|
THE
MINISTRY OF FINANCE
-------
|
SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
----------
|
|
No.
120/2005/TT-BTC
|
Hanoi,
December 30, 2005
|
CIRCULAR
GUIDING THE IMPLEMENTATION OF THE GOVERNMENT’S DECREE No.
142/2005/ND-CP OF NOVEMBER 14, 2005, ON COLLECTION OF LAND RENTS AND WATER
SURFACE RENTS
Pursuant to the Land Law;
Pursuant to the Government Decree No. 77/2003/ND-CP of July 1, 2003, defining the
functions, tasks, powers and organizational structure of the Finance Ministry;
Pursuant to the Government’s Decree No. 142/2005/ND-CP of November 14, 2005, on
collection of land rents and water surface rents;
The Finance Ministry hereby guides the collection of land rents and water
surface rents as follows:
Part A
GENERAL PROVISIONS
I. SCOPE OF
APPLICATION
This Circular guides the
collection of land rents, water surface rents, applicable to cases of land
lease, water surface lease specified in Article 1 of the Government’s Decree
No. 142/2005/ND-CP of November 14, 2005, on collection of land rents, water
surface rents (hereinafter referred to as Decree No. 142/2005/ND-CP),
including:
1. The State leases land under
the provisions of Article 35 of the Land Law, falling into land categories
specified in Article 13 of the Land Law (Appendix No. 01).
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2.1. Shift from land assignment
without the collection of land use levies to land lease.
2.2. Shift from land assignment
with the collection of land use levies to land lease.
3. The State leases water
surface, sea surface (referred to collectively as water surface lease) in the
territorial waters and continental shelf of Vietnam, which do not fall into
land categories specified in Article 13 of the Land Law.
II. PAYERS OF
LAND RENTS, WATER SURFACE RENTS
Land rent, water surface rent
payers defined in Article 2 of Decree No. 142/2005/ND-CP; Clause 1 and Clause 2
of this Article are guided as follows:
1. Clause 1 specifies cases
where the State leases land with the annual collection of land rent; some cases
are guided in detail as follows:
1.1. Households and individuals
that wish to continue using the agricultural land areas in excess of the norms
assigned before January 1, 1999, while the land use duration has expired shall
be entitled for the continued use thereof for a duration being equal to half
(1/2) of the land assignment duration, and later have to shift to land lease according
to the provisions of Clause 2, Article 67 of the Land Law.
1.2. Households and individuals
that are not directly engaged in agricultural production, forestry, aquaculture
or salt-making and are assigned land without the collection of land use levies for
development of farm economy shall have to shift to land lease according to the
provisions of Item b, Clause 4, Article 82 of the Land Law, as specified in
Clause 1, Article 75 of the Government’s Decree No. 181/2004/ND-CP of October
29, 2004, on implementation of the Land Law (hereinafter referred to as Decree
No. 181/2004/ND-CP).
1.3. Economic organizations,
households and individuals that lease land for use as ground for production
and/or business, mineral activities, production of building materials, making
of pottery articles as provided for in Clause 1 of Article 93, Clause 1 of
Article 94, Clause 1 of Article 95 of the Land Law; lease land for execution of
investment projects on agricultural production, forestry, aquaculture or salt
making under the provisions of Article 74 thru Article 82 of the Land Law;
lease land for construction of public works for business purposes under the
provisions of Point b, Clause 5, Article 6 of Decree No. 181/2004/ND-CP.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1.5. Public non-business units
that are leased land by the State for execution of investment projects approved
by competent state bodies must pay land rents according to Decree No. 142/2005/ND-CP
and the guidance in this Circular.
1.6. Organizations that are
assigned land without the collection of land use levies, are lawfully
transferred with the land use rights from other persons or are assigned land
with the collection of land use levies, provided that the money has been paid
for the land use right transfer or the land use levies paid to the State
originate from the state budget, and are using land for production and/or
business purposes, for construction of public works for business purposes, and
now select the form of land lease shall have to pay land rents.
2. Clause 2 specifies cases
where the state leases land or water surface with the annual collection of land
rents or with the lump-sum collection of land rents for the whole land lease or
water surface lease term; a number of cases are guided in detail as follows:
2.1. Point b specifies a number
of foreign organizations with diplomatic function, non-governmental
organizations, that lease land for construction of their working offices,
include diplomatic missions, consulates, other foreign representative offices
with diplomatic functions recognized by the Vietnamese Government;
representative offices of organizations under the United Nations,
inter-governmental agencies or organizations, representative offices of
inter-governmental organizations, non-governmental agencies or organizations;
representations of non-governmental organizations.
