After the real estate developer pays the land transfer fee, the government department will return part of the land transfer fee to the developer for demolition or demolition compensation. Is it legal to return the land transfer fee?

Is the return of land transfer fees legal?

According to the relevant provisions of the "Regulations on Economical and Intensive Use of Land":

1. The land users and land prices of commercial land should be determined through bidding, auction and listing.

2. The supply of various types of land for paid use shall not be lower than the minimum price standard for land stipulated by the state.

3. It is prohibited to reduce or reduce the land transfer price in disguised form in the form of land exchange for projects, expropriation before reimbursement, subsidies, incentives, etc.

From the above regulations, it can be seen that the return of land transfer fees cannot be through leasing first and then transferring, or providing indirect financial support in the name of providing supporting construction funds while the project is in progress.

According to the relevant laws and regulations of our country, after the state collects the land transfer fee, if the state-owned land is taken back before the land use right expires, the land transfer fee should be returned according to certain principles. In this case, the return of the land transfer fee is legal.

Relevant regulations on the return of land transfer fees

1. Government-led demolition, the return of land transfer fees will be used to build and purchase resettlement housing.

2. The government leads the demolition, and the land transfer fee is returned for demolition (agency demolition, demolition compensation).

3. The government leads the demolition, and the land transfer fee is returned to be used for infrastructure construction related to the development project.

4. The land transfer fee will be returned for the construction of public supporting facilities (schools, hospitals, kindergartens, sports venues).

5. The government will return the land transfer fee to other related enterprises or individuals.

6. Government-led demolition, the return of land transfer fees does not agree on anything, it is just a reward or subsidy.

For specific return policies, please refer to the corresponding clear return clauses in the investment promotion or land transfer agreement.

According to Article 26 of the "Interim Measures for the Management of Allocated Land Use Rights", the land use right transfer fee shall be charged according to a certain proportion of the denominated land price, distinguishing between different methods of land use right transfer, leasing, mortgage, etc. , the minimum shall not be less than 40% of the designated land price. The demarcated land price is determined by the land management department of the local city or county people's government based on the benchmark land price, the transfer, lease, and mortgage period of the land use rights and the conditions of the land parcel.

What is the land transfer fee refund?

Return of land transfer fee or reward money. During the process of land transfer by the enterprise, after paying the land transfer fee in full according to the land bidding amount determined by bidding, auction and listing and obtaining the land transfer note, the local government will provide the enterprise with land transfer fee in accordance with regulations. A certain percentage of the land transfer fee will be returned or rewarded. The return of land transfer fees consists of two parts: the first is the land decoupling fee, demolition compensation fee, management fee, and land transfer fee; the second is the land value-added premium.

More recommendations:

1. Do I need to pay tax on the return of land transfer fees?

2. How to calculate the land transfer fee?

3. When will the land transfer fee be collected?