Decree No. 135/2016/ND-CP dated September 09, 2015 of the Government amending and supplementing a number of articles on collection of land rental and water surface rental

THE GOVERNMENT

Decree No. 135/2016/ND-CP dated September 09, 2015 of the Government amending and supplementing a number of articles oncollection of land rental and water surface rental

Pursuant to the Law on Organization of the Government dated September 16, 2015;

Pursuant to the Law on Land dated November 29, 2013;

At the proposal of the Minister of Finance;

The Government promulgates the Decree amending and supplementing a number of articles on collection of land rental and water surface rental.

Article1. Scope of application

The Decree amends and supplements a number of articles of the Decree No. 45/2014/ND-CP dated May 15, 2014 of the Government providing the collection of land use levy and the Decree No.46/2016/ND-CP dated May 15, 2014 of the Government on collection of land rental and water surface rental.

Article 2.To amend, supplement a number of articles of the Decree No. 45/2014/ND-CP dated May 15, 2014 of the Government providing the collection of land use levy

1. To amend and supplement Clause 1 and supplement Clause 4 into Article 4 as follows:

“1. For economic organizations, households or individuals that are allocated land by the State with land use levy through auction of land use rights, payable land use levy are auction-winning amounts. The determination of reserve price shall be as follows:

a) Reserve price for auction of land use rights for cases of auction land use rights that land use levy-liable land area 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 is the specific price determined by the Department of Natural Resources and Environment and approved by Provincial People’s Committees.

b) Reserve price for auction of land use rights that auction of land use rights that land use levy-liable land area 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 is the specific price determined by the Financial departments according to the land price adjustment coefficient method. c) Determination of reserve price for auction of land use rights by the State shall be implemented according to the Law on management and use of Stated-owned-property.

4. If the State allocates land but land is not put into use or the progress of using the land is late compared with the progress written in the investment project, land users shall have to pay the State an equivalent amount of money, payable land levy shall be determined as follows:

a) If being extended the time of land use as stipulated under Point I Clause 1 Article 64 of the Law on land 2013, the amount of money that is equivalent to payable land use levy for late progress shall be calculated by annual land lease levy.

b) If not being under subjects of being extended time of land use or subjects of being extended but fails to process procedures to be extended or time of extension is expired as stipulated under Clause 1 Article 64 of the Law on land 2013 and the land is not put into use, the State hasn’t issued the Decision on land recovery, these subjects shall have to pay an equivalent amount with land use levy to be calculated from annual land use levy since the land is allocated until the Decision on land recovery is issued.

c) Land leasing price unit to determine payable land rental as stipulated under Point a, Point b of this Clause shall be determined based on land prices in the land price table, land price coefficient, percentage (%) to calculate land rental promulgated by provincial People’s Committee.”

2. To supplement Clause 9 into Article 10 as follows:

“9. Land use levy exemption and reduction is not applicable if auction for land use rights to allocate the land that has to be paid land use levy for auction winning people under subjects of land use levy exemption and reduction. Land use levy exemption and reduction when allocating the land to subjects being under the policy of housing improvement shall be implemented according to related policies and not through auction for land use rights.

3. Minister of Finance shall detail this Article.

Article3. To amend, supplement a number of articles of the DecreeNo.46/2014/ND-CP dated May 15, 2014 of the Government on collection of land rental and water surface rental

1. To amend and supplement Clause 3 Article 4 as follows:

“3. In case of auction of rights to use leased land

a) In case of auction for land lease with annual rental payment, the land rental unit is the auction-winning one for a year. The reserve unit for the auction of rights to use leased land with annual payment shall be determined by Financial Departments according to the land price adjustment coefficient method.

The auction-winning rental unit shall be kept unchanged for 10 years. Upon the expiration of this period, the land rental unit shall be adjusted according to the policy on payment of land rental in case of land lease with annual rental payment not through auction with adjustment level not exceeding 30% of the auction-winning land rental unit or the land rental unit applied in the preceding period.

b) In case of auction for land lease with one-off rental payment for the entire lease period, the land rental unit is the auction-winning one for the land lease period. The reserve unit for auction of rights to use leased land shall be determined as follows:

- In case 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, the reserve price for auction of land use rights is the specific price determined by the Department of Natural Resources and Environment and approved by Provincial People’s Committees.

