Decree No. 135/2016/ND-CP Amending and Supplementing Certain Provisions of Decrees on Land Use Fee Collection, Land Rent Collection, and Water Surface Rent Collection

DECREE

AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE DECREES ON COLLECTION OF LAND USE RIGHT TRANSFER FEE, COLLECTION OF LAND LEASE FEE, AND WATER SURFACE LEASE FEE

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

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

At the proposal of the Minister of Finance;

The Government issues this Decree amending and supplementing some articles of the Decrees stipulating the collection of land use fees, land rental fees, and water surface rental fees.

Article 1. Scope of Regulation

This Decree amends and supplements certain provisions of Government Decree No. 45/2014/NĐ-CP dated May 15, 2014 on collection of land use right transfer fee and Government Decree No. 46/2014/NĐ-CP dated May 15, 2014 on collection of land lease fee and water surface lease fee.

Article 2. Amend and supplement some articles of Decree No.

1. Amending and supplementing Clause 1 and adding Clause 4 to Article 4 as follows:

“1. Economic organizations, households, and individuals that are granted land by the State with payment of land use right transfer fee through the form of auctioning the right to use land shall pay the land use right transfer fee equal to the amount won at the auction. The determination of the starting price is as follows:

a) The starting price for auctioning the right to use land in cases where the area subject to land use right transfer fee of the plot or auctioned land has a value (calculated based on the land price in the Land Price Table) of 30 billion VND or more for central cities; 10 billion VND or more for mountainous and highland provinces; and 20 billion VND or more for other provinces shall be the specific land price determined by the Department of Natural Resources and Environment, transferred to the Appraisal Committee of the locality chaired by the Department of Finance to organize the appraisal and submit to the Provincial People's Committee for approval.

b) The starting price for auctioning the right to use land in cases where the area subject to land use right transfer fee of the plot or auctioned land has a value (calculated based on the land price in the Land Price Table) below 30 billion VND for central cities; below 10 billion VND for mountainous and highland provinces; and below 20 billion VND for other provinces shall be the specific land price determined by the financial authority according to the method of adjusting land prices.

c) The determination of the starting price for auctioning the right to use land attached to state-owned assets shall be carried out in accordance with the laws on management and use of state assets.

4. In cases where the State grants land but the land is not put into use or the progress of land use is delayed compared to the progress recorded in the investment project, the land user must pay to the State an amount corresponding to the land use right transfer fee determined as follows:

a) In cases where the period of land use is extended according to Point i Clause 1 Article 64 of the Land Law 2013, the amount corresponding to the land use right transfer fee payable for the delayed period shall be equal to the annual land lease fee.

b) In cases where the entity does not fall within the scope of entities entitled to an extension of the period of land use or falls within the scope of entities entitled to an extension of the period of land use but does not make the necessary procedures to obtain such extension or has exceeded the time limit for obtaining such extension according to Clause 1 Article 64 of the Land Law 2013 but still has not put the land into use and the State has not issued a Decision on land recovery according to the law, then the entity must pay to the State an amount corresponding to the land use right transfer fee calculated as the annual land lease fee from the date of land grant until the date of the land recovery decision.

c) The annual land lease fee for determining the amount of land lease fee payable according to Points a and b of this Clause shall be determined based on the land price in the Land Price Table, the adjustment factor for land price, and the percentage (%) for calculating the annual land lease fee issued by the Provincial People's Committee.”

2. Adding Clause 9 to Article 10 as follows:

“9. Exemption and reduction of land use right transfer fee shall not be applied in cases of auctioning the right to use land for granting land with payment of land use right transfer fee if the successful bidder is entitled to exemption or reduction of land use right transfer fee. The exemption and reduction of land use right transfer fee when granting land to entities under housing improvement policies shall be implemented according to relevant policies and not through the form of auctioning the right to use land.”

3. The Minister of Finance shall provide detailed guidance on this matter.

Article 3. Amending and supplementing some articles of Decree No.

1. Amending and supplementing Clause 3 of Article 4 as follows:

“3. In cases of auctioning the right to lease land

a) In cases of auctioning land lease with annual payment of land lease fee, the annual land lease fee rate is the winning bid price for one year. The starting price for auctioning the right to lease land with annual payment of land lease fee is determined by the financial authority according to the method of adjusting land prices.

