Decree No. 46/2014/ND-CP dated May 15, 2014 of the Government on collection of land rental and water surface rental

DECREE

On collection of land rental and water surface rental[1]

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 29, 2013 Land Law;

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

Pursuant to the November 29, 2005 Investment Law;

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 June 3, 2008 Law on Promulgation of Legal Documents;

At the proposal of the Minister of Finance,

The Government promulgates the Decree on collection of land rental and water surface rental.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Decree prescribes the collection of land rental and water surface rental when:

1. The State leases land, including surface land and underground parts of works constructed on the ground in accordance with the Land Law.

2. The State leases land for the construction of underground works that are not underground parts of works constructed on the ground for commercial purposes in accordance with the Land Law.

3. The State recognizes land use rights of current land users liable to pay land rental.

4. The State extends land lease period for current land lessees liable to pay land rental.

5. The form of land allocation by the State with or without land use levy before July 1, 2014 (the effective date of the 2013 Land Law) is changed to the form of land lease by the State.

6. The State leases water surface.

Article 2.Land rental, water surface rental payers

1. The State shall lease land with annual rental payment or one-off rental payment for the entire lease period in the following cases:

a/ Households and individuals use land for agricultural production, forestry, aquaculture or salt production;

b/ Households and individuals wish to continue using agricultural land areas in excess of the allocation quotas prescribed in Article 129 of the Land Law;

c/ Households and individuals use commercial or service land; land for mining activities; land for production of building materials and pottery; land of non-agricultural production establishments;

d/ Households and individuals use land for construction of public facilities for commercial purposes;

dd/ Households and individuals use land areas for salt production in excess of the land allocation quotas in localities for salt production, and economic organizations, overseas Vietnamese and foreign-invested enterprises use land for implementation of investment projects on salt production under Clause 1, Article 138 of the Land Law;

e/ Households and individuals are not directly engaged in agricultural production, forestry, aquaculture or salt production but allocated land without land use levy and are using land for farm economy shall change to lease land under Point b, Clause 4, Article 142 of the Land Law; households and individuals are using land for farm economy and required to change to lease land under Clause 3, Article 142 of the Land Law due to change of the use purposes of land types;

g/ Economic organizations, overseas Vietnamese and foreign-invested enterprises use land for the implementation of investment projects on agricultural production, forestry, aquaculture or salt production; non-agricultural production or business land; land for the construction of public facilities for commercial purposes; land for the implementation of investment projects on construction of houses for lease;

h/ Economic organizations, overseas Vietnamese and foreign-invested enterprises leaseland for the construction of underground facilities under Clause 2, Article 161 of the Land Law;

i/ Economic organizations, public non-business organizations with financial autonomy, overseas Vietnamese and foreign-invested enterprises use land for the construction of non-business facilities;

k/ Foreign organizations with the diplomatic function use land for the construction of their working offices.

2. The State shall lease land with annual rental payment in the following cases:

a/ People’s armed forces units use land for agricultural production, forestry, aquaculture and salt production or for agricultural production, forestry, aquaculture and salt production combined with performance of national defense and security tasks;

b/ Economic organizations, households and individuals use land of rivers, streams, canals and springs for aquaculture under Point b, Clause 1, Article 163 of the Land Law;

c/ Overseas Vietnamese and foreign-invested enterprises use land of of rivers, streams, canals and springs for the implementation of investment projects on aquaculture under Point c, Clause 1, Article 163 of the Land Law.

3. Organizations, individuals, overseas Vietnamese and foreign-invested enterprises are leased land by management boards of hi-tech parks under Clause 2, Article 150 of the Land Law or by management boards of economic zones under Clause 3, Article 151 of the Land Law.

4. Organizations and individuals are leased land by airport authorities for the construction of facilities for aviation services at airports and airfields and land for the construction of facilities for non-aviation services under Point b, Clause 3, Article 156 of the Land Law.

5. Organizations, individuals, overseas Vietnamese and foreign-invested enterprises are leased water surface by the State not specified in Article 10 of the Land Law.

Article 3.Bases for calculation of land rental and water surface rental

1. Land users that are leased land by the State shall pay land rental determined on the following bases in accordance with the Land Law:

a/ Leased land area;

b/ Land lease period;

c/ Land rental unit in case of land lease with annual rental payment; land rental unit for the lease period in case of land lease with one-off rental payment for the entire lease period. In case of auction of the land lease right, the land rental unit is the auction-winning one;

d/ The form of land lease by the State with annual rental payment or one-off rental payment for the entire lease period.

2. Organizations, individuals, overseas Vietnamese and foreign-invested enterprises that are leased water surface by the State not specified in Article 10 of the Land Law shall pay water surface rental determined on the following bases:

a/ Leased water surface area;

b/ Water surface use purpose;

c/ Water surface rental unit;

d/ The form of water surface lease by the State with annual rental payment or one-off rental payment for the entire lease period.

Chapter II

SPECIFIC PROVISIONS

Section 1

DETERMINATION OF LAND RENTAL, WATER SURFACE RENTAL

Article 4.Land rental units

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

Annual land rental unit = Percentage (%) multiplied (x) by land price used for calculation of land rental.

a/ The percentage (%) for calculation of land rental unit of a year is 1%. Particularly:

- For land of urban centers, commercial or service centers, traffic hubs, densely populated quarters which may yield special profits or be used as ground for production, business, commercial or service activities, provincial-level People’s Committees shall base themselves on the practical conditions of their localities to decide on the percentage (%) of land price for determination of land rental unit of a year, which must not exceed 3%.

- For land in deep-lying, remote or highland areas, on islands, in areas facing socio-economic difficulties, areas facing particular socio-economic difficulties; land used for agricultural production, forestry, aquaculture or salt production, land used as ground for production or business activities of projects in the sectors eligible for investment promotion or special investment promotion in accordance with law, based on the practical conditions of their localities, provincial-level People’s Committees shall decide on the percentage (%) of land price for determination of land rental unit of a year, which must be at least 0.5%.

The specific percentage (%) shall be promulgated by provincial-level People’s Committees for each area or road route for each land use purpose and publicized in the course of implementation.

b/ Land price for calculation of land rental shall be determined under Clauses 4 and 5 of this Article.

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

Land rental unit for one-off payment for the entire lease period is the land price for the land lease period and shall be determined under Clauses 4 and 5 of this Article.

