Circular No. 35/2001/TT-BTC guides the payment of land rental fees and joint venture capital contributions based on the value of land use rights for domestic organizations, households, and individuals.

CIRCULAR

Guidelines for paying land rent and contributing to joint ventures with the value of land use rights of organizations, households, and individuals within the country

________________________

Based on the Land Law and the Law Amending and Supplementing Certain Articles of the Land Law;

Based on the Law Encouraging Domestic Investment;

Based on Decree No. 04/2000/NĐ-CP dated February 11, 2000 of the Government detailing the implementation of the Law Amending and Supplementing Certain Articles of the Land Law;

Pursuant to the Prime Minister's Decision No. 853/1997/CT-TTg dated October 11, 1997 on combating smuggling under new circumstances;

The Ministry of Finance provides guidelines for paying land rent and contributing to joint ventures with the value of land use rights of organizations, households, and individuals within the country as follows:

Part 1

PAYMENT OF LAND RENT

I- SUBJECTS REQUIRED TO PAY LAND RENT:

1- Subjects that are granted land leases by the State according to Article 9 of Decree No. 04/2000/NĐ-CP dated February 11, 2000 of the Government detailing the implementation of the Law Amending and Supplementing Certain Articles of the Land Law (commonly referred to as Decree No. 04/2000/NĐ-CP), (Annex I attached hereto), must pay land rent on the entire leased land area.

2- Economic organizations allocated land for agricultural, forestry, aquaculture, and salt production purposes after January 1, 1999.

3- Subjects allocated land without payment of land use fees as stipulated in Clause 1, Article 7 of Decree No. 04/2000/NĐ-CP if they use part of it for production, business, or service purposes other than the intended land use purpose (Annex I attached hereto), must pay land rent for the portion of land used for production, business, and service activities.

4- Economic organizations that have been granted land with payment of land use fees or have received transfers of land use rights and have paid land use fees or transfer payments from state budget sources must convert to leasehold and pay land rent.

5- Organizations and individuals engaged in mineral extraction, construction materials, etc., must annually pay land rent for the area currently being exploited.

II- SUBJECTS NOT REQUIRED TO PAY LAND RENT:

1- Organizations, households, and individuals granted land with payment of land use fees according to Article 8 of Decree No. 04/2000/NĐ-CP (Annex II attached hereto).

2- Subjects allocated land without payment of land use fees as stipulated in Clause 2, Clause 3, Article 7 (Annex II attached hereto) and Clause 1, Article 7 of Decree No. 04/2000/NĐ-CP (excluding the portion used for production and business purposes mentioned in Clause 3, Section I, Part I of this Circular).

3- Economic organizations that legally acquired land use rights from others or were granted land with payment of land use fees where the funds did not originate from the state budget need not convert to leasehold.

In cases where agricultural or forestry land use rights are transferred along with changes in land use purposes approved by competent state authorities, and the transfer payments or change in land use purposes do not originate from the state budget, there is no need to convert to leasehold and no land rent needs to be paid.

Organizations using land originating from residential land of households or individuals legally permitted by competent state authorities to use such areas for office space, factories, production, and business purposes do not need to convert to leasehold and do not need to pay land rent.

5- State organizations permitted by state authorities to contribute the value of land use rights to joint ventures with foreign organizations and individuals.

6- Organizations and individuals permitted to extract minerals underground do not need to pay land rent for the surface area not utilized.

III- DETERMINATION OF LAND RENT AND PAYMENT OF LAND RENT:

1- Annual land rent (VND/year) is calculated by multiplying the leased land area (square meters) by the annual land rent rate (VND/square meter/year).

- The land area subject to land rent calculation includes the total area managed and used for production and business by organizations, households, and individuals. This area is determined based on the land lease contract and the declaration form for land rent registration; in the absence of a lease contract, it is based on land allocation documents, factory handover documents, lease contracts, or self-declaration forms of land users. When officially determining the area, adjustments will be made according to actual conditions.

- The annual land rent rate is determined as follows:

+ For investment projects constructing infrastructure in Industrial Zones (IZ), Export Processing Zones (EPZ), and High-Tech Zones (HTZ), the land rent rate is 80% of the aforementioned calculation method.

+ The land rent for the first year and the last year of the lease term is determined based on the actual number of months of leasing.

For the area of land returned to the State, the land rent is calculated up to the date of return. If an organization, household, or individual has submitted a request to return the land but the State has not yet accepted it, the organization does not need to pay land rent for this area starting one month after the approval document for returning the land between the lessee and the competent authority is signed.

2- Time of land rent calculation: The time of land rent calculation is the time when the enterprise receives the land for use.

3- Payment of land rent:

- Organizations, households, and individuals required to pay land rent must submit the declaration form for land rent registration (Form No. 1 attached hereto) and related documents to the land rent collection agency no later than one month from the time of land rent calculation.

- Land rent (including the use of capital in the case of contributing to joint ventures with the value of land use rights as stipulated in Part II of this Circular) in which area (district, county) shall be paid into the state budget at the National Treasury of that area (district, county) according to the current state budget classification.

The payment of land rent shall be carried out twice annually, each time paying fifty percent of the annual land rent amount. The first installment must be paid no later than June 30, and the second installment no later than October 30 of the year.

- Annual land rent payments shall be recorded in the production and business costs for the year of the land lessee. In cases where payments are made in a single installment covering multiple years, such payments shall be allocated over the number of years covered by the payment and recorded in the corresponding annual production and business costs.

