In accordance with the Decree No. 188/2013/ND-CP on developing and managing social houses, the projects of social house’s development shall have some consistent incentives on land, tax or investment.
In particular, the area of land within the approved project is exempt from land levies and land rent; eligible for preferential VAT rates according to legislation on VAT; eligible for exemption, reduction of corporate income tax, and preferential rates of corporate income tax according to legislation on corporate income tax; eligible for support from: loans granted by credit institutions, commercial banks, and financial institutions, the credit institutions, commercial banks, and financial institutions must retain an amount of capital (at least 3% of total outstanding loan) for investors in social houses development projects, and for buyers and tenants of social houses to take loans with lower interest rates than market rates and duration that suitable for their solvency; Preferential loans from local budget, municipal bonds, Housing Development Fund, and other sources of preferential loans; the whole investment in infrastructure beyond the perimeter (traffic, electricity supply, water supply and drainage); future housing and constructions within the social houses development project may be used as collateral for the loan used for such project; bonds guaranteed by the Government may be issue in accordance with legislation on bond issuance and other incentives.
Specially, the investor may put aside 20% of the area of land allocated (even the project is on 20% land) to invest in commercial constructions (including high-rise or low rise commercial housing) to defray the investment, reduce the prices of social houses, the cost of management and operation of social houses after investment; 20% of the floor area of a project may be sold or leased at market prices if the area of land for commercial works is not mentioned in the detailed plan approved by competent authorities.
This Decree takes effect on January 10, 2014
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