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 rental payment shall be determined under Clause 5 of this Article. 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 according to Clause 4 of this Article.

4. Specific land prices determined by the direct comparison, subtraction, income-based and surplus-based methods prescribed in the Decree on land prices are applicable in the following cases:

a/ Determination of land rental unit for annual rental payment for the first period of unchanged land rental unit; determination of land rental unit for one-off rental payment for the entire lease period not through auction; determination of land rental unit in case of change from annual rental payment to one-off rental payment for the entire lease period under Clause 2, Article 172 of the Land Law; determination of land rental unit upon receipt of transferred assets attached to leased land under Clause 3, Article 189 of the Land Law; determination of land rental unit for annual rantal payment and land rental unit for one-off rental payment for the entire lease period upon equitization of state enterprises shall be applied 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.

b/ Determination of reserve unit for the auction of land use rights for lease in the form of land lease with one-off rental payment for the entire lease period.

5. Specific land prices determined by the land price adjustment coefficient method prescribed in the Decree on land prices are applicable in the following cases:

a/ Determination of land rental unit for annual rental payment for the first period of unchanged land rental unit, determination of land rental unit for one-off rental payment for the entire lease period not through auction; determination of land rental unit in case of changing from annual rental payment to one-off rental payment for the entire lease period under Clause 2, Article 172 of the Land Law; determination of land rental unit upon receipt of transferred assets attached to leased land under Clause 3, Article 189 of the Land Law; determination of land rental unit for annual rental payment and land rental unit for one-off rental payment for the entire lease period upon equitization of state enterprises shall be applied 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;

b/ Determination of land rental unit for annual rental payment upon adjustment of land rental unit for the subsequent period of unchanged land rental unit;

c/ Determination of reserve unit for the auction of land use rights for lease in the form of land lease with annual rental payment.

Annually, provincial-level People’s Committee shall prescribe land price adjustment coefficients to be applied to the cases prescribed in this Clause.

6. The Ministry of Finance shall guide in detail in this Article.

Article 5.Determination of land rental units for construction of underground facilities

1. For land leased by the State for the construction of underground facilities (other than underground parts of works constructed on the ground) in accordance with the Land Law, land rental shall be determined as follows:

a/ In case of land lease with annual rental payment, the land rental unit must not exceed 30% of the ground land rental unit for land lease with annual rental payment for the same use purpose;

b/ In case of land lease with one-off rental payment for the entire lease period, the one-off land rental unit must not exceed 30% of the ground land rental unit for land lease of one-off payment of land rental for the entire lease period for the same use purpose and land use term;

c/ Provincial-level People’s Committees shall decide on rental units for lease of land for the construction of underground facilities prescribed at Points a and b of this Clause to suit the practical conditions of their localities.

2. For land for the construction of underground facilities connected with underground parts of works constructed on the ground, with the area for the construction of underground facilities exceeding the ground land area for which land rental is collected, the land rental payable for the excessive area shall be determined under Clause 1 of this Article.

Article 6.Determination of land rental unit for land with water surface in the group of land specified in Article 10 of the Land Law

1. Land rental unit for land with water surface shall be determined as follows:

a/ For land area without water surface, the land rental unit for annual rental payment or one-off rental payment for the entire lease period shall be determined under Article 4 of this Decree;

b/ For land area with water surface, the land rental unit for annual rental payment or one-off rental payment for the entire lease period must equal at least 50% of the land rental unit of the land type in adjacent positions for the same use purpose;

c/ Provincial-level People’s Committees shall prescribe specific levels for calculation of rental unit under Point b of this Clause.

2. The Ministry of Finance shall guide in detail this Article.

Article 7.Water surface rental frame

1. For water surface not specified in Article 10 of the Land Law and Clause 3 of this Article, the rental frame is as follows:

a/ For projects using fixed water surface: between VND 20,000,000/km²/year and VND 300,000,000/km²/year;

b/ For projects using non-fixed water surface: between VND 100,000,000/km²/year and VND 750,000,000/km²/year.

2. Based on the water surface rental frame specified in Clause 1 of this Article, provincial-level People’s Committees shall decide on water surface rental unit for each project. In case the leased sea surface lies within administrative boundaries of two or more provinces and centrally run cities, the People’s Committees of such provinces and cities shall reach agreement on the water surface rental; if they cannot reach agreement, they shall report such to the Prime Minister for consideration and decision.

3. The Ministry of Finance shall guide the order and procedures for determination and payment of water surface rental and sea surface rental for projects on oil and gas exploitation in the territorial sea and continental shelf of Vietnam.

Article 8.Use purpose of leased land

1. Use purpose of leased land shall be determined according to those stated in land lease decisions. In case no land lease decision is available, use purpose of leased land shall be determined under 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 must be leased in accordance with the Land Law, the land use purpose for determination of land rental to be paid annually is the current actual use purpose.

Article 9.Leased land areas

1. A leased land area is that stated in the land lease decision. 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 is that stated in the land lease contract.

2. A land area liable to rental shall be determined to be equal to the leased land area minus the land area not liable to rental in accordance with law.

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

Article 10.Land lease period

Land lease period shall be determined under land lease decisions, decisions on recognition of land use rights, decisions permitting land use purpose change, decisions permitting change from land allocation to land lease or decisions on extension of land lease period of competent state agencies, or land use rights certificates.

Article 11.Agencies determining land rental units for annual rental payment or land rental units for one-off rental payment for the entire lease period

1. Based on specific land prices decided by provincial-level People’s Committees, land price tables, land price adjustment coefficients and percentage (%) for determination of land rental units for annual rental payment or land rental units for one-off rental payment for the entire lease period, directors of provincial-level Taxation Departments shall determine land rental units for calculation of land rental for organizations, overseas Vietnamese and foreign-invested enterprises. Directors of district-level Taxation Departments shall determine land rental units for calculation of land rental for households and individuals.

2. In case there are diverse opinions of land lessees and state agencies competent to determine land rental units on land rental units, settlement decisions of chairpersons of provincial-level People’s Committees are final.