- In case 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; the reserve price for auction of land use rights is the specific price determined by the Financial Departments according to the land price adjustment coefficient method.

c) Determination of the reserve price for auction of land use rights for State owned property shall be implemented according the law on management and use of State property.”

2. To amend Clause 8 and supplement Clause 9 and amend Clause 9 into Clause 10 Article 12 as follows:

“8.If the land is leased by the State but not put into use or progress of using the land is late compared with the progress written in investment project, land lease shall pay an amount equivalent to payable land lease rental that is determined as follows:

a) If land use is extended as stipulated under Point i Clause 1 Article 64 of the Law on Land, amount that is equivalent to payable land rental for late progress shall be calculated according to annual payable land rental.

b) If it is not under the cases of being extended for land use or being under subjects of being extended but fails to process procedures to extend or the extension is expired according to Clause 1 Article 64 of the Law on Land 2013 but the land is not put into uses and the Government hasn’t issued the Decision on land recovery shall have to pay an amount that is equivalent to annual land rental for the period between allocation of land and time of receiving the Decision on land recovery after excluding time for basic construction determined by competent agencies. Time for basic construction that shall be deducted is 3 years at most for cases leased before July 01, 2014 and 2 years at most for cases leased by the State since July 01, 2014.

c) Land lease unit to determine land rental as stipulated under Point a, Point b of this Article shall be determined based on the land price table, land price adjustment coefficient, percentage (%) of land rental promulgated by the People’s Committee.

9. If households, individuals transfer legal land use rights to perform investment projects in accordance with land using plans that have to transfer land use purposes and perform financial obligations as stipulated under Article 57, Article 73 of the Law on land, handling with the money for transferring and leasing the land shall be implemented according to Clause 04 of this Article.

10. The Ministry shall detail this Article.

3. To supplement Clause 4 Clause 5 Clause 6 and Clause 7 into Article 13 as follows:

“4. If investment projects that the State allocates the land, not through auction but through using mixed land: allocating the land and collecting land use levy, allocating the land but not collecting land use levy, leasing the land and the investors use their money to compensate and clear away according to the plan approved by competent agencies, the deduct of compensation and ground clearance shall be calculated by each type of area and the compensated money shall be allocated equally, ground clearance of used land area into public purposes into equivalent land area.

5. If the State leases the land through paying annual land use levy but fulfilled financial obligations for a number of years due to be deducted from compensation and ground clearance as stipulated by the law when Change from land lease with annual rental payment to land lease with one-off rental payment for the entire lease period, the remaining compensation and ground clearance money is equivalent to the time that has been performed shall be deducted into the time to determine one-off rental payment unit for the entire lease period according to Article 16 of this Decree.

6. In case enterprises doing business in construction of infrastructure in industrial parks, industrial clusters or export processing zones are leased by the State under the form of annual land rental payment and converted advanced compensations and supports for ground clearance as stipulated into years that have completed financial obligations on annual land rental, they shall have the same rights on land as cases that enterprises are leased by the State during periods that competent state agencies certify that they have fulfilled financial obligations on tax.

7. The determination and deduction of compensation and ground clearance into payable land use levy for cases as stipulated under Clause 1, Clause 2 and Clause 4 of this Article shall be implemented since the Decision on leasing the land is issued by competent agencies as stipulated.

4. To amend, supplement Clause 7, supplement Clause 8 into Article 15 as follows:

“7. For land leasing projects that are done before the effective day of this Decree, if one of the following three papers: investment certificate (investment license), land lease decision and land lease contract granted (signed) by competent state agencies, stipulating land rental unit and stating principles of adjusting leasing price according to regulations on land leasing price issued by the Minister of Finance (the Decision No. 210A-TC/VP dated April 01, 1990, the Decision No. 1417/TC/TCDN dated December 30, 1994, Decision No. 179/1998/QD-BTC dated February 24, 1998, Decision No. 189/2000/QD-BTC dated November 24, 2000, Decision No. 1357TC/QD-TCT dated December 30, 1995);

a) If the land rental unit has not yet been adjusted under Clause 2, Article 9 of the Government’s Decree No. 142/2005/ND-CP of November 14, 2005, the land rental unit may continue to be adjusted in each adjustment period according to the land rental unit adjustment percentage (%) stated in the investment certificate (investment license), land lease decision or land lease contract;

b) If the land rental unit has been adjusted under Clause 2, Article 9 of the Government’s Decree No. 142/2005/ND-CP of November 14, 2005, or the investment certificate (investment license) has been renewed, or the form of land lease contract has been changed due to change in administrative procedures which no longer set a principle of land rental unit adjustment, but the land use purpose remains unchanged, in the subsequent period of land rental unit adjustment the adjustment level must not exceed the adjustment percentage (%) stated in one of the above three papers compared to the land rental unit of the preceding stabilization period until December 31, 2015 (adjusted according to Decree No. 142/2005/ND-CP). Adjustment of price unit from January 01, 2016 shall be implemented according to Clause 8 of this Article.

