Circular No. 77/2014/TT-BTC dated June 16, 2016 of the Ministry of Finance guiding a number of articles of the Government’s Decree No. 46/2014/ND-CP of May 15, 2014, on the collection of land rental and water surface rental

CIRCULAR

Guiding a number of articles of the Government’s Decree
No. 46/2014/ND-CP of May 15, 2014, on the collection of
land rental and water surface rental[1]

Pursuant to the November 29, 2013 Land Law;

Pursuant to the December 16, 2002 Law on the State Budget;

Pursuant to the November 29, 2006 Law on Tax Administration; and the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Law on Tax Administration;

Pursuant to the June 20, 2012 Law on Price;

Pursuant to the Government’s Decree No. 46/2014/ND-CP of May 15, 2014, on the collection of land rental and water surface rental;

Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Public Asset Management,

The Minister of Finance promulgates the Circular guiding a number of articles of the Government’s Decree No. 46/2014/ND-CP of May 15, 2014, on the collection of land rental and water surface rental.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular guides the determination and order and procedures for determination, collection and payment of land rental and water surface rental; land rental and water surface rental exemption or reduction; transitional handling and a number of specific provisions of the Government’s Decree No. 46/2014/ND-CP of May 15, 2014, on the collection of land rental and water surface rental (below referred to as Decree No. 46/2014/ND-CP).

Article 2.Subjects of application

1. Economic organizations, public non-business organizations with financial autonomy (public non-business units that are able to fully cover their regular operation expenses), people’s armed forces units, foreign organizations with the diplomatic function, foreign-invested enterprises, overseas Vietnamese, households and individuals that are leased land and water surface by the State or have their land use rights recognized by the State and are liable to pay land rental as prescribed in the Land Law and Decree No. 46/2014/ND-CP.

2. Other related agencies, organizations and individuals.

Chapter II

SPECIFIC PROVISIONS

Section 1

DETERMINATION, COLLECTION AND PAYMENT OF LAND RENTAL

Article 3.Determination of land rental units

1. In case of land lease with annual rental payment not through auction

Annual land rental unit is determined to be equal to percentage (%) multiplied (x) by land price used for calculation of land rental, in which:

a/ The percentage (%) for calculation of land rental unit shall be specified by People’s Committees of provinces or centrally run cities (below referred to as provincial-level People’s Committees) for each area or road route for each land use purpose under Point a, Clause 1, Article 4 of Decree No. 46/2014/ND-CP and publicized in the course of implementation;

b/ In case of land lease with annual rental payment not through auction in which the area for calculation of land rental of the land parcel or plot is valued (according to land prices in the Land Price Table) at VND 30 billion or more for centrally run cities, VND 10 billion or more for mountainous and highland provinces, or VND 20 billion or more for remaining provinces, land prices for calculation of land rental are specific land prices decided by provincial-level People’s Committees and determined by the direct comparison, subtraction, income- or surplus-based method prescribed in the Government’s Decree on land prices;

c/ In case of land lease with annual rental payment not through auction in which the area for calculation of land rental of the land parcel or plot is valued (according to land prices in the Land Price Table) at under VND 30 billion for centrally run cities, under VND 10 billion for mountainous and highland provinces, or under VND 20 billion for remaining provinces, land prices for calculation of land rental are land prices calculated according to use purposes of leased land specified by provincial-level People’s Committees in the Land Price Table multiplied (x) by the land price adjustment coefficient;

d/ Land price adjustment coefficients used for determination of land prices for calculation of land rental shall be determined by provincial-level Finance Departments for each area, road route or position corresponding to each land use purpose suitable to the market and local socio-economic development conditions and submitted to provincial-level People’s Committees for annual promulgation after consulting standing bodies of the same-level People’s Councils.

In case the land use coefficient (construction density and height of works) in a number of land positions for implementation of projects in the same area or road route is different from the common average level of such area or road route, the provincial-level People’s Committee shall prescribe a land price adjustment coefficient higher or lower than the common average level for calculation of land rental in these cases and specify it in the decision promulgating the local land price adjustment coefficient.

2. In case of land lease with one-off rental payment for the entire lease period not through auction

One-off land rental unit for the entire lease period is the land price determined for the land use term corresponding to the land lease period, in which:

a/ In case of land lease with one-off rental payment for the entire lease period not through auction in which the area for calculation of land rental of the land parcel or plot is valued (according to land prices in theLand Price Table) at VND 30 billion or more for centrally run cities, VND 10 billion or more for mountainous and highland provinces, or VND 20 billion or more for remaining provinces, land prices for calculation of land rental are specific land prices decided by provincial-level People’s Committees and determined by the direct comparison, subtraction, income- or surplus-based method prescribed in the Government’s Decree on land prices;

b/ In case of land lease with one-off payment of land rental for the entire lease period not through auction in which the area for calculation of land rental of the land parcel or plot is valued (according to land prices in the Land Price Table) at under VND 30 billion for centrally run cities, under VND 10 billion for mountainous and highland provinces, or under VND 20 billion for remaining provinces, land prices for calculation of one-off land rental for the entire lease period are land prices of the land use term specified by provincial-level People’s Committees in the Land Price Table multiplied (x) by the land price adjustment coefficient prescribed at Point d, Clause 1 of this Article;

c/ In case the land lease period is shorter than the lease term of the land category specified in the Land Price Table, the land price for determination of land rental unit shall be determined by the following formula:

3. In case of determination of reserve price for auction of rights to use leased land

a/ In case of auction of rights to use leased land in the form of land lease with annual rental payment, the reserve unit price for the auction is the land price determined according to the use purpose of leased land corresponding to the land lease period specified in the Land Price Table multiplied (x) by the land price adjustment coefficient multiplied (x) by the percentage (%) for calculation of land rental unit prescribed by the provincial-level People’s Committee;

b/ In case of auction of rights to use leased land in the form of land lease with one-off rental payment for the entire lease period, the land price for determination of reserve unit price for the auction shall be determined by the direct comparison, subtraction, income- or surplus-based method.

4. In case of adjustment of land rental unit

In case of land lease with annual rental payment, upon the expiration of a period of unchanged land rental unit under Clause 1, Article 14 of Decree No. 46/2014/ND-CP, the land rental unit applicable to the subsequent period of unchanged land rental unit shall be determined to be equal to the land price in the Land Price Table multiplied (x) by the land price adjustment coefficient mutiplied (x) by the percentage (%) prescribed by the provincial-level People’s Committee at the time of land rental unit adjustment.