2.2. Point c which defines
economic organizations, households, individuals, overseas Vietnamese, foreign
organizations or individuals, that are permitted by the State to use water
surface, sea surface falling outside the land categories specified in Article
13 of the Land Law for execution of investment projects, shall cover
joint-venture enterprises with foreign investment capital, Vietnamese parties
to business cooperation contracts, that are leased water surface, sea surface
by the State for execution of investment projects.
2.3. Overseas Vietnamese,
foreign organiza-tions and individuals, that are leased urban land for
execution of investment projects on construction of residential houses for sale
or lease must:
a/ Pay land rents annually for
projects on construction of residential houses for lease.
b/ Pay land rents in lump sum
for the whole leasing term for projects on construction of residential houses
for sale or lease; when selling residential houses, investors must pay to the
State the differences between the land use levies and the paid land rents as
follows:
- For villa houses, the land
rents shall be paid within a month as from the date of signing house sale
contracts.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
The land use levies shall be calculated
at the land prices set by provincial/municipal People’s Committees (hereinafter
called provincial-level People’s Committees for short) at the time of paying
the difference money.
3. Organizations which are
assigned land by the State without the collection of land use levies, without
the collection of land rents but use parts of the land areas for production
and/or business purposes or public works for business purposes without
selecting the form of land use levy payment shall have to pay land rents.
III. SUBJECTS
NOT LIABLE TO PAY LAND RENTS
Subjects not liable to pay land
rents defined in Article 3 of Decree No. 142/2005/ND-CP; Clauses 1 and 3 of
this Article are guided as follows:
1. Clause 1 which defines the
persons assigned land by the State without the collection of land use levies
under the provisions of Article 33 of the Land Law, also cover the cases of
land assignment without the collection of land use levies to organizations,
individuals, overseas Vietnamese, that use land in hi-tech parks for
construction of common technical infrastructures of hi-tech parks; for
construction of training zones, hi-tech research and development and
application; for construction of nurseries for hi-tech enterprises with a view
to supporting activities of research and trial production, formation of
enterprises manufacturing hi-tech products under the provisions of Point a,
Clause 2, Article 85 of Decree No. 181/2004/ND-CP.
2. Clause 3 provides land areas
for construction of general infrastructure in industrial parks, which are land
areas for construction of general infrastructure in industrial parks under
projects approved by competent authorities and are not directly used by
industrial parks for production and/or business purposes, not re-assigned,
subleased nor transferred to other persons for use as production and/or
business grounds, for construction of public works for business purposes or for
construction of residential houses under plannings approved by competent
authorities; projects involving the land lease, which had been executed before
the effective date of Decree No. 142/2005/ND-CP, shall not comply with the
provisions of Clause 3, Article 3 of Decree No. 142/2005/ND-CP.
Part B
SPECIFIC PROVISIONS
I. THE LAND
RENT RATES SPECIFIED IN ARTICLE 4 OF DECREE NO.142/2005/ND-CP ARE GUIDED AS
FOLLOWS:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. Clause 2 defines land in
urban centers, commercial and service centers, traffic hubs, concentrated
population quarters, which can yield special profits, has advantage in the use
of land as ground for production and/or business, trade, service activities;
based on local realities, provincial-level People’s Committees shall decide to
promulgate land rent rates higher than 0.5% of the land price but not exceeding
four times, that is the highest land rent rate is equal to 2% of the land
prices promulgated by provincial-level People’s Committees; following are some
specific contents:
- Land being capable of yielding
special profits and having advantage in its use as ground for production,
business, trade and service activities is determined under the guidance at Item
c, Point 2, Section II of the Finance Ministry’s Circular No. 114/2004/TT-BTC of
November 26, 2004, guiding the implementation of the Government Decree No.
188/2004/ND-CP of November 16, 2004, on methods of determining prices and price
bracket for land of assorted categories.
- Provincial-level People’s
Committees shall base on local realities to determine land in specific
positions: Trade and service centers, traffic hubs, concentrated population
areas.
