Circular No. 10/2018/TT-BTC amends and supplements certain provisions of Circular No. 76/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance guiding certain provisions of Decree No. 45/2014/NĐ-CP dated May 15, 2014 of the Government on land use fee collection.

CIRCULAR

AMENDMENTS AND SUPPLEMENTS TO CERTAIN ARTICLES OF CIRCULAR NO. 76/2014/TT-BTC DATED JUNE 16, 2014 OF THE MINISTRY OF FINANCE GUIDING CERTAIN PROVISIONS OF DECREE NO. 45/2014/NĐ-CP DATED MAY 15, 2014 OF THE GOVERNMENT ON THE COLLECTION OF LAND USE FEES

The Government issues this Decree on management and development of industrial clusters.

Pursuant to Decree No. 45/2014/NĐ-CP dated May 15, 2014 of the Government on the collection of land use fees;

Pursuant to Decree No. 135/2016/NĐ-CP dated September 9, 2016 of the Government amending and supplementing certain Articles of Decrees on the collection of land use fees, land lease fees, and water surface lease fees;

Pursuant to Decree No. 01/2017/NĐ-CP dated January 6, 2017 of the Government amending and supplementing certain Decrees detailing the implementation of the Land Law;

Pursuant to Decree No. 123/2017/NĐ-CP dated November 14, 2017 of the Government amending and supplementing certain provisions of Decrees on the collection of land use fees, land lease fees, and water surface lease fees;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the State Asset Management Agency,

The Minister of Finance issues this Circular amending and supplementing certain provisions of Circular No. 76/2014/TT-BTC dated June 16, 2014 guiding certain provisions of Decree No. 45/2014/NĐ-CP dated May 15, 2014 of the Government on the collection of land use fees.

Article 1. Supplement Clause 6 to

“6. The percentage rate (%) for the annual land rental price specified in Clauses 3 and 4 of this Article shall be determined according to the purpose of commercial and service land use corresponding to each area and street as specifically prescribed by the provincial People's Committee in accordance with the laws on the collection of land lease fees and water surface lease fees.”

Article 2. Amend

“4. In cases where the remaining land use period determined according to the formula stipulated in this Article does not complete a year, it shall be calculated by month; if the period does not complete a month but exceeds 15 days, it shall be counted as one full month, and if it is less than 15 days, no land use fee shall be paid.

5. In cases where the purpose of land use changes from non-agricultural production and business land (excluding residential land) received through the transfer of residential land from households or individuals to residential land for investment projects starting from July 1, 2014 onwards, the land use fee payable shall be the difference between the land use fee calculated based on the detailed construction planning approved by the competent state authority and the land use fee calculated based on the residential land use planning of households or individuals in the respective areas at the time when the competent state authority permits the change of land use purpose.

6. Economic organizations that change land use purpose in accordance with Clauses 29 and 30 of Article 2 of Decree No. 01/2017/NĐ-CP, which fall under the category of continuing to use land through the grant of land with payment of land use fees, shall pay the land use fee equal to the difference between the land use fee calculated based on the land price of the land type after the change of purpose as determined according to Clause 1 of this Circular for the remaining land use period as determined by regulations, minus the land use fee calculated based on the land price of the land type before the change of purpose for the remaining land use period at the time when the competent state authority permits the change of land use purpose.”

Article 3. Supplement Clause 4 as follows:

"4. Households and individuals currently using land who change the purpose of land use according to Clause 30, Article 2 of Decree No. 01/2017/ND-CP, and fall under the case of continuing to use land in the form of allocating land with payment for land use rights shall pay the land use fee equal to the difference between the land use fee calculated based on the price of the land after changing the purpose of use determined according to Clause 1, Article 3 of this Circular for the duration of land use determined according to regulations minus (-) the amount of land use fee calculated based on the price of the land before changing the purpose of use for the remaining duration of land use at the time when the competent state agency permits the change of land use purpose."