5. In case of determination of the value of land use rights to be accounted into the value of an enterprise upon its equitization, if the equitized enterprise chooses the form of land lease with one-off rental payment for the entire lease period, the land price for calculation of one-off land rental for the entire lease period shall be determined under Clause 2 of this Article.

6. Responsibility to determine land rental unit

a/ Tax offices shall determine land rental unit in the cases specified in Clauses 1, 2 and 4 of this Article according to their competence provided in Clause 1, Article 11 of Decree No. 46/2014/ND-CP;

b/ Finance agencies shall determine reserve prices for the auction of rights to use leased land and the value of rights to use leased land for being accounted into the value of enterprises upon their equitization under Clauses 3 and 5 of this Article.

Article 4.Areas liable to land rental

1. Areas liable to land rental are land areas for which land rental is collected and which are stated in land leased decisions. In case the land area stated in the land lease contract is larger than that stated in the land lease decision, the leased land area shall be the area stated in the land lease contract.

2. In case no land lease decision or land lease contract is available but land is currently used for a purpose for which land shall be leased in accordance with the Land Law, the land area liable to rental is the actually used area.

3. In case land is used concurrently for the purposes liable to land rental and not liable to land rental, the payable land rental amount shall be determined on the basis of land areas allocated according to use purposes, specifically as follows:

a/ In case the land area used for the purpose of production, business or service provision and liable to land rental can be separately determined, the area liable to land rental is the land area actually used for the purpose of production, business or service provision;

b/ In case the land area used for the purpose of production, business or service provision and liable to land rental cannot be separately determined, the land rental shall be calculated by the method of allocation. The payable land rental amount shall be calculated according to the land area and area of works and workshops used for the purpose of production, business or service provision. In case it is impossible to make the above area-based allocation, the criterion for allocation is the ratio of the turnover of goods or services from the production, business or service provision to the total turnover earned by the agency or unit in a year;

c/ Tax offices shall assume the prime responsibility for, and coordinate with related agencies in determining, calculating and collecting land rental in the cases specified at Points a and b of this Clause.

Article 5.Determination of land rental

1. The determination of land rental in case of annual rental payment or one-off rental payment for the entire land period must comply with Clauses 1 and 2, Article 12 of Decree No. 46/2014/ND-CP. Land rental amounts to be paid into the state budget shall be determined after subtracting (-) exempted or reduced land rental amounts (if any) and compensations for ground clearance under Decree No. 46/2014/ND-CP.

2. In case an economic organization receives lawful agricultural land use rights transferred from a household or individual under Point a, Clause 4, Article 12 of Decree No. 46/2014/ND-CP for the implementation of an investment project in conformity with the land use master plan or plan and therefore has to change the land use purpose after the transfer and perform the financial obligation of paying land rental, it may clear the money amount paid for the transfer of land use rights against the payable land rental amount. The money amount to be cleared against the payable land rental amount shall be determined according to the land price prescribed for the use purpose of the transferred land at the time a competent state agency permits the land use purpose change but must not exceed the money amount to be paid as compensation or support in case of land recovery by the State, specifically as follows:

a/ In case the land lessee chooses the form of land lease with one-off rental payment for the entire lease period, the money amount paid for the transfer of land use rights shall be determined under Clauses 4 and 5, Article 4 of Decree No. 46/2014/ND-CP;

b/ In case the land lessee chooses the form of land lease with annual rental payment, the money amount paid for the transfer of land use rights shall be converted into a period for which the payment of land rental has been completed by the time a competent state agency permits the land use purpose change. The above money amount may be converted into a number of years or months for which the payment of land rental has been completed in case of land lease with annual rental payment by the following formula:

In which:

- n: The number of years or months for which the payment of land rental has been completed.

- The money amount paid for the transfer of lawful agricultural land use rights from a household or an individual shall be determined according to the land price for the use purpose of transferred land by the time a state competent agency permits the land use purpose change and under Clauses 4 and 5, Article 4 of Decree No. 46/2014/ND-CP.

- The annual payable land rental is equal to the annual land rental unit at the time a competent state agency permits the land use purpose change multiplied (x) by the land area liable to land rental.

3. In case of receiving lawfully transferred rights to use land for a non-agricultural production or business purpose other than trading and service land, then change the land use purpose to trading or service purpose under Point g, Clause 1, Article 57 of the Land Law, the money amount paid for the transfer shall be cleared against the payable land rental in case of land lease with one-off payment of land rental for the entire lease period. In case the person who is leased land by the State chooses the form of land lease with annual payment of land rental, the money amount paid for the transfer may be converted into a period for which the payment of land rental has been completed by the time a competent stage agency permits the land use purpose change.

The money amount paid for the transfer of land use rights to be cleared against the payable land rental or converted into a period for which the payment of land rental has been completed shall be determined as follows:

a/ In case of land lease with one-off payment of land rental for the entire lease period, the money amount paid for the transfer of land use rights is equal to land rental according to the land use purpose to be paid in lump-sum for the remaining land use period before the land use purpose change but must not exceed the compensation or support amount to be provided by the State upon land recovery and determined under Clauses 4 and 5, Article 4 of Decree No. 46/2014/ND-CP;

b/ In case of land lease with annual payment of land rental, the money amount paid for the transfer may be converted into a number of years or months for which the payment of land rental has been completed by the formula prescribed at Point b, Clause 2 of this Article.

4. In case households or individuals that have been allocated agricultural land by the State within the agricultural land use quota are permitted by a competent state agency to change the land use purpose to the non-agricultural production or business purpose and choose to lease land, they may clear the value of agricultural land use rights against the payable land rental, with the cleared value not exceeding the payable land rental. Such value shall be determined as follows:

a/ If the land price for determination of land rental unit is determined by the land price adjustment coefficient method, the agricultural land price shall also be determined by such method at the time a state competent agency permits the land use purpose change;

b/ If the land price for determination of land rental unit is a specific land price decided by the provincial-level People’s Committee and determined by the direct comparison, subtraction, income- or surplus-based method, the agricultural land price shall also be determined according to the corresponding specific land price and decided by the provincial-level People’s Committee at the time a state competent agency permits the land use purpose change.

