Circular No. 216/2012/TT-BTC guides the determination of land rent for rubber planting land.

CIRCULAR

Guidelines for determining land rental fees for rubber plantation land

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Based on the Land Law dated November 26, 2003;

Pursuant to Decree No. 142/2005/NĐ-CP dated November 14, 2005 of the Government on collecting land rental fees and water surface rental fees;

Pursuant to Decree No. 69/2009/NĐ-CP dated August 13, 2009 of the Government on additional provisions regarding land use planning, land prices, land recovery, compensation, support, and resettlement;

Pursuant to Decree No. 121/2010/NĐ-CP dated December 30, 2010 of the Government amending and supplementing certain articles of Decree No. 142/2005/NĐ-CP dated November 14, 2005 of the Government on collecting land rental fees and water surface rental fees;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Considering the proposal of the Director of the State Asset Management Department;

The Minister of Finance issues this Circular guiding the determination of land rental fees for rubber plantation land.

Article 1. Scope and Objectives of Application.

1. Scope of application: This Circular guides the determination of land rental fees for rubber plantation land, including: determining the land rental fee; exemption and reduction of land rental fees; procedures and processes for collecting and paying land rental fees.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) Economic organizations; households and individuals leasing land for rubber planting;

b) Overseas Vietnamese residents, foreign organizations and individuals (including joint venture economic organizations between domestic and foreign investors) leasing land for rubber planting;

c) State agencies with functions to manage land.

Article 2. Determination of Land Rental Fees.

1. Determination of annual land rental fee unit price in cases where land is leased with annual payment of land rental fees (applicable to the subjects specified in points a and b, Clause 2, Article 1 of this Circular).

The annual land rental fee unit price equals the land price for land rental fee calculation multiplied by the percentage rate for calculating the land rental fee unit price.

a) The percentage rate for calculating the land rental fee unit price is decided by the People's Committee of the province at a rate of 0.75% of the land price for land rental fee calculation.

b) The land price for land rental fee calculation.

The land price for land rental fee calculation for rubber planting: is determined based on the income approach and set for each area and region by the People's Committee of the province, based on the net income from rubber planting suitable to local conditions. In cases where a project leases land across multiple districts within an area, the land price is determined according to the average level for the entire project.

2. Determination of land rental fees in cases where land is leased with a one-time payment for the entire lease period (applicable to the subjects specified in point b, Clause 2, Article 1 of this Circular).

The one-time payment for the entire lease period is calculated as the amount of land use fee payable as if the land were transferred with a one-time payment of the land use fee for the same purpose and duration of use.

The lease period for which the one-time payment is made is the period permitted by the competent authority for leasing the land (Lease Decision or Lease Contract). In cases where land rental fees are exempted according to regulations, the period for making the one-time payment for land rental fees is the lease period permitted by the competent authority minus the exempted period.

Article 3. Principles for Adjusting the Land Rental Fee Unit Price.

1. In cases where the State leases land with annual payment of land rental fees, the land rental fee unit price for each project is stabilized for five years. At the end of the stabilization period, if the land price set by the People's Committee of the province varies less than 20% compared to the land price used to calculate the land rental fee at the time of the previous unit price determination, then the land price table set by the People's Committee of the province at the time of adjusting the unit price will be applied to determine the unit price for the next stabilization period (five years) but not lower than the unit price of the preceding stabilization period.

2. If the land price set by the People's Committee of the province varies by 20% or more compared to the land price used to calculate the land rental fee at the time of the previous unit price determination, the Department of Finance shall take the lead in determining the adjustment factor for the land price according to the guidelines in Circular No. 94/2011/TT-BTC dated June 29, 2011 of the Ministry of Finance amending and supplementing Circular No. 120/2005/TT-BTC dated December 30, 2005 of the Ministry of Finance guiding the implementation of Decree No. 142/2005/NĐ-CP dated November 14, 2005 of the Government on collecting land rental fees and water surface rental fees, and submit it to the People's Committee of the province for decision, serving as the basis for the Department of Finance (for cases involving economic organizations, overseas Vietnamese residents, foreign organizations and individuals leasing land) and the People's Committee of the district (for cases involving households and individuals leasing land) to decide on adjusting the unit price for the next stabilization period (five years).

3. In cases where the stabilization period (five years) has expired but the unit price for land rental fees cannot be adjusted due to objective reasons, the lessees continue to apply the unit price of the previous stabilization period to temporarily pay the land rental fees for that period; when the competent authority implements adjustments to the unit price for each adjustment, they must pay the full land rental fees according to the adjusted amounts by the competent authority.