4- Obligations of organizations, households, and individuals when granted land rental by the State:

4.1 - Organizations, households, and individuals granted land rental by the State must pay the land rent on time, fully deposit the land rent into the National Treasury, and comply with the guidance of the tax authority directly managing the collection of land rent.

4.2- Land that has been paid for according to this Circular shall not be subject to agricultural land use tax or property tax.

5- Exemption and reduction of land rent:

Domestic organizations, households, and individuals granted land rental by the State shall be exempted or reduced from land rent in the following cases:

5.1- Exemption of land rent during the construction period of a basic project. If the project includes several independent sections or stages, the exemption and reduction of land rent shall be calculated separately for each section or stage; if it is not possible to calculate separately, the construction period shall be determined based on the project component with the largest capital share.

5.2- Exemption of land rent starting from the completion date of the basic construction to encourage domestic investment incentives, as specified in Appendix III attached to this Circular, approved by the competent state agency in charge of the investment project.

5.3- Exemption of land rent for three years starting from the completion date of the basic construction for enterprises with factories or workshops located within city centers or town centers when implementing relocation plans outside the urban areas.

5.4- Exemption and reduction of land rent for merchants operating in mountainous, island, and ethnic minority regions, as stipulated in Decree No. 20/1998/NĐ-CP dated March 31, 1998, as follows:

- Exemption of land rent for five years and a fifty percent reduction in land rent for the next five years for merchants operating in Zone II.

- Exemption of land rent for building and expanding business premises for merchants operating in Zone III.

5.5- Organizations, households, and individuals leasing land who simultaneously enjoy multiple levels of exemptions or reductions in land rent according to provisions in Sub-clause 5.2, 5.3, 5.4 of Clause 5 here or other regulatory legal documents shall only benefit from the highest level of exemption or reduction.

After enjoying exemptions or reductions in land rent as stipulated in Sub-clauses 5.1, 5.2, 5.3, 5.4 of Clause 5, if organizations, households, and individuals make a single payment for multiple years at the beginning of the first year, they shall further enjoy reductions in land rent as follows:

Payment for five years shall result in a five percent reduction of the total land rent for those five years; payment for more than five years shall result in an additional one percent reduction for each additional year (payment for six years results in a six percent reduction, payment for seven years results in a seven percent reduction, etc.), but the total reduction shall not exceed twenty-five percent of the total land rent payable for that period; in cases where full payment is made for the entire lease period exceeding thirty (30) years, a thirty percent reduction of the total land rent payable shall apply.

5.6- For hotels, guesthouses, and hostels engaged in seasonal business operations, if they fully pay the land rent as prescribed in this Circular and incur losses, they may be eligible for a reduction in land rent. The reduction amount shall correspond to the loss amount, but the maximum reduction rate shall be fifty percent of the land rent payable.

5.7- For land leased for agricultural, forestry, aquaculture, or salt-making purposes, if natural disasters, fires, or accidents cause production losses, the land rent may be exempted or reduced accordingly, as follows:

+ A production loss of ten to less than twenty percent in one year shall result in a reduction equivalent to the loss percentage;

+ A production loss of twenty to less than thirty percent in one year shall result in a sixty percent reduction of the land rent payable;

+ A production loss of thirty to less than forty percent in one year shall result in an eighty percent reduction of the land rent payable;

+ A production loss of forty percent or more in one year shall result in a complete exemption from land rent for that year.

The determination of the loss level for exemption or reduction of land rent as provided in this sub-clause shall be applied according to the method for determining the loss level for reduction or exemption of agricultural land use tax.

5.8- For land leased for non-agricultural production and business purposes, if natural disasters, fires, or unforeseen accidents cause asset losses between twenty to less than fifty percent of the asset value, a fifty percent reduction of the land rent payable for one year shall apply; if the asset loss is fifty percent or more, the land rent for the entire year shall be exempted. The loss ratio is calculated as the value of the lost assets divided by the total value of the assets immediately prior to the loss.

5.9- The land rent amount used as the basis for calculating exemptions or reductions as stipulated in Sub-clauses 5.6, 5.7, 5.8 is the land rent payable after deducting any exemptions or reductions according to Sub-clauses 5.1, 5.2, 5.3, 5.4 of Clause 5 (if applicable).

5.10- The implementation of exemptions and reductions of land rent as stipulated in this Circular shall apply to all projects granted land rental by the State before and after the effective date of this Circular.

- For projects currently in the construction phase and benefiting from land rent reductions under Circular No. 70/TC-QLCS dated October 7, 1997, they now shall enjoy land rent exemptions as stipulated in Sub-clause 5.1 of Clause 5 for the remaining construction period.

- For projects that have commenced operations from the completion date of the basic construction until the effective date of this Circular and still qualify for exemptions or reductions in land rent as stipulated in Sub-clauses 5.2, 5.3, 5.4 of Clause 5, they shall continue to enjoy exemptions or reductions for the remaining period.

5.11- To be eligible for exemptions or reductions in land rent, organizations, households, and individuals must submit a request for exemption or reduction of land rent along with necessary documentation to the tax authority directly managing the collection of land rent. The application package shall include:

- Application for exemption or reduction of land rent; In cases requesting reduction or exemption under paragraphs 5.7 and 5.8 of Clause 5 hereof, relevant documents and papers proving production losses or asset damage must be attached.