3. Clause 3 defines land in
deep-lying, remote, high-mountain, island regions, in areas hit by
socio-economic difficulties or exceptional socio-economic difficulties; land
used for purposes of agricultural production, forestry, aquaculture, salt
making, land used as ground for production and/or business activities of
projects in domains entitled to investment encouragement, domains entitled to
special investment encouragement, based on conditions and investment
encouragement requirements of their respective localities, provincial-level
People’s Committees shall decide to promulgate land rent rates lower than 0.5%
of the land price, but the lowest land rent rate is equal to 0.25% of the land
prices based on land use purposes, promulgated by provincial-level People’s
Committees under the Government’s regulations; it is guided specifically as
follows:
- Deep-lying, remote,
high-mountain, island regions, areas hit by socio-economic difficulties or
exceptional socio-economic difficulties; projects in domains entitled to
investment encouragement or special investment encouragement under the
regulations of the Government or the Prime Minister.
- Provincial-level People’s
Committees shall base on their respective local realities to set specific land
rent rates for specific positions, specific investment domains; the lowest rate
is equal to 0.25% of the land prices set by the provincial-level People’s
Committees.
4. Clause 4 defines land rent
rates in case of land use right auction or bidding for projects using leased
land, which shall be the bid-winning prices; in this case, the land rent payers
must not subtract expenses for land compensations, land supports from the
payable land rents.
II. WATER
SURFACE RENT BRACKET:
The water surface rent bracket
provided for in Article 5 of Decree No. 142/2005/ND-CP is guided as follows:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
a/ Fixed water surface used by
projects provided at Point a is the water surface used for fixed operation of a
project at a given location; the water surface is clearly determined with fixed
location and coordinates throughout the course of project execution.
b/ Non-fixed water surface used
by projects provided at Point b is the leased water surface with its location,
boundaries not clearly defined within given coordinates for lease and projects
do not operate at any fixed location on the water surface.
2. With regard to Clause 3 on
sea surface rent rates for oil and gas exploitation projects in Vietnam’s
territorial waters and continental shelf, the maximum rent of the water surface
rent bracket defined in Clauses 1 and 2 of Article 5 of Decree No. 142/2005/ND-CP
shall apply.
III. THE
DETERMINATION OF LAND RENT RATE FOR EACH SPECIFIC PROJECT UNDER THE PROVISIONS
OF ARTICLE 6 OF DECREE NO. 142/2005/ND-CP IS GUIDED AS FOLLOWS:
1. Regarding Clause 1, based on
the land prices promulgated by provincial-level People’s Committees under the
provisions of Government Decree No. 188/2004/ND-CP of November 16, 2004, on
methods of determining prices, bracket of prices of land of assorted
categories, provincial-level People’s Committees shall promulgate percentages
for calculation of land rent rates as specified in Article 4 of Decree No.
142/2005/ND-CP for each category of land, each type of urban center, each type
of commune, area, street, position, land grade.
2. Regarding Clause 2, based on
the land prices promulgated by provincial-level People’s Committees, the
percentages for calculation of land rent rates set by provincial-level People’s
Committees under the guidance at Point 1 of this Section, on the practical use
of land by each project, each case transferred by natural resource and
environment offices:
- Directors of
provincial/municipal Finance Services shall assume the prime responsibility
for, and coordinate with the concerned branches in, determining the land rent
rate for each specific project in cases where economic organizations, overseas
Vietnamese, foreign organizations or individuals rent land, and on that basis
issue decision on land rent rate for each project, each specific case and
transfer to the natural resources and environment offices, tax offices of the
same level.
- The Finance Sections shall
assume the prime responsibility for, and coordinate with functional agencies of
the district level in, deciding on land rent rate for each specific case
applicable to land-renting households, individuals.
IV. THE
DETERMINATION OF LAND RENTS, WATER SURFACE RENTS UNDER THE PROVISIONS OF
ARTICLE 7 OF DECREE NO. 142/2005/ND-CP IS GUIDED AS FOLLOWS:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
For oil and gas exploitation
projects in Vietnam’s territorial waters and continental shelf, the sea surface
for rent calculation shall be the area actually used by contractors.
The time for starting to
calculate and collect land rents, water surface rents shall comply with the
provisions of Clause 2, Article 7 of Decree No. 142/2005/ND-CP.