8. Adjustment of land lease price unit for cases that the State leases the land annually before January 01, 2006 are using the land under the form of annual rental payment according to purposes of use as stipulated under the Decision on land lease and the land lease contract of competent agencies (including cases that the State leases the land for construction of common-use infrastructure facilities in industrial parks, industrial clusters and export processing zones and cases that are equitized before the effective day of this Decree but continue to enjoy rights, obligations on land including the remaining land leasing period) shall be implemented as follows:

a) For cases that the State leases the land before January 01, 2006, if one of the following three papers: investment certificate (investment license), land lease decision and land lease contract granted (signed) by competent state agencies not stating principles of adjusting leasing price according to regulations on land leasing price issued by the Minister of Finance under the Decision No. 210A-TC/VP dated April 01, 1990, the Decision No. 1417/TC/TCDN dated December 30, 1994, Decision No. 179/1998/QD-BTC dated February 24, 1998, Decision No. 189/2000/QD-BTC dated November 24, 2000, Decision No. 1357TC/QD-TCT dated December 30, 1995 (hereinafter referred to as principles of adjusting leasing price, land leasing payment shall be complemented as follows:

- From January 01, 2006 till December 31, 2015 annual land leasing payment shall be determined according to land leasing price unit that is determined at the time of promulgating the notification on payment of land leasing. If land leasing payment is done according to the policy and land leasing price unit before January 01, 2006 or not determined according to the Decree No. 142/2005/ND-CP, land leasing price unit shall be adjusted in each period to collect due in previous year.

- From January 01, 2016 to the end of land leasing period, land leasing price unit shall be determined on the basis of land leasing price unit that is determined at the time of January 01, 2006 as stipulated under the Decree No. 142/2005/ND-CP, number of periods of adjusting land leasing price unit from January 01, 2006 to January 01, 2016 (2 periods), adjustment rate of land leasing price unit of each period shall increase by 15% compared with land leasing price unit of previous period. This land leasing price unit shall be applied stably in 5 years, the following adjustment period of land leasing price unit shall increase by 15% compared with land leasing price unit of previous period and shall be applied for the remaining period. If land leasing price unit that is determined on January 01, 2016 is higher than that of price unit that is determined as stipulated under this Decree shall be applied land leasing price unit as stipulated under Article 4 of this Decree as a price unit for the adjustment period from January 01, 2016.

- From July 01, 2014 to the day before January 01, 2016, for cases that handle with land leasing amount as stipulated under Clause 2 Article 15 and Clause 2 Clause 4 Article 32 of this Decree, land leasing price from January 01, 2016 shall be re-determined as stipulated under Point a of this Clause.

b) For investment projects on construction of infrastructure facilities in industrial parks, industrial clusters and export processing zones adjusting land leasing price unit and determining land leasing price according to the policy and price unit according to the Decree No. 142/2005/ND-CP  shall not have to pay land leasing amount for areas used for construction of infrastructure in industrial parks, industrial clusters and export processing zones in the remaining leasing periodsince January 01, 2016. Cases being under subjects of not being adjusted according to the policy and land price as stipulated under the Decree No. 142/2005/ND-CP shall pay land rentals for the whole area that the State leases before the effective day of the Decree No. 142/2005/ND-CP. The determination of area for construction of common-use infrastructure facilities in industrial parks, industrial clusters and export processing zones shall be implemented according to guidelines of Human Resources and Environment Department.”

