Circular No. 156/2014/TT-BTC amending and supplementing certain provisions of Circular No. 135/2008/TT-BTC dated December 31, 2008 of the Ministry of Finance guiding the implementation of Decree No. 69/2008/NĐ-CP dated May 30, 2008 of the Government on policies to encourage socialization in educational, vocational training, healthcare, cultural, sports, and environmental activities.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 135/2008/TT-BTC dated December 31, 2008 of the Ministry of Finance guiding the implementation of Decree No. 69/2008/NĐ-CP dated May 30, 2008 of the Government on socialization policies for activities in the fields of education, vocational training, health care, culture, sports, and environment.

December 2008 of the Ministry of Finance guiding the implementation of Decree No.

69/2008/NĐ-CP dated May 30, 2008 of the Government on socialization policies for activities in the fields of education,

vocational training, healthcare, culture,

sports, environment

_________________

Pursuant to the Land Law dated November 29, 2013;

Pursuant to Decree No. 69/2008/NĐ-CP dated May 30, 2008 of the Government on policies encouraging socialization for activities in the fields of education, vocational training, healthcare, culture, sports, and environment (hereinafter referred to as Decree No. 69/2008/NĐ-CP);

Pursuant to Decree No. 59/2014/NĐ-CP dated June 16, 2014 of the Government amending and supplementing certain provisions of Decree No. 69/2008/NĐ-CP dated May 30, 2008 of the Government on policies encouraging socialization for activities in the fields of education, vocational training, healthcare, culture, sports, and environment (hereinafter referred to as Decree No. 59/2014/NĐ-CP);

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

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

The Minister of Finance promulgates this Circular amending and supplementing certain provisions of Circular No. 135/2008/TT-BTC dated December 31, 2008 of the Ministry of Finance guiding the implementation of Decree No. 69/2008/NĐ-CP (hereinafter referred to as Circular No. 135/2008/TT-BTC).

Article 1. Amending and supplementing certain provisions of Circular No. 135/2008/TT-BTC guiding the implementation of Decree No. 69/2008/NĐ-CP:

1. Amending and supplementing Clause 1 Section I guiding the scope and objects prescribed in Article 1 of Decree No. 69/2008/NĐ-CP (amended and supplemented at Clause 1 Article 1 of Decree No. 59/2014/NĐ-CP) as follows:

“1. Scope of regulation

Socialization areas include: education and training, vocational training, healthcare, culture, physical culture and sports, environment, judicial appraisal.”

2. Amending and supplementing Section IV guiding the leasing and construction of infrastructure prescribed in Article 5 of Decree No. 69/2008/NĐ-CP (amended and supplemented at Clause 2 Article 1 of Decree No. 59/2014/NĐ-CP) as follows:

"IV. Leasing and construction of infrastructure prescribed in Clause 2 Article 1 of Decree No. 59/2014/NĐ-CP shall be guided specifically as follows:

1. Entities implementing socialization shall be prioritized to lease infrastructure and socialization facilities to provide products and services in the field of socialization.

Based on budget capacity, socialization encouragement needs, and existing housing and infrastructure funds; ministries, agencies equivalent to ministries, central-level agencies (hereinafter referred to as ministries or sectoral management agencies), provincial People's Committees (hereinafter referred to as provincial People's Committees) shall consider and decide on building new parts or all of the infrastructure and socialization facilities or using existing housing and infrastructure funds under their management to lease to entities implementing socialization for a limited period.

2. In cases where entities implementing socialization advance rental fees for infrastructure and socialization facilities prescribed in Point 2 Clause 2 Article 1 of Decree No. 59/2014/NĐ-CP, the amount of advanced rental fee shall be converted into the number of years and months completed in fulfilling the obligation to pay rental fees for infrastructure and socialization facilities and shall be determined according to the following formula:

Where:

- n: is the number of years and months completed in fulfilling the obligation to pay rental fees for infrastructure and socialization facilities. Time not full month is considered a full month if over 15 days.

