Circular No. 136-TC/QLCS on refunding land use fees already paid into the State budget by credit institutions when switching to leasehold land

LETTER

OF THE MINISTRY OF FINANCE NUMBER 136 TC/QLCS DATE JANUARY 15, 1998
REGARDING THE REFUND OF LAND USE FEE PAID INTO THE STATE BUDGET BY ORGANIZATIONS TRANSITIONING TO LEASED LAND
RECENTLY, SOME LOCALITIES HAVE SUBMITTED DOCUMENTS REQUESTING THE MINISTRY OF FINANCE TO ISSUE GUIDELINES ON THE REFUND OF THE LAND USE FEE FOR ECONOMIC ORGANIZATIONS THAT WERE ALLOCATED LAND BY THE STATE PRIOR TO SEPTEMBER 9, 1996 (THE EFFECTIVE DATE OF THE AMENDED AND COMPLEMENTARY ORDINANCE ON RIGHTS AND OBLIGATIONS OF DOMESTIC ORGANIZATIONS ALLOCATED LAND AND LEASED BY THE STATE), WHICH HAD PAID THE LAND USE FEE WITH FUNDS NOT FROM THE STATE BUDGET, AND NOW MUST TRANSITION TO LEASED LAND. REGARDING THIS ISSUE, THE MINISTRY OF FINANCE OPINES AS FOLLOWS:

Respectfully submitted to: People's Committees of provinces and centrally governed cities

ACCORDING TO THE PROVISIONS OF CLAUSE 2, ARTICLE 31 OF DECREE NO. 85/CP DATED DECEMBER 17, 1996 OF THE GOVERNMENT PROVIDING DETAILED REGULATIONS FOR IMPLEMENTATION OF THE ORDINANCE ON RIGHTS AND OBLIGATIONS OF DOMESTIC ORGANIZATIONS ALLOCATED LAND AND LEASED BY THE STATE, DOMESTIC ECONOMIC ORGANIZATIONS ALLOCATED LAND "IF THEY HAVE PAID THE LAND USE FEE BUT THE FUNDS ARE NOT FROM THE STATE BUDGET AND NOW FALL UNDER THE CATEGORY OF LEASED LAND, THEN THE AMOUNT OF THE LAND USE FEE ALREADY PAID SHALL BE CALCULATED INTO THE RENTAL FEE." THE ISSUE OF REFUNDING THE PAID LAND USE FEE HAS NOT BEEN REGULATED BY THE GOVERNMENT (THE MINISTRY OF FINANCE HAS REPORTED TO THE PRIME MINISTER ON THIS ISSUE IN LETTER NO. 782 TC/QLCS DATED MARCH 11, 1997).

WHILE AWAITS THE PRIME MINISTER'S GUIDANCE, ORGANIZATIONS MUST PAY THE RENTAL FEE ACCORDING TO CIRCULAR NO. 70 TC/QLCS DATED OCTOBER 7, 1997 OF THE MINISTRY OF FINANCE GUIDING THE PAYMENT OF THE RENTAL FEE AND CONTRIBUTION OF CAPITAL IN JOINT VENTURES WITH THE VALUE OF THE RIGHT TO USE LAND OF DOMESTIC ORGANIZATIONS AS PROVIDED IN DECREE NO. 85/CP DATED DECEMBER 17, 1996 OF THE GOVERNMENT.

IT IS REQUESTED THAT THE PEOPLE'S COMMITTEES OF PROVINCES AND MUNICIPALITIES DIRECTLY UNDER THE CENTRAL GOVERNMENT BASED ON THE GUIDELINES AT SECTIONS 1, 2, 3, AND 4 PART V OF CIRCULAR NO. 70 TC/QLCS DATED OCTOBER 7, 1997 OF THE MINISTRY OF FINANCE TO SUMMARIZE ALL CASES THAT HAVE PAID THE LAND USE FEE BEFORE SEPTEMBER 9, 1996 AND NOW MUST TRANSITION TO LEASED LAND, AND REPORT TO THE MINISTRY OF FINANCE (STATE ADMINISTRATION OF PUBLIC PROPERTY) TO SERVE AS THE BASIS FOR REPORTING TO THE PRIME MINISTER FOR DECISION.

The People's Committees of all provinces and centrally governed cities are requested to base their actions on the guidelines set forth in Sections 1, 2, 3, and 4 of Part V of Circular No. 70 TC/QLCS dated October 7, 1997, issued by the Ministry of Finance, to direct relevant sectors to compile all cases where land use fees were paid before September 9, 1996, which now require conversion to land lease arrangements, and report these cases to the Ministry of Finance (State Asset Management Department) for the purpose of preparing a report to be submitted to the Prime Minister for decision.