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Determining The Value Of Land Use Rights Reimbursed When The State Recovers Land

The Ministry of Finance has issued Circular 80/2017/TT-BTC guiding the determination of the value of land use right, land rent and assets attached to land to be refunded upon recovery by the State, the management and use of the property compensation amounts assigned by the State for management and support money when the State recovers land without compensation for land.

The circular comes into effect from 15/9/2017 specifying the determination of the residual value of assets attached to land lawfully created in accordance with the law without origin from the state budget, to reimburse property owners when the State recovers land due to violations of the land legislation (Guideline, Clause 1, Article 18a of Decree No. 47/2014/ND-CP) of the Government – supplemented in Clause 2, Article 4 of Decree No. 01/2017/ND-CP).

Accordingly, provincial people’s committees shall consider on a case-by-case basis to decide on the return of the remaining value of assets attached to land for cases when the State recovers land due to violations of the land legislation prescribed at Points c and g, Clause 1, Article 64 of the Land Law.

The determination of the residual value of assets attached to land for reimbursement to the owners of the above-mentioned assets to be implemented at the time of recovery by the State.

The residual value of the assets attached to the land is the total remaining value of each asset attached to the recovered land. The residual value of each asset attached to the land is determined as follows:

Determining the value of land use rights
The residual value of plants and animals is determined by the compensation level for plants and animals stipulated in Article 90 of the Land Law.

The residual value of houses, architectural objects and other construction works attached to land (hereinafter referred to as construction works attached to land) shall be determined according to the following formula:

The remaining value of construction works attached to land = The percentage of remaining quality of construction works attached to land * The construction price of construction works attached to land.

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The financial agency (of the competent authority for land recovery) shall assume the prime responsibility for, and coordinate with concerned agencies in, setting up councils for determining the remaining value of assets attached to land as prescribed above, submit to the People’s Committees of the same level for approval.

In case of necessity, the financial agency shall hire a price-appraising organization to determine the residual value of the assets attached to the land as prescribed above. On that basis, finance agencies shall assume the prime responsibility for, and coordinate with concerned agencies in, appraising the remaining value of assets attached to land appraised by price-appraising organizations and to submit them to People’s Committees of the same level for approval.

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Determining The Value Of Land Use Rights Reimbursed When The State Recovers Land
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