Decree No. 38/2000/ND-CP on land use fee collection

DECREE OF THE GOVERNMENT

Regarding the collection of land use fee

THE GOVERNMENT

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

Pursuant to the Land Law dated July 14, 1993 and the Law Amending and Supplementing Certain Articles of the Land Law dated December 2, 1998;

At the proposal of the Minister of Finance,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Application

This Decree stipulates the collection of land use fees in cases where organizations, households, families, or individuals (hereinafter referred to as land users) are granted land by the State, permitted to change the purpose of land use, purchase state-owned housing, and obtain certificates of land use rights in accordance with laws on land.

Article 2. Subjects required to pay land use fees

1. Land users granted land by the State for the following purposes:

a) Households and individuals building houses for residential purposes;

b) Economic organizations investing in constructing houses for sale or lease;

c) Economic organizations investing in constructing infrastructure for transfer or lease of land use rights attached to such infrastructure;

d) Economic organizations granted land by competent state authorities with payment of land use fees to create capital for infrastructure construction according to projects decided by the Prime Minister.

2. Current land users permitted by competent state authorities to change the purpose of land use from the following types of land to the purposes specified in Clause 1 of this Article:

a) Agricultural, forestry, aquaculture, and salt production land;

b) Land used for national defense, security, national interests, and public benefits;

c) Special-purpose land and other types of land previously granted without payment of land use fees;

d) Land already leased by the State.

3. Land users who have not yet obtained legitimate documents regarding land use rights but now receive certificates of land use rights from competent state authorities, except in cases otherwise provided by law.

4. Land users purchasing state-owned housing they are renting, liquidation housing, or housing converted to value, except in cases otherwise provided by law.

Article 3. Subjects exempted from paying land use fees

1. Land users granted land by the State in accordance with Article 7 of Decree No. 04/2000/NĐ-CP dated February 11, 2000, of the Government on implementing the Law Amending and Supplementing Certain Provisions of the Land Law (hereinafter referred to as Decree No. 04/2000).

2. Land users leasing land from the State.

3. Current land users holding legitimate documents regarding land use rights in accordance with Article 3 of Decree No. 17/1999/NĐ-CP dated March 29, 1999, of the Government on procedures for conversion, transfer, lease, sublease, inheritance of land use rights, and mortgage or contribution of land use value (hereinafter referred to as Decree No. 17/1999), now receiving or exchanging certificates of land use rights for the entire area of land currently being used consistent with such documents; except in cases transferring land use rights after October 15, 1993, which shall be implemented in accordance with Article 7 of this Decree.

4. Land users purchasing state-owned housing in cases of liquidation or conversion to value for those renting before July 5, 1994 (the date of issuance of Decree No. 61/CP of the Government on buying and selling residential housing. Hereinafter referred to as Decree No. 61/CP), having paid all required funds as stipulated and in the sale price of the house including location factors or land use fees, or in the liquidation or conversion documents indicating the area of the house along with the land use area.

5. Current land users who have paid land use fees, when permitted by competent state authorities to change the purpose of land use for residential purposes or construction of works.

Chapter II

BASIS AND METHODS FOR DETERMINING LAND USE FEES

Article 4. Basis for determining land use fees

The basis for determining land use fees includes land area, land price, and the rateof land use fee collection.

1. Land area is measured in square meters (m²) and refers to the land areaallocated by the State; permitted to change its purpose of use; considered forgranting land use right certificates; land area attached to houses in cases ofliquidation, valuation, or purchase of state-owned rented housing.²is the area of land granted by the State; permitted to change the purpose ofuse; eligible for issuance of a certificate of land use rights; the area of land attachedto a house in cases of liquidation, valuation, and purchase of a house under stateownership that is currently being rented.

The maximum residential land area for calculating the land use fee as prescribedin this Decree is set by Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).the provincial people's committees under the central government.

2. Land price is calculated in Vietnamese dong per square meter (VND/m²) basedon the price range determined by²according to the price range set by Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).the provincial people's committees under the central government according tothe price range of various types of land established by the Government.

The land price in cases of land auction is the winning bid price.