- Investment permit or business registration;

- Land lease decision or declaration for payment of land rent;

- Investment incentive certificate issued by competent state agencies (if any).

Part 2

JOINT VENTURE CONTRIBUTION WITH THE VALUE OF LAND USE RIGHT; HANDLING CASES WHERE DEBT HAS BEEN ACCEPTED AND LAND RENT FOR JOINT VENTURE CONTRIBUTION HAS BEEN PAID, OR LAND USE FEE HAS BEEN PAID, OR TRANSFER OF LAND USE RIGHT HAS BEEN ACCEPTED

I- Joint venture contribution with the value of land use right to domestic organizations and individuals.

1- Agricultural and forestry land allocated when using the value of land use right for joint venture contribution to continue using for agricultural, forestry, aquaculture, salt-making purposes shall have its land use value agreed upon by the parties, but the land price for determining the value of land use right shall not be lower than the agricultural land price set by the provincial People's Committee according to the land price framework issued by the Government.

The party contributing land for joint venture must pay agricultural land use tax as prescribed by law, without paying land rent or revenue from the use of state budget capital.

2- In cases where conversion of agricultural or forestry land use purpose to other purposes or contribution by leased land is permitted, the value of land use right for joint venture contribution shall be determined based on the land rent paid to the state budget according to the new land use purpose during the joint venture period.

_3- If the party contributing land for joint venture has already paid the land use fee as stipulated in Section IV, Part II hereof, then such party only needs to pay land tax, without paying land rent or revenue from the use of state budget capital.

II- Joint venture contribution with the value of land use right to foreign organizations and individuals: Domestic organizations permitted by the State to use the value of land use right (land rent) for joint venture contribution or business cooperation contracts with foreign organizations and individuals shall have the land rent agreed upon by the parties, but it shall not be lower than the unit price of land rent, water surface, sea surface applicable to foreign investment forms in Vietnam. Specific provisions on contribution with the value of land use right are as follows:

1- For organizations granted land with payment of land use fee by the State, or organizations that have legally transferred land use rights from others without funding from the state budget or using land of households or individuals with legitimate land use rights but not leased by the State, if permitted to use the value of land use right for joint venture contribution, they shall not need to pay revenue from the use of state budget capital for the value of land use right contributed for joint venture, but must annually pay land use tax (land tax) to the State as prescribed by current laws.

2- For organizations leased land by the State:

2.1- State-owned enterprises leased land by the State, using the value of land use right (land rent) for joint venture contribution with foreign entities, the amount of land rent contributed for joint venture is part of the State's investment capital for the enterprise (the Vietnamese side), and the enterprise must pay revenue from the use of state budget capital as prescribed currently. The time of calculation and payment of revenue from the use of state budget capital starts from the time of using the land rent for joint venture contribution.

If the land rent for the entire lease period has been paid, and the State permits the use of the value of land use right for joint venture contribution within the paid lease period, then there is no need to pay revenue from the use of state budget capital for the value of land use right contributed for joint venture.

2.2- Organizations not being state-owned enterprises leased land by the State, having paid land rent for the entire lease period or at least five years remaining of the lease period, if permitted by the State to use the value of land use right for joint venture contribution within the paid lease period, the organization must pay land rent according to the regulations on land rent, water surface, sea surface applicable to foreign investment forms in Vietnam issued together with Decision 189/2000/QĐ-BTC dated November 24, 2000 of the Minister of Finance.

3- Former state-owned enterprises permitted to use the value of land use right for joint venture contribution with foreign organizations and individuals, now the value of land use right (land rent) calculated throughout the joint venture contribution period shall be converted into state budget investment capital for the enterprise and paid as revenue from the use of state budget capital. The time of calculation and payment of revenue from the use of state budget capital shall be implemented according to the provisions of Point 2.1, this Section.

3.1- For state-owned enterprises falling under the provisions of Point 1, this Section; If debt has been accepted and land rent has been repaid to the state budget according to Circular 70/TC-QLCS dated October 7, 1997 of the Ministry of Finance, the amount of land rent already paid shall be deducted from the land use tax (land tax) payable from the date of handover of land for use for joint venture contribution; If there is still outstanding land rent, it shall now be converted to pay land use tax (land tax) for the entire outstanding land rent period. If the land rent paid exceeds the land use tax payable for the entire period of using the value of land use right for joint venture contribution, the excess amount of land rent paid shall be refunded by the state budget to the organization.

3.1 - For state-owned enterprises falling within the scope defined in Clause 1 of this Section; If they have received debt and repaid land lease fees to the State budget according to the guidance provided in Circular 70/TC-QLCS dated October 7, 1997 of the Ministry of Finance, then the amount of land lease fees already paid shall be deducted from the amount of land use tax (land tax) due from the time of transferring the land for joint venture capital contribution; If there is still arrears in land lease fees, then now such arrears shall be converted into payment of land use tax (land tax) for the entire period of outstanding land lease fees. In cases where the amount of land lease fees paid exceeds the land use tax due for the entire period of using the land value for joint venture capital contribution, the excess amount of land lease fees paid shall be refunded by the State budget to the organization.