- Annual rental fee for infrastructure and socialization facilities payable is determined based on the leased area and the rental price of infrastructure and socialization facilities (VND/m2/year) according to the principle stipulated in Clause 3 of this Section.

After the completion of the obligation to pay rental fees for infrastructure and socialization facilities as mentioned above (n); the rental price shall be re-determined by competent state authorities after negotiating with entities implementing socialization in accordance with the laws at the time of re-determination.

3. Rental price for infrastructure and socialization facilities

3.1. Based on each locality's socialization encouragement areas and sectors issued by provincial People's Committees in accordance with Point 2 Clause 3 Article 1 of Decree No. 59/2014/NĐ-CP; after negotiating with entities implementing socialization and taking into account local socialization encouragement factors; ministries or sectoral management agencies (for units under central management), provincial People's Committees (for units under local management) shall determine specific rental prices for infrastructure and socialization facilities within their management scope within the rental price range stipulated in Point 3.2 of this Clause.

3.2. Rental price range for infrastructure and socialization facilities

The rental price for infrastructure and socialization facilities is formed based on the asset rental price on land and land rental fee (if applicable) after being exempted or reduced according to regulations, specifically:

a) Regarding land rental fee:

The land rental fee is determined according to Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government on land rental fees and water surface rental fees (hereinafter referred to as Decree No. 46/2014/NĐ-CP) after deducting the amount of exemption or reduction according to the appropriate level of exemption or reduction for socialization encouragement areas and sectors in the locality issued by provincial People's Committees in accordance with Point 2 Clause 3 Article 1 of Decree No. 59/2014/NĐ-CP and guided in Clause 2 Section V (Clause 3 Article 1 of this Circular).

b) Regarding the asset rental price on land (excluding land rental fee):

- Maximum rental price: is determined in line with the common rental price on the market at the time of signing the Lease Contract.

- Minimum rental price: is determined according to the principle of preserving the costs forming the leased assets and compensating maintenance and repair costs not lower than the price specified in this sub-point.

As for the portion of maintenance and upkeep costs, the lessor and lessee shall negotiate and record this in the lease contract. If the lease contract stipulates that the lessee is responsible for paying maintenance and upkeep costs, these costs shall not be included in the rental price; if the lease contract stipulates that the lessor is responsible for paying maintenance and upkeep costs, then these costs shall be included in the rental price.

c) The minimum rental price shall be guided specifically as follows:

- For existing infrastructure and socialized works

In cases where the remaining value of the asset recorded in the accounting books is zero (0), but it still ensures quality for use and the revalued amount is greater than zero (0), the rental price shall be determined as follows:

Wherein, if the lease period is shorter than the redetermined useful life of the asset after revaluation, the lease period shall be calculated as equal to the redetermined useful life of the asset after revaluation.

- For newly constructed infrastructure and socialized works

+ In cases where the lessor constructs new infrastructure and socialized works for leasing:

In which, the value of the work is the final settlement value approved by the competent state authority in accordance with the law. In cases where the work has not been settled, the budgeted value shall be used to calculate the minimum rental price. During implementation, if it is necessary to adjust the scale of construction works to meet usage needs, thereby increasing the total budgeted amount already approved by the competent authority, the lessee and lessor shall agree and report to the competent state authority for review and decision to increase the supplementary rental price for socialized infrastructure and works (this content must be recorded in the lease contract).

+ In cases where the lessee advances rental money to construct the entire leased work:

+ In cases where the lessee advances rental money to construct part of the leased work:

In which, the value of the work includes the final settlement value approved by the competent state authority in accordance with the law for the completed portion plus the budgeted value approved by the competent state authority in accordance with the law for the remaining portion. During implementation, if it is necessary to adjust the scale of construction works to meet usage needs, thereby increasing the total budgeted amount already approved by the competent authority, the lessee and lessor shall agree and report to the competent state authority for review and decision to increase the supplementary rental price for socialized infrastructure and works (this content must be recorded in the lease contract).