The land price in cases where the competent state agency permits changing thepurpose of use from the types of land specified in Clause 2, Article 2 of thisDecree to residential land or construction land subject to payment of land usefees is the price of residential land or construction land.

3. The rate of land use fee collection is expressed as a percentage (%) and isdetermined for each case of land use fee calculation as prescribed in this Decree.

Article 5. Rate of land use fee when allocated by the State

An individual using land allocated by the competent state agency for thepurposes specified in Clause 1, Article 2 of this Decree without having tocompensate for land losses shall pay 100% of the land use fee; if compensationfor land losses is required, the actual compensation amount can be deducted butthe maximum deduction cannot exceed 90% of the land use fee payable to thebudget.

Article 6. Rate of land use fee when changing the purpose of use

1. For households and individuals:

a) Households and individuals currently using ponds, gardens, or specializedland within residential areas, who are permitted by the competent state agencyto convert such land into residential land, are exempt from paying the land usefee for the residential land area within the residential land limit.

b) Households and individuals currently using agricultural, forestry, aquaculture,or salt-making land, who are permitted by the competent state agency toconvert such land into residential land according to approved planning, must pay40% of the land use fee for the residential land area within the residential landlimit.

c) Individuals currently using land allocated by the State for organizations' use,which was not intended for residential purposes and did not require payment ofland use fees, but were later divided among individuals by these organizationsfor residential purposes, if granted a land use right certificate by the competentstate agency, must pay the land use fee as follows:

If the division of the house or land occurred before October 15, 1993, theindividuals using the land must pay 40% of the land use fee for the residentialland area within the residential land limit; and 100% of the land use fee for theexcess residential land area beyond the limit.

If the division of the land occurred on or after October 15, 1993, theindividuals using the land must pay 100% of the land use fee.

2. For organizations:

a) Organizations currently using land as specified in Clause 2, Article 2 of thisDecree, who are permitted by the competent state agency to change the purposeof use to the type of land specified in Clause 1, Article 2 of this Decree, must pay100% of the land use fee.

b) Organizations currently using leased land, who are permitted by thecompetent state agency to convert it into residential construction or infrastructureconstruction for transfer or lease, must pay 100% of the land use fee into thebudget; if the organization has already paid rent up to the date of the purposechange and there is a surplus, that surplus rent can be deducted from the landuse fee payable to the budget; if compensation for leased land losses isrequired, the actual compensation amount can be deducted but not exceeding90% of the land use fee payable to the budget.

Article 7. Collection of land use fee when issuing certificates of land use right

Persons currently using land without lawful documents on land use rights but conforming to planning, without disputes, shall pay the land use fee as follows when granted certificates of land use rights by competent state agencies:

1. For urban land:

a) In cases where residential land has been stably used before December 18, 1980 (the date of promulgation of the 1980 Constitution), no land use fee shall be paid;

b) In cases where residential land has been stably used from December 18, 1980 to October 15, 1993 (the date the Land Law of 1993 took effect), 20% of the land use fee shall be paid;

c) In cases where residential land has been stably used from October 15, 1993 onwards, 100% of the land use fee shall be paid.

If the land is transferred from a previous user who did not have lawful documents, only having purchase, sale, or transfer documents between both parties confirmed by the People's Committee of communes, wards, or towns, 40% of the land use fee shall be paid.

2. For rural residential land:

a) In cases where residential land has been stably used before May 31, 1990 (the date Decision No. 186/HĐBT of the Council of Ministers, now the Government, on compensation for agricultural land and forested land when converted to other purposes was issued), no land use fee shall be paid;

b) In cases where residential land has been stably used from May 31, 1990 to October 15, 1993, 20% of the land use fee shall be paid;

c) In cases where residential land has been stably used from October 15, 1993 onwards, 100% of the land use fee shall be paid.

If the land is transferred from a previous user who did not have lawful documents, only having purchase, sale, or transfer documents between both parties confirmed by the People's Committee of communes, wards, or towns, 40% of the land use fee shall be paid.

3. In cases where land previously classified as rural residential land, after May 31, 1990, is planned to be converted to urban land, if the infrastructure conditions remain similar to those of rural areas, the time point for calculating the land use fee shall be applied as stipulated in Clause 2 of this Article.