2. Clause 3: Persons who are
leased land by the State and have advanced money for land compensations or
supports shall be entitled to subtract such amounts from payable land rents;
where the land lease term expires while the land compensation or support money
has not yet been fully subtracted, further subtraction shall be made in the
extended land lease duration.
Where the land lease term
expires and the State recovers the land, the land compensation or support money
amounts not yet fully subtracted from land rents shall be compensated under
legal provisions on compensations or supports upon land recovery by the State;
the land compensation, support money (hereinafter referred to collectively as
land compensation money) subtracted from payable land rent shall be calculated
only for the land areas subject to rent payment and is guided in detail as
follows:
a/ Where land rent is collected
in lump sum for the whole leasing term, the land compensation money shall be
subtracted from the land rent of the whole land lease term; if the land rent of
the whole leasing term is bigger than the land compensation money, the
difference shall be paid in lump sum into the state budget; if the land rent of
the whole leasing term is smaller than the land compensation money, it shall be
handled according to the provisions of Clause 3, Article 7 of Decree No. 142/2005/ND-CP
and the guidance at Item b, Point 2 of this Section.
b/ Where land rent is collected
annually, the time for land rent exemption (calculated in year, abbreviated to
n) due to subtraction of land compensation money from payable land rent shall
be determined as follows:
Land compensation money subtracted
from payable land rent
n
=
——————————————————
The land rent paid for one year
- n is the number of years with
land compensation money subtracted from payable land rent (not subject to land
rent payment).
- The land compensation money
subtracted from payable land rent is equal to (=) the land price of the compensation
land category at the time of land compensation money subtraction from land rent
multiplied by the land area entitled to compensation money subtraction (= the
land area subject to land rent payment).
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
b1. Where the land lease
duration subject to land rent payment (abbreviated to N) is bigger than the
number of years entitled to land compensation money subtraction (N > n),
this difference duration (N-n) shall be subject to annual payment of land rent
according to regulations.
b2. Where the land lease
duration subject to land rent payment (N) is smaller than the number of years
entitled to land compensation money subtraction (N < n : not yet fully
subtracted upon the expiry of the land lease term):
- If the land lease continues,
the land rent shall not be paid for the remaining number of years (n- N); after
that duration (from year n +1), the land rent must be paid according to
regulations.
- If the land lease does not
continue and the State shall recover the land, the compensation shall be made
as follows:
The land
The
The land
The land area
compensation
remaining
rent rate
subject to rent
level
upon
= number
x at the time
x payment for
land
recovery
of years
of land
land recovered
by the
State
(n-N)
recovery
by the State
The number of years entitled to land compensation money subtraction from
payable land rents shall be determined at the time of subtracting the land
compensation money from land rents and inscribed clearly in papers of the land
lease dossiers.
c/ Cases of land lease without
having to pay land rent: projects exempt from land rent, water surface rent
specified in Clauses 1 and 2, Article 14 of Decree No. 142/2005/ND-CP, the
persons leased land by the State shall pay land compensations to persons with
land recovered under the provisions of law on compensation, support and
resettlement; the subtraction thereof from land rent must not be allowed.
d/ For projects exempt from land
rents, water surface rents defined in Clauses 3 and 4, Article 14 of Decree No.
142/2005/ND-CP, the land compensation money shall be subtracted from payable
land rent immediately after the end of the duration entitled to land rent,
water surface rent exemption.
V.
APPLICATION OF LAND RENT, WATER SURFACE RENT RATES SPECIFIED IN ARTICLE 9 OF
DECREE NO. 142/2005/ND-CP; CLAUSES 2 AND 4 ARE GUIDED AS FOLLOWS:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. Clause 4 on cases of land
lease, water surface lease before January 1, 2006, on which the competent state
bodies have issued decisions (notices, consents); in cases where rents are paid
in lump sum for the whole land lease or water surface lease terms, but the
rents have not yet been paid or have been paid for a number of years, the
duration for which rents have not yet been paid must be subject to the
redermination of rent rates according to the provisions of Decree No.
142/2005/ND-CP and the guidance in this Circular.
VI. SHIFT
FROM LAND ASSIGNMENT TO LAND LEASE BY HOUSEHOLDS, INDIVIDUALS AS DEFINED IN
ARTICLE 10 OF DECREE NO. 142/2005/ND-CP; CLAUSE 1 IS GUIDED IN DETAIL AS
FOLLOWS:
1. For households and individuals
that have been assigned agricultural land within the agricultural land-using
norms and, when being permitted by competent state bodies to change the land
use purposes to non-agricultural production and/or business purposes, opt for
the form of land lease, the land rent rates shall be calculated according to
prices of non-agricultural production and/or business land and the
agricultural-land use right value shall be subtracted from payable land rents,
but the subtraction level must not exceed the payable land rent amounts.
