Decree No. 142/2005/NĐ-CP on Land Rent and Water Surface Rent Collection

DECREE

Regarding the collection of land rent and water surface rent

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Land Law dated November 26, 2003;

Based on the Price Ordinance dated April 26, 2002;

Considering the proposal of the Minister of Finance,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the collection of land rent and water surface rent when:

1. The State leases land.

2. Transition from a form where the State grants land to leasing of land.

3. The State leases water surfaces.

Article 2. Objects for the Collection of Land Rent and Water Surface Rent

1. In the following cases, the State collects annual land rent when leasing land:

a) Households and individuals:

- Leasing land for agricultural, forestry, aquaculture, salt production purposes.

- Having the need to continue using agricultural land exceeding the allocated quota before January 1, 1999, where the land usage period has expired according to Clause 2, Article 67 of the 2003 Land Law.

- Using agricultural land exceeding the allocated quota from January 1, 1999 until the 2003 Land Law comes into effect, except for areas of land obtained through transfer of land use rights.

- Leasing land for construction of production bases, business premises; mineral activities; production of building materials, pottery.

- Using land to construct public works with commercial purposes.

- Households and individuals not directly engaged in agricultural, forestry, aquaculture, salt production who were granted land without payment of land use fees must convert to leasing land according to Point b, Clause 4, Article 82 of the 2003 Land Law.

b) Economic organizations lease land to implement investment projects for agricultural, forestry, aquaculture, salt production purposes; construction of production bases, business premises; construction of public works with commercial purposes; construction of infrastructure for transfer or lease; mineral activities, production of building materials, pottery.

c) State-owned enterprises that were granted land without payment of land use fees for use in agricultural, forestry, aquaculture, salt production purposes before January 1, 1999 must convert to leasing land according to Clause 2, Article 73 of the 2003 Land Law.

d) Economic organizations granted land with payment of land use fees and have paid such fees, or received transferred land use rights and have paid the transfer price, where the land use fee paid and the transfer price paid belong to state budget funds; economic organizations that have purchased liquidation assets, valuation assets, sold-off assets due to bankruptcy or cessation of use attached to land without paying land use fees can convert to leasing land.

đ) Other cases decided by the Prime Minister based on proposals from the Minister, Head of a ministry-level agency, agency under the Government, Chairman of provincial People's Committees, municipal People's Committees directly under the Central Government.

2. In the following cases, the State collects annual land rent or water surface rent, or collects a lump sum for the entire rental period when leasing land or water surfaces:

a) Overseas Vietnamese, foreign organizations, individuals lease land to implement investment projects for agricultural, forestry, aquaculture, salt production purposes; construction of production bases, business premises; construction of public works with commercial purposes; construction of infrastructure for transfer or lease; mineral activities, production of building materials, pottery; construction of housing for sale or lease.

b) Foreign organizations with diplomatic functions, non-governmental organizations lease land to build office premises.

c) Economic organizations, households, individuals; overseas Vietnamese, foreign organizations, individuals lease water surfaces, sea surfaces not falling within the categories of land specified in Article 13 of the 2003 Land Law to implement investment projects.

d) Other cases decided by the Prime Minister based on proposals from the Minister, Head of a ministry-level agency, agency under the Government, Chairman of provincial People's Committees, municipal People's Committees directly under the Central Government.

Article 3. Subjects Not Subject to Payment for Land Rent

1. Persons to whom the State grants land without payment for land use rights as provided for in Article 33 of the Land Law.

2. Persons to whom the State grants land with payment for land use rights as provided for in Article 34 of the Land Law.

3. Organizations and individuals using land to construct common infrastructure in industrial zones according to approved planning by competent authorities.

4. Organizations and individuals permitted to explore and exploit minerals without using surface soil layers and without affecting the use of such layers shall not pay rent for land on the unused surface area.

Chapter II

SPECIFIC PROVISIONS ON LAND RENT AND WATER SURFACE RENT

Article 4. Annual Rental Rate for Land

1. The annual rental rate for land is calculated at 0.5% of the land value based on the purpose of land use as determined by the People's Committee of the province or centrally governed city (hereinafter referred to as the provincial People's Committee) in accordance with the provisions of Government Decree No. 188/2004/NĐ-CP dated November 16, 2004 on methods for determining land prices and price ranges for various types of land.