The winning bid price is stabilized for 10 years; after the stabilization period, the land lease fee rate shall be adjusted according to the policy on collection of land lease fee for cases of leasing land with annual payment of land lease fee not through the form of auction; the adjustment level shall not exceed 30% of the winning bid price for land lease fee or the land lease fee rate of the preceding stabilization period.

b) In cases of auctioning land lease with lump-sum payment for the entire lease period, the land lease fee rate is the winning bid price for the lease period. The starting price for auctioning the right to lease land is determined as follows:

- In cases where the area subject to land lease fee of the plot or auctioned land has a value (calculated based on the land price in the Land Price Table) of 30 billion VND or more for central cities; 10 billion VND or more for mountainous and highland provinces; and 20 billion VND or more for other provinces, the starting price for auctioning the right to lease land is the specific land price determined by the Department of Natural Resources and Environment, transferred to the Appraisal Committee of the locality chaired by the Department of Finance to organize the appraisal and submit to the Provincial People's Committee for approval.

- In cases where the area subject to land lease fee of the plot or auctioned land has a value (calculated based on the land price in the Land Price Table) below 30 billion VND for central cities; below 10 billion VND for mountainous and highland provinces; and below 20 billion VND for other provinces, the starting price for auctioning the right to lease land is the specific land price determined by the financial authority according to the method of adjusting land prices.

c) The determination of the initial auction price for the lease right of state-owned land attached to state assets shall be carried out in accordance with the provisions of the law on the management and use of state assets.”

2. Amend Clause 8, add Clause 9, and amend Clause 9 to become Clause 10 of Article 12 as follows:

“8. In cases where the State leases land but the lessee does not put the land into use or delays the progress of land use compared to the progress stated in the investment project, the lessee must pay the State an amount corresponding to the land rent payable, which is determined as follows:

a) In cases where the period of use is extended according to Point i, Clause 1, Article 64 of the Land Law, the amount corresponding to the land rent payable for the delayed period shall be calculated based on the annual land rent payable.

b) In cases where the lessee does not fall within the category eligible for extension of the period of land use or falls within the category eligible for extension of the period of land use but does not complete the procedures to obtain such extension or has exceeded the time limit for extension as stipulated in Clause 1, Article 64 of the 2013 Land Law and still has not put the land into use and the State has not yet issued a Decision to recover the land according to the law, the lessee must pay the State an amount equal to the annual land rent for the period from the date of allocation of the land to the date when the decision to recover the land officially takes effect, minus the construction period determined by the competent state agency when leasing the land. The maximum deduction period for the construction period is three years for cases where the State leases land before July 1, 2014, and two years for cases where the State leases land from July 1, 2014 onwards.

c) The unit price of land rental for determining the amount of land rent payable under Points a and b of this Clause shall be determined based on the land price in the Land Price Table, the adjustment factor for land prices, and the percentage rate (%) for calculating the unit price of land rental issued by the People's Committee of the province.

9. In cases where households or individuals legally acquire the right to use land through transfer to implement an investment project in line with the land use plan and must change the purpose of land use after acquisition and fulfill financial obligations regarding land rent as prescribed in Articles 57 and 73 of the Land Law, the handling of the transfer payment and land rent shall be carried out in accordance with Clause 4 of this Article.

10. The Ministry of Finance shall provide detailed guidance on this Article.”

3. Add Clauses 4, 5, 6, and 7 to Article 13 as follows:

“4. In cases where the investment project is allocated land by the State without using the auction method but uses a mixed form of land use: allocating land with payment for land use rights, allocating land without payment for land use rights, leasing land, and the investor voluntarily prepaying compensation and clearance costs according to the approved plan by the competent state agency, the deduction of compensation and clearance costs shall be calculated based on each type of area and evenly distributed among the areas of land used for public purposes.

5. In cases where the State leases land annually but the lessee has fulfilled financial obligations for some years due to the deduction of prepaid compensation and clearance costs from the annual land rent according to the law, when switching to paying the annual land rent in one lump sum for the entire lease period, the remaining compensation and clearance costs corresponding to the time already converted and not yet deducted shall continue to be deducted to determine the amount of annual land rent payable for the remaining lease period as prescribed in Article 16 of this Decree.