3.3. The time for calculating the rental fee for socialized infrastructure and works is determined as follows:

a) In cases of leasing existing socialized infrastructure and works: The time for calculating the rental fee for socialized infrastructure and works is the date of signing the lease contract.

b) In cases where the entity implementing socialization advances rental money to construct socialized infrastructure and works: The time for calculating the rental fee for socialized infrastructure and works is the date when the entity hands over the socialized infrastructure and works to the entity implementing socialization for use. The lease contract and rental price for socialized infrastructure and works are implemented and determined at the time the entity implementing socialization advances rental money and in accordance with the principle prescribed in Clause 2 Section IV (Clause 2 Article 1 of this Circular).

3.4. For units under central management, the Ministry or sector in charge decides on the rental price for socialized infrastructure and works after soliciting opinions from the People's Committee of the province (where the socialized infrastructure and works are leased) regarding the rental price for socialized infrastructure and works. In cases where the lessee hires an organization with appraisal functions to determine the rental price for socialized infrastructure and works, the hiring cost shall be paid or refunded from the rental income from socialized infrastructure and works.

4. Documents and procedures for enjoying preferential leasing of socialized infrastructure and works

4.1. For cases of leasing socialized infrastructure and works managed by the Ministry or sector in charge

a) The entity implementing socialization sends a request for leasing socialized infrastructure and works to the unit entrusted with managing the leased assets. The documents include:

- A letter requesting to lease socialized infrastructure and works; including a commitment to comply with the criteria, scale, and standards for socialization as prescribed in the Prime Minister's Decision No. 69/2008/NĐ-CP (original copy);

- Business license issued by the competent state authority (certified copy);

- Proof of financial capability to advance the rental money for socialized infrastructure and works (for cases where the entity implementing socialization advances rental money).

b) The unit entrusted with managing socialized infrastructure and works for leasing negotiates with the entity implementing socialization on the main contents of the lease contract, including: rental price, lease term, advance rental payment (if any), and other related contents prescribed in Clause 2 Article 1 Decree No. 59/2014/NĐ-CP, guided in Clause 1, Clause 2, Clause 3 of this Section, and relevant laws; reports to the Ministry or sector in charge.

c) The Ministry or sector in charge reviews and decides on the leasing of socialized infrastructure and works after receiving a written agreement from the Ministry of Finance.

4.2. For cases of leasing socialized infrastructure and works managed by the provincial People's Committee

a) The entity implementing socialization sends a request for leasing housing, socialized infrastructure, and works to the unit entrusted with managing the leased assets. The documents follow the provisions of point a item 4.1 of this clause.

b) The unit entrusted with managing infrastructure and socialized works for lease shall negotiate with the entity implementing socialization on the main contents of the Lease Contract, including: rental price, lease term, advance rental payment (if any), and other relevant contents prescribed in Clause 2 Article 1 Decree No. 59/2014/ND-CP, detailed in Clause 1, Clause 2, Clause 3 of this Section, and other relevant provisions of law; report to the Department or agency in charge for comments in writing from the financial authority at the same level before the Department or agency in charge submits to the People's Committee of the province for consideration and decision on leasing infrastructure and socialized works.

5. The lessee of infrastructure and socialized works must meet the criteria, scale, and standards of socialization as stipulated in the Prime Minister's Decision. In case, after completion and operation of the project within the time frame specified in the List of Types, Criteria, and Scale Standards of Socialization Fields decided by the Prime Minister, the lessor finds that the lessee does not meet the criteria, scale, and standards of socialization as stipulated in the Prime Minister's Decision, the lessor will terminate the Lease Contract prematurely in accordance with civil law regulations; the lessee must compensate for any resulting losses (if any), and the lessor will not refund the advance rental payment for the remaining period (this content must be specifically stipulated in the Lease Contract signed between both parties).

6. The specialized management ministry, the People's Committee of the province shall create favorable conditions regarding administrative procedures, construction permits, and related procedures to enable the entity implementing socialization to invest in constructing and repairing socialized works according to local planning.