5. In case an organization is leased land by the State with one-off payment of land rental for the entire land lease period not through auction and has paid the land rental in accordance with law but in the course of project implementation it proposes a change in the detailed construction plan which leads to a higher land use coefficient (construction density and height of works):

a/ If the land price for calculation of land rental to be paid in lump-sum for the entire lease period is determined by the direct comparison, subtraction, income- or surplus-based method, the organization shall pay the difference between the land rentals calculated based on the land price determined by the above method under the detailed construction plan before and after the adjustment by the time a state competent agency permits the construction plan change;

b/ If the land price for calculation of land rental to be paid in lump-sum for the entire lease period is determined by the land price adjustment coefficient method, the organization shall pay difference between the land rentals calculated based on the land price determined by the above method under the detailed construction plan before and after the adjustment by the time a state competent agency permits the construction plan change.

6. In case an organization is leased land by the State with one-off payment of land rental for the entire land lease period through auction and has paid the auction-winning bid in accordance with law but in the course of project implementation it proposes a change in the detailed construction plan which leads to a higher land use coefficient (construction density and height of works):

a/ If the reserve price for the auction of land use rights is determined by the direct comparison, subtraction, income- or surplus-based method, the organiztion shall pay the difference between the land rental calculated based on the land price determined by the above method under the detailed construction plan before and after the adjustment by the time a state competent agency permits the construction plan change;

b/ If the reserve price for the auction of land use rights is determined by the land price adjustment coefficient method, the organization shall pay the difference between the land rentals calculated based on the land price determined by the land price adjustment coefficient method under the detailed consstruction plan before and after the adjustment by the time a state competent agency permits the constsruction plan change based on the Land Price Table, land price adjustment coefficient and principles of adjustment of this coefficient prescribed by the provincial-level People’s Committee.

7. In case to meet management requirements the State adjusts detailed construction plans leading to a decrease in the land use coefficient (construction density and height of works) and land rental reduction for an organization which is leased land by the State with one-off payment of land rental for the entire lease period, such organization shall be refunded the difference between the land rentals determined under the detailed construction plan before and after the adjustment by the time a state competent agency permits the constsruction plan change. The difference shall be determined under Clauses 5 and 6 of this Article.

The land rental under this Clause shall be directly refunded or cleared against the financial obligation of the organization toward the State in accordance with the laws on the state budget and tax administration.

8. In case a land user receiving transferred rights to use non-agricultural production or business land is allocated land by the State with land use levy before July 1, 2014, when changing to lease land with one-off payment of land rental for the entire lease period for the implementation of an investment project with a land lease term longer than the remaining land use duration of the transferred land, he/she/it shall pay land rental according to the new land use purpose at the time of change from land allocation to land lease after subtracting the money amount paid for the transfer.

The money amount paid for the transfer of land use rights allowed to be cleared against land rental under this Clause shall be determined by the following formula:

9. The form of notice of payable land rental is provided in the Appendix to this Circular.

Article 6.Handling of compensation money for ground clearance

1. If the land development fund advances capital for organizations in charge of compensation and ground clearance to create clear land areas for lease through or not through auction not in the cases eligible for land rental exemption or reduction, persons leased land by the State shall pay land rental into the state budget in accordance with law. Compensation and ground clearance money shall be refunded to the land development fund in accordance with the law on the state budget.

In there is no budget for compensation and ground clearance, when leasing land with annual payment of land rental, provincial-level People’s Committees shall consider and decide to request persons leased land by the State to advance land rental amounts equal to compensation and ground clearance monney under approved plans. Such advanced amount may be converted into a number of years or months for which the annual payment of land rental has been completed.

2. If the land development fund advances capital for organizations in charge of compensation and ground clearance to create clear land areas for lease in the cases eligible for land rental exemption or reduction, compensation and ground clearance money shall be refunded to the land development fund as follows:

a/ In case they are entitled to land rental exemption for the land lease period under Article 19 of Decree No. 46/2014/ND-CP, persons leased land by the State shall refund compensation and ground clearance money under approved plans into the state budget and account them into investment capital of their projects. The refund of compensation and ground clearance money to the land development fund shall be carried out in accordance with the law on the state budget;

b/ In case they are entitled to land rental exemption or reduction under Articles 19 and 20 of Decree No. 46/2014/ND-CP, persons leased land by the State shall refund compensation and ground clearance money under approved plans into the state budget and may clear them against payable land rental in case of land lease with one-off payment of land rental for the entire lease period or convert them into a number of years or months for which the annual payment of land rental has been completed according to the land policy and price applicable at the time of land lease by the State; remaining advanced amounts (if any) after the clearing shall be accounted into the project investment capital. The refund of compensation and ground clearance money to the land development fund shall be carried out in accordance with the law on the state budget.

3. Persons that are leased land by the State and willingly advance compensation and ground clearance money under approved plans may clear advanced amounts against payable land rental amounts under approved plans.

In case the advanced compensation and ground clearance money under an approved plan exceeds the payable land rental amount, the remaining advanced amount after the clearing shall be accounted into project investment capial.

In case of land lease by the State with annual payment of land rental, compensation and ground clearance money advanced under an approved plans may be cleared against the payable land rental amount, converted under the land policy and price applicable at the time of land lease by the State and regarded as a period for which the annual payment of land rental has been completed.

5. Finance agencies shall make the mutual ceasing of compensation and ground clearance money willingly advanced by persons leased land by the State to be cleared against payable land rental and water surface rental amounts in accordance with the law on the state budget.

Article 7.Order and procedures for determination of land rental unit and collection and payment of land rental

1. In case of new land lease

a/ Based on the land lease decision and cadastral records forwarded by the natural resources and environment agency, the tax office shall determine land rental unit as follows:

- In case of applying the direct comparison, subtraction, income- or surplus-based method: Based on the specific land price decided and percentage (%) prescribed by the provincial-level People’s Committee, the tax office shall determine a land rental unit for the first period of unchanged land rental unit and notify it in writing to the land lessee and the natural resources and environment agency for writing in the land lease contract in accordance with law;

- In case of applying the land price adjustment coefficient method: Based on the Land Price Table, land price adjustment coefficient and percentage (%) prescribed by the provincial-level People’s Committee, the tax office shall determine a land rental unit for the first period of unchanged land rental unit and notify it in writing to the land lessee and the natural resources and environment agency for writing in the land lease contract in accordance with law.

b/ Based on land rental unit determined under Point a of this Clause, land area liable to land rental, compensation and ground clearance money, and money paid for the transfer of land use rights to be cleared against land rental (if any) determined and notified by the finance agency, the tax office shall determine and notify in writing payable land rental amounts and keep a register for monitoring the collection and payment of land rental;

c/ The finance agency shall determine compensation and ground clearance money and money amounts paid for the transfer of land use rights (if any) to be cleared against payable land rental amounts under Decree No. 46/2014/ND-CP and this Circular and notify them to the tax office for use as a basis for determination of payable land rental amounts.