6. In cases where industrial infrastructure enterprises, industrial clusters, export processing zones are leased land annually by the State and the prepaid compensation and clearance costs are converted into completed financial obligations for annual land rent according to regulations, during the period confirmed by the competent authority as having completed financial obligations for annual land rent, the industrial infrastructure enterprise shall have land rights as if it had been leased land annually by the State.

7. The determination and deduction of compensation and clearance costs from the land rent payable for cases prescribed in Clauses 1, 2, and 4 of this Article shall be implemented at the time of the lease decision issued by the competent state agency according to the provisions of the Land Law.”

4. Amend and supplement Clause 7, and add Clause 8 to Article 15 as follows:

“7. For projects leasing land before this Decree takes effect, and where one of the following three types of documents: Investment Certificate (Investment License), Decision to Lease Land, or Lease Contract issued by the competent state agency contains the unit price of land lease and specifies the principle for adjusting the unit price of land lease according to the regulations on the unit price of land lease issued by the Ministry of Finance (Decision No. 210A-TC/VP dated April 1, 1990, Decision No. 1417/TC/TCĐN dated December 30, 1994, Decision No. 179/1998/QĐ-BTC dated February 24, 1998, Decision No. 189/2000/QĐ-BTC dated November 24, 2000, Decision No. 1357TC/QĐ-TCT dated December 30, 1995):

a) In cases where the adjustment of the unit price of land lease has not been implemented according to Clause 2, Article 9 of Government Decree No. 142/2005/NĐ-CP dated November 14, 2005, the adjustment of the unit price of land lease shall continue to be implemented in accordance with the adjustment percentage (%) specified in the Investment Certificate (Investment License), Decision to Lease Land, or Lease Contract.

b) In cases where the land rental price has been adjusted according to the provisions of Clause 2, Article 9 of Decree No. 142/2005/NĐ-CP dated November 14, 2005 of the Government, or where a new Investment Certificate (Investment License) has been issued, or where the land lease contract has been changed due to administrative procedures, but the new certificates do not contain the principle for adjusting the land rental price, provided that the purpose of land use remains unchanged, when it comes time to adjust the land rental price for the next period, the adjustment shall not exceed the percentage rate of adjustment of the land rental price specified in one of the three aforementioned documents compared to the stable land rental price before December 31, 2015 (adjusted according to Decree No. 142/2005/NĐ-CP). The adjustment of the land rental price from January 1, 2016 onwards shall be carried out according to the provisions of Clause 8 of this Article.

8. Adjustment of the land rental price for cases where the State leases land for annual rent payment before January 1, 2006, currently using the land under the form of annual rent payment according to the intended use stated in the decision on land leasing and the land lease contract issued by competent state agencies (including cases where the State leases land for investment in constructing industrial infrastructure, industrial clusters, export processing zones, and cases where shareholding reform or business model conversion has been implemented before the effective date of this Decree but have inherited all rights and obligations regarding land, including the remaining lease term) shall be carried out as follows:

a) For cases where the State leased land before January 1, 2006, and none of the three documents, namely the Investment Certificate (Investment License), Decision on Land Leasing, and Land Lease Contract issued by competent state agencies record the principle for adjusting the land rental price according to the regulations on land rental prices set forth in Decision No. 210A-TC/VP dated April 1, 1990, Decision No. 1417/TC/TCĐN dated December 30, 1994, Decision No. 179/1998/QĐ-BTC dated February 24, 1998, Decision No. 189/2000/QĐ-BTC dated November 24, 2000, Decision No. 1357TC/QĐ-TCT dated December 30, 1995 (hereinafter referred to as the principle for adjusting the land rental price), the payment of land rent shall be carried out as follows:

- From January 1, 2006 to December 31, 2015, pay the annual land rent according to the land rental price determined in accordance with the regulations or temporarily calculated based on the policy and land price at the time of issuance of the Notice on Temporary Payment of Land Rent and settle the land rent amount according to the determined or temporarily paid amount. In cases where temporary land rent is being paid according to the policy and land price before January 1, 2006, or the land rental price has not been recalculated according to Decree No. 142/2005/NĐ-CP, the land rental price must be recalculated according to the laws of each period to recover the land rent payable.