Article 12.Determination of land rental, water surface rental

1. In case of land lease with annual rental payment

The annual land rental equals the land area liable to rental multiplied (x) by the land rental unit prescribed in Clause 1, Article 4 (for land lease not through auction) or at Point a, Clause 3, Article 4 (for land lease through auction) or at Point a, Clause 1, Article 5 (for land for the construction of underground facilities) or in Clause 1, Article 6 (for lease of land with water surface) of this Decree.

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

a/ Land rental to be collected in lump sum for the entire lease period equals the land area liable to rental multiplied (x) by the land rental unit for one-off rental payment for the entire lease period;

b/ Land rental for land with water surface to be collected in lump sum for the entire lease period equals the land area with water surface liable to rental multiplied (x) by the rental unit for land with water surface for one-off rental payment for the entire lease period;

3. In case of water surface lease not under Article 10 of the Land Law

a/ In case of water surface lease with annual rental payment, the water surface rental to be annually collected equals the leased water surface area multiplied (x) by the rental unit prescribed in Article 7 of this Decree;

b/ In case of water surface lease with one-off rental payment for the entire lease period, the water surface rental equals the leased water surface area multiplied (x) by the lease period multiplied (x) by the rental unit prescribed in Article 7 of this Decree.

4. In case an economic organization receives transferred lawful land use rights from an organization or individual 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 under Articles 57 and 73 of the Land Law:

a/ In case of receiving lawfully transferred rights to use agricultural land from a household or an individual in accordance with the land law, the money amount paid by the economic organization for the transfer of land use rights shall be deducted from the payable land rental in case it chooses the form of land lease with one-off rental payment for the entire lease period or converted into a period for which the payment of land rental has been completed in case it chooses the form of land lease with annual rental payment. The money amount paid by the economic organization for the transfer of land use rights shall be determined as follows:

- In case the land price for calculation of land rental unit is determined by the land price adjustment coefficient method, the price of the transferred land type shall also be determined by the method of land price adjustment coefficient at the time of issuance of the decision on land use purpose change.

- In case the land price for calculation of land rental unit is determined by the direct comparison, subtraction, income-based and surplus-based methods, the price of the transferred land type shall also be determined by these methods at the time of issuance of the decision on land use purpose change.

b/ In case of receiving lawfully transferred non-agricultural land other than residential land allocated by the State with land use levy and the paid land use levy is not originated from the state budget, if the economic organization is required to change the land use purpose under Point g, Clause 1, Article 57 of the Land Law and is leased land by the State, the money amount paid by the economic organization for the transfer may be deducted from the payable land rental in case it chooses the form of land lease with one-off rental payment for the entire lease period. In case the economic organization chooses the form of land lease with annual rental payment, the money amount paid for the transfer shall be converted into a period for which the obligation to pay land rental has been fulfilled at the time of issuance of a decision by a competent state agency permitting the land use purpose change;

The money amount paid by the economic organization for the above transfer of land use rights equals the land rental to be paid in lump sum for the remaining land use term under this Decree;

c/ In case of receiving transferred land which is non-agricultural land allocated by the State without land use levy or receiving transferred assets attached to leased land for which rental is annually paid, the economic organization shall pay land rental under this Decree when it changes the land use purpose and is leased land by a competent state agency;

d/ In case of receiving transferred rights to use non-agricultural land for stable and long-term use for which a land use rights certificate has been granted in accordance with law before the effective date of the 2013 Land Law for use for non-agricultural production purpose, the economic organization is not required to pay land rental.

5. In case land is used concurrently for both purposes liable and not liable to land rental, the payable rental shall be determined on the basis of the land area used for the purpose liable to rental.

6. In case an investor is leased land by the State with one-off rental payment for the entire lease period and has paid the land rental in accordance with law or receives transferred lawful land use rights but subsequently has to change to lease land, and requests adjustment of the detailed construction plan, giving rise to the land-related financial obligation (if any), it shall additionally pay land rental into the state budget.

7. For land for the construction of the working office of a foreign organization with the diplomatic function with a lease period of over 70 years, land rental shall be paid as follows:

a/ In case of land lease with annual rental payment, land rental shall be determined and collected as for domestic organizations leased land by the State;

b/ In case of land lease with one-off rental payment for the entire lease period, the payable land rental shall be the land rental to be paid in lump sum for the entire lease period of 70 years. For the remaining number of years of land use is not liable to land rental. The determination of land price for calculation of land rental to be paid in lump sum for the lease period of 70 years must comply with the Decree on land prices.

8. In case an investor implements the project behind schedule under Point i, Clause 1, Article 64 of the Land Law but has the land use term extended for 24 months by a competent state agency, it shall additionally pay into the state budget an amount equal to the land rental annually payable during the extended period and determined under Clause 1, Article 4 and Clause 1, Article 12 of this Decree.

9. The Ministry of Finance shall guide in detail this Article.

Article 13.Handling of compensations and supports for ground clearance

1. In case the land development fund advances money for organizations performing the task of compensation payment and ground clearance to generate clear land areas for lease through or not through auction, compensations and supports for ground clearance shall be handled as follows:

a/ In case they are not entitled to land rental exemption or reduction under Articles 19 and 20 of this Decree, persons leased land by the State shall pay land rental into the state budget in accordance with law. The refund of compensations for ground clearance to the land development fund shall be carried out by the state budget in accordance with the law on the state budget;

b/ In case they are entitled to land rental exemption for the lease period under Article 19 of this Decree, persons leased land by the State shall refund compensations and supports for ground clearance under approved plans into the state budget and include them in investment capital of their projects;

c/ In case they are entitled to land rental exemption or reduction under Articles 19 and 20 of this Decree, persons leased land by the State shall refund compensations and supports for ground clearance under approved plans into the state budget and clear them against payable land rental. The remaining land rental, if any, shall be included in investment capital of their projects.

2. Persons that are leased land not through auction and persons that are leased land by the State and willingly advance compensations and supports for ground clearance under approved plans may clear advanced amounts against payable land rental amounts under approved plans. The advanced amounts to be cleared must not exceed payable land rental amounts. Remaining compensations and supports for ground clearance (if any) not yet cleared against payable land rental amounts shall be included in investment capital of projects.

3. Compensations and supports for ground clearance prescribed in Clauses 1 and 2 of this Article include compensations and supports for resettlement and expenses for organization of compensation payment and ground clearance.