5. To amend, supplement Clause 1, Clause 3 and supplement Clause 9, Clause 10, Clause 11 into Article 18 as follows:

“1. Land rental and water surface rental exemption or reduction shall be given to each project and applied to new land lease excluding the following cases:

a) State-owned farms and forestry farms that are allocated land by the State but not collected land use levy when transferring into leasing land as stipulated by the law on land and under subjects of land rental exemption and reduction in fields, areas receiving incentives on investment according to the law on investment.

b) Public non-business organizations that are allocated land by the State but not collected land use levy when transferring into leasing land for land used for construction of public works as stipulated under the law on land.

c) Organizations, individuals that receive the Decision on allocating the land not liable to pay land rental, Decision on land leasing or land leasing contract according to the law issued before July 01, 2014, have to lease the land now and continue to use the land and under subjects of  land rental exemption or reduction as stipulated under Point d, Point dd, Point e, Point g, Point h, Point I, Point k Clause 1 Article 19 and Clause 1 Article 20 of this Decree.

d) Organizations, individuals being under subjects of land rental exemption or reduction according to other regulations as stipulated by the Government, Prime Minister.

3. Land and water surface rental exemption or reduction under Articles19 and 20 of this Decree shall be given directly to entities leased land by the State and calculated on payable land and water surface rental amounts excluding cases as stipulated under Point b Clause 1 Article 19 of this Decree.

9.Land rental exemption or reduction is not applied in the case of auction on land lease rights.

10. In case the State leases land with annual land rental payment and it is still in the period of enjoying land rental exemption and reduction if transferring assets under its ownership attached with leased land as stipulated and that buyer shall continue to be leased land by the State for the remaining period with purposes of use in accordance with purposes of transferring, land rental exemption and reduction shall be implemented as follows:

a) Persons who transfer shall not be included land rental that is exempted into transferring price.

b) Persons receiving transfer shall continue to enjoy land rental exemption and reduction for the remaining incentive period.

In case persons receiving transferred land shall not use land use purposes in accordance with purpose of land and use with other purposes, they shall implement financial obligations as stipulated under Article 12 of this Decree.

11. In case the State leases land with annual land rental payment and in the period of enjoying land rental exemption and reduction, when transferring mode of operation or equitization as stipulated by the law, economic organizations after being transferred or equitized shall continue to enjoy land rental exemption and reduction for the remaining incentive period if they use land in accordance with land use purposed that are exempted and reduced land rental as stipulated by the law before transferring mode of operation or equitization.”

6. To amend, supplement Point b Clause 1; supplement Point dd into Clause 3; To amend and supplement Clause 8; to supplement Clause 10 and amend Clause 10 into Clause 11 Article 19 as follows:

“1. Land and water surface rental exemption is given for the entire lease period in the following cases;

…b) Investment projects of constructing houses for workers working in industrial parks, industrial clusters or export processing zones that the State leases land or subleases from the investor for construction of infrastructure in industrial parks, industrial clusters or export processing zones to implement according to the plan as approved by competent state agencies; the investor shall not include land rental into house leasing price.

3. Land and water surface rental exemption is given after the period of land and water surface rental exemption for the period of capital construction under Clause 2 of this Article, specifically as follows:

…dd) Land rental exemption for construction investment project and business of infrastructure in industrial parks, industrial clusters, processing zones, economic zones and high technology zones shall be implemented according to Clause 2 of this Article.

8. Land rental exemption for projects on investment in agriculture and rural areas must comply with regulations of the Government on investment incentives in agriculture and rural areas and land rental exemption shall be implemented during capital construction as stipulated under Clause 2 of this Article.

10. The investor that is leased by the State for investment in construction of infrastructure in industrial parks, industrial clusters, processing zones, economic zones and high technology zones shall be exempted from land rental after the period of land rental exemption as stipulated under Clause of this Article, specifically as follows:

a) 11 years if investing in district areas under the list of areas receiving incentives as stipulated under the law on investment;

b) 15 years if investing in district areas under the list of areas with difficult socio-economic conditions as stipulated under the law on investment.

c) The whole leasing period if investing in district areas under the list of areas with specifically difficult socio-economic conditions as stipulated under the law on investment.

11. The Prime Minister shall consider and decide on land rental exemption for other cases submitted by the Minister of Finance based on proposals of Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees.”