2. For land located in urban areas, commercial centers, service centers, transportation hubs, concentrated residential areas with special profitability and advantages for production and business purposes, the Chairman of the provincial People's Committee decides to issue higher rental rates than those stipulated, but not exceeding four times the rental rate specified in Clause 1 of this Article.

3. For land in remote, mountainous, island, and economically disadvantaged areas; land used for agricultural, forestry, aquaculture, salt production purposes, and land used as production and business sites for projects in encouraged investment sectors and particularly encouraged investment sectors, the Chairman of the provincial People's Committee decides to issue lower rental rates than those stipulated, but the lowest rental rate must be equal to 0.5 times the rental rate specified in Clause 1 of this Article.

4. In cases of auctioning land use rights or tendering projects involving rented land, the winning bid price serves as the rental rate.

Article 5. Price Range for Water Surface Rent

1. For water surfaces not covered by Article 13 of the 2003 Land Law, the rental price range is as follows:

a) Fixed water surface projects: from VND 10,000,000 to VND 100,000,000 per km²2. In the event that the Approval Letter is revoked, the project developers shall only be considered for issuance of a new Approval Letter after one (01) year from the date of revocation, if they have fully fulfilled all obligations related to the reasons for the previous revocation of the Approval Letter.

b) Non-fixed water surface projects: from VND 50,000,000 to VND 250,000,000 per km²2. In the event that the Approval Letter is revoked, the project developers shall only be considered for issuance of a new Approval Letter after one (01) year from the date of revocation, if they have fully fulfilled all obligations related to the reasons for the previous revocation of the Approval Letter.

2. The rental price for each water surface project is decided by the Chairman of the provincial People's Committee; in cases where the leased sea area falls within the administrative boundaries of two or more provinces or centrally governed cities, the Chairmen of the People's Committees of these provinces or cities shall unify the rental price; if they cannot reach an agreement, they shall report to the Prime Minister for a decision.

3. The Ministry of Finance shall provide guidance on determining the rental price for sea areas in projects exploiting oil and gas in Vietnam's territorial waters and continental shelf.

Article 6. Determination of Rental Rates for Specific Projects

1. Based on the land prices issued by the provincial People's Committee in accordance with the provisions of Government Decree No. 188/2004/NĐ-CP dated November 16, 2004 on methods for determining land prices and price ranges for various types of land; and based on the rental rates stipulated in Article 4 of this Decree, the provincial People's Committee shall issue rental rates for specific types of land, urban areas, communes, regions, streets, locations, and grades.

2. Based on the rental rates prescribed by the provincial People's Committee:

a) The Director of the Department of Finance shall decide the rental rates for specific projects for economic organizations, overseas Vietnamese residing abroad, foreign organizations, and individuals leasing land.

b) The Chairman of the district People's Committee shall decide the rental rates for specific projects for households and individuals leasing land.

In cases where there are differing opinions between the lessee and the authority responsible for deciding the rental rate, the final decision shall be made by the Chairman of the provincial People's Committee.

Article 7. Determination of Land Rent and Water Surface Rent

1. The annual land rent and water surface rent is calculated by multiplying the area rented with the rental price of land and water surface.

2. The land rent and water surface rent shall be collected from the date of the decision on renting land and water surface issued by the competent state agency; in cases where the actual handover date of land and water surface does not match the date recorded in the decision on renting land and water surface, the rent shall be collected based on the actual handover date.

3. In cases where the State has prepaid compensation and support for land to the person renting the land, such amounts can be deducted from the land rent payable; if the full amount of compensation and support for land has not been deducted by the end of the lease term, it will be deducted from the extended lease term.

If at the end of the lease term, the State reclaims the land and the compensation and support for land have not been fully deducted from the land rent, such amounts will be compensated according to the provisions of the law on compensation and support when the State reclaims the land.

Article 8. Duration of Stabilization of Rental Prices for Land and Water Surface

1. The rental price for each land project is stabilized for five years. At the end of this period, the Director of the Department of Finance and the Chairman of the People's Committee of the district adjust the rental price for land for the next period. The adjusted rental price for the next period shall comply with the provisions of Article 4 and Article 6 of this Decree.