- From January 1, 2016 until the end of the lease term, the land rental price shall be determined based on the land rental price established on January 1, 2006 according to the provisions of Decree No. 142/2005/NĐ-CP, the number of adjustment cycles from January 1, 2006 to January 1, 2016 (two cycles), the adjustment rate of the land rental price for each cycle increases by 15% compared to the previous stable period's land rental price. This land rental price will remain stable for five years, and when it comes time to adjust the land rental price for the next period, it will be increased by 15% compared to the previous stable period's land rental price and applied to the remaining lease term. If the land rental price established on January 1, 2016 is higher than the price determined according to this Decree, then the land rental price stipulated in Article 4 of this Decree shall be applied as the base price for the adjustment period starting from January 1, 2016.

- In cases where from July 1, 2014 to December 31, 2015, the land rent has been processed according to the provisions of Clause 2, Article 15 and Clause 2, Clause 4, Article 32 of this Decree, the land rental price from January 1, 2016 shall be recalculated according to the provisions of Point a of this Clause.

b) In cases where projects for constructing industrial infrastructure in industrial zones, industrial clusters, and export processing zones must adjust the land rental price and determine the land rent according to the policy and land price as prescribed in Decree No. 142/2005/NĐ-CP, they are exempted from paying land rent for the area of shared infrastructure construction within the industrial zone, industrial cluster, or export processing zone during the remaining lease term from January 1, 2016. In cases where they are not required to adjust the land rental price according to the policy and land price as prescribed in Decree No. 142/2005/NĐ-CP, they must pay the land rent for the entire area leased by the State according to the relevant laws before the effective date of Decree No. 142/2005/NĐ-CP. The determination of the area for shared infrastructure construction within the industrial zone, industrial cluster, or export processing zone shall be carried out according to the guidance of the natural resources and environment agency.”

5. Amend and supplement Clause 1, Clause 3, and add Clauses 9, 10, and 11 to Article 18 as follows:

“1. Exemption and reduction of land rent and water surface rent shall be implemented for each investment project linked to new land leasing, except for the following cases:

a) State-owned forestry and agricultural enterprises that are allocated land without payment of land use fee when transitioning to land leasing according to the land law and are eligible for exemption or reduction of land rent under the investment incentives in specific fields or areas according to the investment law.

b) Public service organizations that are allocated land without payment of land use fee when transitioning to land leasing and are exempted from land rent for land used to construct public service facilities according to the land law.

c) Organizations and individuals who have had Decisions on land allocation without payment of land use fee, Decisions on land leasing, or Land Leasing Contracts in accordance with the law before July 1, 2014, now must lease the land, continue to use the land as it is, and are subject to exemption or reduction of land rent fees as stipulated in Points d, đ, e, g, h, i, k Clause 1 Article 19 and Clause 1 Article 20 of this Decree.

d) Organizations and individuals currently leasing land that are subject to exemption or reduction of land rent fees under other regulations of the Government and the Prime Minister.

3. Exemption or reduction of land rent fees and water surface rent fees as stipulated in Article 19, Article 20 of this Decree shall only be directly implemented for entities leased land by the State and calculated based on the amount of land rent fees and water surface rent fees payable, except for cases stipulated in Point b Clause 1 Article 19 of this Decree.

9. Exemption or reduction of land rent fees shall not be applied in cases where land use rights are auctioned for leasing.

10. In cases where the State leases land with annual land rent payments and the entity is currently enjoying preferential exemptions or reductions of land rent fees, if the entity transfers assets attached to the leased land in accordance with the law and the buyer of the assets on the land continues to be leased the remaining time of the land lease for the same purpose as when receiving the transfer, then the exemption or reduction of land rent fees shall be carried out as follows:

a) The transferor shall not include the amount of land lease fees already exempted or reduced in the transfer price.

b) The transferee continues to enjoy the exemption or reduction of land rent fees for the remaining preferential period.

If, after receiving the transfer, the transferee does not continue to use the land for the purpose it was transferred for and instead uses it for another purpose, they must fulfill their financial obligations as stipulated in Clause 4 Article 12 of this Decree.