7. To amend, supplement Point 1 Clause 1 Article 23 as follows:

“1. In case of annual payment of land rental and water surface rental

a) a/ For cases eligible for land rental and water surface rental execution under Article 19 of this Decree, land rental and water surface rental amounts to be annually paid at the time of starting payment of land rental and water surface rental (is the period upon the expiration of the land rental exemption duration and the period determined to be fulfilled financial obligations on annual land lease levy due to deduction from compensations and ground clearance) shall be determined as follows:

8. To amend and supplement Clause 11 and supplement Clause 13, Clause 14, Clause15, Clause 16, Clause 17 Article 31 as follows:

“11. In case investors have advanced compensations and ground clearance supports under approved plans according to the compensation, support and resettlement policies applicable to land recovery by the State under the 2003 Land Law but have not yet fully cleared such advanced amounts against annually payable land rental amounts in accordance with law in each period, they may continue to clear remaining amounts determined by competent agencies and convert them into periods for which land rental must be paid according to the policy and land price at the time of January 01, 2015 and  determined the time that has been fully paid.

For cases being leased by the State before January 01, 2006 that are under subjects of being re-determined land leasing price unit according to Clause 8 Article 15 of this Decree, land leasing price unit that is converted into periods for which land rental must be paid is the price unit determined according to the policy and land price at the time of January 01, 2016.

13. In case land users that have been leased land by the State under the form of annual land lease payment reach an agreement on compensations, support and assets with persons whose land is recovered, compensations, support determined by competent agencies that shall be cleared into payable land rental but have not yet fully cleared such amounts against annually payable land rental amounts until July 01, 2014 according to the Law on land 2013 (before March 01, 2011), they may continue to clear amounts determined by competent agencies into payable land rental amounts. Compensations, support shall be converted into time that fulfill obligations on annual land leasing payment according to the policy and land price at the time of January 01, 2015.

14. In case the State leases the land under the form of annual land leasing payment as stipulated under the law on land 2003 but until the time of handing over the land after July 01, 2014, land leasing price unit shall be determined according to the policy and land price at the time of handing over the land.

15. In case the State leases the land under the form of land lease with one-off rental payment for the entire lease period according to the Law on land 2013 but until July 01, 2014 have not yet fulfilled financial obligations on land leasing payment shall be handled as follows:

a) In case payable land leasing amounts determined by competent state agencies in accordance with the law, economic organizations shall continue to pay land rental into state budget according to the rate that is agreed by competent state agencies and shall have to pay for late payment (if any) according to the law in each period.

b) In case payable land leasing amounts determined by competent state agencies but not in accordance with the law at the time of determining and notifying payable land leasing amounts, provincial People’s Committee shall base on current situations to re-determine in accordance with the law, payable additional amount (if any) shall be notified to economic organizations to pay for state budget and late payment is not required for periods before re-determining. For payable land leasing amounts determined by competent state agencies before re-determining, economic organizations shall continue to pay amounts as notified; if these amounts haven’t been fully paid, they will pay the shortage and pay for late payment for cases as stipulated under Point a of this Clause.

c) In case competent state agencies have not issued the notification on land rental and economic organizations have not paid yet and just temporarily make annual rental payment into state budget, it shall be handled as follows:

Land rental amounts that have been temporarily paid (if any) are converted into areas that have been paid for land rentals (fulfill financial obligations) at the time of handing over the land. Remaining area of the land shall be paid according to the policy and land price at the time of handing over the land (if handing the land before January 01, 2005) and handling with late payment of land rental shall be as follows:

- If late payment of land rental is due to subjective reasons arising from economic organizations, economic organizations shall pay late payment amounts according to the law on tax management in each period.

- If late payment of land rental is not due to subjective reasons arising from economic organizations, economic organizations shall not pay late payment amounts.

Late payment amounts of land rental shall be calculated from the time of handing over the land to the time of being officially notified about payment into state budget according to percentage rate (%) of late payment amounts according to the law in each period.

d) In case the land is not handed over yet, competent state agencies notify payable land rental and economic organizations have paid into state budget, these amounts shall be considered as contemporary amounts and shall be handled as stipulated under Point b of this Clause.

dd) Time to hand over the land shall be determined as follows:

- In case handling the land that ground clearance is done, time to handover the land is time that competent state agencies decide on handing over the land.

- In case handling the land that ground clearance is not done yet, time to hand over the land is time to hand over the land that ground clearance is done according to the progress stated in approved investment projects; If time that ground clearance is not in accordance with the time to hand over the land stated in approved investment projects, time to hand over the land is time to hand over the land that ground clearance is done.

For projects that ground clearance takes from 2 years or over and progress of handing over the land is not determined, handing over the land shall be implemented in each year that is in accordance with the completion of ground clearance.