3.2- For state-owned enterprises falling under the objects defined in Clause 2.1, Section of this Chapter; If they have received debt and refunded land rent money to the State budget according to the guidance provided in Circular 70/TC-QLCS dated October 7, 1997 of the Ministry of Finance, then the amount of land rent paid shall be deducted from the amount of revenue from using the State budget capital that must be paid starting from the time of using the land rent for joint venture capital contribution; If there is still arrears in land rent, now it can be transferred to pay revenue from using the State budget capital for the remaining period of arrears; In special cases, if the land rent paid exceeds the amount of capital usage that must be paid for the entire duration of using the land value for joint venture capital contribution, then the excess land rent paid will be refunded by the State budget to the enterprise.

III- Recording capital by the value of land rights contributed to joint ventures:

1- Based on the proposal of the organization contributing land to joint ventures and related documents including:

- The proposal of the organization contributing land to joint ventures;

- Decision on land allocation, land lease;

- Investment permit;

- Joint venture contract;

- Other relevant documents.

The Council for determining State budget capital by the value of land rights contributed to joint ventures shall be chaired by the Department of Finance and Price Control of the provincial or centrally-administered city, in coordination with the Department of Land Administration to inspect, examine, and determine the value of land rights contributed to joint ventures.

The organization contributing land to joint ventures must sign a record of determining State budget capital by the value of land rights (land rent) contributed to joint ventures with the Department of Finance and Price Control (according to Model No. 2 attached to this Circular).

2- Based on the Record of Determining State Budget Capital by the Value of Land Rights (land rent) Contributed to Joint Ventures, the Department of Finance and Price Control shall increase the State budget capital invested in the enterprise contributing land to joint ventures; Specifically, for enterprises established or contributed capital by the Prime Minister, Ministers, or Heads of agencies at the level of ministries, the Enterprise Financial Department shall increase the State budget capital.

3- For cases where a debt repayment contract for land rent has been signed and there is no adjustment in the rental price, the Department of Finance and Price Control shall chair, in coordination with the Department of Land Administration and the Enterprise Financial Department (for central enterprises), based on the debt repayment contract, work with the Vietnamese enterprise contributing land to joint ventures to convert the debt repayment into State budget capital investment in the enterprise.

In cases where the land permitted to be contributed to joint ventures is land that has already paid land use fees or has paid land rent for the entire rental period, then the previous debt repayment contract for land rent should be cancelled. The organization contributing land to joint ventures must submit a request along with relevant documents and send them to the Department of Finance and Price Control where the enterprise repaid the debt. The Council for determining State budget capital by the value of land rights contributed to joint ventures, chaired by the Department of Finance and Price Control, shall inspect and examine, and if it matches the declaration of the organization, issue a notice to cancel the debt repayment contract, then send the notice to relevant authorities.

IV- Land is considered to have paid land use fees:

Land allocated by the State or land acquired through transfer where the land use fee has been paid to the State budget and the transfer price of land use rights has been paid from sources not derived from the State budget, such land is considered to have paid land use fees, specific cases include:

- Land allocated which has paid compensation according to Decision No. 186/HĐBT dated May 31, 1990 of the Council of Ministers (now the Government) regarding compensation for agricultural land and forest land when changing to other purposes;

- Land allocated which has paid land use fees into the State budget according to Circular No. 60 TC/TCT dated July 16, 1993 of the Ministry of Finance when allocating land instead of paying the value of construction works;

- Land purchased together with receiving land use rights over the house, where the seller has paid income tax according to the Income Tax Ordinance for high-income individuals;

- Land purchased from state-owned houses together with transferring land use rights according to Decree No. 61/CP dated July 5, 1994 of the Government on buying and selling housing;

- Land allocated which has paid land use fees according to the Law on Land;

- Land acquired through legal transfer of land use rights from another person or through transfer of agricultural or forestry land use rights accompanied by change of land use purpose approved by competent state authorities;

- Land allocated from using the land fund for infrastructure construction, which is land allocated by the State to economic organizations to offset the value of constructed works.

Part 3

VIOLATIONS, REWARDS AND COMPLAINTS

1- Organizations, households, individuals currently using land that falls under the category required to declare and pay land rent but fail to comply with the declaration and payment of land rent as guided in this Circular, the tax authority may base on investigation materials and land use documents of organizations, households, individuals provided by the People's Committee of communes, wards, towns or land administration agencies, decide on the contents stipulated in Part I on land rent payment according to Model No. 1 attached to this Circular, and notify the organizations, households, individuals to make the payment, while also notifying relevant agencies.

Organizations, households, individuals who fail to pay land rent or fines within the prescribed time limit, in addition to having to pay the full amount of land rent and fines as stipulated, will also have to pay a daily fine of 0.1% of the overdue amount for each day of delay.

In cases where the land lessee continues to delay and refuse to pay land rent and fines, the tax authority has the right to request the bank where the land lessee has an account to deduct funds from the account of the organization or individual to pay the land rent and fines (if applicable) into the National Treasury; If there is no account, the tax authority shall report to the same-level People's Committee to implement administrative coercive measures according to current regulations.

2- Organizations, individuals who take advantage of their positions or powers to misappropriate, embezzle, or cause loss of land rent shall compensate the State for the full amount of misappropriated, embezzled, or lost land rent, and depending on the severity of the violation, they will be subject to disciplinary action and criminal liability according to the law.

3. Persons who discover violations of the provisions of this Circular shall be rewarded according to the general regulations of the State.

