Circular No. 2037-TC/TCT stipulates the payment of land rental fees by foreign-invested enterprises, provides guidance on cases exempt from paying such fees, and outlines the responsibilities of the lessor.
适用范围
Foreign-invested enterprise; tax authority; land administration agency
要点
- A foreign-invested enterprise leasing factories, offices, or warehouses from domestic organizations or individuals is not required to pay land rental fees (Point 1).
- The lessor of factories, offices, or warehouses must fulfill their tax obligations and pay the land rental fee as prescribed by law (Point 2).
- The tax authority shall send contracts for leasing land that do not fall within the permitted scope for lease to be handled according to the law (Point 3).
- This guidance applies only to issues existing before March 11, 1998, and does not adjust annual settled land rental fees (Final Clause).
- Circular No. 2037-TC/TCT replaces Circular No. 1663 TC/TCT dated May 11, 1998.
🌐 本文件的社会影响
- Helps foreign-invested enterprises save on land rental costs.
- Increases state budget revenue through the fulfillment of tax obligations by lessors.
- The land administration agency and tax authority have additional grounds to handle cases of non-compliance with land rental fees.
❓ 常见问题
Does a foreign-invested enterprise leasing factories from individuals in Vietnam need to pay land rental fees?
No, only the rent for the factory as stipulated in the contract must be paid (Point 1).
What responsibilities does the lessor have when renting factories to foreign-invested enterprises?
Must fulfill tax obligations and pay the land rental fee according to legal provisions (Point 2).
How does the tax authority handle contracts for leasing land that do not comply with regulations upon discovery?
Send the lease contract to the land administration agency for handling in accordance with the law (Point 3).
Does this circular apply to cases where land rental fees have been settled before its effective date?
No, it only applies to issues existing before March 11, 1998 (Final Clause).
Which circular does this one replace?
Replaces Circular No. 1663 TC/TCT dated May 11, 1998.
全文
LETTER
OF THE MINISTRY OF FINANCE NUMBER 2037-TC-TCT DATED JUNE 5, 1998
REGARDING LAND RENT FOR ENTERPRISES
WITH FOREIGN INVESTMENT CAPITAL
Dear: Provincial Tax Departments
Following the Circular No. 740-TC/TCT dated April 1, 1995 of the Ministry of Finance guiding the implementation of Decision No. 1417-TC/TCDN dated December 31, 1994 of the Minister of Finance regarding guidance on certain points, we hereby provide additional guidance as follows:
1\. Enterprises with foreign investment capital renting premises such as factories, offices, warehouses from domestic organizations or individuals are not required to pay land rent; they only need to pay for the rental of these facilities according to the lease contract signed with the lessor (except in cases where the lease agreement stipulates that the lessee must pay land rent for the leased area).
2\. The entities owning factories, offices, warehouses mentioned in Point 1 of this letter shall fulfill their tax obligations (business income tax and profit tax) on the rental activities of premises and land rent according to the provisions of law.
3\. For cases where land is rented out without being within the scope permitted for renting under Decree No. 85/CP dated December 17, 1996 of the Government, the tax authority will send copies of the lease contracts to local land administration authorities for handling according to legal provisions.
Other cases shall be implemented in accordance with the guidance provided in Circular No. 740-TC/TCT dated April 1, 1995 of the Ministry of Finance.
The guidance provided in this letter applies to addressing issues related to land rent payments arising before March 11, 1998 (the effective date of Decision No. 179/1998/QĐ-BTC dated February 24, 1998 of the Minister of Finance). For enterprises with foreign investment capital that have settled their annual land rent payments to local tax departments, they are not required to adjust according to the guidance in this letter.
This letter replaces Circular No. 1663-TC/TCT dated May 11, 1998 of the Ministry of Finance. During the process of managing land rent collection from enterprises with foreign investment capital, if there are any issues or suggestions, please promptly report them to the Ministry of Finance for specific guidance on implementation.
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