16. In case land users that are leased by the State before July 01, 2014 but after July 01, 2014 apply the dossier for land rental exemption and reduction during basic construction period, land rental will be exempted during this period but it should not be over 3 years since the Decision on land lease is issued or the time of handing over the land. Persons that are leased the land shall apply the land rental exemption and reduction application to competent state agencies during basic construction period to process procedures before January 01, 2017, if exceeding this time, land rental exemption shall be only considered for the remaining leasing period (if any) since the dossier is applied. If land rental is paid during the time of land rental exemption, it shall be cleared in payable land rental amounts of the following years.

17. If the State leases land prior to July 01, 2014, land rental exemption and reduction rate is specifically stated under investment certificate, investment license and this rate is determined in accordance with the law on investment; not clearly stating land rental exemption and reduction rate or not being under subjects of being granted certificate of investment incentives, investment license but they are under subjects and meet requirements to be exempted and reduced land rental according to the law at the time of being leased by the State but land users fail to process procedures on land rental exemption and reduction on time shall continue to enjoy land rental exemption and reduction as stipulated by the law at the time of being leased by the State, land users shall submit application dossier on land rental exemption and reduction to competent state agencies prior to July 01, 2017, if they apply dossier for land rental exemption and reduction exceeding this time, they are only considered for the remaining leasing time (if any) since the time of applying the dossier for land rental exemption and reduction as stipulated.

If competent state agencies decide on land rental exemption and reduction for the remaining leasing time till January 01, 2017, and shall be handled according to regulations under this Clause, amount of money that has been paid during the time of not being considered for exemption and reduction shall be cleared into payable land rental after the time for land rental exemption and reduction is expired and shall be cleared into other financial obligations if the land leasing time is over but has not been fully cleared.

9. To implement Clause 5, Clause6 into Article 32 as follows:

“5. To determine financial obligations of enterprises on construction of infrastructure facilities in industrial parks, industrial clusters and export processing zones are leased by the State with annual land rental payment but sublease infrastructure facilities with one-off rental payment for the entire lease period before July 01, 2014.

a) In case the State leases land before January 01, 2006, if one of the following three papers: investment certificate (investment license), land lease decision and land lease contract granted (signed) by competent state agencies not stating principles of adjusting leasing price unit or one of the three papers state principles of adjusting leasing price unit but have been adjusted as stipulated under Clause 2 Article 9 of the Decree No. 142/2005/QD-CP and leases land with one-off rental payment for the entire lease period before July 01, 2014, enterprises shall pay land rental as stipulated under Clause 2 Article 210 of the Law on land 2013 as follows:

- To determine annual land rental amounts for the leasing period from January 01, 2006 to December 31, 2015 according to land price unit that is determined according to the law or land price unit that is contemporarily calculated according to the policy and land price at the time of promulgating the notification on temporary payment of land rental and land rental is finalized according to the amounts that are temporarily paid. If land price unit is applied according to the policy and land price before January 01, 2006 or have not been determined the land price unit as stipulated under Decree No. 142/2005/ND-CP, price land unit should be adjusted according to the law in each period to determine land rental for the period from January 01, 2006 to December 31, 2015.

- To determine full one-off rental payment for the entire lease period from January 01, 2016 to the end of leasing period. These amounts are determined on the areas of subleased land; the remaining leasing period shall be from January 01, 2016, annual price unit shall be determined according to the law at the time of January 01, 2006 and an additional amount shall be added for late payment according to the law in each period from January 01, 2006 to the time of paying into state budget for cases of subleasing land prior to January 01, 2006 or from the time of subleasing land to the time of paying into state budget for cases of subleasing land after January 01, 2006 till July 01, 2014.

b) For cases that are leased by the State in the period of January 01, 2006 and July 01, 2014 and sublease under the form of full one-off rental payment for the entire lease period prior to July 01, 2014, land rental of construction and commercial operation of infrastructure of industrial parks, industrial clusters or export processing zones according to Clause 2 Article 210 of the Law on land 2013 shall be as follows:

- To determine annual land rental amounts from the time that the State leases the land to December 31, 2015 according to land price unit that is determined according to the law or land price unit that is contemporarily calculated according to the policy and land price at the time of promulgating the notification on temporary payment of land rental and land rental is finalized according to the amounts that are temporarily paid. If land price unit has not been determined or annual land rental is temporarily paid but it is not in accordance with the policy and land price unit at the time of promulgating the notification, the land price unit shall be re-determined to pay land rental from the land leasing day to December 31, 2015.