11. In cases where the State leases land with annual land rent payments and the entity is currently enjoying preferential exemptions or reductions of land rent fees, when implementing changes in business models or shareholding reform in accordance with the law, the economic organization after the change or shareholding reform will continue to enjoy the preferential exemptions or reductions of land rent fees for the remaining preferential period if they continue to use the land for the purpose exempted or reduced from land rent fees as stipulated by the law before the change in business model or shareholding reform.

6. Amend and supplement Point b Clause 1; add Point đ to Clause 3; amend and supplement Clause 8; add Clause 10 and amend Clause 10 to become Clause 11 of Article 19 as follows:

“1. Exempt land rent fees and water surface rent fees for the entire lease term in the following cases:

...b) Investment projects for building housing for workers in industrial zones, export processing zones, which are leased by the State or subleased by investors who build and operate infrastructure in industrial zones, export processing zones, to implement according to the planning approved by competent state authorities; the investor may not include land rent costs in the rental price of the houses.

3. Exempt land rent fees and water surface rent fees after the construction period during which land rent fees are exempted as stipulated in Clause 2 of this Article, specifically as follows:

...đ) The exemption of land rent fees for investment projects for building and operating infrastructure in industrial zones, clusters of industries, export processing zones, economic zones, high-tech zones shall be implemented in accordance with the provisions of Clause 10 of this Article.

8. The exemption of land rent fees for investment projects in agriculture and rural areas shall be implemented in accordance with the Government's regulations on investment incentives in agriculture and rural areas and shall be exempted from land rent fees during the construction period as stipulated in Clause 2 of this Article.

10. Investors who are leased land by the State to invest in building and operating infrastructure in industrial zones, clusters of industries, export processing zones, economic zones, high-tech zones shall be exempted from land rent fees after the construction period during which land rent fees are exempted as stipulated in Clause 2 of this Article, specifically as follows:

a) 11 years if investing in a district not included in the List of Investment-Favored Areas as prescribed by the Law on Investment.

b) 15 years if investing in a district included in the List of Areas with Special Economic and Social Conditions as prescribed by the Law on Investment.

c) The entire lease period if investing in a district included in the List of Areas with Particularly Difficult Economic and Social Conditions as prescribed by the Law on Investment.

11. The Prime Minister shall consider and decide on the exemption of land rent fees for other cases proposed by the Minister of Finance based on recommendations from ministers, heads of ministerial-level agencies, government-affiliated agencies, and chairpersons of provincial people's committees.

7. Amend and supplement Point a Clause 1 of Article 23 as follows:

“1. In cases of paying land rent fees and water surface rent fees annually.

a) For cases exempted from land rent fees and water surface rent fees as stipulated in Article 19 of this Decree, the annual land rent fees and water surface rent fees payable at the time of commencement of payment (which is after the exemption period for land rent fees and the period determined to complete the financial obligation for annual land rent fees through offsetting compensation and land clearance expenses converted into years and months of completing the annual land rent payment obligation according to the prescribed regulations) shall be determined as follows:

8. Amend and supplement Clause 11 and add Clauses 13, 14, 15, 16, 17 of Article 31 as follows:

"11. In the case where the investor has advanced funds for land clearance compensation according to the plan approved by the competent state authority under the policy on compensation, support, and resettlement when the State recovers land as stipulated in the Land Law 2003, and such funds remain within the lease term but have not been deducted or fully deducted from the annual land rent payable as prescribed by law at each period, then the remaining amount shall continue to be deducted based on the time equivalent calculated according to the land rent price determined by the policy and land price on January 1, 2015, and the completion time of annual land rent payment shall be determined.

For cases where the State leases land before January 1, 2006, and such cases fall under the category of those whose land rent prices need to be reassessed according to Clause 8, Article 15 of this Decree, the land rent price for converting to the corresponding time of land rent payment shall be determined according to the policy and land price on January 1, 2016.

13. In the case where the person leasing land from the State agrees with the person whose land is being recovered on the level of compensation and support for land and assets, and the self-agreed compensation and support for land have been recognized by the competent state authority and can be deducted from the land rent payable, but as of July 1, 2014, such deductions have not been made or are still being gradually deducted according to the provisions of the Land Law 2003 (before March 1, 2011), the remaining amount recognized by the competent authority shall continue to be deducted from the land rent payable. The compensation and support for land shall be converted into the time completed for annual land rent payment according to the policy and land price on January 1, 2015.

