Circular No. 23/2006/TT-BTC dated March 24, 2006 of the Ministry of Finance guiding the determination of paid land use levies and money amounts paid for the transfer of land use rights to be of state budget origin under the Government's Regulations guiding the implementation of the Land Law

CIRCULAR

GUIDING THE DETERMINATION OF PAID LAND USE LEVIES AND MONEY AMOUNTS PAID FOR THE TRANSFER OF LAND USE RIGHTS TO BE OF STATE BUDGET ORIGIN UNDER THE GOVERNMENT'S REGULATIONS GUIDING THE IMPLEMENTATION OF THE LAND LAW

In furtherance of the Government's regulations guiding the implementation of the 2003 Land Law, the Finance Ministry guides the determination of paid land use levies and money amounts paid for the transfer of land use rights to be of state budget origin as follows:

1. Subjects and scope of application:

a/ Economic organizations which have paid land use levies for land allotted by the State or for land with its use purpose changed or have paid money for the lawful transfer of land use rights.

b/ Determination of the origin of land use levies already paid to the State, money amounts paid for the lawful transfer of land and money amounts paid for the change of land use purposes.

2. Land use levies already remitted into the state budget and money amounts paid for the transfer of land use rights are determined to be of state budget origin in the following cases:

a/ Economic organizations are allotted land by the State with collection of land use levies but those land use levies and money amounts payable for the transfer of land use rights have been paid from the state budget and the economic organizations need not recognize those amounts as state capital or as debts owed to the State.

b/ The State allots land to economic organizations without collection of land use levies which these organizations need not recognize as state capital or debts to the state budget.

c/ The State allots land to economic organizations that are liable to collection of land use levies but entitling these organizations to exemption from land use levies.

d/ Before the State allocates capital to a state company or a state enterprise which has been converted into a state one-member limited liability company, if that company or enterprise has used the production development fund, basic depreciation fund or proceeds from fixed asset liquidation to pay land use levies or money amounts for the transfer of land use rights, those money amounts shall be regarded as being of state budget origin.

3. For cases not defined at Point 2 of this Circular, all money amounts shall be determined not to be of state budget origin.

4. Economic organizations shall determine by themselves paid land use levies or money amounts paid for the transfer of land use rights whether to be of state budget origin or not with the certification of land management bodies (for allotted land) and finance bodies, and take responsibility for the accuracy of those money amounts.

Finance bodies with the competence to make certification for economic organizations include:

- The Finance Ministry, for economic organizations set up under decisions of ministries, central branches or the Government.

- Provincial/municipal Finance Services, for economic organizations set up under decisions of provincial-level People's Committees.

Particularly for one-member limited liability companies, the certification shall be made by their owners' representatives.

5. This Circular takes effect 15 days after its publication in "CONG BAO." Any problems arising in the course of implementation should be promptly reported to the Finance Ministry for study and settlement.