ANNUAL RENT RATE IS EQUAL TO 1.5% OF THE LAND PRICE
On December 30, 2010, the Government issued the Decree No. 121/2010/ND-CP amending and supplementing a number of articles of the Government’s Decree No. 142/2004/ND-CP of November 14, 2005, on the collection of land rents and water surface rents.
According to the new regulations, for cases of land lease with rent rates being paid annually, the annual rent rate is equal to 1.5% of the land price based on the use purpose of the rented land prescribed by People’s Committees of provinces or centrally run cities (below referred to as provincial-level People’s Committees) under the Government’s regulations on methods of determining prices and price brackets for land of different categories.
Instead of basing on land price as being regulated in the Decree 142, , provincial-level People’s Committees shall provide for a rent rate (at a percentage of land prices according to use purposes of rented land) for each category of land, each grade of urban center, commune or region, type of street, land position or grade.
Also basing on this Decree, The land rent rate applicable to each project shall be kept unchanged for 5 years. Upon the expiration of this period, if the land price prescribed and publicized by provincial-level People’s Committees fluctuates by 20% at most over the land price used for calculation of land rent rates applicable at the previous time of determining the land rent rate, provincial-level Finance Departments (in case of leasing land to economic organizations, overseas Vietnamese or foreign organizations or individuals) or district-level People’s Committees (in case of leasing land to households and individuals) shall decide on the land rent rate to be applied in the subsequent period.
In the case of land and water surface lessees who delay the remittance of land or water surface rents into the state budget shall be fined instead of bearing 0,02% over the remittance of land rents; the imposition of fines for late payment of land and water surface rents shall comply with the Law on Tax Administration and guiding documents.