4. The Ministry of Finance shall guide in detail this Article.

Article 14.The period during which land rental units or water surface rental units are kept unchanged

1. Land rental units, land rental units for land for the construction of underground facilities and land rental units for land with water surface with annual rental payment for each project shall be kept unchanged for 5 years counting from the time when the State decides to lease land, permits the land use purpose change or change from land allocation to land lease, or recognizes land use rights. At the end of this period, directors of provincial-level or district-level Taxation Departments shall adjust land rental units, land rental units for land for the construction of underground facilities and land rental units for land with water surface applicable to the subsequent period under Articles 4, 5 and 6 of this Decree.

2. The water surface rental unit of each project in case of water surface lease with annual rental payment shall be kept unchanged for 5 years counting from the time when the State decides to lease water surface. At the end of this period, provincial-level People’s Committees shall adjust water surface rental units applicable to the subsequent period under Article 7 of this Decree.

3. Land rental units, land rental units for land for the construction of underground facilities, land rental units for land with water surface and water surface rental units shall be adjusted in the following cases:

a/ Projects for which land rentals or water surface rentals have been collected for the whole stabilization period under Clause 1 or 2 of this Article;

b/ Projects which have changed the use purpose of the leased land. In this case, the rental units shall be adjusted according to new use purposes at the time of land use purpose change.

4. In case no land lease decision or land lease contract is available but land is currently used for purposes for which land must be leased in accordance with the 2013 Land Law, land rental units for calculation of annually payable land rental will not be kept unchanged under Clause 1 of this Article.

5. The Ministry of Finance shall guide the order and procedures for adjustment of land rental and water surface rental units at the end of the stabilization period prescribed in Clauses 1 and 2 of this Article.

Article 15.Application of land rental units, water surface rental units

1. Projects leasing land and water surface; projects using land of public non-business organizations and changing to lease land; and projects allocated land with  land use levy or allocated land without land use levy and required to change to lease land but for which land rental is not yet determined and no notice of land rental payment is issued by a competent agency shall apply land and water surface rental units prescribed in Articles 4, 5, 6 and 7 of this Decree from the effective date of this Decree.

2. Projects leasing land and water surface before the effective date of this Decree and still in the stabilization period of land rental units shall continue keeping such units unchanged until the end of such period. In case land rental units of the period of unchanged land rental units are higher than those prescribed in this Decree, they may be adjusted under this Decree from January 1, 2015.

3. Projects leasing land and water surface with annual rental payment other than those specified in Clause 7 of this Article, for which land and water surface rental units should be adjusted before the effective date of this Decree but remain unadjusted, shall adjust such units under this Decree for the remaining land lease period. For land use periods during which land rental units are not adjusted, land rental units shall be adjusted according to policies and laws of each period for payment and settlement of land rental.

4. For cases of land or water surface lease before the effective date of this Decree for which rental has been paid in lump sum for the entire lease period, the land rental unit or water surface rental unit specified in this Decree shall not be re-determined.

5. For cases of land or water surface lease before the effective date of this Decree for which rental has been paid for many years, the land rental unit or water surface rental unit shall not be re-determined under this Decree during the period for which land rental or water surface rental has been paid. At the end of such period, the land rental unit or water surface rental unit shall be re-determined for the subsequent period according to land policies and prices effective at the time of adjustment.

6. In case competent state agencies have permitted the use of leased land use right value (land rental, water surface rental) for contribution of joint-venture or cooperation capital before the effective date of this Decree, adjustment under this Decree is not required. Upon the expiration of the duration of joint-venture or cooperation capital contribution with the land use right value, the land rental unit or water rent unit shall be re-determined under Articles 4, 5, 6 and 7 of this Decree.

7. For projects leasing land or water surface before the effective date 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, states land rental unit or water surface rental unit and the principle of land rental unit adjustment under the Ministry of Finance’s regulations on land and water surface 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. 1357TC/QD-TCT of 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 and may be applied to the remaining lease time.

Article 16.Change from land lease with annual rental payment to land lease with one-off rental payment for the entire lease period

When changing to land lease with one-off rental payment for the entire lease period, economic organizations, households, individuals, overseas Vietnamese and foreign-invested enterprises that are leased land by the State with annual rental payment shall pay rental for the remaining lease time. Land rental unit for one-off payment for the entire lease period for the remaining lease time shall be determined under Clause 2, Article 4 of this Decree at the time of issuance of the decision permitting the lessee to change to land lease with one-off payment for the entire lease period.

Article 17.Payment of land rental upon land use purpose change

1. When changing the land use purposes specified at Points d, dd and g, Clause 1, Article 57 of the Land Law, land users shall pay land rental under the following provisions:

a/ In case of changing from agricultural land or non-agricultural land allocated by the State without land use levy to non-agricultural land leased by the State, they shall pay annual land rental or one-off land rental for the entire lease period according to land type after the land use purpose change.

b/ In case of changing the land use purpose of land types specified at Point g, Clause 1, Article 57 of the Land Law with the same form of land use being lease with one-off rental payment for the entire lease period, the payable rental is the difference between the rental for the land type after the land use purpose change and that for the land type before the change for the remaining land use time. In case of the same form of land use being lease with annual rental payment, land users changing the land use purpose shall pay rental for the land type after the purpose change under this Decree.

2. When having the land use term extended, land users that pay land rental shall perform the financial obligation for the extension period under policies and laws effective at the time of extension.

3. The Ministry of Finance shall guide in detail this Article.

Section 2

LAND RENTAL AND WATER SURFACE RENTAL EXEMPTION OR REDUCTION

Article 18.Principles of land rental and water surface rental exemption or reduction

1. Land rental and water surface rental exemption or reduction shall be given to each project and applied to new land lease.

2. In case land and water surface lessees are entitled to both rental exemption and reduction, after enjoying land and water surface rental exemption they will continue to enjoy land and water surface rental reduction under regulations for the subsequent land lease period (if any). In case the land rental or water surface rental is reduced at different levels, they will enjoy the highest reduction level.

3. Land and water surface rental exemption or reduction under Articles 19 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.

4. Operational projects currently enjoying land and water surface rental exemption or reduction at levels higher than those provided in this Decree will continue to enjoy such incentive levels for the remaining time. In case they enjoy incentive levels lower than those provided in this Decree, such projects will enjoy the incentive levels provided in this Decree for the remaining incentive period from the effective date of this Decree.

