Law Amending and Supplementing Certain Articles of the Land Transfer Tax Law No. 17/1999/QH10

LAW

Amending and supplementing certain articles of the Law on Land Transfer Tax

Based on the Constitution of the Socialist Republic of Vietnam in 1992;

Pursuant to the Land Law adopted by the National Assembly of the Socialist Republic of Vietnam on July 14, 1993; and the Law amending and supplementing certain articles of the Land Law adopted by the National Assembly of the Socialist Republic of Vietnam on December 2, 1998;

This Law amends and supplements certain articles of the Law on Land Transfer Tax adopted by the National Assembly of the Socialist Republic of Vietnam on June 22, 1994.

Article 1.

Amending and supplementing certain articles of the Law on Land Transfer Tax:

1. Clause 2 shall be amended and supplemented as follows:

Article 2The following cases are not subject to land transfer tax:

1. The State grants land for use by organizations, households, or individuals in accordance with the law;

2. Organizations, households, or individuals return land to the State or the State reclaims land in accordance with the law;

3. Transfer of land use rights in cases of divorce or inheritance in accordance with the law;

4. Transfer of land use rights between: husband and wife; father, mother, adoptive father, adoptive mother and son, daughter, adoptive son, adoptive daughter; grandfather, grandmother, maternal grandfather, maternal grandmother and grandson, granddaughter; full siblings;

5. Economic organizations that lease land from the State and transfer the land use rights;

6. Organizations, households, or individuals donate land use rights to the State or to organizations for the construction of cultural, educational, health, sports facilities; charitable facilities not for business purposes in projects approved by competent state authorities."

2. Article 7 is amended as follows:

"Article 7. The rate of land transfer tax is as follows: 1. Agricultural, forestry, aquaculture, salt production land, the tax rate is 2% (two percent); 2. Residential land, construction land, and other types of land, the tax rate is 4% (four percent)."

"Article 11.

3. Article 11 is amended and supplemented as follows:

1. The land transfer tax shall be paid by the party transferring the land use rights and paid once according to the notification of the tax authority.

2. In cases where the party receiving the land use rights voluntarily pays the land transfer tax on behalf of the party transferring the land use rights, such party shall be responsible for declaring and paying the tax in accordance with Article 10 of the Law on Land Transfer Tax.

3. Competent state authorities shall only issue certificates of land use rights to the party receiving the land use rights when the land transfer tax has been fully paid."

"Article 14

4. Article 14 is amended and supplemented as follows:

Exemption from land transfer tax in the following cases:. 1. Households and individuals transferring land use rights to move to new economic zones, mountainous areas, islands pursuant to decisions of competent state authorities;

2. Individuals awarded the title of "Vietnam's Heroic Mother" by the State transferring land use rights;

3. Transfer of land use rights for land types in rural communes in mountainous areas and islands as prescribed by the Government;

4. Conversion of agricultural, forestry, aquaculture, salt production land among each other to suit cultivation conditions;

5. Economic organizations granted land by the State with payment of land use fees for investment in building houses for sale, infrastructure for transfer with attached houses and infrastructure."

"Article 15.

5. Article 15 is amended and supplemented as follows:

Reduce land transfer tax by 50% (fifty percent) for the following subjects: 1. Individuals classified as first-class disabled veterans, second-class disabled veterans, and third-class disabled war invalids, fourth-class disabled war invalids;

2. Relatives of martyrs entitled to state allowances;

3. Disabled persons unable to work, minors under the age of maturity, and elderly people without support."

6. Article 16 is amended as follows:

"Article 16.

Each subject exempted or reduced from land transfer tax as stipulated in Articles 14 and 15, after amendment and supplementation, may only be considered for exemption or reduction once, except for the subject stipulated in Clause 5 of Article 14, after amendment and supplementation." Repeal Article 8 and Article 9 of the Law on Land Transfer Tax.

Article 2. This Law takes effect from January 1, 2000.

Article 3. Cases of land use rights transfer before January 1, 2000, which have not yet paid the land transfer tax, shall pay the tax at the rates specified in this Law.

The Government shall amend and supplement detailed implementing regulations of the Law on Land Transfer Tax issued to be consistent with this Law.

Article 4. This Law was adopted by the Sixth Session of the Tenth National Assembly of the Socialist Republic of Vietnam on December 21, 1999.

This Law was adopted by the National Assembly of the Socialist Republic of Vietnam, tenth session, sixth meeting, on December 21, 1999.