Decree No. 19/2000/NĐ-CP detailing the implementation of the Land Transfer Tax Law and the Law Amending and Supplementing Certain Provisions of the Land Transfer Tax Law.

DECREE

Detailed Implementation Regulations

Of the Land Transfer Tax Law and the Law Amending and Supplementing Certain Provisions of the Land Transfer Tax Law

 Amending Certain Provisions of the Land Transfer Tax Law

_____________________

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Land Transfer Tax Law dated June 22, 1994 and the Law Amending and Supplementing Certain Provisions of the Land Transfer Tax Law No. 17/1999/QH10 dated December 21, 1999;

At the proposal of the Minister of Finance,

DECREE:

Chapter I

GENERAL PROVISIONS

Article 1. Taxpayers

Organizations, households, and individuals who have land use rights, when transferring land use rights in accordance with the laws on land shall pay the land transfer tax, except for cases provided for in Article 3 of this Decree.

Article 2. Taxable objects

The taxable object of the land transfer tax is the value of the land area transferred in accordance with the laws, including land with houses and other structures thereon.

Article 3. Cases Not Subject to Taxation

The following cases are not subject to land transfer tax:

1. The State grants land or leases land to organizations, households, and individuals for use in accordance with the laws on land;

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

3. The State sells state-owned houses together with the transfer of land use rights to the house buyer;

4. Transferring land use rights in cases of divorce or inheritance of land use rights in accordance with the laws;

5. Transferring land use rights between: husband and wife; father, mother, adoptive father, adoptive mother and their biological or adopted children; paternal or maternal grandparents and grandchildren; full-blood siblings;

6. Economic organizations, households, and individuals who lease land from the State and transfer the land use rights of leased land; the person receiving the land use rights of leased land continues to implement the leasing system in accordance with the Land Law;

7. Organizations, households, and individuals donate land use rights to people's committees at all levels or to political organizations, political-social organizations, social organizations, occupational social organizations, economic organizations for the construction of cultural, educational, health, sports facilities; for the construction of charitable facilities including love houses, righteousness houses, orphanages, nursing homes, homes for single elderly people and disabled persons, and other humanitarian facilities without the purpose of business as approved or agreed upon by competent state agencies in accordance with planning.

Chapter II

BASIS FOR TAXATION

Article 4. Basis for tax calculation

The basis for calculating the land transfer tax is the area of land transferred, the land price, and the land transfer tax rate.

Article 5. Area of Land for Tax Calculation

The area of land for calculating the land transfer tax is the actual area of land transferred recorded in the land use right transfer contract confirmed by the district, county, town, city people's committee under the province for household and individual land; by the Department of Land Administration or the Department of Land Administration - Real Estate for organizational land.

Article 6. Land Price for Tax Calculation

1. The land price for calculating the land transfer tax is the price set by the provincial or centrally-administered municipal People's Committee according to the framework of land prices set by the Government and publicly announced at tax offices and land administration offices.

2. In the case of transferring land use rights through auction, the land price for tax calculation is the winning bid price but not lower than the framework land price set by the provincial or centrally-administered municipal People's Committee according to the framework of land prices set by the Government.

In the case of transferring land use rights along with selling immovable property attached to the land use rights through auction where the winning bid price does not separately specify the land price, the land price for tax calculation is the land price set by the provincial or centrally-administered municipal People's Committee according to the framework of land prices set by the Government.

3. In the case of selling apartments in multi-story buildings shared by multiple households along with transferring land use rights with houses on that land, the land price for tax calculation is determined based on the allocation coefficient for each floor as stipulated in Government Decree No. 61/CP dated July 5, 1994 on buying and selling residential properties.

4. In the case of transferring land use rights of ponds, orchards within rural residential areas, or urban residential land, the land price for calculating the land transfer tax is determined based on the type of land recorded in the Certificate of Land Use Rights or the type of land currently being taxed: if currently paying agricultural land use tax, the tax calculation price is the agricultural land price; if currently paying house and land tax, the tax calculation price is the residential land price.

Article 7. Machine tools for machining complete units (one operation position) and machine tools for multi-position machining to process metals.

1. The land transfer tax rate is specified as follows:

a) For agricultural production land, forestry land, aquaculture land, salt-making land, the tax rate is 2% (two percent);

b) For residential land, construction land, and other types of land not included in the categories specified in point a of Clause 1 of this Article, the tax rate is 4% (four percent).

