This circular guides the exemption and reduction of land lease fees for investment projects eligible for incentives under the Law on Domestic Investment Promotion. The circular specifies the timing for issuing certificates of incentives and the methods to implement land lease fee reductions.
Scope of application
Enterprises with investment projects eligible for incentives under the Law on Domestic Investment Promotion
Key points
- Enterprises meeting the conditions stipulated in Article 15 of Decree No. 51/1999/NĐ-CP and having received an incentive certificate before Circular No. 98/2002/TT-BTC took effect shall continue to enjoy land lease fee exemptions for the remaining period of their incentives (Point 1 of the circular)
- Enterprises receiving an investment incentive certificate after Circular No. 98/2002/TT-BTC took effect will implement according to the provisions in Section IV, Part B of this Circular (Point 1 of the circular)
- Projects meeting the conditions for incentives under Decree No. 51/1999/NĐ-CP and guidelines set out in Circular No. 98/2002/TT-BTC but not included in the list of investment incentives specified in Article 1 of Decree No. 35/2002/NĐ-CP will continue to enjoy incentives according to their certificates if project implementation meets the conditions stated therein (Point 2 of the circular)
🌐 Social impact of this document
- Enterprises enjoying land lease fee reductions under incentive certificates will reduce investment costs and enhance competitiveness.
- Projects no longer in the list of incentives but still meeting the conditions specified in the incentive certificate will continue to receive financial support from the state.
❓ Frequently asked questions
Which enterprises may be exempted or reduced from land lease fees?
Enterprises meeting the conditions stipulated in Article 15 of Decree No. 51/1999/NĐ-CP and having received an incentive certificate before Circular No. 98/2002/TT-BTC took effect.
When will enterprises implement according to the provisions at Section IV, Part B of Circular No. 98/2002/TT-BTC?
Enterprises receiving an investment incentive certificate after Circular No. 98/2002/TT-BTC took effect.
What incentives will projects not included in the list of incentives under Article 1 of Decree No. 35/2002/NĐ-CP still receive?
If a project meets the conditions stated in the incentive certificate and its implementation process complies with these conditions, it will continue to enjoy incentives according to the certificate.
The Ministry of Planning and Investment will notify enterprises about this circular how?
The Ministry of Planning and Investment will inform enterprises and instruct them accordingly.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 10950 TC/TCT DATED SEPTEMBER 28, 2004
REGARDING EXEMPTIONS AND REDUCTIONS IN LAND RENTAL FEES
RESPECTED: Ministry of Planning and Investment
The Ministry of Finance has received Letter No. 3804 BKH/PTDN dated June 18, 2004 from the Ministry of Planning and Investment requesting that enterprises be granted preferential treatment regarding land rental fees as stipulated in the Law on Encouragement of Domestic Investment. Regarding this matter, the Ministry of Finance offers the following opinions:
1. The General Department of Taxation has issued Letter No. 376 TCT/DNNN dated February 18, 2004 to provincial and centrally-administered city tax bureaus regarding the resolution of difficulties in granting exemptions and reductions in land rental fees for cases eligible for investment incentives as follows:
"1. For enterprises that meet the conditions specified in Article 15 of Decree No. 51/1999/NĐ-CP dated July 8, 1999 issued by the Government and have been granted an investment incentive certificate by a competent authority before Circular No. 98/2002/TT-BTC dated October 24, 2002 of the Ministry of Finance took effect shall continue to enjoy exemptions or reductions in land rental fees for the remaining period specified in their investment incentive certificates.
2. For cases where enterprises have been granted an investment incentive certificate by a competent authority after Circular No. 98/2002/TT-BTC mentioned above became effective, they shall be implemented according to the provisions of Section IV Part B of Circular No. 98/2002/TT-BTC."
2. Investment projects that have been granted an investment incentive certificate due to meeting the conditions specified in Decree No. 51/1999/NĐ-CP and guided by Circular No. 98/2002/TT-BTC but are no longer included in the list of preferential investments as stipulated in Article 1 of Decree No. 35/2002/NĐ-CP dated March 29, 2002 issued by the Government shall continue to enjoy investment incentives according to their investment incentive certificates if the implementation process still meets the conditions stated in such certificates.
The Ministry of Finance requests the Ministry of Planning and Investment to inform enterprises accordingly and implement these provisions.
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