4. Organizations, households, and individuals paying land rent have the right to appeal related issues to the local Tax Office; while waiting for resolution, the appellant must pay the full amount of land rent and any fines (if applicable) as notified. Organizations permitted to use the value of land use rights to contribute capital in joint ventures have the right to appeal related issues to the local Department of Finance and Prices. In case they disagree with the decision of the resolution authority, they have the right to appeal to the immediate superior of the authority that issued the resolution decision. The decision of the Minister of Finance is the final decision.

The agency receiving appeals has the responsibility to resolve within thirty days from the date of receipt of the appeal.

Part 4

IMPLEMENTATION

1. Provincial People's Committees directly under the Central Government are responsible for directing the Departments of Finance and Prices, Land Administration, Tax Offices, and People's Committees at all levels; entities currently using land subject to land rental and payment of land rent on their territory to fully implement the contents of guidance provided in this Circular.

2. The General Tax Department is responsible for directing the Tax Offices and Local Tax Branches:

2.1. Within fifteen days from the date of receipt of the declaration form submitted by organizations, households, and individuals renting land, the tax authority shall check and determine the amount of land rent payable and notify the land tenant to make the payment; collect the use of capital; determine the amount of land rent paid to offset against the amount of capital use revenue due; determine the outstanding land rent to collect the use of capital for the period of outstanding land rent.

2.2. For cases of land use prior to January 1, 1999, the tax authority shall guide the declaration and registration of land rent payments and verify the data calculated in the declaration form and conduct actual inspections to determine the land tenants and collect the land rent.

3. The Department of Corporate Finance is responsible for guiding the confirmation of the origin of the land use fee already paid to the state budget and the proceeds from the transfer of land use rights, allocating and managing state budget capital for the value of land use rights contributed to joint ventures by enterprises established by the Prime Minister, Ministers, Heads of ministerial-level agencies, and government agencies.

4. Provincial Departments of Finance and Prices directly under the Central Government are responsible for:

- Chairing the Council to determine state budget capital by the value of land use rights contributed to joint ventures., - Taking the lead in coordinating with relevant sectors to inspect and review agreements on the value of land use rights for joint venture contributions by organizations granted land use rights by the state, based on which to determine the value of land use rights for joint venture contributions.

- Inspecting and confirming the origin of the land use fee already paid, legally transferred land from others or granted by the state with land use fees where such funds do not originate from the state budget; allocating and managing state budget capital for the value of land use rights contributed to joint ventures by local enterprises.

5. This Circular takes effect fifteen days after its signing, replacing Circular No. 70 TC/QLCS dated October 7, 1997 of the Ministry of Finance guiding the payment of land rent and the contribution of capital in joint ventures by the value of land use rights of domestic organizations as stipulated in Decree No. 85/CP dated December 17, 1996 of the Government, and all previous guidelines contrary to this Circular are abolished.

During implementation, if any difficulties arise, please report to the Ministry of Finance for study and resolution.

FORM NO. 1

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

APPLICATION FOR REGISTRATION OF LAND RENT PAYMENT

Name of organization, household, individual renting land:...

Belongs to ministry (sector, locality):...

Address:…

Phone number:...

Business sector:...

I. Declaration section of the organization, household, individual renting land.

1. Land plot name:

2. Location (position) of land:

3. Total area of rented land:

4. Origin of the land plot:

- Origin of the land plot:

- Map number (if any):...date.../.../...

Certificate (if any):...date.../.../...issued by...

5. Area of land according to actual use purpose (m²)²):

- Area of land belonging to group 1 rent coefficient (m²)²):

- Area of land belonging to group 2 rent coefficient (m²)²):

- Used for other purposes (m²)²):

- Currently occupied (m²)²):

- Currently unused (m²)²):

6. Suggestions of the land tenant:

- Area of rented land and rent payment (m²)²):

- Area of land currently undergoing procedures to return to the state (m²)²):

7. List of related documents:

- ............................................................................

- ............................................................................

- ............................................................................

- ............................................................................

Commitment: The above declaration is accurate, if incorrect...I will take responsibility under the law.

Confirmation of the land administration agency
(Applicable for entities paying land rent without a lease contract)
(Signature, stamp)

II. Calculation section of the tax authority:

- Area required to pay land rent:...m²²

- Type of land (**):

- Category or position of land:

- Land price for calculating land rent:...dong/m²²

- Annual land rent rate:...dong/m²²/year

- Annual land rent amount:...dong

- Amount of reduction (if any):...dong

- Annual land rent amount payable:...dong/year

Date...month...year...

Head of the agency

(Signature, stamp)

Note: - Each land plot uses one registration form.

- (**) Type of land - Record according to the type of land in the government's land price tables.

- Organizations declaring registration according to this form replace the land rent declaration form prescribed in Circular No. 70/TC-QLCS dated October 7, 1997 of the Ministry of Finance.

MODEL NO. 2

SOCIALIST REPUBLIC OF VIETNAM
Independence-Freedom-Happiness

RECORD OF DETERMINING STATE BUDGET CAPITAL BY THE VALUE OF LAND USE RIGHTS CONTRIBUTED TO JOINT VENTURES

Based on the land allocation decision, lease decision No.:...permitting...to use the value of land use rights to contribute capital to joint ventures with...for the purpose of...

Based on investment permit No.:...

Based on Circular No.: 35/2001/TT-BTC dated May 25, 2001 of the Ministry of Finance;

Based on the declaration and agreement between...