2. In case of adjustment of land rental unit at the end of a period of unchanged land rental unit

When necessary to adjust land rental unit under Clause 1, Article 14 of Decree No. 46/2014/ND-CP, based on the land price in the Land Price Table, land price adjustment coefficient and percentage (%) prescribed by the provincial-level People’s Committee, the tax office shall re-determine land rental unit and notify land lessees of payable annual land rental amounts for the subsequent period of unchanged land rental unit.

3. Annually, the tax office shall notify the land rental payment directly to land rental payers. In case the bases for calculation of land rental change, the tax office shall re-determine land rental under Decree No. 46/2014/ND-CP and this Circular and notify it in writing to land lessees.

The year of land rental payment is calendar year, from January 1 through December 31. In case the first year and last year of land lease are not full 12 months, the land rental for these years shall be calculated according to the actual number of months of land lease. In case the land lease period in the first month or last month of land lease does not fully have the number of days of one (1) month, then:

a/ If the number of days of land lease is 15 days or more (≥ 15 days), this period may be counted as a full month;

b/ If the number of days of land lease is under 15 days (< 15 days), no land rental is required to be paid.

4. Land lessees shall base themselves on notices of land rental or water surface rental payment to pay rental at places indicated in such notices within a prescribed time limit, specifically as follows:

a/ For land lease or water surface lease with annual payment of rental

- The annual payment of rental may be made in 2 installments: The first installment is equal to at least 50% of the total and paid before May 31, the second installment shall be made before October 31. For the case of new land lease in which the financial obligation to pay land rental for the first year is determined after October 31 of the year, the tax office shall issue a notice of land rental payment for the remaining period of the year;

- Past the time limit for payment of land rental for each period as indicated in the notice of the tax office, the land lessee shall pay a late payment interest for the unpaid rental as prescribed by the law on tax administration.

b/ For land lease with one-off payment of land rental for the entire lease period

- Within 30 days after the tax office signs the notice of land rental, the land lessee shall pay 50% of the land rental according to the notice;

- Within 60 subsequent days, the land lessee shall fully pay the remaining land rental according to the notice;

- Past the above time limit, the person leased land by the State that fails to fully pay land rental according to the notice shall pay a late payment interest for the unpaid rental as prescribed by the law on tax administration.

5. State treasuries and commercial banks that are authorized to coordinate with one another in collecting state budget revenues or tax offices when collecting land rental shall use receipts under regulations guiding the centralized collection and management of state budget revenues via the state treasury.

6. The authorized collection by airport or airfield authorities of land rental or water surface rental from organizations and individuals that are leased land or water surface in airports or airfields must comply with the law on tax administration.

7. Tax offices shall keep register for monitoring the collection and payment of land rental amounts in their localities in accordance with the law on tax administration.

Article 8.Application of land rental units

1. Projects that lease land with annual payment of land rental before the effective date of Decree No. 46/2014/ND-CP and are still in the period of unchanged land rental unit but are paying land rental based on a land rental unit higher than that prescribed in this Decree may have such land rental unit adjusted under Article 4 of Decree No. 46/2014/ND-CP if land lessees make written requests. The tax office shall assume the prime responsibility for, and coordinate with related agencies in, re-determining the land rental unit for the above case. The re-determination and keeping unchanged of land rental units will start from January 1, 2015.

2. For projects leasing land before the effective date of Decree No. 46/2014/ND-CP, if one of the following three papers: investment certificate (investment license), land lease decision and land lease contract granted (signed) by competent state agencies, states land rental unit and the principle of land rental unit adjustment, the adjustment of land rental unit shall be carried out as follows:

a/ For investment projects for which one of the above three papers states land rental unit and the principle of land rental unit adjustment under the Ministry of Finance’s regulations on land rental units (Decision No. 210A-TC/VP of April 1, 1990, Decision No. 1417/TC-TCDN of December 30, 1994, Decision No. 179/1998/QD-BTC of February 24, 1998, Decision No. 189/2000/QD-BTC of November 24, 2000, and Decision No. 1357-TC/QD-TCT of December 30, 1995), or the investment certificate (investment license) has been renewed, the form of land lease contract has been changed due to change in administrative procedures which do not require a principle of land rental unit adjustment, but the land use purpose remains unchanged, or by the effective date of Decree No. 46/2014/ND-CP the land rental unit has not yet been adjusted under Clause 2, Article 9 of Decree No. 142/2005/ND-CP of November 14, 2005, and not falling into the cases specified at Point a, Clause 1, Article 18 of this Circular, the tax office shall report to the provincial-level People’s Committee for adjustment of land rental unit corresponding to each cycle of adjustment on the principle that each 5-year period of unchanged rental unit sees an increase of 15% compared to the previous period;

b/ For investment projects for which one of the above three papers states land rental and water surface rental unit and the principle of rental unit adjustment under the Ministry of Finance’s regulations on land rental units as mentioned at Point a of this Clause, but the land rental unit has been adjusted under Clause 2, Article 9 of the Government’s Decree No. 142/2005/ND-CP of November 15, 2005, or the investment certificate (investment license) has been renewed, the form of land lease contract has been changed due to change in administrative procedures which do not require a principle of land rental unit adjustment, but the land use purpose remains unchanged and the land rental unit has been adjusted under Clause 2, Article 9 of Decree No. 142/2005/ND-CP, in subsequent cycles of land rental unit adjustment the tax office shall report to the provincial-level People’s Committee for decision on the level of land rental unit adjustment which must not exceed the adjustment percentage (%) stated in one of the above three papers compared to the land rental unit of the preceding stable period of unchanged rental unit and may be applied to the remaining land lease period as requested in writing by lessees.

Section 2

DETERMINATION, COLLECTION AND PAYMENT OF LAND RENTAL FOR CONSTRUCTION OF UNDERGROUND FACILITIES, RENTAL FOR LAND WITH WATER SURFACE AND WATER SURFACE RENTAL

Article 9.Determination, collection and payment of land rental for construction of underground facilities

1. Pursuant to Clause 1, Article 5 of Decree No. 46/2014/ND-CP, the provincial-level Finance Department shall coordinate with related agencies in elaborating and submitting to the provincial-level People’s Committee for promulgation regulations on unit prices of land for construction of underground facilities other than underground parts of above-ground construction facilities for business purposes which are suitable to local socio-economic conditions.

2. For land for construction of underground facilities connected with underground parts of above-ground construction facilities with the area for construction of underground facilities larger than the above-ground construction area which is liable to land rental, the land rental unit for the excessive area for construction of underground facilities shall be determined under Clause 1 of this Article.