Article 4. Land rental price in cases of auctioning land use rights for lease.

1. In cases where land use rights for lease are auctioned under the form of annual land rent payment, the land rental unit price is the winning bid price. The starting price for conducting the auction shall be determined according to the guidance provided in Clause 2, Article 3 of Circular No. 48/2012/TT-BTC dated March 16, 2012, issued by the Ministry of Finance, guiding the determination of the starting price and financial regime in land use right auction activities for transferring land with land use fee collection or leasing land, and any amendments and supplements to this Circular (if any).

The land rental unit price in this case will remain stable for 10 years. After the stabilization period, the land price must be adjusted again to determine the land rental unit price for the subsequent stabilization period (10 years) based on the following principles:

a) In cases where the land price set and announced by the provincial People's Committee at the time of adjustment fluctuates less than 20% compared to the auction-winning land price or compared to the land price used to determine the land rental unit price during the immediately preceding stabilization period, the land price table set and announced by the provincial People's Committee at the time of adjusting the land rental unit price shall be applied to determine the land rental unit price for the next stabilization period (10 years), ensuring that the land rental unit price of this stabilization period does not exceed 30% of the auction-winning land rental unit price or the land rental unit price of the immediately preceding stabilization period.

b) In cases where the land price set and announced by the provincial People's Committee at the time of adjustment fluctuates by 20% or more compared to the auction-winning land price or compared to the land price used to determine the land rental unit price during the immediately preceding stabilization period, the Department of Finance shall take the lead in determining the land price adjustment factor according to the guidance provided in Circular No. 94/2011/TT-BTC dated June 29, 2011, issued by the Ministry of Finance, submit it to the provincial People's Committee for decision, serving as the basis for the Department of Finance (in cases involving economic organizations, overseas Vietnamese, foreign organizations, and individuals leasing land) and the district People's Committee (in cases involving households and individuals leasing land) to decide on adjusting the land rental unit price for the next stabilization period (10 years), ensuring that the land rental unit price of this stabilization period does not exceed 30% of the auction-winning land rental unit price or the land rental unit price of the immediately preceding stabilization period.

2. In cases where land use rights for lease are auctioned under the form of one-time payment for the entire lease period, the land rental unit price is the winning bid price. The amount of land rent payable is calculated by multiplying the winning bid price (the auction-winning land transfer price) by the area of leased land. The amount of land rent payable corresponds to the land use fee payable in the case of auctioning land transfer with land use fee collection.

The starting price for conducting the auction of land use rights for lease shall be determined according to the guidance provided in Clause 2, Article 3 of Circular No. 48/2012/TT-BTC dated March 16, 2012, issued by the Ministry of Finance, and any amendments and supplements to this Circular (if any).

Article 5. Deduction of compensation and clearance costs.

1. In cases where the lessee pre-pays compensation, support, resettlement, and organization expenses for clearance and land acquisition according to Decree No. 197/2004/NĐ-CP dated December 3, 2004, issued by the Government on compensation, support, and resettlement when the State recovers land, and Decree No. 84/2007/NĐ-CP dated May 25, 2007, issued by the Government supplementing regulations on issuing land use right certificates, recovering land, exercising land use rights, procedures for compensation, support, and resettlement when the State recovers land, and resolving land disputes (before the effective date of Decree No. 69/2009/NĐ-CP dated August 13, 2009, issued by the Government on supplementary regulations on land use planning, land prices, land recovery, compensation, support, and resettlement), the lessee may deduct the land compensation and support amounts according to the approved plan from the land rent payable, with the deduction amount not exceeding the land rent payable.

2. In cases where the lessee pre-pays compensation, support, resettlement, and organization expenses for clearance and land acquisition according to Decree No. 69/2009/NĐ-CP dated August 13, 2009, issued by the Government, the state budget shall repay the full amount prepaid according to the approved plan by deducting it from the land rent payable, with the deduction amount not exceeding the land rent payable.

3. In cases where the lessee has been leasing land with annual rent payments from the State and has deducted compensation and clearance costs according to the approved plan under Decree No. 142/2005/NĐ-CP dated November 14, 2005, issued by the Government on collecting land rent and water surface rent, the deduction of compensation and clearance costs shall continue to be implemented according to the provisions of Decree No. 142/2005/NĐ-CP dated November 14, 2005, issued by the Government (deduction costs are allocated into the annual land rent payable).