14. In the case where the State leases land annually according to the provisions of the Land Law 2003, but the actual handover date of the land is after July 1, 2014, the land rent price shall be determined according to the policy and land price at the actual handover date.

15. In the case where the State leases land according to the provision of paying the entire lease period's land rent in one lump sum under the Land Law 2003, but the financial obligation for land rent has not been fulfilled before July 1, 2014, it shall be handled as follows:

a) In the case where the land rent payable has been determined and notified by the competent state authority in accordance with the law, the economic organization shall continue to pay the land rent into the state budget at the notified rate and must pay late payment fees (if applicable) according to the relevant laws applicable to each period.

b) In the case where the land rent payable has been determined and notified by the competent state authority but does not comply with the legal provisions at the time of determination and notification, the provincial People's Committee shall direct the reassessment based on the actual situation in the locality to ensure compliance with the law, and the additional amount to be paid (if any) shall be notified for the economic organization to supplement into the state budget without having to pay late payment fees for the supplementary payment before the reassessment. For the land rent already determined and notified by the competent state authority before the reassessment, the economic organization shall continue to pay according to the notified amount; if the payment is insufficient, the remaining amount must now be paid along with late payment fees as stipulated in Point a of this Clause.

c) In the case where the competent state authority has not issued a notification to pay the land rent and the economic organization has not paid or only temporarily paid part of the land rent into the state budget, it shall be handled as follows:

The temporarily paid land rent (if any) shall be converted into the area of land for which the land rent has been paid (fulfilled financial obligations) at the actual handover date. The remaining area of land that needs to pay the land rent according to the policy and land price at the actual handover date (for cases handed over before January 1, 2005, the land price for collecting land rent shall be determined at January 1, 2005), and the handling of late payment of land rent for this case shall be as follows:

- In the case where the delay in paying the land rent is due to subjective reasons from the economic organization, the economic organization must pay an amount equivalent to the late payment fee for land rent according to the relevant tax management laws applicable to each period.

- In the case where the delay in paying the land rent is not due to subjective reasons from the economic organization, the economic organization does not have to pay an amount equivalent to the late payment fee for land rent.

The late payment period for land rent is calculated from the actual handover date of the land to the formal notification date for payment into the state budget according to the percentage of late payment fees for financial obligations as stipulated by the relevant laws applicable to each period.

d) In the case where the actual handover of the land has not occurred, but the competent state authority has still notified the land rent payable and the economic organization has paid the money into the state budget, it shall be considered as a temporary payment and handled as stipulated in Point b of this Clause.

đ) The actual handover date of the land is determined as follows:

- In the case of handing over land that has been cleared, the actual handover date of the land is the decision date of the competent state authority to hand over the land.

- In the case of handing over land that has not been cleared, the actual handover date of the land is the date of handing over the cleared land according to the progress of land handover recorded in the approved investment project; in the case where the completion of land clearance does not match the progress of land handover recorded in the approved investment project, the actual handover date of the land is the date of handing over the cleared land on-site."

For projects with land clearance time exceeding two years, if the approved project does not specify the land handover schedule, the actual land handover shall be carried out annually in accordance with the actual completion of land clearance on site.

16. In cases where the State leases land before July 1, 2014 but submits the application for exemption from land rent during the construction period after July 1, 2014, the exemption from land rent during the construction period shall be granted for a maximum of three years from the date of the Land Lease Decision or the actual date of land handover; the lessee must submit the application for exemption from land rent during the construction period to the competent state agency to process the exemption and reduction procedures before January 1, 2017. If the lessee submits the application after this deadline, they will only be considered for exemption from land rent for the remaining period (if any) starting from the submission date according to regulations. If the lessee has already paid the land rent during the exempted period, such payment will be deducted from the land rent payable in subsequent years.

17. In cases where the State leases land before July 1, 2014 and the Investment Preference Certificate or Investment License issued by the competent state agency specifically states the preferential exemption or reduction of land rent, which is correctly determined in accordance with investment laws; or does not specifically state the preferential exemption or reduction of land rent or does not require issuance of an Investment Preference Certificate or Investment License but falls within the category and meets the conditions to be exempted or reduced from land rent according to the law at the time of leasing by the State, but the lessee delays the procedures for exemption or reduction, they will continue to be exempted or reduced from land rent according to the law at the time of leasing by the State. The lessee must submit the application for exemption or reduction of land rent to the competent state agency to process the exemption and reduction procedures before January 1, 2017. If the lessee submits the application after this deadline, they will only be considered for exemption or reduction of land rent for the remaining period (if any) starting from the submission date according to regulations.