4. The levels of land use fees prescribed in Clause 1 and Clause 2 of this Article shall only apply to the area within the residential land limit; for areas exceeding the residential land limit, 100% of the land use fee shall be paid.

Article 8. Levels of land use fee in cases of liquidation, valuation of state-owned houses, and purchase of state-owned rented houses

1. For cases of liquidation, valuation of state-owned houses before July 5, 1994 (the date Decree No. 61/CP of the Government on buying, selling, and operating houses was issued), as follows:

a) For the area of land attached to the house subject to liquidation, valuation as stipulated in Clause 4, Article 3 of this Decree, no land use fee shall be paid;

b) For the remaining area of land within the premises of the house subject to liquidation, valuation, 40% of the land use fee shall be paid if it falls within the residential land limit (including the area of land attached to the house subject to liquidation, valuation and the remaining area within the premises); 100% of the land use fee shall be paid for the area of land exceeding the residential land limit.

2. The land use fee when selling state-owned houses after July 5, 1994 (the date Decree No. 61/CP was issued) to tenants shall include the price of the house and the land price, which shall be determined as follows:

a) For land of single-story houses, multi-story houses for one household, multi-story houses with separate living areas, and villas (including multi-story villas for multiple households), 40% of the land use fee shall be paid for the area within the residential land limit; 100% of the land use fee shall be paid for the area exceeding the residential land limit.

b) For land attached to multi-story houses for multiple households, 10% of the land use fee shall be paid and allocated to the house price (commonly referred to as the price of state-owned houses for sale) according to the following floor coefficients:

3. For the expanded area of land for extension adjacent to state-owned houses, when granted certificates of land use rights by competent state agencies, 40% of the land use fee shall be paid for the area within the residential land limit (including the area of land purchased from state-owned houses and the adjacent extended area); 100% of the land use fee shall be paid for the area exceeding the residential land limit.

Chapter III

EXEMPTION AND REDUCTION OF LAND USE FEE

Article 9. Principles for Exemption and Reduction of Land Use Fees

The exemption and reduction of land use fees shall be based on the following principles:

1. In cases where land is allocated by the State for residential purposes; permission is granted to change the purpose of land use, to purchase a house under state ownership that is currently being rented; or a certificate of land use rights is issued, the exemption and reduction of land use fees shall only apply once.

2. The rate of reduction of land use fees shall be calculated based on the amount of land use fees payable to the state treasury as stipulated in Chapter II of this Decree.

3. In households with multiple members eligible for reduction of land use fees, the reductions for each member shall be combined to form a total reduction for the household, but the maximum reduction shall not exceed the amount of land use fees payable within the land use quota.

4. In cases where an individual qualifies for multiple exemption and reduction regimes for land use fees, they shall benefit from the highest preferential rate.

Article 10.Exemption and reduction of land use fee

1. Exemption of land use fees for the subjects specified in Clause 1, Article 10 of Decree No. 04/2000/NĐ-CP dated February 11, 2000, detailing the implementation of the Law Amending and Supplementing Certain Provisions of the Land Law.

2. Exemption and reduction of land use fees pursuant to Decision No. 118/TTg dated February 27, 1996, of the Prime Minister regarding support for persons who have rendered meritorious service to the revolution to improve their housing conditions.

3. Exemption and reduction of land use fees pursuant to Decision No. 20/2000/QĐ-TTg dated February 3, 2000, of the Prime Minister regarding support for individuals who participated in revolutionary activities prior to August 1945 to improve their housing conditions.

4. Individuals who are allocated land by competent state authorities to implement investment projects eligible for investment incentives shall be exempted or reduced from land use fees according to the provisions of domestic investment encouragement laws.

5. Matters concerning the exemption and reduction of land use fees for other cases shall be decided by the Prime Minister upon the proposal of the Ministry of Finance.

Chapter IV

DECLARATION AND PAYMENT OF LAND USE FEES

Article 11. Responsibilities of Land Users

Land users shall be responsible for:

1. Declaring and providing all necessary documents related to the determination of land use fees and exemptions or reductions thereof (if applicable), in accordance with the model provided by the Ministry of Finance;

2. Paying land use fees as notified by tax authorities;

3. In cases where the person declaring and paying land use fees cannot be identified, the current land user or the authorized representative shall be responsible for declaring and paying the land use fees as stipulated in Clauses 1 and 2 of this Article.