4. From March 1, 2011 (the effective date of Decree No. 121/2010/NĐ-CP dated December 30, 2010, issued by the Government amending and supplementing certain articles of Decree No. 142/2005/NĐ-CP dated November 14, 2005, issued by the Government on collecting land rent and water surface rent), in cases where the lessee leases land with annual rent payments from the State and carries out compensation and clearance, the deduction of compensation and clearance costs shall be implemented according to Clause 5, Article 2 of Decree No. 121/2010/NĐ-CP and the guidance provided in Article 3 of Circular No. 94/2011/TT-BTC dated June 29, 2011, issued by the Ministry of Finance, specifically as follows:

Any advance payments (if any) for compensation, support, resettlement, and organization expenses for clearance and land acquisition according to the approved plan by the competent authority shall be deducted from the land rent payable converted into the corresponding payment period based on the land rental price at the time of determining the initial land rent payable and shall be considered as the completed annual land rent payment period.

Article 6. Levels and principles for exemption and reduction of land rental fees.

1. Persons leasing land for rubber cultivation shall be exempted or reduced from land rental fees according to the following provisions:

a) Exemption and reduction of land rental fees as prescribed in Article 14 and Article 15 of Decree No. 142/2005/NĐ-CP dated November 14, 2005 of the Government (amended and supplemented in Clause 10, Article 2 of Decree No. 121/2010/NĐ-CP dated December 30, 2010 of the Government);

b) Encouragement policies for enterprises investing in agriculture and rural areas as prescribed in Decree No. 61/2010/NĐ-CP dated June 4, 2010 of the Government on encouragement policies for enterprises investing in agriculture and rural areas and any amendments and supplements to this Decree (if any);

c) Policies for using labor of ethnic minority residents legally residing in the Central Highlands as prescribed in Decision No. 75/2010/QĐ-TTg dated November 29, 2010 of the Prime Minister on supporting organizations and units employing ethnic minority laborers legally residing in the Central Highlands and any amendments and supplements to this Decision (if any).

2. Principles for exemption and reduction of land rental fees shall be implemented according to the provisions in Article 13 of Decree No. 142/2005/NĐ-CP dated November 14, 2005 of the Government (amended and supplemented in Clause 9, Article 2 of Decree No. 121/2010/NĐ-CP dated December 30, 2010 of the Government) and guided in Section VI of Circular No. 141/2007/TT-BTC dated December 30, 2007 of the Ministry of Finance guiding amendments and supplements to Circular No. 120/2005/TT-BTC dated December 30, 2005 of the Ministry of Finance guiding the implementation of Decree No. 142/2005/NĐ-CP dated November 14, 2005 of the Government on collecting land rental fees and water surface rental fees.

Article 7. Procedures, formalities, and authority for exemption and reduction of land rental fees.

1. Procedures, formalities, and dossier for exemption and reduction of land rental fees.

a) Procedures and formalities for exemption and reduction of land rental fees shall be carried out according to the provisions of the Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006 of the National Assembly of the Socialist Republic of Vietnam and any amendments and supplements thereto, Circular No. 28/2011/TT-BTC dated February 28, 2011 of the Ministry of Finance guiding the implementation of certain articles of the Law on Tax Administration, guiding the implementation of Decree No. 85/2007/NĐ-CP dated May 25, 2007 and Decree No. 106/2010/NĐ-CP dated October 28, 2010 of the Government and any amendments and supplements to this Circular (if any).

b) The dossier for exemption and reduction of land rental fees shall be as prescribed in Clause 6, Article 39 of Circular No. 28/2011/TT-BTC dated February 28, 2011 of the Ministry of Finance, specifically as follows:

- Application for exemption and reduction of land rental fees, clearly stating: area of leased land, lease term; reasons for exemption and reduction and duration of exemption and reduction of land rental fees (original).

- Land rental fee declaration as prescribed (original).

- Decision on land lease, Decision on transferring from grant of land without payment of land use fee to lease of land by competent authorities; Land lease contract (certified true copy).

- Investment Certificate (Investment License) or Business Registration Certificate (certified true copy).

- Investment project approved by competent authority (except in cases where exemption and reduction of land rental fees are not for investment projects, then such projects need not be included in the dossier) (certified true copy).

c) In addition to the above documents, for some specific cases of exemption and reduction of land rental fees, additional documents are required as follows:

- For cases of exemption of land rental fees for rubber planting during the basic construction period of rubber plantations, the following documents are also required:

+ Approved project by competent state agencies in accordance with laws on investment, specifying the basic construction period of rubber plantations; Specifically, for households and individuals leasing land for rubber planting, the project must be approved by the provincial People's Committee or authorized agencies thereof (certified true copy).

+ Record confirming the actual area planted with rubber during the basic construction period mentioned above annually by the inter-sectoral body as stipulated by the provincial People's Committee (original).