Today, date...month...year...

At:...

I. State management agency:

1. Representative of the Department of Finance and Prices:

Mr./Ms.:...Position...Chairman of the Council

2. Representative of the Department of Land Administration or (Department of Land Administration-Housing):

Mr./Ms.:...Position...Member

II. Representative of the organization (Enterprise contributing land use rights to joint ventures):....................................................................................................

Mr./Ms.:...Position...

Head office:...

III. The meeting unanimously determined the state budget capital by the value of land use rights contributed to joint ventures as follows:

1. The value of land use rights contributed to joint ventures is:...dong (or USD)

2. Purpose of use:...

3. Location of the land plot:...

4. Land area:...

5. Rent price for the land: dong (or) USD/m²/year...

6. Joint venture capital contribution period... from the date... month... year...

7. Organization (Enterprise contributing land for joint venture capital) shall be responsible for fully recording the value of the land use right on accounting books and performing the obligation to pay revenue from state budget capital use according to current regulations.

8. Payment periods and amounts for revenue from state budget capital use for each time during the year shall be carried out according to current regulations and tax authority guidelines.

9. The minutes are established in five copies.

- Department of Finance - Price Control 1 copy;

- Department of Land Administration or (Department of Land Administration - Real Estate) 1 copy;

- Tax Department 1 copy;

- State Enterprise Financial Bureau (for central enterprises) 1 copy

- Enterprise contributing land for joint venture capital 1 copy.

ANNEX I

SUBJECTS REQUIRED TO PAY LAND RENT
(Annexed with Circular No. 35/2001/TT-BTC dated May 25, 2001)
Port Authority Name

1- Subjects entitled to land lease by the State as stipulated in Article 9 of Decree No. 04/2000/NĐ-CP, including:

a- Households and individuals requiring land for production and business activities.

b- Households using agricultural land exceeding the prescribed quota under the Law on Land.

c- Economic organizations using land for production and business activities.

d- Economic organizations leasing land for investment in infrastructure construction in Industrial Zones (IZ), Export Processing Zones (EPZ), High-Tech Zones (HTZ) to transfer or lease land use rights attached to such infrastructure.

2. Subjects entitled to land allocation without payment of land use fee as stipulated in Clause 1, Article 7 of Decree No. 04/2000/NĐ-CP, if they use part of the land for production and business activities, services outside the allocated purpose, must pay land rent for the portion of land used for production and business activities, including:

a- Organizations entrusted with management of forest land and land for planting protective forests upstream, windbreaks, sand barriers, wave barriers, sea encroachment prevention, environmental protection; Organizations entrusted with management of national parks, natural conservation areas, cultural-historical-environmental forests; if they use part of the land for production and business activities, services outside the allocated purpose, must pay land rent for that portion of land.

b- State agencies, political organizations, socio-political organizations, people's armed forces using land for building office premises, for defense and security purposes, for constructing works belonging to economic, cultural, social, scientific, technical, diplomatic sectors and fields; organizations entrusted with management of land containing historical-cultural relics already classified; if they use part of the land for production and business activities, services outside the allocated purpose, must pay land rent for that portion of land.

c- Organizations using land for public purposes as stipulated in Article 4 of Decree No. 04/2000/NĐ-CP dated February 11, 2000 of the Government, including:

- Land used for public purposes as stipulated in Point 5, Clause 5, Article 1 of the Law Amending and Supplementing Certain Provisions of the Land Law, including land for building roads, bridges, sidewalks, water supply and drainage systems, rivers, lakes, dykes, dams, schools, hospitals, markets, parks, flower gardens, children's playgrounds, squares, stadiums, airports, ports; if they use part of the land for production and business activities, services outside the allocated purpose, must pay land rent for that portion of land.

- Land used for building other public works, including land for building power plants, substations, hydroelectric reservoirs, communication lines, power transmission lines, oil and gas pipelines, meteorological and hydrological stations, monitoring stations serving research and public services, irrigation works, ferry terminals, bus terminals, ferry piers, railway stations, national parks, rest homes, orphanages, training centers, sports facilities, rehabilitation centers for disabled children, vocational training centers, cultural works, monuments, memorials, clubs, theaters, museums, exhibitions, cinemas, circuses, drug rehabilitation centers, correctional centers, moral rehabilitation centers, cemeteries, waste disposal sites, garbage dumps; if they use part of the land for production and business activities, services outside the allocated purpose, must pay land rent for that portion of land.

ANNEX II

SUBJECTS NOT REQUIRED TO PAY LAND RENT

(Annexed with Circular No. 35/2001/TT-BTC dated May 25, 2001 of the Ministry of Finance)

1- Subjects entitled to land allocation with payment of land use fee as stipulated in Article 8 of Decree No. 04/2000/NĐ-CP, including:

- Economic organizations entrusted with land for building houses for sale or lease.

- Economic organizations using land for investment in infrastructure construction to transfer or lease land use rights attached to such infrastructure.

- Economic organizations entrusted with land for creating capital for infrastructure construction to transfer or lease land use rights attached to such infrastructure.

- Households and individuals entrusted with land for housing.

2- Subjects entitled to land allocation without payment of land use fee as stipulated in Clause 2, Clause 3, Article 7 and Clause 1, Article 7 Decree No. 04/2000/NĐ-CP (excluding portions used for production and business activities, services), including:

- According to Clause 2, Article 7 of Decree No. 04/2000/NĐ-CP, households and individuals directly engaged in agricultural, forestry, aquaculture, salt-making activities using land for agricultural, forestry, aquaculture, salt-making within the prescribed quota.