2. The rental price for each water surface project is stabilized for five years. At the end of this period, the Chairman of the People's Committee of the province adjusts the rental price for water surface for the next period. The adjusted rental price for the next period shall comply with the provisions of Article 5 of this Decree.

3. Adjustment of rental prices for land and water surface in the following cases:

a) Projects that have completed payment of land rent and water surface rent for the entire stabilization period as stipulated in Clause 1 and Clause 2 of this Article.

b) Projects that change the purpose of land use must adjust the rental price according to the new purpose at the time of changing the land use purpose.

4. Adjustment of rental prices for land and water surface does not apply in the following cases:

a) When the Chairman of the People's Committee of the province adjusts the rental price for land and water surface, but the stabilization period has not yet expired, except for the case provided for in Clause 2 of Article 9 of this Decree.

b) Projects that pay the land rent and water surface rent in one lump sum for the entire lease period, and at the time the Chairman of the People's Committee of the province adjusts the rental price for land and water surface, the rental price has already been determined and the rent paid.

Article 9. Application of Rental Prices for Land and Water Surface

1. Projects renting land and water surface from January 1, 2006 shall apply the rental prices for land and water surface as prescribed in Article 4, Article 5, and Article 6 of this Decree.

2. Projects renting land and water surface before January 1, 2006 and paying annual rent shall now determine the rental price according to the provisions of Article 4, Article 5, and Article 6 of this Decree and apply it from January 1, 2006.

3. Cases renting land and water surface before this Decree takes effect and have prepaid rent for multiple years shall not need to re-determine the rental price for land and water surface according to this Decree during the prepayment period. After the prepayment period ends, the rental price for the subsequent period shall be re-determined according to this Decree.

4. Cases renting land and water surface before this Decree takes effect and have paid the rent in one lump sum for the entire lease period shall not need to re-determine the rental price for land and water surface according to this Decree.

5. Cases that have been permitted by competent authorities to use the value of the land use right (land rent, water surface rent) for joint venture or cooperation contributions before this Decree takes effect shall not be adjusted according to this Decree. After the joint venture or cooperation contribution period ends, the rental price for land and water surface shall be re-determined according to the provisions of Article 4, Article 5, and Article 6 of this Decree.

Article 10. Conversion from land allocation to land leasing for households and individuals

1. Households and individuals who have been allocated agricultural land by the State within the permitted quota and choose to convert the land use purpose to non-agricultural production and business purposes through leasing, shall be entitled to deduct the value of the agricultural land use right from the lease payment due, but the deduction amount shall not exceed the lease payment due.

2. Households and individuals who have been allocated land with land use fee paid by the State or have legally transferred the land use right from a lawful land user and now choose to lease the land, shall be entitled to deduct the value of the land use right calculated based on the land price according to the allocated land use purpose or the land use purpose at the time of transfer from the lease payment due, but the deduction amount shall not exceed the lease payment due.

Article 11. Conversion from land allocation to land leasing for organizations

1. Organizations that have been allocated land with land use fee paid where the land use fee has not originated from the state budget and now choose to convert the land use purpose to non-agricultural production and business purposes through leasing, shall be entitled to deduct the value of the land use right from the lease payment due, but the deduction amount shall not exceed the lease payment due.

2. Organizations that have been allocated land without land use fee and now choose to convert the land use purpose to non-agricultural production and business purposes through leasing shall pay the lease fee according to the provisions of Article 4 and Article 6 of this Decree.

3. Organizations that have legally transferred the land use right where the transfer payment has not originated from the state budget and now choose to lease the land, shall be entitled to deduct the value of the land use right calculated based on the land price at the time of conversion to leasing from the lease payment due, but the deduction amount shall not exceed the lease payment due.

Article 12. Determination of compensation for land, support for land, and the value of allocated land use rights or transferred land use rights deducted from lease payments

1. The compensation for land and support for land deducted from the lease payment due as stipulated in Clause 3, Article 7 of this Decree shall be calculated based on the land price for compensation at the time of deducting the compensation for land and support for land of the same land use purpose as the compensated and supported land, issued by the People's Committee of the province.