3. Based on the rental level prescribed by the provincial-level People’s Committee and cadastral records and information provided by the natural resources and environment agency, the provincial-level Tax Department shall determine payable land rental amounts for the cases specified in Clauses 1 and 2 of this Article and notify them to land lessees for payment in accordance with law.

4. Land rental unit in case of land lease with annual rental payment for construction of underground facilities shall be kept unchanged for 5 years. At the end of a cycle of unchanged land rental unit, the tax office shall adjust the land rental unit for construction of underground facilities according to the land policy and price at the time of adjustment.

Article 10.Determination, collection and payment of rental for land with water surface

1. Pursuant to Points b and c, Clause 1, Article 6 of Decree No. 46/2014/ND-CP, the provincial-level Finance Department shall coordinate with related agencies in elaborating and submitting to the provincial-level People’s Committee for promulgation rental level applicable to land areas with water surface, in which:

a/ For deep-lying, remote and mountainous areas, islands, areas with difficult or particularly difficult socio-economic conditions; land areas with water surface used for agricultural production, forestry, aquaculture or salt production; and land with water surface used as production or business grounds of projects in the fields eligible for investment promotion or special investment promotion, rental unit for land with water surface must be equal to 50% of the rental unit for land in adjacent positions and with the same use purpose;

b/ For the cases not specified at Point a of this Clause, rental unit for land with water surface must be equal to at least 50% of the rental unit for land in adjacent positions and with the same use purpose.

2. For organizations, overseas Vietnamese and foreign-invested enterprises that lease land with water surface for implementation of investment projects, based on the rental level prescribed by the provincial-level People’s Committee and cadastral records and information provided by the natural resources and environment agency, the provincial-level Tax Department shall determine the payable rental for land with water surface and notify it to land lessees in accordance with law. A payable rental for land with water surface shall be equal to rental for land without water surface plus rental for water surface area.

3. For households and individuals that lease land with water surface for production or business activities, based on the rental level prescribed by the People’s Committee and cadastral records and information provided by the natural resources and environment agency, the provincial-level Tax Department shall determine the payable rental for land with water surface and notify it to land lessees in accordance with law like the cases in Clause 2 of this Article.

4. In case it is impossible to accurately determine land area and water surface area at the time such areas are leased by the State due to regular water level change, the water surface area shall be determined according to the average level in the year to serve as a basis for calculation of rental for such area.

Article 11.Determination, collection and payment of water surface rental

1. Based on the water surface rental bracket prescribed in Clause 1, Article 7 of Decree No. 46/2014/ND-CP, the provincial-level Finance Department shall assume the prime responsibility for, and coordinate with related agencies in, submitting to the provincial-level People’s Committee for decision water surface rental units applicable to specific projects (other than those specified in Clause 2 of this Article), in which:

a/ For projects using fixed water surface specified at Point a, Clause 1, Article 7 of Decree No. 46/2014/ND-CP, fixed water surface is water surface used for projects with fixed operation in certain locations. It is necessary to clearly identify locations and fixed coordinates of water surface leased throughout the project implementation duration;

b/ For projects using non-fixed water surface specified at Point b, Clause 1, Article 7 of Decree No. 46/2014/ND-CP, non-fixed water surface is leased water surface without clearly identified locations and limits within certain coordinates and projects with non-fixed operation in certain locations with water surface;

c/ A leased water surface area for calculation of water surface rental is an area decided by a competent state agency for lease in accordance with law;

d/ Time of calculation of water surface rental is the time when a competent state agency decides on water surface lease in accordance with law;

e/ Payable water surface rental shall be determined under Clause 3, Article 12 of Decree No. 46/2014/ND-CP.

2. Particularly for projects on oil and gas exploitation in the territorial sea and continental shelf of Vietnam, water (sea) surface rental shall be determined as follows:

a/  An area for calculation of water (sea) surface rental is an area allocated for oil and gas exploration and exploitation;

b/ Applicable water (sea) surface rental unit is the maximum level of the water surface rental bracket prescribed in Clause 1, Article 7 of Decree No. 46/2014/ND-CP and shall be kept unchanged for 5 years under Clause 2, Article 14 of Decree No. 46/2014/ND-CP or specific commitments of the Vietnamese Government with foreign governments or organizations under concluded agreements. A project on oil and gas exploitation that is leasing water surface and applying the water surface rental unit under Article 5 of the Government’s Decree No. 142/2005/ND-CP of November 14, 2005, may continue to apply such water surface rental unit for its remaining lease duration. At the end of the water surface lease period of such project, the water surface rental unit shall be applied under Clauses 1 and 2, Article 7 of Decree No. 46/2014/ND-CP and this Circular;

c/ Time of calculation of water (sea) surface rental is the time when water surface is allocated for oil and gas exploration and exploitation;

d/ For a project on oil and gas exploitation operating under the product-sharing mechanism under the Government’s Decree No. 33/2013/ND-CP of April 22, 2013, promulgating the model oil and gas product-sharing contract, foreign contractors are not required to pay water (sea) surface rental under Decree No. 46/2014/ND-CP and this Circular.

3. Based on the water surface rental unit and leased water surface area, the tax office shall determine and notify payable water surface rental amounts and organize the rental collection in accordance with law.

Section 3

LAND RENTAL AND WATER SURFACE RENTAL EXEMPTION OR REDUCTION

Article 12.Application of land rental and water surface rental exemption or reduction

1. Land-using investment projects eligible to be considered for land rental and water surface rental exemption or reduction are projects formulated, appraised and approved in accordance with law.

2. Investment projects are entitled to land rental exemption or reduction as a result of new land lease in case their investors are leased land by the State for the first time in land areas for project implementation or have the land lease term extended upon its expiration in accordance with the land law.

3. Operating projects entitled to land rental and water surface rental exemption or reduction at levels lower than those provided in Articles 19 and 20 of Decree No. 46/2014/ND-CP may enjoy the exemption or reduction level provided in Articles 19 and 20 of Decree No. 46/2014/ND-CP for the remaining exemption or reduction duration. The remaining land rental exemption or reduction duration is the duration prescribed in Articles 19 and 20 of Decree No. 46/2014/ND-CP minus (-) the exemption or reduction duration before the effective date of Decree No. 46/2014/ND-CP. Operational projects entitled to land rental and water surface rental exemption or reduction are projects having investment incentive certificates (as stated in investment licenses) or obtaining exemption or reduction decisions of tax offices in accordance with law before the effective date of Decree No. 46/2014/ND-CP.