5. Land and water surface rental exemption or reduction is not given to projects on exploitation of mineral resources.

6. Land and water surface lessees may enjoy land and water surface exemption or reduction only after carrying out exemption or reduction procedures.

7. In case land and water surface lessees have been given land and water surface rental exemption or reduction under this Decree but fail to meet the conditions for such exemption or reduction in the course of land management and use or use land not for proper purposes stated in land lease decisions or land lease contracts but are not subject to land recovery in accordance with the land law, they shall refund to the state budget exempted or reduced land rental amounts and late payment interests on the exempted or reduced land rental amounts in accordance with the law on tax administration.

8. In case persons leased land by the State with one-off rental payment for the entire lease period and exempted from the whole rental wish to pay rental during the lease period (refuse to enjoy the incentive), they shall perform the land-related financial obligation and have the land-related rights and obligations like those not entitled to land rental exemption.

Article 19.Land rental and water surface rental exemption

1. Land and water surface rental exemption is given for the entire lease period to:

a/ Investment projects in the sectors eligible for special investment incentives and implemented in geographical areas facing exceptional socio-economic difficulties;

b/ Projects using land for construction of condominiums for industrial park workers under approved projects, in which investors may not account land rental expenses into house rental;

c/ Projects using land for construction of student dormitories with state budget funds, in which units assigned to manage and use such dormitories may not account land rental expenses into house rental;

d/ Land for agricultural production of ethnic minority people; land for implementation of projects on planting of protection forests and coastal forests;

dd/ Land for construction of non-business works of public non-business organizations; land for construction of scientific research institutions of science and technology enterprises, provided it meets the related conditions (if any), including land for construction of laboratories, technology nurseries, science and technology enterprise nurseries, experiment facilities and trial production establishments;

e/ Land for construction of facilities to provide aviation services other than those for commercial provision of aviation services;

g/ Agricultural cooperatives using land as ground for construction of their offices, drying yards and storehouses; land for construction of service facilities to directly serve agricultural production, forestry, aquaculture and salt production;

h/ Land for construction of maintenance and repair stations, parking lots (including ticket booths, administration quarters and public service quarters) to serve public transportation of passengers in accordance with the law on road transportation;

i/ Land for construction of water supply works, including: water exploitation and treatment works, pipelines and works in the network of water supply pipelines and works to support the management and operation of the water supply system (administration and management offices, workshops, supplies and equipment warehouses and storing yards);

k/ Land for construction of common-use infrastructure facilities in industrial parks, industrial clusters and export processing zones under approved master plans under Clause 2, Article 149 of the Land Law.

2. Land and water surface rental exemption is given during the period of capital construction of approved projects for no more than 3 years from the date of issuance of land and water surface lease decisions. In case land lessees use land for agricultural purposes (planting perennial trees) under approved projects, the period of capital construction of tree gardens is eligible for land rental exemption for each type of tree according to the technical process of planting and tending perennial trees prescribed by the Ministry of Agriculture and Rural Development. The land and water surface rental exemption during the period of capital construction shall be given to projects and applied to new land lease or change from land allocation without land use levy to land lease, excluding cases of investment in the construction, renovation and expansion of production or business establishments and replanting of gardens on land areas leased by the State.

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:

a/ Three (3) years for projects on the list of sectors eligible for investment incentives; new production or business establishments of economic organizations which are relocated under master plans or due to environmental pollution;

b/ Seven (7) years for projects on investment in geographical areas facing socio-economic difficulties;

c/ Eleven (11) years for projects on investment in geographical areas facing exceptional socio-economic difficulties; projects on the list of sectors eligible for special investment incentives; projects on the list of sectors eligible for investment incentives which are implemented in areas facing socio-economic difficulties;

d/ Fifteen (15) years for projects on the list of sectors eligible for investment incentives which are implemented in geographical areas facing exceptional socio-economic difficulties; projects on the list of sectors eligible for special investment incentives which are implemented in areas facing socio-economic difficulties;

The list of sectors eligible for investment incentives, the list of sectors eligible for sectors eligible for special investment incentives, areas facing socio-economic difficulties and areas facing exceptional socio-economic difficulties must comply with the investment law.

The list of geographical areas entitled to land rental incentives is only applicable to areas having specific administrative boundaries.

4. Land rental exemption for economic zones and hi-tech parks must comply with regulations of the Government or Prime Minister on investment incentives for economic zones and hi-tech parks.

5. For projects on construction of Vietnam-based working offices of foreign diplomatic missions and consular offices and representative agencies of international organizations under treaties to which Vietnam is a contracting party, the land rental exemption must comply with such treaties or the principle of reciprocity.

6. Projects allocated land by the State with land use levy before July 1, 2014, and currently enjoying land use levy exemption, when changing to land lease, may continue to enjoy land use levy exemption for the remaining land use time.

7. Land rental exemption for projects using land for construction of public facilities for business purposes (construction with social resources) in the sectors of education, job training, health, culture, sports and environment must comply with regulations of the Government on promotion of mobilization of social resources for educational, job training, health, cultural, sport and environmental activities.

8. Land rental exemption for projects on investment in agriculture and rural areas must complywith regulations of the Government on investment incentives in agriculture and rural areas.

9. Land rental exemption through the end of 2020 will be given for agricultural land areas within the law-prescribed quotas for each region applicable to households of farmers, agricultural farm members or agricultural cooperative members assigned with product-per-land area norms by agricultural enterprises or cooperatives and changing to land lease and signing land lease contracts with competent state agencies in accordance with the Land Law.

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

Article 20.Land rental and water surface rental reduction

1. Land rental or water surface rental may be reduced in the following cases:

a/ Cooperatives that rent land for use as ground for their production and business activities are entitled to 50% land rental reduction.

b/ Entities that rent land and water surface for use for agricultural production, forestry, aquaculture or salt production, and suffer natural disasters or fires which cause a loss of under 40% of their output may be considered for corresponding rental reduction; if the loss is 40% or over, the land rental will be exempted for the year of loss.

c/ Entities that rent land and water surface for use for production and business purposes other than agricultural production, forestry, aquaculture or salt production or falling outside the cases specified in Clause 2 of this Article and suffer natural disasters, fires orforce majeureincidents may be entitled to 50% land and water surface rental reduction for the period of temporary cessation of production and business.