- To determine full one-off rental payment for the entire lease period from January 01, 2016 to the end of leasing period equivalent to leased land areas as follows:

+ In case the State leases land with annual rental payment for the period from January 01, 2006 till October 01, 2009 (the effective day of the Decree No. 69/2009/ND-CP dated August 13, 2009 of the Government), full one-off rental payment amount shall be determined by annual rental amounts at the time of leasing land multiplied by numbers of subleasing years (from January 01, 2016 till the end of subleasing period) and plus an amount equivalent to late payment amount according to the law on tax management in each period since the investor subleases land till the time of paying into State budget.

+ In case the State leases land with annual rental payment in the period of October 01, 2009 and July 01, 2014, payable one-off rental amounts shall be determined by payable land use levy similarly as cases allocating land with land use levy of the same land use purpose and land use time (from January 01, 2016 to the end of leasing period) according to the policy and land price at the time of subleasing land.

c) In case the investor is leased by the State with annual rental payment to construction and commercial operation of infrastructure of industrial parks, industrial clusters or export processing zones, if one of the following three papers: investment certificate (investment license), land lease decision and land lease contract granted (signed) by competent state agencies stating principles of adjusting leasing price unit and land price unit has not been adjusted as stipulated under Clause 2 Article 9 of the Decree No. 142/2005/QD-CP dated November 14, 2005 of the Government on collection of land rental and water surface rental but subleases land with infrastructure under the form of fullone-off land rental for the entire lease period in the period of January 01, 2006 to July 01, 2014, the investor shall submit one-off land rental that is determined according to Point a and Point b of this Clause.

d) Enterprises on construction and commercial operation of infrastructure of industrial parks, industrial clusters or export processing zones shall complete land rental payment that is determined according to Point a, Point b, Point c of this Clause before December 31, 2016. If exceeding this time, enterprises shall be handled with administrative measures and late payment amount shall be calculated based on unpaid amount as stipulated by the law on tax.

6. Handling with compensation, ground clearance amounts according to the plan that has been approved by competent state agencies (including cases that agree compensation or self-transfer) that land users pay according to the law before July 01, 2004 shall be implemented as follows:

a) In case the State leases land with one-off rental payment for the entire lease period but competent state agencies haven’t determined and notified payable land rental as stipulated by the law or have determined but it is not in accordance with the current law and have to determine again to be cleared compensation and support amounts according to the plan approved by competent state agencies or value of land use rights in accordance with legal transfer determined and approved by competent state agencies (for cases making self-agreement on compensation and transfer) at the time of making agreement (allocating to remaining period equivalent to areas that suffer from payable land rental and not included into business production expenses) into payable land rental and it should not exceed payable land rental.

b) In case the State leases land with annual rental payment that has been adjusted according to the policy and land price as stipulated under Clause 2 Article 9 of the Decree No. 142/2005/ND-CP dated November 14, 2005 or land price must be re-adjusted and land rental is collected as stipulated Clause 8 Article 15 of this Decree, compensation and land support according to the plan approved by competent state agencies shall be deducted or value of legal land use rights according to land use purposes as approved by competent state agencies (for cases making self-agreement on compensation and transfer) at the time of making agreement (allocating to remaining period equivalent to areas that suffer from payable land rental and not included into business production expenses) into payable land rental and it should not exceed payable land rental. The amount that shall be cleared in payable land rental shall be converted into time that has fulfilled annual land rental. Land price unit shall be applied according to the policy and land price unit at the time of January 01, 2016.

c) In case the State doesn’t collect land use levy and leases land according to the law as stipulated before July 01, 2004 or the State leases land for annual land rental payment after July 01, 2004, when transferring into the land that is collected land use levy after July 01, 2004 but competent state agencies haven’t determined or notified payable land levy as stipulated by the law or have determined but it is not in accordance with current law, compensation and land support amounts shall be cleared according to the plan that has been approved or agencies or value of legal land use rights according to land use purposes as approved by competent state (for cases making self-agreement on compensation and transfer) at the time of making agreement (allocating to remaining period equivalent to areas that suffer from payable land rental and not included into business production expenses) into payable land rental and it should not exceed payable land rental.

10. Minister of Finance shall direct this Article.

Article 4.Effect

1. This Decree takes effect on November 15, 2016.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and organizations, individuals shall implement this Decree.

For the Government

The Prime Minister

Nguyen Xuan Phuc