7. In cases where the unit uses the rental income from infrastructure and socialized works or the value of assets invested on land to contribute capital for joint ventures or joint operations to implement socialization projects, it must prepare a proposal and obtain approval from the competent ministry or sector after obtaining the agreement of the Ministry of Finance (for units under central management) or the People's Committee of the province (for units under local management) in accordance with laws on state asset management and use, and Clause 5, Clause 2 Article 1 Decree No. 59/2014/ND-CP, specifically:

a) In cases where the unit uses rental income from infrastructure and socialized works to contribute capital or form joint ventures or joint operations with the entity implementing socialization, the rental amount under the Lease Contract shall be determined as the contribution capital of the unit at the entity implementing socialization formed through such capital contribution, joint venture, or joint operation.

b) In cases where the unit uses assets already invested on land, business advantages, brand advantages, trade advantages, and other related advantages to contribute capital or form joint ventures or joint operations to establish an entity implementing socialization meeting the conditions stipulated in Article 2 Decree No. 69/2008/ND-CP, the value of assets already invested on land and the value of advantages agreed upon and recorded in the Capital Contribution Contract, Joint Venture Contract, or Joint Operation Contract shall not be lower than the market value of these assets. During the process of determining the value of assets and advantages for capital contribution, the unit may hire an appraisal organization to determine the values.

8. The units referred to in Clause 1, Clause 3, Clause 4, and Clause 7 of this Section are public service units that have the necessary conditions to use assets for leasing or contributing capital or forming joint ventures or joint operations in accordance with laws on state asset management and use, laws on self-management mechanisms of public service units, specific laws on self-management mechanisms of public service units in each field, and amendments and supplements to the aforementioned laws.

3. Amend and supplement Section V guiding the transfer of land and land lease as stipulated in Article 6 Decree No. 69/2008/ND-CP (amended and supplemented in Clause 3 Article 1 Decree No. 59/2014/ND-CP) as follows:

"V. Land lease as prescribed in Clause 3 Article 1 Decree No. 59/2014/ND-CP is guided as follows:

1. Rent reduction for land

Entities implementing socialization are entitled to lease land that has been fully compensated for land clearance to build socialized works in the form of free rent for the entire lease period, except in cases prescribed in Clause 2 of this Section.

The handling of compensation and land clearance funds for land leased for building socialized works shall be carried out in accordance with the provisions of Clause 5 of this Section.

2. For entities implementing socialization using land in urban areas, the People's Committee of the province shall base on the actual conditions of the locality and the List of Socialization Fields and Areas with Preferential Treatment in the locality to issue preferential rent reduction levels for each field and area with preferential treatment in the locality after soliciting opinions from the Standing Committee of the People's Council at the same level according to the principle:

2.1. Maximum level: Exempting rent for the entire duration of the project within the lease period granted by the State.

2.2. Minimum level: Not lower than the preferential level for projects receiving preferential treatment under investment laws stipulated in Article 19 Decree No. 46/2014/ND-CP dated May 15, 2014 of the Government on land rent and water surface rent (hereinafter referred to as Decree No. 46/2014/ND-CP).

2.3. In cases where the project is permitted by competent authorities to extend the land lease period, it shall not enjoy preferential treatment on land as prescribed in this Section.

2.4. At the latest six (06) months from the date Decree No. 59/2014/ND-CP takes effect, based on the socialization fields and areas with preferential treatment in the locality, the People's Committee of the province shall promulgate and publicly announce the preferential rent exemption and reduction system for entities implementing socialization using land in urban areas after soliciting opinions from the Standing Committee of the People's Council at the same level.

2.5. Every three (03) years, the People's Committee at the provincial level shall review to amend and supplement the List of fields and areas for preferential socialization at the local level to be appropriate; serving as a basis to amend and supplement the exemption and reduction regime of land rental fees for entities implementing socialization using land in urban areas; promulgating and publicly announcing after obtaining the opinion of the Standing Committee of the People's Council at the same level.