2. The value of allocated land use rights or transferred land use rights deducted from the lease payment due as stipulated in Article 10 and Article 11 of this Decree shall be calculated based on the land price of the allocated land or the land price at the time of transfer when converting from land allocation to leasing, issued by the People's Committee of the province.

Chapter III

EXEMPTION AND REDUCTION OF LEASE PAYMENTS FOR LAND AND WATER SURFACE

Article 13. Principles for Implementing Exemptions and Reductions of Lease Payments for Land and Water Surface

1. Land and water surface leased for investment projects eligible for exemption and reduction of lease payments shall be implemented on a project-by-project basis.

2. In cases where land and water surface leased are eligible for both exemption and reduction of lease payments, they shall only enjoy the exemption of lease payments; in cases where multiple levels of reduction of lease payments apply, they shall enjoy the highest level of reduction.

3. Exemption and reduction of lease payments for land shall not be applied in cases of auctioning land use rights for leasing.

4. Exemptions and reductions of lease payments for land and water surface as stipulated in Articles 14 and 15 of this Decree shall only be directly implemented with the lessee and calculated based on the lease payments due.

5. Investment projects currently operating and enjoying higher exemptions and reductions of lease payments than those stipulated in this Decree shall continue to enjoy such benefits for the remaining period; in cases where the exemptions and reductions are lower than those stipulated in this Decree, they shall enjoy the benefits as stipulated in this Decree for the remaining period of preferential treatment.

Article 14. Exemption from land rent and water surface rent

The exemption from land rent and water surface rent shall apply in the following cases:

1. Investment projects in special fields encouraged for investment located in areas with particularly difficult socio-economic conditions.

2. Projects using land to construct dormitories for workers in industrial zones according to approved plans that include the selling price or rental price of the houses, where the structure of the selling price or rental price does not include land rent costs; projects using land to construct student dormitories funded by state budget, managed and used by units solely for students' residence, which only charge fees sufficient to cover service costs, electricity and water costs, management costs, and other related costs, without including land rent costs and depreciation of house value; projects using land to construct public works with commercial purposes (socialized) in the fields of education, healthcare, culture, sports, science, and technology.

3. During the construction period according to the approved project plan; if the project has multiple independent construction items or phases, the exemption from land rent shall be applied separately for each item or phase; if it is not possible to calculate separately for each item or phase, the construction period shall be calculated based on the construction item with the largest capital proportion.

4. From the date of completing the construction and putting the project into operation, specifically as follows:

a) Three (3) years for projects in the Encouraged Investment Fields List; at new production and business establishments of economic organizations implementing relocation according to planning or relocation due to environmental pollution.

b) Seven (7) years for projects invested in areas with difficult socio-economic conditions; projects in the Special Encouraged Investment Fields List.

c) Eleven (11) years for projects invested in areas with particularly difficult socio-economic conditions; projects in the Encouraged Investment Fields List invested in areas with difficult socio-economic conditions.

d) Fifteen (15) years for projects in the Encouraged Investment Fields List invested in areas with particularly difficult socio-economic conditions.

The Encouraged Investment Fields List, Special Encouraged Investment Fields List, areas with difficult socio-economic conditions, and areas with particularly difficult socio-economic conditions shall be implemented in accordance with the regulations of the Government.

5. For ongoing projects that have been allocated land and are transitioning to land lease, if such projects fall under the categories eligible for exemption from land rent and water surface rent as stipulated in Clause 1, Clause 3, and Clause 4 of this Article, they shall be exempted from land rent for the remaining duration of the exemption period.

6. Projects encountering difficulties and temporarily suspending construction or operations shall be exempted from land rent and water surface rent during the period of basic construction suspension or operational suspension confirmed by the investment permit issuing authority or business registration authority.

7. Projects constructing office premises for diplomatic agencies, foreign consular offices, and international organization representative offices in Vietnam pursuant to international treaties to which Vietnam is a party or on the principle of reciprocity.

8. Other cases shall be decided by the Prime Minister upon the proposal of the Minister, Head of a ministry-level agency, agency under the Government, Chairman of the People's Committees of provinces and centrally-administered cities.

Article 15. Reduction of land rental fees and water surface rental fees

The reduction of land rental fees and water surface rental fees shall apply in the following cases:

1. For renting land to be used as a production and business site for cooperatives, the land rental fee shall be reduced by 50%.