2. Land rental reduction in economic zones and hi-tech parks must comply with the regulations of the Government or the Prime Minister on investment incentives for economic zones and hi-tech parks.

3. Land rental reduction for investment projects on agriculture and rural areas must comply with the regulations of the Government on investment incentives for agriculture and rural areas.

4. Land rental reduction for projects on construction of Vietnam-based working offices of foreign diplomatic missions and consular offices and representative offices of international organizations under treaties to which Vietnam is a contracting party must comply with such treaties or on the principle of reciprocity.

5. The Prime Minister shall consider and decide on land rental reduction for other cases proposed by the Minister of Finance based on proposals of ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees.

Article 21.Competence to determine and decide on land rental and water surface rental exemption or reduction

1. Based on dossiers and papers proving the subjects eligible for land rental and water surface rental exemption or reduction defined in Articles 19 and 20 of this Decree, tax offices shall determine payable, exempted or reduced land rental and water surface rental amounts.

a/ Directors of provincial-level Tax Departments shall issue decisions on land rental and water surface rental exemption or reduction for economic organizations, foreign organizations and individuals or overseas Vietnamese that rent land.

b/ Directors of district-level Tax Departments shall issue decisions on land rental and water surface rental exemption or reduction for households and individuals that rent land.

2. The Ministry of Finance shall guide the order and procedures for land rental and water surface rental exemption or reduction under this Article.

Section 3

LAND RENTAL AND WATER SURFACE RENTAL COLLECTION AND PAYMENT

Article 22.Order of determining land rental and water surface rental

1. Based on cadastral records (information on area, position and use purpose of leased land, land lease form and term) on land and water surface lease; decisions on prices of land, prices of land with water surface, rental units of land for construction of underground facilities, water surface rental issued by provincial-level People’s Committees; and land price table, percentage (%) and land price adjustment coefficient set by provincial-level People’s Committees, tax offices shall organize the determination, collection and payment of land rental and water surface rental, specifically as follows:

a/ Within 5 working days after receiving complete cadastral records as prescribed, tax offices shall determine rental units, calculate land rental and water surface rental amounts and send notices thereof to rental payers;

b/ In case there are not enough bases for determining land rental and water surface rental amounts, within 5 working days after receiving dossiers, tax offices shall notify in writing the dossier-sending agencies thereof for supplementation; after the receipt of complete cadastral records, the time limit of 5 working days shall be counted from the date of receipt of complete dossiers.

2. Annually, tax offices shall send notices of payment of land rental and water surface rental directly to rental payers. In case bases for calculation of land rental and water surface rental change, payable land rental and water surface rental amounts shall be re-determined and notified to rental payers.

3. After the stabilization period of land rental and water surface rental units, tax offices shall notify land lessees thereof to adjust such units for the next stabilization period in accordance with law at the time of adjustment.

4. Tax offices shall make dossiers for monitoring the collection and payment of land rental and water surface rental according to a form set by the Ministry of Finance.

Article 23.Determination of payable land rental and water surface rental amounts for cases eligible for land rental and water surface rental exemption or reduction

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

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 upon the expiration of the land rental exemption duration shall be determined as follows

b/ For cases eligible for land rental and water surface rental reduction (if any) under Article 20 of this Decree

c/ In case they are willing to advance compensations and supports for ground clearance under Clause 2, Article 13 of this Decree, after deducting exempted or reduced rental amounts under Points a and b of this Clause, investors may continue to clear advanced compensations and support amounts against payable land rental amounts and convert them into a number of years or months of fulfillment of the financial obligation to pay land rental according to the following formula:

n: Number of years or months for which land rental or water surface rental is exempted

2. In case of one-off payment of land rental or water surface rental for the entire land period

a/ For cases eligible for land rental exemption under Article 19 of this Decree

b/ For cases eligible for land rental reduction under Article 20 of this Decree

c/ In case they are willing to advance compensations and supports for ground clearance under Clause 2, Article 13 of this Decree, after deducting exempted or reduced rental amounts under Points a and b of this Clause, investors may continue to clear compensations and support amounts advanced under approved plans against payable land rental amounts according to the following formula:

Article 24.Land rental and water surface rental collection and payment

1. Land rental and water surface rental shall be paid into the state budget in Vietnamese currency (VND). In case foreign organizations and individuals and overseas Vietnamese pay land rental and water surface rental in foreign currencies, such foreign-currency amounts shall be converted into VND in accordance with law at the time of payment.

2. The payment of land rental and water surface rental is prescribed as follows:

a/ Tax offices shall send notices of land rental or water surface rental payment to land and water surface lessees, and concurrently to land use rights registration offices or natural resources and environment agencies;

b/ Land and water surface lessees shall pay land rental and water surface rental according to notices of tax offices.

3. In case of annual payment of land rental or water surface rental, rental shall be paid twice a year: the first payment of at least 50% of the total shall be made before May 31 and the second payment before October 31.

4. In case of one-off payment of land rental or water surface rental for the entire lease period

a/ Within 30 days after the tax office signs a notice of land rental or water surface rental payment, the land lessee shall pay 50% of the land rental according to the notice;

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

c/ Past the time limit prescribed at Point a or b of this Clause, if land lessees fail to pay fully land rental according to notices of tax offices, they shall pay a late payment interest for unpaid amounts as prescribed by the law on tax administration.

5. The Ministry of Finance shall prescribe forms of declaration, receipt and book for monitoring land rental and water surface rental payment.

Article 25.Responsibilities of agencies, land rental and water surface rental payers and airport authorities

1. Finance agencies shall:

a/ Assume the prime responsibility for elaborating and submitting to provincial-level People’s Committees for promulgation land price adjustment coefficients under Clause 5, Article 4 of this Decree, specific percentages (%) for determination of land rental unit for each region or road route corresponding to each land use purpose;

b/ Assume the prime responsibility for determining and submitting to provincial-level People’s Committees for promulgation percentages (%) for calculation of rental for leased land for construction of underground facilities, land with water surface or water surface;

c/ Assume the prime responsibility for determining amounts to be cleared against payable land rental and water surface rental amounts;

d/ Act as the standing body of local land price appraisal councils responsible for organizing appraisal of specific land prices for calculation of land rental based on proposals of the natural resources and environment agency for the cases specified in Clause 4, Article 4 of this Decree for reporting to local land price appraisal councils for consideration before submitting them to provincial-level People’s Committees for decision.