Article 12. Deadline for Payment of Land Use Fees When Land Is Allocated by Competent State Authorities

1. In cases where payment of land use fees is required, such fees must be fully paid in one lump sum before the issuance of the certificate of land use rights, except where otherwise provided by law.

2. For cases where land is allocated and land use fees are required to be paid according to the laws on land, but have not been paid or have not been fully paid, within one year from the date this Decree takes effect, full payment of land use fees must be made. Late payments without authorization from competent state authorities shall incur late payment penalties as stipulated in Clause 5 of this Article.

3. For cases where land is allocated after this Decree takes effect, the land user must declare and complete payment of land use fees within sixty days from the date the land user receives the handover of the boundary markers of the cleared land surface for use.

4. In cases where a plot of land is handed over in parts, the calculation of land use fees shall be based on the actual area of land handed over to the user entity.

5. Domestic organizations allocated land for approved investment projects to construct new residential areas, urban areas, or infrastructure structures for transfer or lease may delay payment of land use fees. The maximum allowable delay period does not exceed five years from the date of the land allocation decision, including cases where land was allocated before this Decree took effect. After the permitted delay period for payment of land use fees as stipulated in this Article has expired and the full payment has not been made, in addition to making the full payment as required, the party must also pay late payment penalties; for each day of delay in payment of land use fees, a penalty of 0.1% (one thousandth) of the amount of land use fees delayed will be imposed.

Article 13. Time limit for payment of land use fee when permitted by competent state authorities to change the purpose of land use

When changing the purpose of land use from a type of land that does not require payment of land use fee to a type that requires payment of land use fee as stipulated in Article 6 of this Decree, the time limit for payment of land use fee is 60 days from the date the tax authority issues the notification to pay the fee. If the payment of land use fee exceeds the prescribed time limit without being paid or not fully paid, the late payment fine shall be imposed according to Clause 5, Article 12 of this Decree.

Article 14. Time limit for payment of land use fee when granted certificates of land use rights by competent state authorities

1. Persons using land who are granted certificates of land use rights according to Article 7 of this Decree must pay the land use fee within 60 days from the date the tax authority issues the notification to pay the fee.

2. Persons paying the full land use fee at once as notified by the tax authority shall be entitled to a 20% reduction on the amount of land use fee payable.

3. In cases where persons using land have difficulties in their living conditions; households belonging to poverty alleviation programs; those affected by unexpected accidents; or those suffering from chronic diseases requiring long-term treatment, if confirmed by the People's Committee of the commune, ward, or town where they reside, they may delay payment of the land use fee and have it recorded as a debt on the certificate of land use rights. Upon full payment of the delayed land use fee, they will be issued a new certificate of land use rights or must pay the full delayed land use fee when transferring the right to use the land. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).Article 15. Time limit for payment of land use fee when purchasing a house under state ownership while renting

The time limit for payment of land use fee when purchasing a house owned by the state and sold to current tenants is a maximum of 10 years. The first year's payment must be no less than 20%, and each subsequent year's payment must be no less than 8%. If the full land use fee is paid immediately upon signing the purchase contract, there will be a 20% reduction on the land use fee payable.

Article 16. Responsibilities of financial agencies

1. Guide land users to declare and pay the land use fee.

2. Check and verify declaration documents and calculate the amount of land use fee payable.

3. Notify the payment of the land use fee, monitor, and urge the payment of the land use fee into the State Treasury.

4. Issue receipts for land use fee payments according to regulations of the Ministry of Finance.

5. Resolve complaints regarding the collection and payment of the land use fee.

6. Confirm exemptions, reductions, and debts of the land use fee on the declaration form for payment of the land use fee as a basis for issuing certificates of land use rights.

7. Notify in writing to the declarant of the land use fee in cases where there are insufficient grounds to calculate and collect the land use fee.