2. When determining the type of land to apply the above tax rates, it is based on the Certificate of Land Use Rights or the declared purpose of land use currently being taxed, confirmed by a competent state agency in the land use right transfer contract.

Chapter III

EXEMPTIONS AND REDUCTIONS

Article 8. Exemption from Taxes

Exemption from Land Transfer Tax

1. Households and individuals transferring land use rights to move to new economic zones, mountainous regions, or islands according to the decision of a competent state agency;

2. Individuals honored with the title "Vietnamese Mother Hero" who transfer land use rights;

3. Transferring land use rights of various types of land in mountainous and island rural communes as prescribed by the Government;

4. Converting agricultural production land, forestry land, aquaculture land, and salt-making land among themselves to suit cultivation conditions;

5. Economic organizations granted land by the State for payment of land use fees to invest in building houses for sale, constructing infrastructure for transfer or lease of land use rights attached to houses or infrastructure, are exempt from land transfer tax corresponding to the area of land use fees paid for each project.

Other real estate businesses transferring land use rights not falling within the scope of exemption from land transfer tax as prescribed in this clause.

Article 9. Reduction of Tax

Reduce 50% (fifty percent) of the land transfer tax for the following individuals:

1. Individuals who are first-class disabled veterans, second-class disabled veterans, and third-class disabled servicemen, fourth-class disabled servicemen;

2. Relatives of martyrs who are entitled to state allowances;

3. Disabled individuals unable to work, minors under the age of maturity, and elderly individuals living alone without support.

Article 10. Implementation of tax exemptions and reductions

1. Individuals exempted or reduced from taxes under Clauses 1, 2, 3, and 4 of Article 8 and Article 9 of this Decree shall only be considered for exemption or reduction of tax once when transferring land use rights.

2. Households and individuals eligible for tax exemption or reduction on the transfer of land use rights must meet one of the following conditions:

a) Being named on the certificate of land use rights or the certificate of ownership of housing and land use rights;

b) Being a co-owner of land use rights within the household when the land was allocated or when they received the transfer of land use rights.

3. In cases where multiple individuals within the same household are eligible for tax reduction on the transfer of land use rights, their respective reductions will be combined into a total reduction for the household, but not exceeding 100% of the amount of tax due to the State budget.

4. The Ministry of Finance shall provide detailed guidance on procedures and authority for implementing tax exemptions and reductions on the transfer of land use rights.

Chapter IV

DECLARATION AND PAYMENT OF TAX

Article 11. Tax Declaration

1. Within fifteen days from the date the competent authority permits the transfer of land use rights, organizations, households, and individuals are responsible for declaring to the tax authority at the location of the transferred land regarding the type of land, area, location, and value of the transferred land according to the tax declaration form provided by the tax authority.

2. In cases where organizations, households, or individuals with land use rights mortgage or guarantee the land use rights or assets attached to the land and must transfer land use rights or sell assets together with the transfer of land use rights to settle debts, the individual with land use rights or the agency, organization, or individual handling the transfer of land use rights shall declare and pay the tax on the transfer of land use rights before settling the debts.

3. In cases where a state agency with authority performs the transfer of land use rights during the execution of official duties as prescribed by law, that agency is responsible for declaring and paying the tax on the transfer of land use rights.

4. In cases of mutual exchange of land use rights, each party exchanging land use rights shall declare the tax on the transfer of land use rights based on the value of the exchanged land according to the guidance of the tax authority.

Article 12. Payment of Tax

1. Organizations, households, and individuals transferring land use rights (referred to collectively as the transferrer) are responsible for paying the tax on the transfer of land use rights as notified by the tax authority.

The transferrer may authorize a representative to declare and pay the tax on the transfer of land use rights.

The transferee may agree to pay the tax on behalf of the transferrer, in which case the transferee is responsible for declaring and paying the tax on the transfer of land use rights.

2. The latest deadline for tax payment is thirty days from the date the declarer of the tax on the transfer of land use rights receives notification from the tax authority.

3. The competent state authority will only issue the certificate of land use rights to the transferee when the tax on the transfer of land use rights has been fully paid, except in cases where the tax on the transfer of land use rights is allowed to be deferred according to government regulations.

Article 13. Duties and Authorities of the Tax Authority

1. Upon receiving the tax declaration form for the transfer of land use rights from the taxpayer, the tax authority must issue a receipt and maintain a daily record.

2. Guide taxpayers to complete declarations and follow the correct procedures for paying the tax on the transfer of land use rights.