In case the date when land rental calculation starts precedes the effective date of Decree No. 46/2014/ND-CP but the land lessee carries out the procedures to request exemption or reduction after the effective date of Decree No. 46/2014/ND-CP, the provisions on exemption or reduction and other relevant provisions of Decree No. 46/2014/ND-CP shall be applied.

4. If operating projects annually paying land rental and water surface rental before the effective date of Decree No. 46/2014/ND-CP as entities not entitled to land rental and water surface rental exemption or reduction become eligible for such exemption or reduction under Decree No. 46/2014/ND-CP, they will be entitled to such exemption or reduction for the remaining incentive duration at the request of project owners.

5. Persons leased land by the State may enjoy land rental exemption or reduction only after carrying out prescribed procedures for such exemption or reduction. If eligible for land rental exemption or reduction but persons leased land by the State fail to carry out procedures for such exemption or reduction, they shall pay land rental in accordance with law. If they are late carrying out procedures for land rental exemption or reduction, they are not entitled to rental exemption or reduction for the duration of failure to carry out procedures.

Persons leased land by the State will not be considered for land rental exemption or reduction if they submit dossiers of request for land rental exemption or reduction when the exemption or reduction duration prescribed in Articles 19 and 20 of Decree No. 46/2014/ND-CP has expired. If the land rental exemption or reduction duration has not yet expired, they will only be entitled to land rental exemption or reduction for the remaining incentive duration counting from the time of submission of complete and valid dossiers of request.

6. In the course of management and monitoring, if competent state agencies detect that land users entitled to land rental and water surface rental exemption or reduction under Decree No. 46/2014/ND-CP no longer satisfy the conditions for exemption or reduction or use land not for purposes stated in land lease decisions or contracts but are not subject to land recovery in accordance with the land law, tax offices shall identify and report them to provincial-level People’s Committees (for organizations, overseas Vietnamese and foreign-invested enterprises) or report to district-level People’s Committees (for households and individuals) for decision on recovery of exempted or reduced land rental amounts according to land policies and prices at the time of land rental exemption or reduction plus late payment interest calculated on exempted or reduced land rental amounts at the level prescribed by the law on tax administration.

7. In case a person leased land by the State has been entitled to land rental exemption or reduction under Articles 19 and 20 of Decree No. 46/2014/ND-CP but later permitted by a competent state agency to transfer a project in accordance with law, the financial obligation shall be performed as follows:

a/ The transferor may not account the exempted or reduced land rental amount into the transfer price;

b/ For the transferee:

- In case the transferee continues to implement the project, it may continue to enjoy land rental exemption or reduction in accordance with the investment law for the remaining duration of the project;

- In case the transferee does not continue to implement the project for the purpose for which the project is transferred but switch to another purpose, it shall pay land rental in accordance with law;

- In case the transferor has partly performed the land-related financial obligation, the transferee may inherit the part of the obligation already performed by the transferor.

c/ In case the transferor has the compensation and ground clearance money cleared against the payable land rental in accordance with law, the transferee may inherit and continue to have remaining compensation and ground clearance money cleared against payable land rental; the remaining compensation and ground clearance money (if any) may be accounted into investment capital of the project.

Article 13.Land rental and water surface rental in some cases

1. The reduction of land rental for cooperatives provided at Point a, Clause 1, Article 20 of Decree No. 46/2014/ND-CP is applicable to the entire land lease period.

2. The reduction of rental for land used for agricultural, forestry, aquaculture or salt production purpose by land users that suffer damage caused by natural disasters or fires under Point b, Clause 1, Article 20 of Decree No. 46/2014/ND-CP shall be given as follows:

a/ If land users suffer a loss of under 40% of the expected output, they may be considered for a rental reduction percentage corresponding to that of the loss;

b/ If land users suffer a loss of 40% or over of the expected output, they may be considered for land rental exemption for the year of loss.

The percentage of output loss shall be based on the harvested output of the previous or latest crop season in normal production conditions and determined by a competent state agency.

Article 14.Dossiers of land rental and water surface rental exemption or reduction

1. Dossiers of land rental exemption or reduction must comply with the law on tax administration.

2. Land lessees shall submit dossiers of request for land rental exemption or reduction to tax offices directly managing them.

Article 15.Order and procedures for land rental and water surface rental exemption or reduction

1. Within 10 working days after receiving a land lease decision, a land lessee shall submit a dossier of request for land rental exemption or reduction to the tax office directly managing him/her/it.

2. Based on the land rental exemption or reduction dossier, the tax office shall issue a land rental exemption or reduction decision for the exemption or reduction duration according to its competence provided in Clause 1, Article 21 of Decree No. 46/2014/ND-CP, specifically as follows:

a/ For cases of land lease with annual rental payment, an exempted or reduced rental amount shall be determined as follows:

- In case the land price is determined by the direct comparison, subtraction, income- or surplus-based method, the tax office shall determine the to be-exempted or -reduced rental amount to be the land area liable to land rental multiplied (x) by the land price in the Land Price Table multiplied (x) by the percentage (%) multiplied (x) by the land price adjustment coefficient multiplied (x) by the number of years of exemption or reduction, and write the specific exempted or reduced amount in the land rental exemption or reduction decision;

- In case the land price is determined for land rental calculation by the land price adjustment coefficient method, the tax office shall determine the to be-exempted or -reduced rental amount to be the land area liable to land rental multiplied (x) by the land price in the Land Price Table multiplied (x) by the percentage (%) multiplied (x) by the land price adjustment coefficient multiplied (x) by the number of years of exemption or reduction, and write the specific exempted or reduced amount in the land rental exemption or reduction decision.

b/ For case of land lease with one-off rental payment for the entire lease period, an exempted rental amount shall be determined as follows:

- In case the land price is determined by the direct comparison, subtraction, income- or surplus-based method, the tax office shall determine the to be-exempted rental amount to be the land area liable to land rental multiplied (x) by the land price in the Land Price Table corresponding to the land lease period multiplied (x) by the land price adjustment coefficient, and write the specific exempted amount in the land rental exemption decision;

- In case the land price is determined for land rental calculation by the land price adjustment coefficient method, the tax office shall determine the to be-exempted rental amount to be equal to the land area liable to land rental multiplied (x) by the land price in the Land Price Table corresponding to the land lease period multiplied (x) by the land price adjustment coefficient, and write the specific exempted rental amount in the land rental exemption decision.

c/ A land rental exemption or reduction decision must clearly state the reason for exemption or reduction; land lease period; land rental exemption or reduction duration and exempted or reduced land rental amount, and clearly read: “In case the land or water surface lessee has to refund to the state budget the exempted or reduced amount under Clause 7, Article 18 of Decree No. 46/2014/ND-CP, he/she/it shall refund the land rental amount exempted or reduced according to the land policy and price at the time of land rental exemption or reduction plus an interest for late payment of land rental for the exemption or reduction duration.”