- According to Clause 3, Article 7 of Decree No. 04/2000/NĐ-CP, religious organizations currently using land.

- According to Clause 1, Article 7 of Decree No. 04/2000/NĐ-CP (excluding portions used for production and business activities, services), including:

+ Organizations entrusted with management of forest land and land for planting protective forests upstream, windbreaks, sand barriers, wave barriers, sea encroachment prevention, environmental protection; Organizations entrusted with management of national parks, natural conservation areas, cultural-historical-environmental forests.

+ State-owned enterprises using land allocated by the State before January 1, 1999 for agricultural production, forestry, aquaculture, and salt production.

+ Government agencies, political organizations, social-political organizations, and people's armed forces units using land to construct offices, for national defense and security purposes, to build projects in economic, cultural, social, scientific, technical, and diplomatic sectors; organizations managing land with historical and cultural relics that have been classified.

+ Organizations using land for public purposes as specified in Article 4 of Decree No. 04/2000/NĐ-CP dated February 11, 2000 of the Government.

ANNEX III

EXEMPTION FROM LAND RENT TO IMPLEMENT INVESTMENT INCENTIVES AS PROVIDED FOR IN DECREE NO. 51/1999/NĐ-CP OF THE GOVERNMENT DATED JULY 8, 1999 ON GUIDELINES FOR IMPLEMENTING THE LAW ON ENCOURAGING DOMESTIC INVESTMENT (AMENDED)
(Annexed to Circular No. 35/2001/TT-BTC dated May 25, 2001
Port Authority Name

1- Conditions for exemption from land rent:

a- Investment projects in industries and trades listed in Appendix IV, Category A (industries and trades eligible for investment incentives).

b- Investment projects in all production and business activities not prohibited by law, employing at least: 100 people in urban areas of Categories 1 and 2; 20 people in areas listed in Appendix IV, Category B (areas with difficult socio-economic conditions) or Category C (areas with extremely difficult socio-economic conditions); and 50 people in other areas.

c- Investment projects implemented in areas with difficult socio-economic conditions as listed in Appendix IV, Category B.

d- Investment projects implemented in areas with extremely difficult socio-economic conditions as listed in Appendix IV, Category C.

2- Exemption from land rent:

2.1 - Exempt for three years for projects meeting condition a or b as stipulated in Section 1 of this Appendix. item a or b as specified in Appendix 1 of this Decree.

2.2- Exempt for six years for projects meeting both conditions a and b. a and b as specified in Appendix 1 of this Decree.

2.3- Exempt for seven years for projects in areas listed in Section II of Appendix IV, Category B (areas with difficult socio-economic conditions).

2.4- Exempt for ten years for projects in areas listed in Section I of Appendix IV, Category B (areas with difficult socio-economic conditions).

2.5- Exempt for eleven years for projects in industries and trades listed in Appendix IV, Category A, implemented in areas listed in Appendix IV, Category B, while meeting condition a or b. a or b as specified in Appendix 1 of this Decree.

2.6- Exempt for thirteen years for projects in industries and trades listed in Appendix IV, Category A, implemented in areas listed in Appendix IV, Category B, while meeting both conditions a and b. a and b as specified in Appendix 1 of this Decree.

2.7- Exempt for eleven years for projects in areas listed in Section II of Appendix IV, Category C (areas with extremely difficult socio-economic conditions).

2.8- Exempt for fifteen years for projects in areas listed in Section I of Appendix IV, Category C (areas with extremely difficult socio-economic conditions).

2.9- Exempt from paying land rent throughout the project implementation period for projects in industries and trades listed in Appendix IV, Category A, implemented in areas listed in Appendix IV, Category C (areas with extremely difficult socio-economic conditions)./ .

ANNEX IV

LIST OF INDUSTRIES AND TRADES IN SECTORS AND AREAS ENCOURAGING INVESTMENT AS PROVIDED FOR IN DECREE NO. 51/1999/NĐ-CP OF THE GOVERNMENT DATED JULY 8, 1999 ON GUIDELINES FOR IMPLEMENTING THE LAW ON ENCOURAGING DOMESTIC INVESTMENT (AMENDED)
(Annexed to Circular No. 35/2001/TT-BTC dated May 25, 2001 of the Ministry of Finance)

Public goods and services, defense and security tasks performed by companies

INDUSTRIES AND TRADES IN SECTORS ELIGIBLE FOR INVESTMENT INCENTIVES:

Investment projects in the following sectors and trades are eligible for incentives:

I- Planting forests, nurturing regrowth of forests; planting perennial crops on degraded lands, barren hills and mountains; reclamation; salt production; aquaculture in unexploited waters

1. Planting protective forests (upstream, coastal, environmental protection), special-use forests, productive forests, nurturing regrowth of forests;

2. Planting perennial crops (industrial trees, fruit trees, medicinal plants, others) on reclaimed and rehabilitated lands, barren hills and mountains;

3. Producing salt from seawater, mining salt, producing industrial salt;

4. Aquaculture in natural waters that have not been developed or utilized;

5. Reclamation, utilizing vacant lands for agricultural, forestry, and fisheries production.

II- Construction of infrastructure, development of public transport; development of education, training, healthcare, and ethnic culture

1- Construction of technical infrastructure:

- Building new, upgrading, expanding power plants, developing power grids, constructing facilities for solar, wind, and biogas energy;

- Building new, upgrading, modernizing bridges, roads, airports, ports, stations, bus terminals; adding railway lines;

- Upgrading and developing telecommunications networks;

- Constructing water production plants, building water supply and drainage systems; constructing environmental protection and waste treatment facilities;

- Constructing technical infrastructure for concentrated residential areas (in areas listed in Appendix IV, Categories B or C).