3. Require taxpayers to provide complete documentation including: the land use rights transfer contract confirmed by the competent authority permitting the transfer of land use rights, the certificate of land use rights, and related documents concerning tax exemptions and reductions on the transfer of land use rights.

4. Verify and confirm the documents serving as the basis for calculating tax, exemptions, and reductions, and determining the amount of tax payable.

5. Based on the tax declaration form submitted by the taxpayer, within thirty days from the date of receiving all documents and the tax declaration form for the transfer of land use rights, the tax authority must calculate the tax, notify the taxpayer of the amount of tax exempted, the amount of tax payable, and the deadline for tax payment.

6. Issue decisions on tax exemptions and reductions according to the provisions of the Law on Taxation of Transfer of Land Use Rights.

7. Examine and resolve complaints about the tax on the transfer of land use rights within its jurisdiction.

Article 14. Collection and Payment of Tax

1. The tax on the transfer of land use rights is paid in Vietnamese currency and deposited at the State Treasury at the location of the transferred land use rights.

2. When collecting tax, the State Treasury must issue a tax receipt issued by the Ministry of Finance as proof of full tax payment according to regulations and attach it to the land administration's file for issuing the certificate of land use rights.

3. In cases where the tax on the transfer of land use rights is paid in installments, the State Treasury is responsible for issuing a tax receipt for each installment and monitoring until the full tax is paid, then confirming full payment and transferring the file to the land administration for issuing the certificate of land use rights.

Chapter V

COMPLAINTS, VIOLATION HANDLING, AND REWARDS

Article 15. COMPLAINTS

Complaints and resolution of complaints about the tax on the transfer of land use rights shall be carried out according to the provisions of Articles 22, 23, 24, and 25 of the Law on Taxation of Transfer of Land Use Rights and other legal documents regulating complaints and denunciations related to land laws.

Article 16. Handling Violations

The tax authority, tax officials, taxpayers, and other individuals violating the law on taxation of the transfer of land use rights shall be handled according to the provisions of Articles 17, 18, 19, and 20 of the Law on Taxation of Transfer of Land Use Rights and government regulations on administrative penalties in the field of taxation.

Article 17. Awards

The tax authority, tax officials who perform their tasks well, and individuals who discover violations of the Law on Taxation of Transfer of Land Use Rights shall be rewarded according to the general reward system of the State.

Chapter VI

IMPLEMENTING PROVISIONS

Article 18. Implementation

The Ministry of Finance shall provide guidance on the implementation of this Decree;

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees are responsible for implementing this Decree.

Article 19. Handling Outstanding Issues

1. In cases where the right to use land was transferred before January 1, 2000, and tax on the transfer of the right to use land has not yet been paid, such tax shall be paid at the tax rate prescribed in the Law Amending and Supplementing Certain Provisions of the Land Transfer Tax Law and the provisions of this Decree.

2. In cases where the right to use land was transferred before January 1, 2000, and declared and partially paid the land transfer tax, the amount of tax payable shall be recalculated according to the tax rate prescribed in the Law Amending and Supplementing Certain Provisions of the Land Transfer Tax Law, and shall be implemented as follows:

a) If the tax paid before January 1, 2000 is less than the recalculated tax payable, additional tax shall be paid for the shortfall.

b) If the tax paid before January 1, 2000 exceeds the recalculated tax payable, the excess tax paid shall not be refunded.

3. In cases where the right to use land was transferred before January 1, 2000, and there is one of the valid documents regarding the right to use land as prescribed in Clause 2, Article 3 of Decree No. 17/1999/NĐ-CP dated March 29, 1999 of the Government, including cases where the right to use land has been transferred multiple times among different users, when the current user applies for issuance of the certificate of land use rights or the certificate of ownership of house and land use rights, they only need to pay the land transfer tax once according to the provisions of this Decree.

• 4. The person responsible for paying the land transfer tax as stipulated in Clauses 1, 2, and 3 of this Article, if genuinely facing difficulties and unable to pay the full land transfer tax, upon confirmation by the People's Committee of the commune, ward, or town, shall have the State Treasury record the outstanding land transfer tax debt and transfer the file to the land administration authority to process the issuance of the certificate of land use rights, with the outstanding land transfer tax debt recorded therein.

Article 20. Effectiveness

This Decree takes effect from January 1, 2000, and replaces Decree No. 114/CP dated September 5, 1994 of the Government detailing the implementation of the Law on Taxation of the Transfer of the Right to Use Land.