Article 4. Supplement Article 8a as follows:

"Article 8a. Determining the land use fee when reissuing the Certificate of Land Use Right issued incorrectly according to the law

1. When reissuing the Certificate of Land Use Right issued incorrectly according to the law as stipulated in Clause 41, Article 2 of Decree No. 01/2017/ND-CP, the land use fee shall be determined as follows:

a) In cases where the Certificate of Land Use Right was issued incorrectly according to the law due to the fault of the state agency, the land use fee when reissuing the Certificate of Land Use Right shall be determined according to the policy and land price at the time the Certificate of Land Use Right was issued previously.

b) In cases where the Certificate of Land Use Right was issued incorrectly according to the law due to the fault of the land user, the land use fee when reissuing the Certificate of Land Use Right shall be determined according to the policy and land price at the time the Certificate of Land Use Right is reissued.

2. Collection, payment, and refund of financial obligations of the land user

a) In cases where the land user has not paid the land use fee when obtaining the Certificate of Land Use Right previously or the amount already paid is less than the newly determined land use fee, the land user must pay the outstanding land use fee.

b) In cases where the land use fee already paid by the land user exceeds the newly determined land use fee, the land user shall be refunded the excess amount paid according to regulations.

c) The collection, payment, and refund of financial obligations of the land user shall be carried out in accordance with laws on land use fee collection, state budget, tax, and other related laws."

Article 5. Amending and supplementing

"Article 8. Determining the land use fee when recognizing the right to use land (issuing the Certificate of Land Use Right) for households and individuals for residential land with origin from allocation without proper authority before July 1, 2004

The determination of the land use fee when recognizing the right to use land (issuing the Certificate of Land Use Right) for households and individuals for residential land with origin from allocation without proper authority before July 1, 2004 shall be implemented according to Article 8 of Decree No. 45/2014/ND-CP; some contents of this article are guided as follows:

1. Documents proving the payment of money to agencies or organizations to obtain the right to use land when determining the land use fee as stipulated in Point a and Point b, Clause 1, Article 8 of Decree No. 45/2014/ND-CP include:

a) Receipts, payment vouchers, invoices for payment to obtain the right to use land, compensation payments according to Decision No. 186/HĐBT dated May 31, 1990 of the Council of Ministers regarding compensation for agricultural land and forest land when converted to other purposes.

b) Receipts, payment vouchers, invoices for payment according to Circular No. 60/TC-TCT dated July 16, 1993 of the Ministry of Finance guiding the management system for revenue collection for the sale of state-owned houses, issuance of land use rights for house construction and other works.

c) Receipts, payment vouchers, invoices, or other types of documents proving the payment of money to obtain the right to use land from People's Committees at various levels or from agencies or organizations allocating land without proper authority.

2. In cases where the Certificate of Land Use Right is issued according to Clause 19, Article 2 of Decree No. 01/2017/ND-CP, the land use fee collection rate shall be determined according to Article 8 of Decree No. 45/2014/ND-CP."

Article 6. Supplement Article 10a as follows:

"Article 10a. Collection of land use fee when issuing Certificate of Land Use Right for additional land area due to re-measurement compared to the land use right documents currently held by households and individuals

1. In cases where the Certificate of Land Use Right is issued for the additional area according to Clause 20, Article 2 of Decree No. 01/2017/ND-CP and the household or individual already has a Certificate of Land Use Right, they shall pay the land use fee for the additional area according to the policy and land price at the time the Certificate of Land Use Right was issued.

2. In cases where the Certificate of Land Use Right is issued for the additional area according to Clause 20, Article 2 of Decree No. 01/2017/ND-CP and the household or individual holds land use right documents stipulated in Article 100 of the Land Law and Article 18 of Decree No. 43/2014/ND-CP, they shall pay the land use fee for the additional area according to the policy and land price at the time the competent state agency recognizes the additional land use right."

Article 7. Supplement Article 11a as follows:

"Article 11a. In cases where the State allocates land with payment of land use fee before July 15, 2014, and falls within the category required to pay back the land use fee, the deadline for paying the back land use fee shall be determined according to Clause 4, Article 14 of Decree No. 45/2014/ND-CP."

Article 8. Amend

"1. In cases where the land value for calculating the land use fee is determined using direct comparison, deduction, income, and residual methods:

a) If at the time of submitting the application for exemption or reduction of the land use fee, there is a land value for calculating the land use fee determined by the competent state agency according to the law, then the amount of exemption or reduction shall be determined based on the land value for calculating the land use fee determined by the competent state agency.

b) If at the time of submitting the application for exemption or reduction of the land use fee, there is no land value determined by the competent state agency according to the law:

- For cases where the land use fee is exempted, the amount of exemption shall be determined based on the land price in the land price list and the land price adjustment coefficient issued by the People's Committee of the province.