The land use right value
subtracted from payable land rents shall be calculated for the land areas
subject to rent payment, at the agricultural land prices at the time of
subtraction from land rents.
2. Households and individuals
that have been assigned land with the collection of land use levies or have
been transferred the land use rights of lawful land users and now shift to land
lease shall be entitled to subtract the transferred land use right value from
the payable land rents, but the subtraction levels must not exceed the payable
land rent amounts.
The assigned-land or
transferred-land use right value subtracted from payable land rents shall be
calculated for land areas subject to rent payment, at the prices of the
assigned-land or transferred-land categories at the time of subtraction from
payable land rents.
VII.
REGARDING THE SHIFT FROM LAND ASSIGNMENT TO LAND LEASE PROVIDED IN ARTICLE 11
OF DECREE NO. 142/2005/ND-CP; SEVERAL CONTENTS OF CLAUSES 1 AND 3 ARE GUIDED AS
FOLLOWS:
1. For organizations which have
been assigned land by the State with the collection of land use levies or have
been lawfully transferred the land use rights while the paid land use levies
and the money paid for being transferred the land use rights do not originate
from the state budget, the assigned- or transferred-land use right value
subtracted from payable land rents shall be calculated for land areas subject
to rent payment, at the prices of assigned- or transferred-land categories,
promulgated by provincial-level People’s Committees at the time of land use
right value subtraction from land rents, but the subtraction levels must not
exceed the payable land rent amounts (exclusive of land rent amounts exempted
under the provisions of Clauses 3, 4 and 7, Article 14 of Decree No.
142/2005/ND-CP).
2. Where the payable land rents
are larger than the land use right value subtracted from payable land rents,
the difference shall be annually paid into the state budget during the land
lease term. When land rents are paid for any year, the payment shall be made at
the land rent rates of that year. Where organizations propose to pay such
difference in lump sum into the state budget, they shall immediately pay the
determined difference. The remaining number of years still subject to rent
payment shall be determined as follows:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Part C
LAND RENT, WATER SURFACE
RENT EXEMPTION, REDUCTION
I.
PRINCIPLES FOR LAND RENT, WATER SURFACE RENT EXEMPTION OR REDUCTION PROVIDED IN
ARTICLE 13 OF DECREE NO. 142/2005/ND-CP; CLAUSE 5 IS GUIDED IN DETAIL AS
FOLLOWS:
Operational projects entitled to
preferences on land rent, water surface rent exemption or reduction but with
the preference levels lower (lower exemption or reduction levels) than those
specified in Articles 14 and 15 of Decree No. 142/2005/ND-CP shall enjoy the
exemption or reduction levels specified in Articles 14 and 15 of Decree No.
142/2005/ND-CP for the remaining exemption and/or reduction duration. The
remaining exemption and/or reduction levels and duration shall be calculated
according to the duration specified in Articles 14 and 15 of Decree No.
142/2005/ND-CP minus the duration enjoying exemption and/or reduction before
Decree No. 142/2005/ND-CP took effect.
II. LAND
RENT, WATER SURFACE RENT EXEMPTION DEFINED IN ARTICLE 14 OF DECREE NO.
142/2005/ND-CP; CLAUSES 1, 2 AND 4 ARE GUIDED IN DETAIL AS FOLLOWS:
1. Clauses 1 and 4 are guided as
follows: Projects in the domains entitled to investment encouragement or
special investment encouragement, in geographical areas meeting with
socio-economic difficulties or exceptional socio-economic difficulties as
provided for by the Government shall include those of foreign organizations or
individuals that use land in hi-tech parks for construction of common technical
infrastructure of hi-tech parks; construction of training quarters, hi-tech
research and development as well as application zones; for construction of
hi-tech enterprise nurseries with a view to supporting research, trial
production activities, formation of enterprises manufacturing hi-tech products
defined at Point a, Clause 2, Article 85 of Decree No. 181/2004/ND-CP.