In case, after reviewing, the entity implementing socialization no longer falls within the fields and areas of preferential treatment according to the List of fields and areas of preferential socialization amended and supplemented by the People's Committee at the provincial level but still operates under the conditions and criteria at the time when the People's Committee at the provincial level approved the preferential amount of land rental fee being enjoyed, then the entity implementing socialization will still apply the approved preferential amount for the remaining period of the project.

3. The amount of money that the investor has paid to acquire the right to use land to implement an investment project as stipulated in Point 3, Clause 3, Article 1 of Decree No. 59/2014/ND-CP shall be determined based on the land price for the purpose of land use acquisition at the time when the competent state agency permits the change of land use purpose, but not exceeding the compensation and support amount corresponding to the case where the State recovers land according to the provisions of the law and shall be handled as follows:

a) In the case of being exempted from land rental fees for the entire duration of the project, the amount of money that the investor has paid to acquire the right to use land shall be included in the project investment cost.

b) In the case where the investor chooses the form of leasing land with payment made once for the entire lease period and must pay the full or part of the land rental fees, the amount of money that the investor has paid to acquire the right to use land shall be deducted from the land rental fees payable; the deduction amount shall not exceed the land rental fees payable. The investor shall include in the project investment cost the difference increase between the amount received for acquiring the right to use land and the amount deducted from the land rental fees payable (if any) according to the provisions of the law.

c) In the case where the investor chooses to lease land with annual payment and must pay the land rental fees according to the regulations, the amount of money that the investor has paid to acquire the right to use land shall be converted into the completed payment period of land rental fees; the conversion amount shall not exceed the payment period of land rental fees of the project. The remaining amount (if any) shall be included in the project investment cost according to the provisions of the law.

The determination of land prices before and after changing the purpose of land use to calculate land rental fees and the amount of money that the investor has paid to acquire the right to use land into land rental fees payable shall be carried out according to the provisions of Decree No. 46/2014/ND-CP and guiding documents for implementation.

4. The exemption and reduction of land rental fees as stipulated in Points 1, 2, and 4, Clause 3, Article 1 of Decree No. 59/2014/ND-CP shall be implemented as follows:

4.1. An entity implementing socialization with a socialization project approved by the competent state agency according to the law and leased land by the State to implement the project, where the content of the project already approved meets the list of types, scales, and standards prescribed by the Prime Minister, shall enjoy preferential policies on land according to Decree No. 59/2014/ND-CP from the date of the decision on land lease or the decision on permission to change the purpose of land use issued by the competent state agency. The tax authority shall issue a decision on exemption and reduction of land rental fees according to Decree No. 59/2014/ND-CP and the guidance in this Circular at the time of the decision on land lease or the decision on permission to change the purpose of land use.

4.2. In case, after the construction project is completed and put into operation, the competent state agency conducts inspection and determines that the entity implementing socialization does not meet the criteria, scale, and standards as committed according to the Decision of the Prime Minister, the entity implementing socialization must pay back the land rental fees that have been exempted or reduced according to the policy and land price at the time of enjoying the land preference as stipulated in Point 4.1 of this clause and late payment fees for the time already exempted or reduced based on the land rental fees exempted or reduced according to the law on tax management.

4.3. In case, after the construction project is completed and put into operation, the competent state agency conducts inspection and determines that the entity implementing socialization does not meet the list of types, scales, and standards as prescribed by the Prime Minister due to the list being amended, supplemented, or replaced by the Prime Minister or during the operation, the administrative authority changes the administrative boundary, upgrading from non-urban administrative boundaries to urban administrative boundaries in the project implementation area, but the entity implementing socialization still operates fully in compliance with the conditions and criteria at the time of approval of the land rental fee preference by the competent authority, then the entity implementing socialization will still enjoy the approved preferential amount.

4.4. Based on the actual conditions of the locality and the type of socialization project, the People's Committee at the provincial level shall assign the direct tax management agency to take the lead, coordinate with specialized management agencies in the field of socialization and relevant agencies to conduct inspections and determine whether the entity implementing socialization meets the criteria, scale, and standards listed in the decision of the Prime Minister according to Article 2 of Decree No. 69/2008/ND-CP.

