What fees must be paid to rent land in an industrial park?
1. Overview of industrial park land?
Industrial park land is land to build industrial clusters, industrial parks, export processing zones and other concentrated production and business zones with the same land use regime, according to the provisions of the 2013 Land Law. Understand one In other words, industrial park land is a place to build concentrated business zones and all have the same land use regime. The term of land use in industrial parks, export processing zones, industrial clusters, and craft villages depends on the term of the investment project. In case the term of the investment project is longer than the remaining land use term of the industrial park, export processing zone, industrial cluster, or craft village, the enterprise invests in the construction and business of industrial park infrastructure. Export processing zones, industrial clusters, and craft villages must request permission from a competent state agency to adjust the land use term accordingly, but the total land use term must not exceed 70 years and land use fees must be paid. or land rent for the land area whose use is extended.
When drawing up detailed planning for the construction of industrial parks, export processing zones, and industrial clusters, the Provincial People's Committee will base on the current status of local residential areas and the housing needs of workers working in the area. industrial parks, export processing zones, industrial clusters, arrange land funds outside industrial parks, export processing zones, and industrial clusters in accordance with planning and land use plans to build apartment complexes and civil works. cultural, social, and service services to serve the lives of workers. Many people will confuse buying industrial park land with renting industrial park land. Based on the definition above, industrial park land is only leased by the state for a certain land use term. However, after the prescribed land lease period, the State will recover the land or continue to lease it depending on the land use policy at that time.
2. What fees must be paid to rent land in an industrial park?
Pursuant to Clause 2, Article 149 of the Land Law 2013 stipulates: When the state allows economic organizations, Vietnamese people to settle abroad, and foreign-invested enterprises to invest in the construction and business of infrastructure. In industrial parks, industrial clusters, and export processing zones, there will be 02 forms of land lease as follows:
- Rent land and pay annual land rent.
- Land tax pays one-time land rent.
Note: for land areas for infrastructure construction for common use in industrial parks, industrial clusters, and export processing zones, land rent will be exempted.
2.1 Firstly, for land lease with one-time payment of land rent:
- Land rental without water surface: Land rental paid in one lump sum = land area subject to land rent x unit price of land rent paid in one lump sum for the entire lease period. In particular, the land rental unit price in each specific case:
+ Not through auction: The land rental price collected once for the entire rental period is the specific land price determined according to each type of land.
+ Land rental through auction: The land rental unit price is the winning auction price of the land lease term
Note: The land rental unit price paid in one lump sum for the entire rental period must not exceed 30% of the surface land rental unit price with the form of land rental with one-time payment for the entire lease period with the same use purpose and duration. land use term.
- Renting land with water surface: Land rent paid in one lump sum = Area for which rent must be paid x Unit price of land rent with water surface collected once for the entire rental period. In there:
+ The land rental unit price with one-time land rental payment for the entire lease period is not less than 50% of the annual land rental unit price of adjacent land with the same use purpose.
+ The unit price will be decided by the Provincial People's Committee after the Department of Finance coordinates with relevant agencies to develop and submit it.
2.2 Second, for land lease with annual land rental payment:
– Rent land and pay annual land rent = Land rent payable = Area for which rent must be paid x Unit price of land rent
In which: Land rental without auction: Annual land rental unit price = 1% x Land price to calculate land rental collection.
=> (the percentage of land rental price calculation can range from 0.5 - 3.0% depending on each area, each type of land for rent and actual local conditions based on the decision of the Committee provincial people).
+ Land rental through auction: The land rental unit price is the winning auction price for a period of one year.
=> The winning auction unit price is stable for 10 years. At the end of the stabilization period, adjustments will be made but the adjustment level must not exceed 30% of the winning auction land rental unit price or the land rental unit price of the immediately preceding stabilization period. there.
+ Land rental for underground construction: Land rental unit price must not exceed 30% of surface land rental unit price in the form of paid land rental or annual land rental with the same purpose of use. This land rental price is stable for 5 years.
+ Land rental with water surface: For land area with water surface: The annual land rental unit price is not lower than 50% of the annual land rental unit price of adjacent land with the same use purpose.
For the land area without water surface: Annual land rental unit price = 1% x Land price calculated for land rental collection
3. Procedures for renting land in industrial parks:
– Prepare documents for land lease in industrial parks including:
+ Land lease application form (can be requested at the industrial park management board)
+ Copy of investment certificate or investment approval document accompanied by a description of the investment project
+ Summary outline of investment project in industrial cluster
+ Document appraisal of land use needs; Appraisal of land lease conditions established when granting investment certificate or appraisal of investment project or project approval
+ Extract cadastral map of land plot or extract cadastral measurement of land plot
+ The application will be sent to the Department of Natural Resources and Environment where the land is located. Authorities will review and process the application.
Step 1: Submit application: After fully preparing the above documents, economic organizations will submit the application to the Department of Natural Resources and Environment in the area of the industrial park for processing.
Step 2: Processing documents: After receiving the documents, the Department of Natural Resources and Environment will conduct an inspection and notify the submitter to promptly adjust or supplement procedures to complete them. In case the dossier is complete and valid, the Department of Natural Resources and Environment receives the dossier and will forward it to the Land Use Rights Registration Office to extract the cadastral map or cadastral measurement of the land area for the location. There is no cadastral map yet. The Department of Natural Resources and Environment will conduct a detailed inspection and appraisal and then submit it to the People's Committee of the relevant province or centrally run city to make a decision on whether to lease or not.
Step 3: Fulfill financial obligations: According to the announcement, economic organizations are obliged to fulfill financial obligations with the Tax Authority. After fulfilling financial obligations, the Department of Natural Resources and Environment will return results within no more than 20 days from the date of receipt of the complete dossier.