In cases where the competent state agency has decided to exempt or reduce land rent for the remaining period up to January 1, 2017, and now processes it according to the provisions of this clause, the amount already paid corresponding to the period not considered for exemption or reduction due to delayed procedures will be deducted from the land rent payable after the exemption or reduction period ends and can also be deducted from other financial obligations payable if the lease term has expired without being fully deducted.

9. Supplement Clause 5, Clause 6 to Article 32 as follows:

“5. Determining the financial obligations of enterprises operating infrastructure in industrial zones, clusters, and export processing zones that have been leased land annually by the State but have subleased land with a lump-sum rental fee for the entire lease period before July 1, 2014.

a) In cases where the State has leased land before January 1, 2006, and the three types of documents including the Investment Certificate (Investment Permit), Land Lease Decision, and Land Lease Contract issued by the competent state agency (signed) do not record the principle of adjusting the unit price of land rent, or one of the three types of documents records the principle of adjusting the unit price of land rent but has adjusted according to Clause 2, Article 9 of Decree No. 142/2005/NĐ-CP and has subleased land with a lump-sum rental fee for the entire lease period before July 1, 2014, then the land rent that the enterprise operating infrastructure must pay according to Clause 2, Article 210 of the 2013 Land Law shall be as follows:

- Annual land rent shall be collected for the period from January 1, 2006 to December 31, 2015 based on the unit price of land rent determined in accordance with the regulations or temporarily calculated according to policy and land prices at the time of issuing the Notice on Temporary Payment of Land Rent and settled based on the amount determined or temporarily paid. In cases where temporary payment of land rent according to policy and land prices before January 1, 2006 or the unit price of land rent has not been recalculated according to Decree No. 142/2005/NĐ-CP, it must be recalculated according to the legal regulations of each period to determine and collect land rent for the period from January 1, 2006 to December 31, 2015.

- A lump-sum land rent shall be collected for the period from January 1, 2016 to the end of the sublease period. This amount shall be determined based on the area of subleased land, the remaining sublease period from January 1, 2016, the annual unit price of land rent determined according to the legal regulations at the time of January 1, 2006, and an additional amount equivalent to late payment interest according to the legal regulations of each period for this amount from January 1, 2006 to the date of payment into the State budget for cases where the land was subleased before January 1, 2006, or from the date of subleasing to the date of payment into the State budget for cases where the land was subleased from January 1, 2006 to June 30, 2014.

b) In cases where the State leases land during the period from January 1, 2006 to before July 1, 2014 and has subleased land with a lump-sum rental fee for the entire lease period before July 1, 2014, the land rent that the enterprise operating infrastructure must pay according to Clause 2, Article 210 of the 2013 Land Law shall be as follows:

- Determine and collect annual land rent from the date the State leases the land to December 31, 2015, according to the lease price determined in accordance with regulations or temporarily calculated based on the policy and land prices at the time of issuance of the Notice on Temporary Payment of Land Rent, and settle the amount of land rent already determined or temporarily paid. In cases where the lease price has not been determined or annual land rent is being temporarily paid but does not comply with the policy and land prices at the time of issuance of the Notice on Temporary Payment of Land Rent, it must be recalculated to collect land rent for the period from the date the State leases the land to December 31, 2015.

- Determine and collect land rent once for the period from January 1, 2016, to the end of the period for subleasing the land corresponding to the area subleased as follows:

+ For cases where the State leases land with annual payment during the period from January 1, 2006, to before October 1, 2009 (the date the Government's Decree No. 69/2009/NĐ-CP dated August 13, 2009, took effect), the amount of land rent to be paid once shall be determined by multiplying the annual land rent at the time of subleasing the land by the number of years for subleasing the land (from January 1, 2016, to the end of the subleasing period) and adding an amount equivalent to the late payment fee under tax management laws applicable during the period from when the investor subleases the land until the payment is made to the state budget.