2. For renting land and water surfaces to be used for agricultural, forestry, aquaculture, salt-making purposes, if natural disasters or fires result in losses below 40% of the production volume, the corresponding rental fee reduction will be considered; if the loss reaches 40% or more, the rental fee for the affected year will be waived.

3. For renting land and water surfaces to be used for production and business purposes other than agriculture, forestry, aquaculture, and salt-making, when affected by natural disasters, fires, or unforeseeable accidents, the land and water surface rental fees shall be reduced by 50% during the period of cessation of production and business activities.

4. Land rented for construction projects of diplomatic agencies, consular offices of foreign countries, and international organization representative offices in Vietnam, pursuant to international treaties to which Vietnam is a party or on the principle of reciprocity.

5. Other cases shall be decided by the Prime Minister based on the proposal of the Minister, Head of a ministry-level agency, agency under the Government, Chairman of the People's Committee of provinces and centrally-administered cities.

Article 16. Authority to decide on exemption and reduction of land rental fees and water surface rental fees

The tax authority shall base its determination of the amount of land rental fees and water surface rental fees to be paid and exempted on the cadastral file attached with proof documents showing that the entity falls within the scope of exemption and reduction of land rental fees and water surface rental fees as stipulated in Articles 14 and 15 of this Decree.

The Director of the Tax Department shall decide on the exemption and reduction of land rental fees and water surface rental fees for economic organizations; foreign organizations and individuals, and overseas Vietnamese who rent land.

The Director of the District Tax Office shall decide on the exemption and reduction of land rental fees and water surface rental fees for households and individuals who rent land.

Chapter IV

COLLECTION OF LAND RENT AND WATER SURFACE RENT

Article 17. Procedure for determining land rental fees and water surface rental fees

1. For new land rental and water surface rental cases:

a) The cadastral file regarding land rental sent by the Registration Office of Land Rights or the environmental resources agency shall serve as the basis for the tax authority to determine the amount of land rental fees and water surface rental fees that the organization, household, or individual must pay, along with the decision on the rental price of land and water surfaces issued by the Chairman of the Provincial People's Committee, Director of the Department of Finance, or Chairman of the District People's Committee.

b) Within five working days from the date of receiving the complete cadastral file sent by the Registration Office of Land Rights or the environmental resources agency, the tax authority must perform the following tasks:

- Review the cadastral file (data), determine the amount of land rental fees and water surface rental fees to be paid; issue a notice of land rental fees and water surface rental fees to the person obligated to pay; the notice must clearly state the total rental fee to be paid once for the entire rental period or the annual rental fee, payment time, and other contents as prescribed by the Ministry of Finance. In case there is insufficient basis to determine the rental fee, the tax authority must notify the sending agency in writing within ten working days from the receipt of the file to supplement it; after receiving the complete cadastral file, the completion deadline is five working days counted from the date of receiving the supplementary file.

- Prepare a record of land rental fees and water surface rental fees collection according to the form prescribed by the Ministry of Finance; send a notice of land rental fees and water surface rental fees to the person obligated to pay the rental fees.

2. For cases where land and water surface rentals were in use before the effective date of this Decree and fall under the rental provisions stipulated in Clause 2 and Clause 3 of Article 9 of this Decree, the tax authority shall base its decision on the current rental price of land, compile a report, and submit it to the Department of Finance for the main coordination with relevant sectors to adjust the rental price of land and water surfaces according to this Decree. Based on the decision of the Chairman of the Provincial People's Committee, Director of the Department of Finance, or Chairman of the District People's Committee on adjusting the rental price of land and water surfaces, the tax authority shall re-determine the amount of land rental fees and water surface rental fees to be paid and issue a notice to the person obligated to pay the rental fees.

3. After the first year of land rental and water surface rental and payment of land rental fees and water surface rental fees notified by the Registration Office of Land Rights, for subsequent years before each payment period, the tax authority shall issue a notice to the person obligated to pay the rental fees. If the competent People's Committee adjusts the land price or the basis for calculating the rental fees, the amount of land rental fees and water surface rental fees to be paid must be recalculated and then notified to the person obligated to fulfill the payment.