4.5. The inspection and determination according to the provisions of Points 4.2, 4.3, and 4.4 of this clause shall be carried out as follows:

a) After completing the construction and putting the project into operation within the time frame specified in the list of types, criteria, scales, and standards of each socialization field decided by the Prime Minister, the investor must send a document to the direct tax management agency to notify that the project has been completed and put into operation, along with related files and documents for the direct tax management agency to organize the inspection of the entity implementing socialization's compliance with the conditions for exemption and reduction of land rental fees.

b) Within thirty days from the date of receipt of the investor's document, the directly managing tax authority shall cooperate with specialized management agencies and relevant agencies to conduct inspections and determine compliance with criteria, scale, and standards prescribed by the Prime Minister. In cases where the socialized facility does not meet the criteria, scale, and standards, the tax authority shall report to the provincial People's Committee for examination and handling according to points 4.2 and 4.3 of this Clause; if it meets the criteria, scale, and standards, the tax authority shall confirm and notify in writing the socialized facility and supplement the Exemption and Reduction File.

4.6. The file, procedure, and process for exemption and reduction of land rental fees are as follows:

a) File for Exemption and Reduction of Land Rental Fees

- The file for exemption and reduction of land rental fees shall be implemented in accordance with the laws on tax administration;

- A commitment document meeting the criteria, scale, and standardization requirements for socialization as stipulated in Decision of the Prime Minister under Article 2 of Decree No. 69/2008/ND-CP.

b) Procedure, process, and authority to decide on exemption and reduction of land rental fees shall be carried out in accordance with Article 21 of Decree No. 46/2014/ND-CP and Article 15 of Circular No. 77/2014/TT-BTC dated June 16, 2014, issued by the Ministry of Finance guiding the implementation of Decree No. 46/2014/ND-CP (hereinafter referred to as Circular No. 77/2014/TT-BTC).

In the decision on exemption or reduction of land rental fees, the reasons for exemption or reduction, the period of land lease, the period of exemption or reduction of land rental fees, and the amount of land rental fees exempted or reduced must be clearly stated; simultaneously, the content must include: "In case the land lessee is required to refund the state budget the amount of land rental fees that have been exempted or reduced according to sub-item b point 4 Clause 3 Article 1 of Decree No. 59/2014/ND-CP or uses the land for purposes other than those specified but not subject to land recovery according to the provisions of the land law, then the lessee must return the amount of land rental fees that have been exempted or reduced according to the policy and land value at the time of preferential treatment (for the case stipulated in sub-item b point 4 Clause 3 Article 1 of Decree No. 59/2014/ND-CP), the land rental fees during the period of improper land use according to the land value and land rental fee collection policy at the time of the land leasing decision, and late payment interest calculated on the amount of land rental fees exempted or reduced or additional land rental fees payable according to the law on tax management."

5. The handling of compensation and clearance costs in cases where the State advances funds for implementation or the socialization implementing entity voluntarily advances funds for the socialization project shall be carried out in accordance with point 5 Clause 3 Article 1 of Decree No. 59/2014/ND-CP and guided in Article 6 of Circular No. 77/2014/TT-BTC of the Ministry of Finance.

6. In cases where the socialization implementing entity is granted land lease with full payment for the entire lease period and is exempted from land rental fees for the entire lease period or exempted from land rental fees for some years but wishes to pay land rental fees for the remaining lease period without enjoying the benefits prescribed in point 6 Clause 3 Article 1 of Decree No. 59/2014/ND-CP, the land rental fees payable shall be determined according to the policy and land value at the time of approval by the competent state agency for the payment. The socialization implementing entity shall enjoy rights over the remaining lease term corresponding to the form of lease with full payment for the entire lease period, in accordance with the laws on land.

In such cases, the remaining compensation and clearance costs (if any) advanced by the investor or paid into the state budget according to the approved plan (not yet allocated to the project investment cost using the average method) shall be deducted from the land rental fees payable, but not exceeding the land rental fees payable for the remaining lease period of the investment project; the value of land use rights may be included in the value of the project assets, and the entity shall enjoy rights and obligations as economic organizations leased land by the state for the remaining lease period in accordance with the laws on land.