2. Natural resources and environment agencies and land registration offices shall determine land locations, positions, areas and types, land use purposes, land and water surface lease period as based for tax offices to determine rental units and payable land rental and water surface rental amounts.

3. Tax offices shall:

a/ Determine land rental units; determine rental amounts for land, land for construction of underground facilities, land with water surface, water surface, and notify them to payers under this Decree;

b/ Determine land rental units and rental amounts and notify them to airport authorities for collection of land rental from organizations and individuals that are leased land or water surface within airports and airfields;

c/ Organize, guide, inspect, answer inquiries or settle complaints about the collection and payment of land rental and water surface rental in accordance with the law on tax administration.

4. Treasuries shall:

a/ Fully collect land rental and water surface rental amounts into the State Treasury according to notices of land rental or water surface rental payment and refrain from refusing rental payment for any reason;

b/ Refrain from leaving the rental collection to the following day when persons who have the responsibility to fulfill the financial obligations have completed the payment procedures.

5. Airport authorities shall:

a/ Provide tax offices with land lease and water surface lease dossiers of organizations and individuals that rent land in airports and airfields under Point b, Clause 3, Article 156 of the 2013 Land Law;

b/ Collect, as authorized, land rental and water surface rental of organizations and individuals leased land and water surface in airports and airfields in accordance with the law on tax administration;

c/ Urge organizations and individuals that are leased land in airports and airfields to pay land rental by the method and within the time limit stated in land lease contracts.

6. Land and water surface lessees shall:

a/ Declare land rental and water surface rental in accordance with the Law on Tax Administration and guiding documents;

b/ Pay land rental and water surface rental by the method and within the time limit stated in land and water surface lease contracts;

c/ Pay late payment interests under Article 26 of this Decree if failing to pay fully land rental and water surface rental according to notices of tax offices.

Article 26.Handling of late payment of land rental

Land and water surface lessees that are late to pay land rental and water surface rental into the state budget shall pay late payment interests. The determination of late payment interests must comply with the Law on Tax Administration and guiding documents.

Article 27.Complaints and settlement thereof

The lodging and settlement of complaints about land rental and water surface rental must comply with the Law on Complaints and guiding documents. Pending the settlement of complaints, complainants shall pay fully and on time land rental and water surface rental amounts notified by competent state agencies.

Section 4

RESPONSIBILITY FOR STATE MANAGEMENT OF COLLECTION OF LAND RENTAL AND WATER SURFACE RENTAL AND HANDLING OF TRANSITIONAL ISSUES AND PROBLEMS

Article 28.The Ministry of Finance has the following responsibilities

1. To guide the determination and payment of land rental and water surface rental; guide procedures and dossiers for land rental and water surface rental exemption or reduction; procedures and dossiers related to deduction of compensations and ground clearance supports under regulations.

2. To prescribe dossiers and forms of declaration, receipt and book for management of collection and payment of land rental and water surface rental and decentralize such management in accordance with the decentralized management of the state budget and the land law.

3. To supervise and guide the appraisal of land prices for calculation of land rental in accordance with the price law.

4. To inspect and supervise the collection of land rental and water surface rental.

5. To coordinate with related ministries and sectors in reviewing regulations on land rental exemption or reduction for entities other than those specified in Articles 19 and 20 of this Decree, and reporting them to the Government and Prime Minister for consideration and handling in accordance with the Land Law.

6. To assume the prime responsibility for, and coordinate with the Ministry of Natural Resources and Environment in, prescribing dossiers, order and procedures for receiving and forwarding dossiers among finance, tax and natural resources and environment agencies for determination, collection and payment of land rental and water surface rental.

Article 29.The Ministry of Natural Resources and Environment has the following responsibility

To coordinate with the Ministry of Finance in guiding dossiers, order and procedures for receiving and forwarding dossiers among finance, tax and natural resources and environment agencies for determination, collection and payment of land rental and water surface rental.

Article 30.Provincial-level People’s Committees have the following responsibilities

1. To promulgate land price tables, land price adjustment coefficients, percentages (%) for calculation of land rental units, rental for land for construction of underground facilities, land with water surface, and decide on specific land prices to serve as bases for calculation of land rental; to decide on water surface rental unit under Article 7 of this Decree for each project.

2. To direct functional agencies in expeditiously completing legal dossiers on land of organizations, households and individuals that are using land but have not yet obtained land lease decisions or land lease contracts.

3. To direct People’s Committees at all levels in taking measures to inspect and supervise the land use by entities leased land and water surface by the State and the collection and payment of land rental and water surface rental under this Decree.

4. To direct professional agencies of provincial-level People’s Committees in coordinating with tax offices in managing lessees and collecting land rental and water surface rental under this Decree.

5. To direct the inspection and handling of violations in declaration and grant of exemption or reduction to ineligible entities, causing damage to the State and land rental payers.

6. To settle complaints and denunciations about the collection of land rental and water surface rental in accordance with the law on complaints and denunciations.

Article 31.Transitional provisions

1. Economic organizations, households, individuals and overseas Vietnamese that are eligible for land lease in accordance with the 2013 Land Law, have been allocated land by the State and pay land use levy before the effective date of the 2013 Land Law may continue to use for the remaining land use time and are not required to change to land lease. Upon the expiration of the land use term, if they have such term extended by competent state agencies under Clause 1, Article 60 of the Land Law, they shall change to land lease and pay land rental under this Decree.

2. Economic organizations, households and individuals that are eligible for land lease in accordance with the 2013 Land Law, have been allocated land by the State and pay land use levy before the effective date of the 2013 Land Law, and now wish to change to land lease, are not required to pay land rental for the remaining land use time.

3. Economic organizations, households, individuals and overseas Vietnamese that are eligible for land lease in accordance with the 2013 Land Law, have been allocated land by the State and pay land use levy before the effective date of the 2013 Land Law shall change to land lease from the effective date of the 2013 Land Law under Clause 2, Article 60 of the 2013 Land Law, and pay land rental under this Decree.

4. Overseas Vietnamese and foreign-invested enterprises that are leased land by the State and make one-off rental payment for the entire lease period for implementation of investment projects on construction of houses for sale or for combined sale and change lease before the effective date of the 2013 Land Law and wish to switch to land allocation with land use levy in accordance with the 2013 Land Law shall comply with the policy on land allocation with land use levy.

