 2014 as follows:
Incentives for investors in social housing construction projects
1. Enterprises and cooperatives that participate in investing in social housing construction other than with the capital sources or forms specified in Clause 1, Article 53 of this Law for lease, lease purchase, or sale are entitled to incentives. following offer:
a) Exemption from land use fees and land rent for land areas allocated or leased by the State for investment in social housing construction;
b) Exemption or reduction of value-added tax and corporate income tax according to tax laws; In case of building social housing for rent, the value added tax and corporate income tax will be reduced more than in the case of building social housing for lease, purchase or sale;
c) Receive preferential loans from the Bank for Social Policies and credit institutions operating in Vietnam; In case of building social housing for rent, you can get a loan with a lower interest rate and a longer loan period than in the case of building social housing for rent to buy or sell;
d) Receive full or partial support from the Provincial People's Committee for investment in building technical infrastructure systems within the scope of social housing construction projects; In case of building social housing for rent, this funding will be fully supported;
d) Other incentives as prescribed by law.
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At the same time, based on Clause 1, Article 53 Housing Law 2014 (amended by point b, clause 6, Article 99 Law on Investment by Public-Private Partnership 2020) regulations:
Forms of social housing development
1. The State invests in social housing construction using state budget capital, national bonds, bonds, official development assistance capital, preferential loans from donors, investment credit capital State development on the land area determined to build social housing according to regulations for lease or lease purchase.
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Accordingly, investors of social housing construction projects (not using state budget capital) for lease, lease purchase, or sale are exempt from land use fees and land rents for the land area allocated. The State assigns or leases them to invest in building social housing.