+ For cases where the State leases land with annual payment during the period from October 1, 2009, to before July 1, 2014, the amount of land rent to be paid once shall be determined by the amount of land use fee payable as if the land were transferred with payment of land use fee for the same purpose and duration (from January 1, 2016, to the end of the subleasing period) according to the policy and land prices at the time of subleasing the land.

c) For cases where the investor is leased land with annual payment for investment in construction and operation of industrial zone infrastructure, industrial cluster infrastructure, export processing zone infrastructure, and one of the three types of documents including Investment Certificate (Investment License), Decision on Leasing Land, or Land Lease Contract issued by competent state authorities (signed) includes the principle for adjusting the lease price but has not adjusted the lease price in accordance with Clause 2, Article 9 of the Government's Decree No. 142/2005/NĐ-CP dated November 14, 2005, on Collection of Land Rent and Water Surface Rent but has subleased land with infrastructure under a lump-sum payment method for the entire leasing period from January 1, 2006, to before July 1, 2014, the investor constructing and operating infrastructure must pay the State the lump-sum land rent determined according to the principles set out in Points a and b of this Clause.

d) Enterprises operating industrial zone infrastructure, industrial cluster infrastructure, and export processing zone infrastructure must complete the payment of the lump-sum land rent determined in accordance with Points a, b, and c of this Clause before December 31, 2016. If the enterprise fails to complete the payment beyond this deadline, administrative measures will be taken and late payment fees will be collected according to the provisions of tax management laws.

6. The handling of compensation and clearance costs according to the plan approved by the competent state authority (including cases of self-negotiated compensation or self-transfer) that have been paid by the land user in accordance with the law before July 1, 2004, shall be carried out as follows:

a) In cases where the State leases land with a lump-sum payment for the entire leasing period but has not been determined and notified by the competent state authority of the amount of land rent payable in accordance with the law or has been determined but is inconsistent with the law at the time of determination, the compensation for land and support for land according to the plan approved by the competent state authority or the value of the land use right according to the lawful purpose of the transferred land recognized and approved by the competent state authority (for cases of self-negotiated compensation or self-transfer) at the time of self-negotiation or self-transfer (allocated over the remaining lease period corresponding to the area subject to land rent collection and not yet accounted for in production and business expenses) shall be deducted from the land rent payable and shall not exceed the amount of land rent payable.

b) In cases where the State leases land with annual payment and has adjusted the lease price according to the policy and land prices stipulated in Clause 2, Article 9 of the Government's Decree No. 142/2005/NĐ-CP dated November 14, 2005, or must adjust the lease price and collect land rent in accordance with Clause 8, Article 15 of this Decree, the compensation for land and support for land according to the plan approved by the competent state authority or the value of the land use right according to the lawful purpose of the transferred land recognized and approved by the competent state authority (for cases of self-negotiated compensation or self-transfer) at the time of self-negotiation or self-transfer (allocated over the remaining lease period corresponding to the area subject to land rent collection and not yet accounted for in production and business expenses) shall be deducted from the land rent payable and shall not exceed the amount of land rent payable. The amount deducted from the land rent payable shall be converted into the completed annual land rent payment period. The lease price applied for conversion shall be according to the policy and land prices as of January 1, 2016.

c) In cases where land is transferred by the State without payment of land use fees, or land is leased according to the provisions of the law before July 1, 2004, or land is leased with annual rent payments after July 1, 2004, when implementing the transfer to land allocation with payment of land use fees from after July 1, 2004 but has not yet been determined and notified by the competent state agency of the amount of land use fees payable in accordance with the provisions of the law, or has been determined but is inconsistent with the legal provisions at the time of determination and needs to be re-determined in accordance with the provisions of the law, then the compensation for land and support for land according to the approved plan, or the value of the land use right according to the lawful purpose of the transferred land use right determined and approved by the competent state agency (in cases of self-negotiated compensation or self-negotiated transfer) at the time of self-negotiation or self-transfer (allocated over the remaining lease period corresponding to the area subject to land use fee payment and not yet accounted for in production and business costs) shall be deducted from the land use fee and shall not exceed the amount of land use fee payable.

10. The Minister of Finance shall provide detailed guidance on this matter.

Article 4. Effective date and responsibility for implementation

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

2. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of People's Committees at all levels, and other organizations and individuals concerned are responsible for implementing this Decree.