8. The Ministry of Finance shall specify the receipt for payment of the land use fee into the state budget.

Article 17. Penalties

Chapter V

VIOLATION HANDLING AND REWARD

1. Land users who fail to fully comply with the procedures for declaring and paying the land use fee as prescribed in this Decree shall be subject to administrative penalties for tax violations and other provisions of the law on land.

2. Any person who takes advantage of their position or power, intentionally creates difficulties or obstacles for land users in declaring and paying the land use fee, misappropriates, or embezzles the land use fee; falsifies land records causing loss to the state budget, depending on the level of violation, shall be subject to administrative penalties and compensation for material losses; if there are elements constituting a crime, they shall be held criminally responsible according to the provisions of the law.

2.Any person who takes advantage of their position or authority, intentionallycauses difficulties or obstacles for individuals declaring and paying land use fees,appropriates, embezzles land use fees; falsifies land records causing loss of revenuetos the state budget shall be subject to administrative penalties and compensationfor material damage depending on the level of violation; if there are elementsconstituting a crime, they shall be held criminally responsible in accordance withthe provisions of the law.

Article 18. Complaints

Land users have the right to complain about the incorrect implementation ofprovisions on land use fee collection under this Decree. The complaint must be submitted to the agency directly responsible for calculating and collecting the land use fee within thirty days from the date of receiving the notification to pay the land use fee from the tax authority. During the waiting period for resolution, the complainant must pay the full amount of the land use fee as notified on time.

Article 19. Effectiveness of Complaint Resolution

1. If the agency receiving the complaint finds that the file is incomplete orinaccurate according to regulations, it must notify the sender of the need tosupplement or provide additional explanations within ten days.

2. The time limit for resolving complaints is thirty days from the date ofreceiving the file. For complex cases, the deadline may be extended but notexceeding forty-five days. In mountainous areas or regions with difficultaccessibility, the deadline shall not exceed sixty days from the date of receiptof the complaint.

3. If the complainant disagrees with the decision made by the agency receivingthe complaint or if the complaint remains unresolved beyond the time limit setout in Clause 2 of this Article, the complainant has the right to appeal to thesuperior agency.

4. The final decision regarding complaints about the collection of land usefees is made by the Minister of Finance.

Article 20. Awards

Agencies, officials responsible for collecting land use fees, and otherindividuals who contribute to inspecting, organizing the collection of land usefees, and identifying violations of this Decree's provisions shall be rewardedaccording to current regulations.

Chapter VI

IMPLEMENTING PROVISIONS

Article 21. Organization of Implementation

1. The Ministry of Finance shall guide the declaration and payment of land usefees, procedures for filing documents, and the authority to decide on exemptions,reductions, and deferred payments of land use fees as stipulated in this Decree.

2. The Ministry of Construction shall guide the registration and declaration ofresidential houses and land plots, and determine the scope of planning andarchitecture.

3. The General Department of Land Administration shall guide the determinationof land types, land area usage, and valid legal documents concerning land userights; implement the issuance of certificates of land use rights in accordancewith the Law on Land.

4.Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).Provincial People's Committees directly under the Central Government shall be responsible for directing levels and sectors under their jurisdiction to collect land use fees as prescribed in this Decree, inspect and handle cases of incorrect declarations and determinations causing losses to the State and land use fee payers.

Article 22. Effectiveness

This Decree takes effect fifteen days from the date of signature.

This Decree replaces the provisions on land use fee collection set forth inDecrees No. 89/CP dated August 17, 1994 on land use fee collection and landregistration fees, Decree No. 60/CP dated July 5, 1994 on ownership of residentialhouses and land use rights in urban areas, Decree No. 61/CP dated July 5, 1994on buying and selling residential houses, Decree No. 44/CP dated August 3, 1996amending Article 1 of Decree No. 89/CP dated August 17, 1994 on land use feecollection and land registration fees, and Decree No. 45/CP dated August 3, 1996amending Article 10 of Decree No. 60/CP dated July 5, 1994 on ownership ofresidential houses and land use rights in urban areas.

Previous provisions on land use fee calculation and collection contrary tothis Decree are hereby abolished.

Article 23. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).Provincial People's Committees directly under the Central Government areresponsible for implementing this Decree./.