3. For land rental exemption given during the period of capital construction under Clause 2, Article 19 of Decree No. 46/2014/ND-CP: Based on the land rental exemption or reduction dossier, the tax office shall coordinate with related agencies in examining the dossier and determining the duration of capital construction and issue a land rental exemption decision for each investment project for no more than 3 years from the date of issuance of the land lease decision.

4. For an entity suffering damage caused by a natural disaster, fire orforce majeurecircumstance, based on the written record of determination of damage and other relevant documents, the tax office shall issue a land rental reduction notice under Points b and c, Clause 1, Article 20 of Decree No. 46/2014/ND-CP.

5. Within 15 working days after receiving a complete and valid dossier, the tax office shall issue a land rental exemption or reduction decision or notify the land lessee of the reason for being entitled to no exemption or reduction. Land rental exemption or reduction decisions shall be made according to the form provided in the Appendix to this Circular.

Article 16.Determination of land rental in case of land rental exemption or reduction

1. In case of annual payment of land rental or water surface rental.

a/ For a case eligible for land rental or water surface rental exemption under Article 19 of Decree No. 46/2014/ND-CP, annually payable land rental or water surface rental amount at the time when rental payment is required following the expiration of the rental exemption duration shall be determined as follows:

Land rental or water surface rental unit shall be determined according to the land policy and price applicable at the time when rental payment is required. The period of unchanged land rental or water surface rental unit shall be counted from the time when rental payment is required.

b/ For a case eligible for land rental or water surface rental reduction under Article 20 of Decree No. 46/2014/ND-CP

2. In case of one-off rental payment for the entire lease period

a/ For a case eligible for land rental or water surface rental exemption under Article 19 of Decree No. 46/2014/ND-CP

Land rental unit for one-off payment for the lease period after subtracting the prescribed exemption duration (X)  =  Y/N   x   (N-n)

In which:

- Y: Land rental unit for one-off payment for the entire lease period

- N: Number of years of land lease

- n: Number of years of land rental exemption

b/ For a case eligible for land rental or water surface rental reduction under Article 20 of Decree No. 46/2014/ND-CP

Land rental or water surface rental unit for one-off payment for the entire lease period shall be determined under Clauses 2, 4 and 5, Article 4 of Decree No. 46/2014/ND-CP and Article 3 of this Circular.

Section 4

TRANSITIONAL HANDLING AND A NUMBER OF SPECIFIC PROBLEMS

Article 17.Handling of a number of transitional matters

1. Provincial-level People’s Committees that have not yet promulgated land price adjustment coefficients under Decree No. 46/2014/ND-CP and this Circular may continue to apply land price adjustment coefficients promulgated in 2014 under the Ministry of Finance’s Circular No. 94/2011/TT-BTC of June 29, 2011, through December 31, 2014, for determination of land rental units.

2. Dossiers of request for determination of land rental or water surface rental which are received by competent state agencies before July 1, 2014, shall continue to be examined by such agencies.

3. Entities that have been allocated land by the State and paying land use levy since before July 1, 2014, and now wish to change to lease land are not required to pay land rental for the remaining land use term under Clause 2, Article 31 of Decree No. 46/2014/ND-CP. In case an entity changes to lease land for a period longer than the remaining land use term, it shall pay land rental for the excessive period of land lease.

4. Entities that have been allocated land by the State without land use levy since before July 1, 2014, when changing to lease land under Clause 2, Article 60 of the 2013 Land Law, shall pay land rental under Article 4 of Decree No. 46/2014/ND-CP.

5. For investors that have advanced compensation and ground clearance money under approved plans according to the policy on compensation, support and resettlement upon land recovery by the State provided in the 2003 Land Law but have such compensation and ground clearance money cleared against payable annual land rental amounts or are in the duration of land rental exemption, the remaining compensation and ground money clearance shall be converted into a number of years or months for which the financial obligation of paying annual land rental has been completed according to land rental units to be determined on January 1, 2015, under Decree No. 46/2014/ND-CP.

6. In case organizations that have been leased land by the State with one-off rental payment for the entire lease period and fulfilled the financial obligation before July 1, 2014, in the course of project implementation propose a change in detailed construction plans, leading to a higher land use coefficient (construction density and height of works):

a/ For cases in which land rental has been calculated and paid according to the policy on land rental collection with land prices determined based on detailed construction plan norms of projects (land use coefficient, construction density and height of works) which are permitted by a competent state agency to change, a land rental difference (if any) shall be determined and collected in accordance with law at the time a competent state agency permits the change in plan norms;

b/ For cases in which land rental has been calculated and paid according to the policy on land rental collection with land prices determined not based on architectural plan norms of projects which are permitted by a competent state agency to change, an additional land rental (if any) is not required to be determined and collected.

Article 18.Handling of a number of specific problems

1. Payment of land rental by investors that construct and deal in infrastructure facilities of industrial parks, industrial clusters and export processing zones

a/ In case investors that are leased land by the State with annual rental payment for construction of and dealing in infrastructure facilities of industrial parks, industrial clusters and export processing zones and have one of the three papers of investment certificate (investment license), land lease decision and land lease contract granted (signed) by a competent state agency stating the principle of land rental unit adjustment, have subleased land with infrastructure facilities with one-off rental payment for the entire lease period since before January 1, 2006, but not yet adjusted the land rental unit under Clause 2, Article 9 of the Government’s Decree No. 142/2005/ND-CP of November 14, 2005, on the collection of land rental and water surface rental, they shall pay to the State lump-sum land rental amounts determined on the basis of the sublease duration, subleased land areas and annual land rental units dertermined by a competent state agency according to the land lease unit applicable at the time of land sublease (on the principle that rental rises 15% after every 5-year period of unchanged land rental) minus land rental amounts (if any) annually paid to the State which are determined on the above principle for the subleased area from the time of land sublease.