5. Economic organizations that have been transferred rights to use lawful agricultural land from households and individuals allocated land by the State without land use levy for implementation of investment projects on agricultural production before the effective date of 2013 Land Law may now continue to use the land and are not required to pay land rental for the remaining duration of such projects. Upon the expiration of such projects, if they wish to continue to use land, they shall change to land lease and pay land rental under this Decree.

6. Cases of land lease for which tax offices issue notices of land rental payment before the effective date of the 2013 Land Law and in which land lessees have not yet fulfilled the financial obligation according to such notices by the effective date of this Decree shall be handled as follows:

a/ Land lessees that make one-off rental payment for the entire lease period may continue to pay land rental amounts notified by tax offices and pay late payment interests at the level prescribed in the Law on Tax Administration and guiding documents;

b/ Land lessees that make annual rental payment may continue to pay land rental amounts notified by tax offices until the end of 2014 and pay late payment interests at the level prescribed in the Law on Tax Administration and guiding documents.

7. Economic organizations, households, individuals and overseas Vietnamese that invest in production and business in economic zones and are allocated land by the State or transferred land use rights by other economic organizations and overseas Vietnamese before the effective date of the 2013 Land Law may continue to use land for the remaining duration of their projects and are not required to change to land lease. Upon the expiration of the implementation duration of projects, if they wish to rent land, they may be considered by the management boards of economic zones for land lease under Article 151 of the 2013 Land Law and shall pay land rental under this Decree.

8. Households and individuals that are allocated riparian or coastal alluvial land by the State before the effective date of the 2013 Land Law for use for agricultural purposes may continue to use the land for the remaining land allocation term. Upon the expiration of the land allocation term, if they wish to continue to use the land in compliance with land use master plans and plans and commit no violation of the land law, they may be leased land by the State under Article 141 of the 2013 Land Law and shall pay land rental under this Decree.

9. Economic organizations that are allocated land by the State without land use levy for use for agricultural production, forestry, aquaculture or salt production before the effective date of the 2013 Land Law and are required to change to land lease under Article 133 of the 2013 Land Law shall pay land rental under this Decree.

10. Households, individuals and overseas Vietnam that are eligible for land lease in accordance with the 2013 Land Law and are transferred lawful land use rights before the effective date of the 2013 Land Law may continue use the land for the remaining land use term without having to switch to land lease in accordance with this Law. Upon the expiration of the land use term, if they have such term extended by competent state agencies, they shall change to land lease and pay land rental under this Decree.

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 the number of years or months for which land rental must be paid and have been fully paid.

12. Projects that are leased land through auction by the State with annual rental payment under the Government’s Decree No. 121/2010/ND-CP of December 30, 2010, upon the expiration of the stabilization period of land rental units of 10 years, shall continue to comply with the principle prescribed in Decree No. 121/2010/ND-CP for another stabilization period of land rental units of 10 years.

Projects that are leased land through auction of land use rights with annual rental payment under the Government’s Decree No. 142/2005/ND-CP of November 14, 2005, upon the expiration of the stabilization period of land rental units of 5 years, shall continue to comply with the principle prescribed in Decree No. 142/2005/ND-CP for another stabilization period of land rental units of 5 years.

Article 32.Handling of some specific issues

1. Investors that had been leased land by the State with annual rental payment for investment in construction and commercial operation of infrastructure of industrial parks, industrial clusters and export processing zones, for which one of three papers including investment certificate (investment license), land lease decision and land lease contract granted (or signed) by a competent state agency states the principle of land rental unit adjustment, and subleased the land with infrastructure in the form of one-off rental payment for the entire lease period before January 1, 2006, shall pay into the state budget lump-sum land rental determined on the basis of sublease period, subleased land area and annual land rental determined by competent state agencies according to land rental unit by the time of land sublease (on the principle that rental rises 15% after every 5-year stabilization period of rental units) minus annually paid land rental amounts (if any) determined on the above principle for the subleased area from the time of land sublease.

2. Projects entitled to land rental reduction through the end of 2014 under regulations of the Government and Prime Minister on solutions to overcome production and business difficulties, stimulate the market and handle non-performing loans, upon the expiration of the duration of land rental reduction under such regulations, may apply land rental units under this Decree from January 1, 2015, during the stablization period of land rental units.

3. Land users that have not yet been leased land by competent state agencies, are using land for production and business purposes and receive 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 before the effective date of this Decree may pay rental according to such notices and are not required to adjust notified rental amounts. From the effective date of this Decree, tax offices shall determine annually payable rental amounts (not to be kept unchanged for 5 years) based on land prices in land price tables, land price adjustment coefficients and percentages (%) 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, and notify them to land users. Provincial-level People’s Committees shall direct natural resources and environment agencies in completing land and water surface lease dossiers in accordance with law.

4. For land users that are leased land by competent state agencies before the effective date of this Decree for which land rental units have not yet been adjusted under Decree No. 142/2005/ND-CP of November 14, 2005, and Decree No. 121/2010/ND-CP of December 30, 2010, and make annual rental payment according to tax offices’s notices of temporary rental payment:

a/ If they temporarily make annual rental payment according to land policies and prices at the time of issuance of notices of temporary rental payment, their temporarily paid rental amounts may be finalized;

b/ If they temporarily made annual rental payment according to land policies and prices before the effective date of Decree No. 142/2005/ND-CP of November 14, 2005, and do not fall into the cases specified in Clause 7, Article 15 of this Decree, land rental units shall be adjusted, temporarily paid rental amounts finalized and payable rental amounts retrospectively collected under regulations;

c/ Tax offices shall determine and adjust land rental units for the cases specified at Points a and b of this Clause under this Decree, and apply them from July 1, 2014.

Chapter III

IMPLEMENTATION PROVISIONS

Article 33.Effect

1. This Decree takes effect on July 1, 2014.

2. This Decree replaces the Government’s Decree No. 142/2005/ND-CP of November 14, 2005, on collection of land rental and water surface rental; and Decree No. 121/2010/ND-CP of December 30, 2010, amending and supplementing a number of articles of Decree No. 142/2005/ND-CP.

Article 34.Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and entities that are leased land and water surface by the State shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG