Circular No. 02-TC/TCT guiding the implementation of Decree No. 89/CP dated August 17, 1994 of the Government on the collection of land use fees and land administration fees

CIRCULAR

OF THE MINISTRY OF FINANCE

GUIDELINES FOR IMPLEMENTING THE GOVERNMENT DECREE NO. 89/CP DATED AUGUST 17, 1994 ON THE COLLECTION OF LAND USE FEES AND LAND ADMINISTRATION FEES

ON THE COLLECTION OF LAND USE FEES AND LAND ADMINISTRATION FEES

BASED ON THE GOVERNMENT DECREE NO. 89/CP DATED AUGUST 17, 1994 ON THE COLLECTION OF LAND USE FEES AND LAND ADMINISTRATION FEES;

AFTER CONSULTATION WITH THE NATIONAL LAND MANAGEMENT AGENCY, THE MINISTRY OF FINANCE ISSUES THE FOLLOWING GUIDELINES FOR THE COLLECTION OF LAND USE FEES AND LAND ADMINISTRATION FEES:

I. OBJECTS SUBJECT TO THE PAYMENT OF LAND USE FEES AND LAND ADMINISTRATION FEES:

1. LAND USE FEES:

a) The entities subject to land use fees are areas of state-owned land as defined in Articles 23 and 24 of the Land Law (hereinafter referred to as the State), which have been assigned to organizations, households, or individuals for use (except for the cases specified in subpoint c below) or areas of land assigned for agricultural, forestry, aquaculture, and salt production purposes, now permitted by the State to be used for other purposes, including the following situations:

The State uses undeveloped land not yet assigned to any organization, household, or individual according to Article 72 of the Land Law (including land being used illegally) to assign to organizations, households, or individuals for use in accordance with the law;

The State uses land reclaimed from organizations, households, or individuals to assign to other organizations, households, or individuals for use, including land previously assigned to organizations and now reclaimed by the State to assign to households or individuals for use;

Land used for agricultural, forestry, aquaculture, and salt production purposes, now permitted by the State to be used for other purposes as stipulated in Article 22 of the Land Law.

In cases where organizations are assigned land by the State for national defense, security, national interests, or public interests, if they are allowed by the State to use it for housing construction and manage it for households or individuals, then the area of land assigned for housing construction is subject to land use fees.

b) Entities required to pay land use fees are organizations, households, or individuals (collectively referred to as land users) who have been assigned land by the State or have been permitted to change the purpose of land use as specified in subpoint a above.

c) No land use fees are payable when the State assigns land under the following circumstances:

Land assigned for agricultural, forestry, aquaculture, and salt production purposes;

Land leased by the State to organizations or individuals who have already paid land lease fees;

Land owned by the State and sold to individuals or organizations, with land use fees included in the sale price and paid into the budget;

Land belonging to organizations, households, or individuals with legal residence on it, now undergoing regularization of land use rights and house ownership.

2. LAND ADMINISTRATION FEES:

a) Land administration fees are charges levied when competent state authorities perform the following land administration tasks:

Issuing certificates of land use rights (including regularization of land use rights);

Registering changes in land status, including changes in land users, changes in the shape and area of land plots, and changes in land use purposes;

Extracting land records, including extracts from maps or necessary documents in land records, upon request of land users.

b) All organizations, households, or individuals, regardless of whether they have been assigned land by the State or not, must pay land administration fees when competent state authorities handle any of the land administration tasks mentioned in subpoint a above.

II. BASIS FOR CALCULATING THE AMOUNT OF LAND USE FEES AND LAND ADMINISTRATION FEES:

1. The basis for calculating the amount of land use fees is the area of land (square meters) assigned or permitted to change its purpose, the price per square meter (VND/square meter) at the time of payment of land use fees, and the amount of land use fees exempted or reduced.

The amount of land use fees payable to the state budget is determined as follows:

Area of land Amount

Land use fee payable = assigned or permitted to x price per square - exempted or

(square meters) change purpose square meter reduced

a) The area of land assigned or permitted to change its purpose is the area of land assigned by the State to land users or land assigned for agricultural, forestry, aquaculture, and salt production purposes, now permitted by the State to be used for other purposes; land assigned by the State to organizations for national defense, security, national interests, or public interests, now permitted by the State to be used for housing construction and managed by households or individuals according to the law.

b) The price per square meter (VND/square meter) for calculating land use fees is set by the People's Committee of provinces or centrally-administered cities, in accordance with the framework of land prices issued by the Government in Decree No. 87/CP dated August 17, 1994, adjusted to local conditions.

Where:

In cases of land auctions, the land use fee is the auction winning price. The lowest auction-winning price must be equal to or higher than the land use fee for the same category and location of land, as prescribed by the People's Committee of provinces or centrally-administered cities within the framework of land prices issued by the Government in Decree No. 87/CP.

For land assigned for agricultural, forestry, aquaculture, and salt production purposes, now permitted to be used for other purposes, the land use fee is the price of land at the time of assignment for the original purpose.

c) The amount of land use fees exempted or reduced is determined as follows:

Area of land assigned or Price per square Tolerance

land use fee exempted or change purpose meter or reduced

- Column (12): Record specific disposal methods in accordance with Article 87 of the Law on Management and Use of Public Property.

(VND) (square meters) (VND/square meter)

The tolerance for exemption or reduction of land use fees is implemented according to the guidelines in Section IV of this Circular.

2) The collection rates for each land administration task are as follows:

Serial No. Name of land administration task Unit of measurement Collection rate (VND)

1. Issuance of certificate of land use rights Certificate VND/certificate

a. Households, individuals

- Mountainous, highland communes 5,000

- Midland, delta communes 10,000

- Urban areas 20,000

b. Organizations 100,000

2. Registration of changes in land status Change VND/time

- Midland, delta communes

+ Urban area - 20,000

b. Organization - 100,000

2. Registration of land change

/per occurrence

b. Organizations 100,000

2. Registration of changes in land status Change VND/time

+ Belongs to midland, delta平原区或河口平原区 - 20,000

city - 10,000

b. Organization - 20,000

3. Extracting land registration records for documentation

or

parcel of land 5,000

III. Declaration and payment of land use fee and land administration fee:

1. Declaration and payment of land use fee:

a) The land user who is required to pay the land use fee shall have the obligation to:

Declare and provide the Tax Authority where the land use fee is paid with necessary documents related to the determination of the land use fee according to the attached model in this Circular. The deadline for declaration and provision of necessary documents shall be no later than fifteen days from the date of notification by the competent state agency regarding the allocation of land or permission to change the purpose of land use.

The declaration form for payment of the land use fee must be prepared in two copies, after the Tax Authority has determined the amount of land use fee payable to the State budget: retain one copy at the Tax Authority, and one copy serves as a notice of payment of the land use fee to the land user.

Pay the full land use fee into the State budget according to the notice of the Tax Authority before being issued a certificate of land use rights or a permit to change the purpose of land use.

For subjects allocated land from the State for infrastructure construction, the payment of the land use fee will be made according to separate guidelines.

The procedure for paying the land use fee is as follows:

The land user, based on the notice of the amount to be paid recorded in the declaration form for payment of the land use fee issued by the Tax Authority, directly pays the money (cash or transfer) into the State Treasury. If the State Treasury has not organized the collection of money from the land user, then it should be paid directly to the Tax Authority.

When making the payment, the payer must record on the payment receipt: chapter, type, clause, category corresponding to the name of the land user (the person allocated land or permitted to change the purpose of land use), item 28 "land use fee" in the State budget ledger, the actual amount of land use fee paid into the State budget. The State Treasury, upon receiving the money, must confirm on the payment receipt "money received," sign, stamp, and circulate according to regulations.

In cases where the Tax Authority directly collects the land use fee, when collecting the money, a receipt must be issued to the payer of the land use fee. The receipt for collection of the land use fee is issued by the Ministry of Finance (General Department of Taxation), marked CT11, and must clearly indicate: the name of the land user corresponding to chapter, type, clause, category, item 28 "land use fee," made in three copies: copy 1 transferred to the Tax Authority, copy 2 issued to the payer, copy 3 retained by the collector.

The land use fee is collected by the District Tax Office where the land is located for cases where land is allocated by the People's Committee of districts, cities, towns under provinces according to the Land Law; by the Land Registration Fee Department of the Provincial Tax Office for cases where land is allocated by the Government or the People's Committee of provinces, centrally-administered municipalities according to the Land Law.

b) The Tax Authority is responsible for:

Guiding the land user to strictly comply with the declaration and payment of the land use fee;

Checking and verifying the declared documents, calculating and approving the amount of land use fee payable, the payment deadline, and place of payment, informing the land user and urging them to pay the land use fee to the State Treasury within the prescribed time limit.

Collecting and paying the land use fee into the State budget for cases where the Tax Authority directly collects the fee.

Any land use fee collected on a given day must be paid into the State budget on that same day. In remote areas far from the State Treasury, the payment period may be longer, but no later than ten days must be paid once. If the amount collected in a day reaches 100 million VND or more, all the collected land use fees must be paid into the State budget immediately.

d) The Land Administration at all levels, state agencies responsible for issuing certificates of land use rights, are responsible for coordinating with the Tax Authority to check compliance with the system of collection and payment of the land use fee according to regulations. At the same time, they can only issue certificates of land use rights or permits to change the purpose of land use after the land user has fully paid the land use fee recorded on the payment receipt confirmed by the State Treasury (for cases where the payment is made to the State Treasury) or the receipt for collection of the land use fee issued by the Tax Authority (in cases where the Tax Authority directly collects the fee) or a decision on exemption or reduction of the land use fee, consistent with the amount of land use fee payable recorded on the payment notice (declaration form) by the authorized Tax Authority.

2. Collection and payment of land administration fee:

The Land Administration, state agencies authorized to handle land administration matters as specified in point 2, Section I of this Circular, are responsible for collecting the land administration fee simultaneously with the implementation of land administration work, and when collecting, must issue a receipt for the payment to the payer.

Receipts for collection of the land administration fee are uniformly managed by the Ministry of Finance. The Ministry of Finance authorizes the Provincial Tax Departments to print and issue the uniform receipts for collection of the land administration fee in accordance with current regulations.

The County, District, City, Town Land Administration receives the receipts for collection of the land administration fee from the District Tax Office where its headquarters is located. The Provincial, Central-Administered Municipality Land Administration, if there is collection of the land administration fee, receives from the Provincial Tax Department. The Land Administration is responsible for managing, using, settling accounts, and reconciling receipts and collected land administration fees with the Tax Authority that issued the receipts, in accordance with the regulations of the Ministry of Finance.

The County, District Land Administration organizes the collection of the land administration fee down to each commune, ward. In cases where communes, wards are entrusted to collect the land administration fee, they are entitled to a commission (percentage) on the collected land administration fee before paying it into the State budget, as follows: Hanoi City, Ho Chi Minh City: 5% (five percent); other provinces, centrally-administered municipalities: 8% (eight percent). The remaining land administration fee after deducting the commission for entrusting collection (95% for Hanoi City and Ho Chi Minh City; 92% for other provinces - centrally-administered municipalities) must be submitted to the County, District Land Administration to be paid in full into the State budget.

The Land Administration Office at the district and county level shall be responsible for using books and accounting documents to monitor the collection and payment of land administration fees within their jurisdiction; organizing timely collection of land administration fees from communes and wards, and no later than the 10th day of each month, must pay all the fees due from the previous month into the State budget at the Treasury where the Land Administration Office is located, recording them under the corresponding chapter, type, clause, and category in item 35 "fees" of the State budget as prescribed.

In cases where the Provincial Land Administration directly performs land-related tasks, it shall be responsible for collecting land administration fees simultaneously with performing such tasks and must deposit the money into the State budget at the Treasury where transactions take place, in accordance with the deadlines stipulated for the district and county Land Administration Offices.

Tax authorities at all levels shall be responsible for coordinating with the Land Administration to inspect compliance with the system of collecting and paying land administration fees into the State budget in accordance with the guidelines set forth in this Circular.

VI. Exemption or Reduction of Land Use Fee

1. Exemption from the land use fee shall apply in the following cases:

a) Land allocated for public purposes, national defense, and security as provided for in Article 58, Clause 1 of Article 65 of the Land Law (excluding land used for constructing residential houses for households and individuals), specifically as follows:

Land permitted by competent state agencies for public purposes, including land used for building: roads, bridges, culverts, sidewalks, water supply and drainage systems, rivers, lakes, dykes, dams, schools, hospitals, markets, parks, flower gardens, children's playgrounds, squares, sports fields, airports, ports, and other public works as prescribed by the Government.

Land allocated by the State for national defense and security purposes, including:

+ Land used by military units;

+ Land for air force, navy bases, and other military bases;

+ Land for national defense works, artillery positions, and special projects;

+ Land for military stations, ports;

+ Land for industrial, scientific, and technical facilities serving national defense, combining national defense with economic activities;

+ Land for military warehouses;

+ Land for shooting ranges, training grounds, weapon testing sites;

+ Land for building schools, hospitals, and retirement homes for military personnel;

+ Other land for national defense and security works as prescribed by the Government.

b) Land used for housing in rural communes in mountainous areas, islands, newly settled regions, and new economic zones as prescribed by law;

c) Land allocated for compensation to organizations and individuals whose land has been expropriated, with the value of the compensated land being equal to or lower than the value of the expropriated land.