- For cases where the land use fee is reduced, the amount of reduction shall be determined after the land value for calculating the land use fee is determined by the competent state agency.

2. In cases where the land value for calculating the land use fee is determined using the land price adjustment coefficient method, the amount of exemption or reduction shall be determined based on the land price in the land price list and the land price adjustment coefficient issued by the People's Committee of the province.

3. The tax authority shall record the specific amount of the land use fee that is exempted or reduced (determined according to Clause 1 and Clause 2 of this Article) in the Decision on Exemption or Reduction of the Land Use Fee; simultaneously, in the Decision on Exemption or Reduction of the Land Use Fee, it shall clearly state: "In cases where an economic organization transfers the land use right for the land area that has been exempted or reduced from the land use fee, they must pay the land use fee that has been exempted or reduced to the State; the land use fee recorded in this Decision will be recalculated according to the law at the time of transfer."

4. In cases where a person who receives land from the State with payment of the land use fee is exempted from the land use fee and wishes to pay the land use fee (without enjoying preferential treatment), the amount of the land use fee to be paid shall be determined according to the policy and land price at the time the land user submits a written request to pay the land use fee. The land user shall have the same rights over the land as in cases where the land use fee is not exempted."

Article 9. Supplement Clause 7, Clause 8 as follows:

"7. In cases where land use right fees have been recorded before July 1, 2014 but not yet paid, the following measures shall be taken:

a) For cases where land use right fees were recorded before March 1, 2011, within a maximum period of five years from March 1, 2011, the land user shall pay off the land use right fees according to the land price at the time of issuance of the land use right certificate; if the land use right fees are not fully paid within five years, the land user must pay the remaining land use right fees according to the policy and land price at the time of payment.

b) For cases where land use right fees were recorded from March 1, 2011 to June 30, 2014, the provisions on payment of arrears under Decree No. 45/2014/NĐ-CP shall apply. The land user shall gradually repay the debt within a maximum period of five years from the date of recording the debt; if the land use right fees are not fully paid within five years from the date of recording the debt, the land user must pay the remaining land use right fees according to the policy and land price at the time of payment.

8. In cases where economic organizations have been granted land by the State according to the Land Law of 1993 and the Land Law of 2003 but have not completed their financial obligations regarding land use right fees before July 1, 2014, the collection of land use right fees shall be calculated according to points a, b, and d of Clause 1, Article 20 of Decree No. 45/2014/NĐ-CP.

In cases where the competent authority has not issued a notice for payment of land use right fees and the economic organization has not paid or only temporarily paid part of the land use right fees into the state budget, the temporarily paid land use right fees (if any) shall be converted into the area of land that has already paid the land use right fees (completed financial obligations) at the actual time of land handover. The remaining area must pay the land use right fees according to the policy and land price at the actual time of land handover (for cases where land was actually handed over before January 1, 2005, the land price for collecting land use right fees shall be determined at January 1, 2005), and the late payment of land use right fees in this case shall be handled as follows:

- In cases where the delay in paying land use right fees is due to subjective reasons from the economic organization, the economic organization must pay an amount equivalent to the late payment of land use right fees according to the laws on tax management applicable to each period.

- In cases where the delay in paying land use right fees is not due to subjective reasons from the economic organization, the economic organization does not need to pay an amount equivalent to the late payment of land use right fees.

The late payment period for land use right fees shall be calculated from the actual time of land handover to the formal date of notification to pay into the state budget according to the percentage rate of late payment of financial obligations as stipulated by law during each period."

Article 10. Effective Date

1. This Circular takes effect from March 20, 2018.

2. Cases arising and required to fulfill financial obligations from the effective date of Decree No. 135/2016/NĐ-CP, Decree No. 01/2017/NĐ-CP, and Decree No. 123/2017/NĐ-CP until the effective date of this Circular shall be subject to the determination of financial obligations according to the provisions of Decree No. 135/2016/NĐ-CP, Decree No. 01/2017/NĐ-CP, Decree No. 123/2017/NĐ-CP, and the guidance provided in this Circular.

3. During implementation, if there are difficulties or obstacles, relevant agencies, units, organizations, and individuals are requested to promptly report to the Ministry of Finance for consideration and resolution.