Article 18. Determination of Land Rent and Water Surface Rent to be Paid

1. Case of Annual Payment of Land Rent and Water Surface Rent

a) Normal Case

b) The year of payment of land rent and water surface rent is calculated according to the Gregorian calendar from January 1st to December 31st each year. In the case of the first year of leasing land and water surface, if the last year of leasing does not have a full 12 months, then the rent for the first year and the last year of leasing shall be calculated based on the number of months leased.

c) Case of reduction in land rent and water surface rent according to the provisions of Clause 2 or Clause 3 of Article 15 of this Decree.

2. Case of One-time Payment for the Entire Leasing Period

Note: The number of years required to pay land rent and water surface rent equals the total number of years leased minus the number of years exempted from paying land rent and water surface rent (if applicable).

Article 19. Collection and Payment of Land Rent and Water Surface Rent

1. Land rent and water surface rent paid to the state budget shall be in Vietnamese Dong (VND); in cases where foreign organizations, individuals, or overseas Vietnamese citizens wish to pay in foreign currency, it shall be converted (or converted through a third currency if there is no direct exchange rate) according to the average inter-bank market exchange rate at the time of payment of land rent and water surface rent.

2. The payment of land rent and water surface rent is regulated as follows:

a) According to the notification sent by the tax authority to the organization, household, or individual leasing land and water surface to pay land rent and water surface rent.

b) Organizations, households, and individuals shall pay land rent and water surface rent strictly in accordance with the notification issued by the tax authority.

3. Case of Annual Payment of Land Rent and Water Surface Rent:

a) After the first year of payment, the tax authority will directly notify the payer of land rent and water surface rent for subsequent years.

b) Payments are made in two installments each year, the first installment before April 1st, and the second installment before October 1st.

4. The Ministry of Finance shall stipulate the declaration form, vouchers, and record books for the payment of land rent and water surface rent.

Article 20. Handling Outstanding Issues Regarding the Collection of Land Rent and Water Surface Rent

1. Cases where excess rent for land and water surface has been paid up to the date this Decree takes effect:

a) In the case of excess payment in foreign currency, the excess amount in foreign currency shall be converted into Vietnamese Dong (VND) to be transferred and paid in the following period starting from the date this Decree takes effect.

b) In the case of excess payment in Vietnamese Dong (VND), it shall be transferred and paid in the following period starting from the date this Decree takes effect.

2. Cases where there is still outstanding rent for land and water surface up to the date this Decree takes effect.

a) In the case of outstanding rent in foreign currency, it shall be converted into Vietnamese Dong (VND) at the time of payment.

b) In the case of outstanding rent in Vietnamese Dong (VND), the remaining amount shall be paid.

3. The payment of all outstanding land rent and water surface rent shall be completed in 2006, beyond this deadline, penalties shall be imposed according to the provisions of Clause 1, Article 22 of this Decree.

Article 21. Responsibilities of Tax Authorities, Natural Resources and Environment Authorities, Treasury, and Land Renters and Water Surface Renters

1. Tax Authority:

a) Determine land rent and water surface rent and notify the payer according to the provisions of this Decree.

b) Urge, guide, and inspect all organizations and individuals to pay land rent and water surface rent into the state budget in accordance with the time specified in Article 19 of this Decree.

c) Explain any doubts for the payer of land rent and water surface rent; resolve complaints about land rent and water surface rent.

2. Treasury:

- Collect the full amount of rent into the State Treasury according to the notification of land rent and water surface rent payment.

- Shall not transfer the collection of rent to the next day after receiving the complete procedures for payment from the person responsible for fulfilling financial obligations.

- Shall not refuse to collect for any reason.

3. Natural Resources and Environment Authority:

a) Accurately determine the location, position, area, and type of land to be rented.

b) Be responsible for the completeness and legality of the files serving as the basis for determining the rental price and rent.

c) Confirm and record all indicators serving as the basis for determining the rental price and rent.

4. Responsibilities of Land Renters and Water Surface Renters.

a) Pay land rent and water surface rent according to the method and deadline stated in the Land Lease Contract and Water Surface Lease Contract.

b) If the land rent and water surface rent payment deadline set forth in the tax authority's notification is exceeded without paying the full rent, they must bear the late payment fine as stipulated in Clause 1, Article 22 of this Decree.