7. In cases where two or more investors register to select a location to implement a socialization project, the investor who best meets the criteria regarding scale, quality, and efficiency as prescribed by the laws on bidding and land shall be selected.

8. Socialization implementing entities using legally leased land shall be issued a Certificate of Land Use Right, House Ownership, and Other Assets Attached to Land (hereinafter referred to as the Certificate). The procedures and processes for land leasing and issuance of the Certificate shall be carried out in accordance with the laws on land.

9. The use of land by socialization implementing entities must comply with the purpose, conform to planning, and adhere to all regulations of the laws on land. Upon expiration of the lease period, if the socialization implementing entity has no need to continue using the land or is dissolved or relocated, it must return the leased land to the State. Handling of socialization implementing entities using land improperly shall be carried out as follows:

a) In cases where the competent state agency discovers the first instance of improper land use by a socialization implementing entity, it shall be administratively fined in the field of land and must pay the state budget the following amounts:

- Land rental fees during the period of improper land use according to the land value and land rental fee collection policy at the time of the land leasing decision.

- Late payment interest on the land rental fees during the period of improper land use according to the law on tax management.

b) In cases where, after being administratively fined for improper land use, the socialization implementing entity continues to improperly use the land, the State shall recover the land; the State will not refund the portion of land rental fees already paid for the remaining lease period (if any) and will not compensate for the value of assets attached to the land that is recovered.

10. Incorporating the value of land use rights into the value of project assets and the rights to land of socialization implementing entities:

a) When the State leases land and collects rent for the entire lease period in one lump sum payment while exempting the rent for the entire project duration or when leasing land annually with rent payments, the socialization implementing entity shall not include the value of land use rights in the asset value of the investment project and shall not transfer, assign, gift, or lease land use rights; it shall not be inherited, mortgaged, guaranteed, or contributed as land use rights under lease.

b) When the State leases land and collects rent for the entire lease period in one lump sum payment while exempting rent for some years, the socialization implementing entity may include the value of land use rights based on the amount of rent paid into the asset value of the investment project. The socialization implementing entity may transfer, gift, lease land use rights; inherit, mortgage, contribute as land use rights under lease corresponding to the portion of the land use rights value equivalent to the rent payable during the period of rent payment. The socialization implementing entity may exercise these rights from the date of making rent payments to the state budget.

11. Transfer of socialized projects:

a) During the implementation of the project, due to objective reasons, if it is unable to continue implementing the project on the land leased by the State, the socialization implementing entity may transfer this project according to laws on real estate business and land laws if approved in writing by the competent state agency for the transfer of the project. The transferee must commit to continuing to implement the socialized project in accordance with the project's objectives and intended land use purposes; the transferee continues to enjoy land-related benefits according to the socialization policy of the transferring entity for the remaining lease term from the date of project transfer.

b) The value of the transferred project is agreed upon by both parties and includes:

- Assets on the land for cases where the project is exempted from all rent or the project is leased by the State with annual rent payments;

- Assets on the land and the full value of land use rights for cases where the project must pay the full rent (without exemptions or reductions) for the entire lease period;

- Assets on the land and a portion of the value of land use rights corresponding to the portion of rent already paid to the state budget for cases where the project is leased by the State with a one-time payment for the entire lease period.

c) The completion of land lease procedures between the old investor and the new investor when transferring socialized projects shall be carried out in accordance with the provisions of the law on land.”

4. Amend point e Clause 5 Section XIII regarding the responsibilities of the Provincial People's Committee stipulated in Article 18 of Decree No. 69/2008/ND-CP (amended and supplemented by Clause 4 Article 1 of Decree No. 59/2014/ND-CP) as follows:

“e) Issue specific levels of rent exemption and reduction according to each field and area of socialization preference at the local level after obtaining the opinion of the Standing Body of the People's Council at the same level.