2. Clause 2 is guided as
follows:
a/ For projects leasing land for
construction of condominiums for industrial-park workers and enjoying land rent
exemption, the house-selling prices or house-leasing prices do not include
expenses for land rent payment and must be approved by provincial-level
People’s Committees.
b/ Projects leasing land for
construction of public works for business purposes (socialization) in the
fields of healthcare, education, culture, physical training and sports, science
and technology, including the use of land acquired through the shift from land
assignment without the collection of land use levies for use for public
purposes to land lease for construction of public works for business purposes
in the above domains. Lists of projects in the fields of healthcare, education,
culture, physical training and sports, science and technology entitled to land
rent exemption guided at this Point shall be promulgated by specialized
ministries, branches.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
3. Land rent exemption till the
taxation year of 2010 for agricultural land areas within the norms prescribed
by law for each region for peasant households, state-farm member households,
agricultural cooperative members, that have received contractual land of
enterprises, agricultural cooperatives and now shift to land lease under the
provisions of the Land Law.
III. LAND
RENT, WATER SURFACE RENT REDUCTION SPECIFIED IN ARTICLE 15 OF DECREE NO.
142/2005/ND-CP; CLAUSES 1, 2, 4 AND 5 ARE GUIDED IN DETAIL AS FOLLOWS:
1. Clause 1 provides the 50%
reduction of payable land rents for the whole lease term for land used as
ground for production, business and/or service activities of cooperatives. For
agricultural cooperatives, the land areas entitled to 50% reduction of land
rents specified in Clause 1, Article 15 of Decree No. 142/2005/ND-CP are other
than the areas of land assigned without the collection of land use levies under
the provisions of Clause 5, Article 33 of the Land Law.
2. Clause 2 provides the lease
of land for use for purposes of agricultural production, forestry, aquaculture
or salt making; when natural calamities or fires have caused damage:
- Land rent reduction in
percentages corresponding to damage percentage shall be considered, if the
damage extent represents less than 40% of the output.
- Land rent exemption for the
damage year shall be considered, if the damage extent represents 40% or more of
the output.
- The damage extent determined
in percentage shall be calculated on value of the gathered products of the
harvest under normal production conditions of the preceding harvest or the next
harvest. The product value and output of harvests not struck by natural
calamities or fires shall be determined according to figures of annual
statistical reports. The damage extent- determining order and procedures shall
comply with the regulations on determination of damage for exemption or reduction
of agricultural land use tax.
3. Fifty percent (50%) reduction
of annual land rent till the 2010 taxation year for agricultural production
land areas of subjects not entitled to land rent exemption is guided at Point
3, Section II of this Part and the agricultural production land areas in excess
of the norms prescribed by law for peasant households, state-farm member
households and other agricultural production households.
4. Clause 4, where the leased
land is under projects on construction of working offices of foreign diplomatic
missions, consulates or representative offices of international organizations
in Vietnam under treaties to which Vietnam is a contracting party or on
principle of reciprocity, the reduction shall comply with the signed treaties
or on the agreed principle of reciprocity.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
LAND RENT, WATER SURFACE
RENT COLLECTION AND PAYMENT
I. ORDER OF
DETERMINING PAYABLE LAND RENTS, WATER SURFACE RENTS IS DEFINED IN ARTICLE 17 OF
DECREE NO. 142/2005/ND-CP; IT IS GUIDED IN DETAIL AS FOLLOWS:
1. Clause 1, for cases of new
lease of land or water surface, provincial/municipal Finance Services,
district-level People’s Committees shall send decisions on land or water
surface rent rates to natural resources and environment offices and tax offices
of the same level. Within 5 working days after full receipt of cadastral
dossiers, tax offices shall determine the land rent or water surface rent
amounts and write them in notices to be sent to payers. A land rent, water
surface rent payment notice shall be made in 2 copies; 1 copy shall be sent to
land rent or water surface rent payers; and 1 shall be kept at tax offices.
2. Clause 2, for cases where
land or water surface leased before the effective date of Decree No.
142/2005/ND-CP is being used, which is subject to redetermination of land rent
or water surface rent rates, based on the rent rate redetermination results
sent by the finance offices (People’s Committees) of the same level, natural
resources and environment offices shall readjust the rent rates and tax offices
shall redetermine the payable land rent or water surface rent amounts at the
new rates and send notices to payers under the guidance at Point 1, Section I
of this Part.