- For cases of exemption of land rental fees for rubber planting as prescribed by laws on investment: Documents on investment incentives including investment incentive certificates, investment licenses, investment certificates issued by competent state agencies indicating land rental fee incentives (certified true copy).

- For cases of exemption of land rental fees for rubber planting as prescribed in Decree No. 61/2010/NĐ-CP dated June 4, 2010 of the Government: Confirmation of investment incentives by the provincial People's Committee regarding special investment incentive agricultural projects, preferential investment agricultural projects, and encouraged investment agricultural projects as prescribed in Circular No. 06/2011/TT-BKHĐT dated April 6, 2011 of the Ministry of Planning and Investment guiding the dossier, procedures, and formalities for issuing additional investment incentive and support certificates for enterprises investing in agriculture and rural areas under Decree No. 61/2010/NĐ-CP dated June 4, 2010 of the Government (original).

- For cases of exemption of land rental fees for rubber planting as prescribed in Decision No. 75/2010/QĐ-TTg dated November 29, 2010 of the Prime Minister, the dossier for exemption and reduction of land rental fees shall be implemented according to the provisions of Circular No. 203/2011/TT-BTC dated December 30, 2011 of the Ministry of Finance on guiding support for organizations and units employing ethnic minority laborers legally residing in the Central Highlands and any amendments and supplements to this Circular (if any).

- For cases of exemption and reduction of land rental fees decided by the Prime Minister upon proposal of the Minister, Head of a ministerial-level agency, or Chairman of the People's Committee of provinces and centrally-administered cities, the dossier must include: Decision of the Prime Minister (certified true copy).

- For cases of reduction of land rental fees due to natural disasters, fires, or force majeure:

+ Actual production figures of the preceding year in the financial settlement of the unit (certified true copy).

+ Record confirming the status and extent of damage caused by natural disasters, fires, or force majeure confirmed by the People's Committee of communes, wards, towns, or relevant state management agencies (original).

d) Submitting the dossier for exemption and reduction of land rental fees.

The lessee shall submit the "Application for Exemption and Reduction of Land Rent Payment" simultaneously with the declaration and payment of land rent to the Office of Land Registration or the Natural Resources and Environment Authority. In cases where the application for exemption or reduction of land rent is not submitted concurrently with the declaration and payment of land rent, the "Application for Exemption and Reduction of Land Rent Payment" shall be submitted to the directly managing tax authority.

2. Competent authority to decide on exemption and reduction of land rent.

The tax authority shall base its decision on the application for exemption and reduction, together with the cadastral file (in cases where the application for exemption and reduction is submitted concurrently with the declaration and payment of land rent) or the application for exemption and reduction of land rent (in cases where the application for exemption and reduction is not submitted concurrently with the declaration and payment of land rent) to determine the amount of land rent payable, the amount of land rent exempted, and the amount of land rent reduced.

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

The Director of the District Tax Department decides on the exemption and reduction of land rent and water surface rent for households and individuals leasing land.

In the specific case of exemption from land rent during the construction period of rubber plantations: The tax authority shall temporarily exempt land rent during the basic construction years (excluding the final year). Upon completion of the basic construction period of the rubber plantation, the tax authority shall issue a formal decision to exempt land rent for the construction period of the rubber plantation.

Article 8. Procedures for Determining and Collecting Land Rent.

The procedures for determining and collecting land rent shall be carried out in accordance with the provisions of Article 17 and Article 19 of Decree No. 142/2005/ND-CP dated November 14, 2005 of the Government, Clause 11 of Article 2 of Decree No. 121/2010/ND-CP dated December 30, 2010 of the Government; and in accordance with the Law on Tax Administration and guiding documents.

Article 9. Handling of Outstanding Issues.

For cases where annual land rent has been contracted and the rental price has been determined during the stable land rent period (five years), if the lessee is currently enjoying preferential treatment under the law on land rent collection, upon expiration of the stable period and the preferential period, the rental price shall be applied according to this Circular.

Article 10. Implementation.

1. The People's Committee of the province shall be responsible for directing financial, tax, and state treasury agencies to cooperate with relevant local agencies to implement the determination of the amount of land rent payable, the amount of land rent exempted, and the amount of land rent reduced, and to collect and remit land rent for rubber plantations in accordance with the guidance provided in this Circular and the policy on land rent and water surface rent collection.

14. This Circular takes effect from February 1, 2013.

During the implementation process, if any difficulties arise, please promptly report them to the Ministry of Finance for study and resolution by the provincial and centrally-administered city People's Committees; organizations and individuals./.