Example: In 1999, infrastructure construction and dealing company A was leased land by the State with annual rental payment for 50 years. In 2004, company A signed a contract to sublease land to company B with one-off rental payment for the entire lease period of 45 years. At the time of signing the land sublease contract (2004), the annual land rental amount payable by company A was VND 100 million. On January 1, 2015, company A will carry out procedures for paying the land rental to the State for the subleased land area with one-off rental payment for the entire lease period. The land rental to be paid by company A to the State under Clause 1, Article 32 of Decree No. 46/2014/ND-CP in this case shall be determined as follows:

- The first sublease period from 2004 to 2009 (n1) = VND 100 million x 5 years = VND 500 million

- The second sublease period (n2) = n1 x (1 + 15%) = VND 575 million

- The third sublease period (n3) = n2 x (1 + 15%) = VND 661.25 million

- The fourth sublease period (n4) = n3 x (1 + 15%) = VND 760.44 million

- The fifth sublease period (n5) = n4 x (1 + 15%) = VND 874.5 million

- The sixth sublease period (n6) = n5 x (1 + 15%) = VND 1,005.68 million

- The seventh sublease period (n7) = n6 x (1 + 15%) = VND 1,156.53 million

- The eighth sublease period (n8) = n7 x (1 + 15%) = VND 1,330.01 million

- The ninth sublease period (n9) = n8 x (1 + 15%) = VND 1,529.51 million

The annual land rental amounts paid by company A to the State determined on the above principle for the subleased land area counting from the time of starting the sublease (2004 through 2014) is VND 100 million x 5 years + VND 100 million (1 + 15%) x 5 years = VND 1.075 billion.

The total amount (N) payable by company A = (n1 + n2 + n3 + n4 + n5 + n6 + n7 + n8 + n9) - VND 1.075 billion = VND 7.325 billion.

b/ For the cases specified at Point a, Clause 1 of this Article, upon the renewal of investment certificates (investment licenses) or change of the model land lease contract due to new regulations on administrative procedures which require no principle of land rental unit adjustment while the land rental unit has not yet been adjusted under Clause 2, Article 9 of Decree No. 142/2005/ND-CP, organizations may also pay land rental to the State according to the number of years for which lump-sum rental amounts have been collected from secondary investors for subleased land areas under Clause 1, Article 32 of Decree No. 46/2014/ND-CP as mentioned at Point a, Clause 1 of this Article.

2. For land users that have not yet been leased land by competent state agencies, are using land for production and business purposes and have received tax offices’ notices of temporary payment of land rental and water surface rental according to land policies and prices by the time of issuance of such notices under Clause 3, Article 32 of Decree No. 46/2014/ND-CP:

a/ Tax offices shall coordinate with related agencies in reviewing and reporting to provincial-level People’s Committees for decision land rental amounts payable by land users according to temporary payment notices without any adjustment;

b/ Based on land prices in the Land Price Table, land price adjustment coefficient, percentage (%) of land prices for determination of land rental units promulgated by provincial-level People’s Committees, areas and use purposes of land actually in use, tax offices shall coordinate with related agencies in determining, within their functions and tasks, land rental units and notifying payable annual land rental amounts from the effective date of Decree No. 46/2014/ND-CP. Land users will not enjoy unchanged land rental units for every 5-year period under Clause 1, Article 14 of Decree No. 46/2014/ND-CP until they complete procedures and obtain land lease decisions of competent state agencies.

3. In case land users obtain land lease decisions or contracts before the effective date of Decree No. 46/2014/ND-CP while land rental units have not yet been adjusted under Decree No. 142/2005/ND-CP and Decree No. 121/2010/ND-CP, and annually pay land rental amounts according to tax offices’ notices of temporary rental payment under Clause 4, Article 32 of Decree No. 46/2014/ND-CP:

a/ Tax offices shall report to provincial-level People’s Committees for decision to permit the collection of land rental amounts from land users that have paid such amounts according to notices of temporary rental payment without any adjustment in the case specified at Point a, Clause 4, Article 32 of Decree No. 46/2014/ND-CP;

b/ Tax offices shall coordinate with related agencies in reporting to provincial-level People’s Committees on the adjustment of land lease units in accordance with law in each period for the case specified at Point b, Clause 4, Article 32 of Decree No. 46/2014/ND-CP and on that basis settle temporarily paid land rental amounts and retrospectively collect additional payable rental amounts (if any).

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 19.Implementation responsibility

1. Provincial-level People’s Committees shall:

a/ Direct finance agencies in assuming the prime responsibility for, and coordinating with related local agencies in, elaborating specific percentages (%) for determination of land rental units and land price adjustment coefficients for application from January 1, 2015, at the latest;

b/ Direct finance agencies, tax offices, state treasuries and natural resources and environment agencies in coordinating with related local agencies in determining and collecting land rental under the guidance in this Circular;

c/ Inspect and handle violations or settle complaints and denunciations according to their competence prescribed by law;

d/ Establish the process of coordination among local functional agencies in transferring dossiers and determining the financial obligation to collect land rental and water surface rental as prescribed in this Circular in conformity with relevant legal documents and local practical conditions, clearly prescribing the time limit and responsibility of each agency, unit or land user for declaration, determination and collection of land rental and water surface rental.

2. The General Department of Taxation shall direct the determination, collection and payment of land rental and water surface rental according to the reformed administrative procedures, and the consideration of and decision on land rental and water surface rental exemption or reduction under Decree No. 46/2014/ND-CP and this Circular.

3. State treasuries shall organize the collection of land rental and water surface rental according to the procedures for collection of state budget revenues and create favorable conditions for rental payment.

Article 20.Effect

1. This Circular takes effect on August 1, 2014.

2. Cases arising from July 1, 2014, must comply with the Government’s Decree No. 46/2014/ND-CP of May 15, 2014, on the collection of land rental and water surface rental, and the guidance in this Circular.

3. This Circular replaces the Ministry of Finance’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 the collection of land rental and water surface rental; the Ministry of Finance’s Circular No. 141/2007/TT-BTC of November 30, 2007, amending and supplementing Circular No. 120/2005/TT-BTC; and the Ministry of Finance’s Circular No. 94/2011/TT-BTC of June 29, 2011, amending and supplementing Circular No. 120/2005/TT-BTC; and annuls forms No. 01/TMDN, No. 02/TMDN and No. 03/MGTH promulgated together with the Ministry of Finance’s Circular No. 156/2013/TT-BTC of November 5, 2013, guiding a number of articles of the Law on Tax Administration, the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, and the Government’s Decree No. 83/2013/ND-CP of July 22, 2013.

Any problem arising in the course of implementation should be promptly reported to the Ministry of Finance for consideration and settlement.-

For the Minister of Finance
Deputy Minister
NGUYEN HUU CHI