2- Development of public transport;

3- Development of education, training, healthcare, and ethnic culture:

- Establishing private schools, private educational institutions at various levels: preschool, primary, secondary, high school, vocational college, college, university;

- Establishing vocational training centers, improving workers' skills; enhancing management and business knowledge;

- Establishing private healthcare facilities, private medical institutions in fields such as diagnosis, treatment, elderly care, and disabled care;

- Establishing ethnic cultural houses, ethnic dance, music, and drama groups; collecting, preserving, promoting, and disseminating ethnic culture; manufacturing traditional musical instruments.

4. Investment projects under Build-Operate-Transfer (BOT) contracts; Build-Transfer-Operate (BTO) contracts; Build-Transfer (BT) contracts.

5. Investment in commercial zones, supermarkets, and types of housing serving the needs of residents in cities and towns.

III- Production and trade of export goods

Production and trade of goods and services for export accounting for more than 30% of the value of goods and services produced and traded by the enterprise in the fiscal year.

IV- Fishing in distant sea areas; processing agricultural, forestry, and aquatic products; technical services directly serving agricultural, forestry, and fishing production.

1. Fishing in distant sea areas;

2. Processing agricultural, forestry, and aquatic products;

3. Technical services directly serving agriculture: land preparation, irrigation, drainage, planting, harvesting, protection, and storage of agricultural products;

4. Technical services directly serving forestry: land preparation, seedling supply, tree planting, irrigation, forest protection;

5. Technical services directly serving fisheries: fish storage facilities, rescue services for distant fishing vessels;

6. Services related to: crop and livestock protection; breeding and creating new varieties; storage of agricultural, forestry, and aquatic products.

V- Research and development of science and technology; scientific and technological services; legal, investment, business, corporate management consulting; intellectual property rights protection and technology transfer.

1. Implementation of technological research and development;

2. Establishing and operating research bases: laboratories, experimental stations, experimental farms to apply new technologies in production;

3. Application and development of high-tech, manufacturing and processing materials from domestic raw materials:

- Information technology: developing software for various economic sectors;

- Industrial-scale biotechnology applications in producing: seedlings, livestock breeds, medicines for humans and animals, food for people and animals, growth hormones, advanced biological fertilizers;

- Production of special feature new materials;

- Recycling solid, liquid, and gas waste technologies;

- Technologies using less fuel, raw materials, materials, energy, or reducing waste per unit product; technologies producing products that consume less energy, fuel, and raw materials during use compared to similar products;

- Clean technologies, technologies producing equipment using: wind, solar, geothermal, tidal, or bioenergy;

- Technologies producing electronic, semiconductor, laser products.

4. Legal, investment, business, corporate management, and technology transfer consulting:

- Investment, management, and technology transfer consulting; vocational training, technical skills training;

- Market information, scientific and technological information, technology provision;

- Intellectual property rights transfer, technology transfer;

- Marketing, trade promotion.

VI- Investment in construction of production lines, expansion of scale, technological innovation; ecological improvement and environmental sanitation; relocation of production facilities out of urban areas; diversification of industries, trades, and products.

1. Investment in purchasing construction equipment for project construction; investment in building commercial zones, supermarkets, housing types serving the needs of residents in cities and towns.

2. Investment in establishing new production workshops, installing new production lines, adding machinery to existing production lines, replacing all machinery with new equipment; applying new technologies in production;

3. Investment in ecological improvement and environmental sanitation; urban hygiene;

4. Investment in relocating production facilities out of urban areas;

5. Investment in diversifying industries, trades, and products.

VII- Other industries and trades requiring priority development.

1. Concentrated livestock and poultry farming on an industrial scale; processing feed for livestock, aquaculture feed;

2. Mechanical production and repair of agricultural machinery, textile, leather, high-grade plastic goods, educational tools and teaching aids, children's toys, natural rubber products;

3. Manufacturing, assembling, repairing machinery and equipment for agricultural, forestry, and aquatic product production, measurement and testing equipment, construction and mining equipment; inland and marine shipbuilding; railway locomotive and car production; electrical transmission and transformer equipment; electronic component production, computer software production;

4. Raw material, fuel, and material production; veterinary drug production, plant and animal breeding; oil and gas exploration and processing; coal extraction and processing; steel smelting and rolling; non-ferrous metal and building material production; fertilizer production; basic chemical production;

5. Traditional crafts: carving, mother-of-pearl inlay, lacquer painting, stone engraving, rattan, bamboo, and wood handicrafts, carpets, silk, porcelain, embroidery, bronze casting and forging;

Investment in construction and operation of infrastructure in industrial parks, export processing zones, and high-tech zones; production and services in industrial parks, export processing zones, and high-tech zones.

LIST B

ECONOMIC AND SOCIALALLY DIFFICULT AREAS

I. Counties in mountainous provinces