If the value of the compensated land exceeds the value of the expropriated land, the land user must pay the land use fee for the difference in value between the compensated land and the expropriated land (value of the compensated land - value of the expropriated land).

2. Land for housing for persons who have rendered meritorious service to the revolution and other policy beneficiaries shall be implemented according to separate regulations of the Government.

The exemption or reduction of the land use fee mentioned in sub-item b of item 1 and item 2 of this section shall be determined based on the actual area of land allocated to each household or individual, but only within the limit of the residential land use quota prescribed in Articles 54 and 57 of the Land Law.

Each beneficiary of the exemption or reduction of the land use fee mentioned in item 1 and item 2 of this section shall only be exempted or reduced once when allocated land by the State (except for land allocated for compensation to organizations and individuals whose land has been expropriated, which shall be implemented according to the guidance in sub-item c of item 1 of this section). All subsequent allocations of land, regardless of whether they are supplementary areas or additional allocations, must pay the land use fee in accordance with this Circular.

Procedures for Exemption or Reduction of the Land Use Fee:

Land users eligible for exemption or reduction of the land use fee as mentioned in item 1 and item 2 of this section must present to the Tax Authority the relevant documents and complete the following procedures:

Declare to the Tax Authority in accordance with the form prescribed in this Circular;

Submit a request for exemption or reduction of the land use fee, clearly stating the reasons and the number of times they have previously been exempted or reduced;

The request for exemption or reduction of the land use fee from households and individuals must be confirmed by the People's Committee of the commune or ward where they are registered;

Notification of land allocation or permission to change land use purpose issued by the competent state agency. The notification must specify: name of the land user, reason for land allocation, purpose of land use, location, grade of land, area, duration of land use (if applicable);

Other related documents necessary to determine the correct eligibility for exemption or reduction of the land use fee, such as decisions by competent authorities regarding permission to construct works that qualify for exemption or reduction of the land use fee, decisions on land expropriation and compensation for other lands, certificates of meritorious service to the Revolution and policy beneficiaries (certified copies), etc.;

After receiving the application for exemption or reduction of the land use fee, the Tax Authority shall verify and cross-check the documents against the declaration. If the applicant qualifies for exemption or reduction of the land use fee and has not previously received such benefits, the Tax Authority shall process the exemption or reduction of the land use fee within the limits prescribed in Articles 54 and 57 of the Land Law. Such exemptions or reductions must be decided in writing by the appropriate authority as follows:

The Tax Department shall decide on the exemption or reduction of the land use fee for organizations, households, and individuals allocated land by the Government or the Provincial People's Committee in accordance with the Land Law;

The Tax Branch shall decide on the exemption or reduction of the land use fee for households and individuals allocated land by the District People's Committee, County People's Committee, Town People's Committee, or City People's Committee under the Province in accordance with the Land Law.

V. Handling Violations and Awards

1. Land users who fail to fully comply with the declaration procedures, do not pay the full land use fee and land administration fees as prescribed in this Circular shall not be allocated land, nor shall they be granted land use rights certificates or permits to change land use purposes.

2. Organizations and individuals who take advantage of their positions or powers to embezzle, misappropriate, or cause the loss of land use fees and land administration fees shall be required to compensate the State for the full amount of money they have embezzled, misappropriated, or caused to be lost, and depending on the level of violation, they may be subject to disciplinary action or criminal liability in accordance with the provisions of the Law.

Tax authorities and land administration authorities, if they determine the incorrect amount of land use fees or land administration fees to be paid, must return the entire amount of money that has been damaged to the person concerned within no more than thirty days from the date of discovery.

Tax and land administration agencies and officials who perform their assigned tasks well, and persons who have contributed to detecting violations stipulated in this Circular, shall be rewarded according to the general system of the State.

VI. Implementation Organization

1. Tax authorities at all levels have the responsibility to coordinate with land administration authorities to guide and organize the collection of land use fees and land administration fees in accordance with Decree No. 89/CP dated August 17, 1994 of the Government and the guidance provided in this Circular.

2. It is requested that the Ministers of the various Ministries, Heads of government agencies, central agencies of the Party, and mass organizations; Chairmen of People's Committees of provinces and centrally-administered cities guide, inspect, and enforce in accordance with the provisions of Decree No. 89/CP and the guidance provided in this Circular.

3. This Circular takes effect from August 17, 1994. In cases where land is transferred or permission is granted to change the purpose of land use from October 15, 1993, when the Land Law took effect, to August 17, 1994, and land use fees have not yet been paid, such cases shall be implemented in accordance with the regulations of the Government. Previous provisions that conflict with Decree No. 89/CP and the guidance provided in this Circular are hereby abolished.