Article 22. Penalties

1. For late payment of land rent and water surface rent into the state budget, a penalty of 0.02% (two ten-thousandths) of the amount of unpaid rent will be imposed for each day of delay.

2. Any person who abuses their position or power, intentionally creates difficulties or obstacles for the payer of land rent and water surface rent, or misappropriates or embezzles land rent and water surface rent; falsifies documents causing loss to the state budget shall be subject to disciplinary action, compensation for damages, or criminal liability depending on the severity of the violation as prescribed by law.

3. Land renters and water surface renters violating the provisions of this Decree shall be subject to administrative penalties.

Article 23. Complaints and Resolution of Complaints

1. The person required to pay land rent and water surface rent has the right to complain about the improper implementation of regulations on collecting land rent and water surface rent under this Decree. The complaint must be submitted to the direct agency calculating and collecting rent within thirty days from the date of receipt of the land rent and water surface rent payment notification. During the waiting period for resolution, the complainant must pay the full amount and the due rent as notified.

2. The resolution of complaints shall be carried out in accordance with the provisions of the Law on Complaints and Petitions.

Chapter V

IMPLEMENTATION

Article 24. The Ministry of Finance is responsible for

1. Guiding the calculation and payment of land rent and water surface rent; guiding procedures and documents for exemption and reduction of land rent and water surface rent.

2. Prescribing models of books to manage the collection and payment of land rent and water surface rent and decentralizing the management of the collection and payment of land rent and water surface rent in accordance with the decentralization of state budget management and land laws.

3. Cooperate with the Ministry of Natural Resources and Environment to prescribe documents, procedures, and processes for receiving and transferring documents between financial agencies, tax agencies, and natural resources and environment agencies to determine land rent and water surface rent based on the principle of a single point of contact for new land leases, changes in land use purposes, and transfers from land allocation, rights transfer to land lease.

Article 25. The Ministry of Natural Resources and Environment shall be responsible for:

1. Guiding the determination of land types, land use purposes, areas of leased land, other related documents on land leasing and water surface leasing; transferring from land allocation and land use right transfer to land leasing.

2. Coordinating with the Ministry of Finance to guide the files, procedures, and processes for receiving and circulating files to financial agencies and tax authorities at all levels to serve as the basis for determining lease prices for land and water surfaces; determining land lease fees and water surface lease fees.

3. Guiding the determination of land locations, land grades, and land classification as the basis for applying land lease prices.

Article 26. Provincial People's Committees and municipal people's committees under the central government:

1. Deciding on water surface lease prices and issuing land lease price lists as the basis for the Director of the Department of Finance and the Chairman of the District People's Committee to decide on specific land lease prices for each project.

2. Directing lower-level people's committees to implement measures to inspect and supervise the use of land by entities renting land and water surfaces from the state and the collection of land lease fees and water surface lease fees as stipulated in this Decree.

3. Directing specialized agencies under provincial people's committees to cooperate with tax authorities to organize the management of lessees and the collection of land lease fees and water surface lease fees as stipulated in this Decree.

Inspecting and handling cases of incorrect declaration and improper exemption or reduction of lease fees not in accordance with regulations, causing damage to the State and the land lease fee payers.

4. Deciding on complaints and denunciations or delegating authority according to their jurisdiction to handle complaints and denunciations regarding non-compliance with regulations on the collection of land lease fees and water surface lease fees as stipulated in laws on complaints and denunciations.

Article 27. Effective Date

This Decree shall take effect fifteen days after its publication in the Official Gazette.

This Decree replaces the provisions on preferential land lease fees stipulated in Decree No. 71/2001/NĐ-CP dated October 5, 2001 of the Government on preferential investment in building houses for sale and rent.

Previous provisions on land lease prices and the collection of land lease fees that contradict the provisions of this Decree are hereby abolished.

Article 28. Responsibility for Implementation

The Minister of Finance shall guide the implementation of this Decree.

Ministers, heads of ministerial-level agencies, heads of governmental agencies, Chairmen of provincial and municipal people's committees under the central government, and entities renting land and water surfaces from the state are responsible for implementing this Decree./.