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THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 1357/TC-QD-TCT
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Hanoi, December 30, 1995
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DECISION
ON THE REGULATION ON THE LAND RENT BRACKET
FOR DOMESTIC ORGANIZATIONS WITH STATE-LEASED LAND
THE MINISTER OF FINANCE
- Pursuant to the Land Law of
July 14, 1993;
- Pursuant to the Ordinance of October 14, 1994 on the rights and obligations
of domestic organizations with State-assigned or -leased land;
- Pursuant to Article 3, Decree 18-CP of February 13, 1995 of the Government
stipulating in details the implementation of the Ordinance on the rights and
obligations of domestic organizations with State-assigned or -leased land;
- Pursuant to Decree No.178-CP of October 28, 1994 of the Government on the
tasks, powers and organization of the Ministry of Finance;
- Based on the Prime Minister?s directive in the official dispatch No.7463/KTN
of December 30, 1995 of the Office of the Government;
DECIDES:
Article 1.- To issue together
with this decision the regulation on the land rent bracket.
Article 2.- This decision takes
effect from January 1st, 1996.
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FOR THE MINISTER OF FINANCE
VICE MINISTER
Vu Mong Giao
REGULATION
ON THE LAND RENT BRACKET FOR DOMESTIC
ORGANIZATIONS WITH STATE-LEASED LAND
(Issued together with Decision No.1357
TC/QD/TCT of December 30, 1995 of the Minister of Finance)
Article 1.- State enterprises, enterprises of social and
political organizations, enterprises of the Defense and Security Forces,
joint-stock companies, limited liability companies, private businesses and
collective economic organizations, which use land for production and business
purposes other than agricultural production, forestry, aquaculture and salt
production (except in special cases specified by the Prime Minister) and to
which the competent State agency leases land, shall have to pay the land rent
in accordance with this Regulation.
Article 2.- The price bracket for
1m2 of leased land is stipulated as follows:
1. For the material production,
construction and transport industries: 0.5% of the price of 1m2 land set by the
People?s Committees of the provinces and the cities directly under the Central
Government in accordance with Decree No.87-CP of August 17, 1994 of the
Government.
2. For the trade, tourism,
postal, banking and other services: 0.7% of the price of 1m2 of land set by the
People?s Committees of the provinces and the cities directly under the Central
Government in accordance with Decree No.87-CP of August 17, 1994 of the
Government.
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4. Where State enterprises and
domestic organizations have been assigned land by a competent State agency
which already collected the land-use fee and already paid the land-use fee to
the State Budget in accordance with the regulations issued before January 1st,
1996, they shall not change to the land lease modalities and still have to pay
the land tax in accordance with the current Ordinance on housing and land tax.
All other cases which were
previously regulated by the housing and land tax legislation and now change to
the land lease modalities at the rates defined in this Regulation shall no
longer have to pay the housing and land tax.
Article 3.- The land rent shall
be kept stable for at least 5 years.
The rent may be adjusted only
when the provincial/municipal People?s Committee adjusts the price of land of
which the rent has not changed for more than 5 years.
Each adjustment shall not exceed
15% of the rent under the land leasing contract and shall apply only to the
remaining periods of payment.
Article 4.- Dates for calculating
the land rent:
1. The organizations which are
defined in Article 1 of this Regulation and are using land without paying the
land-use tax to the State Budget, must now register and complete the procedure
for renting land with a State agency competent to lease land and shall have to
pay the rent to the State budget retroactive from January 1st, 1996.
2. Where the land had been
rented before January 1st, 1996, the rent shall be paid in accordance with this
price bracket at the date on which the competent State agency signed the
land-leasing decision.
3. Where the land was leased
after January 1st, 1996, the land rent shall be calculated at the date on which
the competent State agency signed the land-leasing decision.
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Article 6.- Calculating the land
rent.
1. For one year:
The
land rent for one year (in VND)
=
The
unit price of land rent (VND/m2/year)
x
The
area of leased land (m2)
2. Land rent calculated for the
first year and the last year:
The
land rent for the first year
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The
land rent for one year
x
Number
of month of rent
12
months
3. If the land-renting
organization engages in various production/business lines with different prices
of land rent, the exact area used for each business/production line shall be
the basis to calculate the land rent. If such separate land areas cannot be
determined for separate business/production lines, the land rent for the main
business/production line shall be apply to the total area of that land lot.
Article 7.- The land rent shall
be paid to the State Treasury as follows:
- On a yearly basis: The land
rent shall be paid twice a year, 50% for each time; the first time not later
than the 30th of June and the second not later than the 12th of December.
Article 8.- Exemption and
reduction of land rent.
1. Where the land renting
organization is still proceeding with the survey and construction under the
economic-technical plan approved by the competent level, it shall pay only 50%
of the land rent as provided for Article 2 of this Regulation.
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- Each payment for every five
years shall enjoy a reduction of 10% of the total amount;
- Each payment for more than
five years shall enjoy a reduction of 10% for the first five years and an
additional 2% for each year from the sixth year, according to the partial
progressonal method but the maximum reduction shall not exceed 30% of the rent
to be paid under the land renting contract.
Example: Enterprise B leases
from the State a land lot for 100 million VND of rent per year. The enterprise
pays eight years rent right in the first year. The reduction of the land rent
shall be calculated as follows:
- Reduction for the first five
years:
100 million x 5 years x 10% = 50
million VND
- Reduction for the sixth year:
100 million x 1 year x 12% = 12
million VND
- Reduction for the seventh
year:
100 million x 1 year x 14% = 14
million VND
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100 million x 1 year x 16% = 16
million VND
Total reduction = 92 million VND
The total land rent to be paid
for eight years is:
(100 million VND/year x 8 years)
- 92 million VND = 708 million VND
The Director of the Taxation
Department of the province or the city directly under the Central Government
shall supervise the observance of the regulations on land-rent exemption and
reduction as stipulated in this Article.
Article 9.- This Regulation takes
effect from January 1st, 1996.-