3. For operational projects
which still enjoy preferences on land rent and/or water surface rent exemption
and/or reduction under the provisions of Clause 5, Article 13, Decree No.
142/2005/ND-CP, the persons leased land or water surface by the State shall
send their dossiers of declaration, applying for continued rent exemption or
reduction to agencies directly managing tax collection.
4. For cases of land lease after
the effective date of Decree No. 142/2005/ND-CP; the persons leased land or water
surface by the State and entitled to rent exemption under the provisions of
Article 14 (excluding Clause 6) of Decree No. 142/2005/ND-CP or entitled to
rent reduction under the provisions of Clauses 1 and 4 of Article 15, Decree
No. 142/2005/ND-CP shall have to make declarations, applying for rent exemption
or reduction and send them together with land lease or water surface lease
dossiers to land use right registration offices or natural resources and
environment offices for transfer to tax offices.
5. Persons leased land or water
surface by the State and entitled to rent exemption under the provisions of
Clause 6, Article 14; entitled to rent reduction under the provisions of
Clauses 2 and 3, Article 15 of Decree No. 142/2005/ND-CP shall have to make
declarations applying for rent exemption or reduction and send them to agencies
directly managing tax collection.
II. TAX
OFFICES DIRECTLY MANAGING TAXPAYERS SHALL DETERMINE THE PAYABLE LAND RENTS,
WATER SURFACE RENTS UNDER THE PROVISIONS OF ARTICLE 18 OF DECREE NO.
142/2005/ND-CP.
III. THE
LAND RENT, WATER SURFACE RENT COLLECTION AND PAYMENT PROVIDED FOR IN ARTICLE 19
OF DECREE NO. 142/2005/ND-CP ARE GUIDED AS FOLLOWS:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. Tax offices or state
treasuries, when collecting land rents, water surface rents, must use vouchers
for collection of money into the state budget under the provisions of Circular
No. 80/2003/TT-BTC of August 13, 2003, guiding the concentration and management
of state budget revenues through state treasuries.
3. Tax offices shall coordinate
with state treasuries of the same level in applying measures to organize the
land rent, water surface rent collection in a way convenient for payers,
ensuring safety for land rent, water surface rent amounts remitted into the
state budget.
IV.
HANDLING OF EXISTING PROBLEMS IN LAND RENT, WATER SURFACE RENT COLLECTION,
DEFINED IN ARTICLE 20 OF DECREE NO. 142/2005/ND-CP IS GUIDED AS FOLLOWS:
1. Point a, Clause 1, Clause 2
are guided as follows: The exchange rates for conversion of foreign currencies
into Vietnam dong (VND) shall comply with the average exchange rates on the
inter-bank foreign currency market, announced by the State Bank at the time of
rent payment.
2. Clause 2 provides the
outstanding land rents, water surface rents: The outstanding land rents, water
surface rents must be fully paid in 2006. If not, from January 1, 2007, each
day of late payment shall be subject to a fine of 0.02% (two per ten thousand)
calculated on the late-paid land rent or water surface rent amounts and tax
offices shall report thereon to competent People’s Committees for consideration
of non-performance of obligations by land users, water surface users under the
provisions of land law.
V.
COMPLAINTS AND SETTLEMENT OF COMPLAINTS, DEFINED IN ARTICLE 23 OF DECREE NO.
142/2005/ND-CP, ARE GUIDED IN DETAIL AS FOLLOWS:
1. Land rent, water surface rent
payers who complain about the wrong implementation of provisions on land rent,
water surface rent collection under the provisions of Decree No. 142/2005/ND-CP
shall send their written complaints to tax offices which have determined and
notified the payable land rent or water surface rent amounts; pending the
settlement, they must still fully pay the notified land rent, water surface
rent amounts on time.
2. Agencies receiving written
complaints which are, however, are improper or incomplete under regulations
shall request the complainants to supplement or additionally explain and must
notify such to the complaint senders within 10 working days after the receipt
of written complaints.
3. Time, order, procedures for
settlement of complaints shall comply with the provisions of law on complaints
and denunciations.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
5. The Finance Minister’s
decisions on settlement of complaints about land rents, water surface rents,
after obtaining opinions of provincial-level People’s Committees, shall be
final.
VI.