Direct the Tax Department to take the lead and coordinate with the Planning and Investment Department, the Finance Department, the Natural Resources and Environment Department, and relevant specialized departments on socialization to monitor the implementation of socialization projects in accordance with the conditions and criteria approved by the competent authority. In case it is found that the socialization implementing entity does not meet the conditions and criteria approved by the competent authority, report to the Provincial People's Committee for consideration and decision to revoke the benefits in accordance with the law.”

5. Amend and supplement certain contents in Section XIV on Implementation Organization as follows:

“XIV. Implementation Organization

1. In cases where the socialization implementing entity is allocated land, leased land, or handed over land that has been cleared for construction with residential or urban land origin from the effective date of Decree No. 69/2008/ND-CP to the effective date of Decree No. 59/2014/ND-CP and meets the conditions to enjoy the encouragement policy for socialization development as prescribed in Decision of the Government Chairman in Article 2 of Decree No. 69/2008/ND-CP, but the Provincial People's Committee has not issued regulations on rent exemption and reduction according to Clause 1 Article 6 of Decree No. 69/2008/ND-CP, thus the competent state agency has not determined the rent payable for the project, now it shall enjoy rent exemption and reduction according to Decree No. 59/2014/ND-CP as follows:

a) Socialization implementing entities using residential land in rural areas shall enjoy rent exemption and reduction according to Point 1 Clause 3 Article 1 of Decree No. 59/2014/ND-CP of the Government.

b) Socialization implementing entities using urban land shall enjoy rent exemption and reduction according to Point 2 Clause 3 Article 1 of Decree No. 59/2014/ND-CP of the Government.

c) For socialization implementing entities that have been allocated land by the State and have been exempted or reduced land use fees and have paid the non-exempted portion of the land use fee according to the law on encouraging socialization before the effective date of Decree No. 59/2014/ND-CP, they may continue to use the land for the remaining usage period without having to convert to lease; in case of conversion to lease, they do not need to pay rent within the allocated period. Upon expiration of the land usage period, if the competent state agency extends the period after July 1, 2014, then they must convert to lease according to the law on collecting land rent at the time of extension.

2. Socialization implementing entities that are allocated land, leased land that has been cleared for construction to build socialization works from the effective date of Decree No. 69/2008/ND-CP to before the effective date of Decree No. 59/2014/ND-CP and the State does not require payment for compensation and clearance, the socialization implementing entity does not need to repay this amount to the State.

3. From July 1, 2014 onwards, land leasing, compensation payment, and clearance for socialized projects shall be carried out in accordance with the provisions of the Land Law 2013 and Point 5, Clause 3, Article 1 of Decree No. 59/2014/NĐ-CP; some of these matters are guided as follows:

a) Non-state-owned facilities in the fields specified in Article 1 of this Circular established according to Decree No. 73/1999/NĐ-CP dated August 19, 1999; Decree No. 53/2006/NĐ-CP dated May 25, 2006 of the Government, which meet the conditions to enjoy development encouragement policies under this Circular, shall register with the competent authority issuing the business license and the direct tax management agency to benefit from preferential policies as guided in this Circular.

b) Non-state-owned facilities in the fields specified in Article 1 of this Circular established according to Decree No. 73/1999/NĐ-CP dated August 19, 1999; Decree No. 53/2006/NĐ-CP dated May 25, 2006 of the Government, which do not meet the conditions to enjoy development encouragement policies under this Circular, shall cease to benefit from preferential socialization policies.

c) Organizations and individuals operating under the Enterprise Law that have independent projects in the socialized fields listed in the Prime Minister's regulations shall register with the competent authority issuing the business license and the direct tax management agency to be considered for preferential policies as guided in this Circular.”

Article 2. Effective Date

1. This Circular takes effect from December 15, 2014.

2. Cases arising from August 1, 2014 shall be implemented in accordance with the provisions of Decree No. 59/2014/NĐ-CP and the guidance provided in this Circular.

3. Abolish Clause 3, Section III, Point b, Clause 5, Section XIII of Circular No. 135/2008/TT-BTC dated December 31, 2008 of the Ministry of Finance.

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