ORGANIZATION OF IMPLEMENTATION
1. Provincial-level People’s
Committees shall have to direct authorities at all levels and branches in their
respective localities to coordinate with finance offices, tax offices, state
treasuries in localities in the collection of land rents, water surface rents
strictly according to the provisions of Decree No. 142/2005/ND-CP and the
guidance in this Circular, inspect and handle cases of violation or complaint,
denunciation about untruthful declaration, certification at the time of using
land, causing damage to the state budget or land rent payers.
2. The General Department of
Taxation shall have the responsibility:
- To direct the organization of
land rent, water surface rent collection according to process of reforming the
administrative procedures, the receipt of dossiers from natural resources and
environment offices for determination of land compensation money, the land use
right value to be subtracted from payable land rents, the remaining number of
years subject to rent payment; the land rent, water surface rent amounts paid
in lump sum, paid annually,... and the notification on payment of land rents,
water surface rents, other collections (if any).
- To direct the consideration of
and decision on land rent, water surface rent exemption, reduction; the
handling of problems related to land rent, water surface rent collection.
- To set forms of declaration,
vouchers, books for monitoring land rent, water surface rent collection and
payment; set forms of declaration applying for land rent, water surface rent
exemption, reduction under the provisions of Decree No. 142/2005/ND-CP and this
Circular.
3. The Central State Treasury
shall have to direct the organization of land rent, water surface rent
collection strictly according to the state budget collection procedures and
reach agreement with tax offices on organization of land rent, water surface
rent collection convenient for rent payment into the state budget by payers.
4. Responsibilities of land and
water surface lessees shall comply with the provisions of Clause 4, Article 21
of Decree No. 142/2005/ND-CP.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
This Circular shall replace the
guidance on land lease and payment of land rents, water surface rents in
Circular No. 35/2001/TT-BTC of May 25, 2001, of the Finance Ministry, guiding
the land rent payment, contribution of joint-venture capital with the land use
right value by domestic organizations, households, individuals; Point 1,
Section II, Part B of Circular No. 20/2002/TT-BTC of February 28, 2002, of the
Finance Ministry, guiding the implementation of the Government’s Decree No.
71/2001/ND-CP of October 5, 2001, on preferences for investment in construction
of residential houses for sale and lease; the guidance on land rent, water
surface rent collection in Circular No. 98/2002/TT-BTC of October 24, 2002, of
the Finance Ministry, guiding tax exemption and reduction for subjects entitled
to investment preferences under the Government’s Decree No. 51/1999/ND-CP of
July 8, 1999, detailing the implementation of (amended) Law No. 03/1998/QH10 on
Domestic Investment Promotion.
The previous regulations
contrary to this Circular shall all be annulled.
If problems arise in the course
of implementing this Circular, provincial/municipal People’s Committees are
requested to report them in time to the Finance Ministry for study and
settlement.
FOR THE MINISTER
OF FINANCE
VICE MINISTER
Huynh Thi Nhan
APPENDIX NO. 01
(To the Finance Ministry’s Circular No.
120/2005/TT-BTC of December 30, 2005, guiding the implementation of the
Government’s Decree No. 142/2005/ND-CP of November 14, 2005, on land rent,
water surface rent collection):
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. Agricultural land group
comprising the following land categories:
a/ Land cultivated with annual
crops, including rice cultivation land, pasture land for cattle raising, land
cultivated with other annual crops;
b/ Land cultivated with
perennial trees;
c/ Production forest land;
d/ Protection forest land;
e/ Special-use forest land;
f/ Aquaculture land;
g/ Salt-making land;
h/ Other agricultural land as
provided for by the Government.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
a/ Residential land, including
rural residential land, urban residential land;
b/ Land for construction of
working offices, non-business facilities;
c/ Land used for defense,
security purposes;
d/ Non-agricultural production,
business land, including land for construction of industrial parks; land used
as ground for construction of production, business establishments; land used
for mineral activities; land for production of building materials, pottery
articles;
e/ Land used for public
purposes, including traffic land, irrigation land; land for construction of
cultural, health, education and training, physical training and sport
establishments for public interests; land of historical or cultural relics,
scenic places; land for construction of other public works as provided for by
the Government;
f/ Land used by religious
institutions;
g/ Land where exist communal
houses, temples, shrines, small pagodas, ancestor-worshiping houses;
h/ Land for graveyards,
cemeteries;
i/ River, ditch, canal, stream
and special-use water surface land;
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
3. Unused land group comprising categories
of land for which the use purposes have not yet been identified.