Decree No. 45/2014/ND-CP on Land Use Fee Collection

DECREE

Provisions on land use fee collection

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

The Government issues this Decree on management and development of industrial clusters.

Pursuant to the Law on State Budget dated December 16, 2002;

Based on the Investment Law dated November 29, 2005;

Pursuant to the Law on Tax Administration dated November 29, 2006; the Law Amending and Supplementing Certain Articles of the Law on Tax Administration dated November 20, 2012;

Pursuant to the Law on Prices dated June 20, 2012;

Pursuant to the Law on Legislative Acts of 03 June 2008;

At the proposal of the Minister of Finance,

At the proposal of promulgates the Decree on provisions for collecting land use fees.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the collection of land use fees in the following cases:

1. The State grants land with the collection of land use fees.

2. The State permits the change of land use purpose from agricultural land, non-agricultural land that is not residential land to residential land or commercial cemeteries, graveyards where land use fees must be paid.

3. The State recognizes land use rights for entities currently using land where land use fees must be paid.

Article 2. Subjects of land use fee collection

1. Persons granted land by the State for the following purposes:

a) Households and individuals granted residential land;

b) Economic organizations granted land to implement investment projects for constructing houses for sale or for sale combined with lease;

c) Overseas Vietnamese, foreign-invested enterprises granted land to implement investment projects for constructing houses for sale or for sale combined with lease;

d) Economic organizations granted land to implement infrastructure projects for cemeteries, graveyards to transfer land use rights attached with infrastructure (hereinafter referred to as cemetery, graveyard land);

đ) Economic organizations granted land to construct high-rise mixed-use buildings, including areas of houses for sale or for sale combined with lease.

2. Persons currently using land permitted by the State to change land use purpose to residential land or cemetery, graveyard land in the following cases:

a) Agricultural land, non-agricultural land with origins granted without land use fees, now permitted by competent state authorities to be changed to residential land or cemetery, graveyard land;

b) Agricultural land with origins granted by the State with land use fees, changed to residential land or cemetery, graveyard land with land use fees;

c) Non-agricultural land (not residential land) with origins granted by the State with land use fees changed to residential land with land use fees;

d) Agricultural land, non-agricultural land (not residential land) with origins leased by the State now changed to residential land or cemetery, graveyard land simultaneously with the change from leasing land to granting land with land use fees.

3. Households and individuals currently using land for housing, non-agricultural land recognized by the State with a long-term term before July 1, 2014 when obtaining Land Use Right Certificate, House Ownership Certificate and Certificates for Other Assets Attached to Land (hereinafter referred to as Certificate) must fulfill financial obligations according to Articles 6, 7, 8, and 9 of this Decree.

Article 3. Basis for calculating land use fees

Persons granted land, changed land use purpose, recognized land use rights by the State must pay land use fees as prescribed by the Land Law and shall be determined based on the following grounds:

1. Area of land granted, changed land use purpose, recognized land use rights.

2. Purpose of land use.

3. Price of land for calculating land use fees:

a) Land price according to the Provincial Land Price Table issued by the People's Committee of the province or centrally governed city (hereinafter referred to as Provincial People's Committee) applicable in cases where households and individuals are recognized land use rights, change land use purpose for residential land within the limit.

Determining the area of land within the limit at this point must ensure the principle that each household (including households formed by splitting households according to the law) and individual can only be determined once the area of land within the limit for residential land grant or recognition of residential land within the scope of one province or centrally governed city.

In case households and individuals have multiple plots of land within the scope of one province or centrally governed city, those households and individuals can accumulate the area of land of these plots to determine the area of land within the limit for residential land grant or recognition of residential land but the total area selected cannot exceed the limit for residential land grant or recognition of residential land at the chosen locality.

Households and individuals bear responsibility under the law for the truthfulness and accuracy of declaring the area of land within the limit for residential land grant or recognition of residential land applied for calculating land use fees; if fraudulently declared, they will be required to pay back the land use fees according to the law on land and be subject to penalties according to the law on tax.

b) Specific land prices are determined according to direct comparison, deduction, income, surplus methods prescribed in the Government's Decree on land prices applicable in the following cases:

- Determining land use fees for cases where the value of land area for calculating land use fees of a plot or area of land (calculated according to the land price in the Provincial Land Price Table) is 30 billion VND or more for centrally governed cities; 10 billion VND or more for mountainous and highland provinces; 20 billion VND or more for other provinces in the following cases: Organizations granted land without going through the public auction of land use rights, changing land use purpose, recognizing land use rights; households and individuals granted land without going through the public auction of land use rights; recognized land use rights, changing land use purpose for residential land exceeding the limit.

- Determining the starting price for the public auction of land use rights when the State grants land with land use fees through the public auction of land use rights.

c) Specific land prices are determined according to the land price adjustment coefficient method applicable in cases where the value of land area for calculating land use fees of a plot or area of land (calculated according to the land price in the Provincial Land Price Table) is less than 30 billion VND for centrally governed cities; less than 10 billion VND for mountainous and highland provinces; less than 20 billion VND for other provinces applied to determine land use fees in the following cases:

- Organizations granted land with land use fees by the State without going through the public auction of land use rights, recognizing land use rights, permitting changes in land use purpose;

- Household and individuals are granted land use rights by the State without going through the auction of land use rights;

- Household and individuals whose land use rights are recognized by the State and allowed to change the purpose of land use for residential land areas exceeding the quota limit;

Each year, the Provincial People's Committee shall stipulate the adjustment factor for land prices to be applied to the cases specified herein;

Chapter II

SPECIFIC PROVISIONS

Section 1

CHARGING LAND USE FEES FOR SPECIFIC CASES

Article 4. Charging land use fees when the State grants land

1. Economic organizations, households, and individuals granted land by the State with payment of land use fees through the auction of land use rights shall have the land use fee calculated by multiplying the area of land subject to payment of land use fees by the winning bid price for the intended land use purpose.

2. Economic organizations, households, and individuals granted land by the State with payment of land use fees not through the auction of land use rights shall have the land use fee payable determined according to the following formula:

Where:

a) The area of land subject to payment of land use fees is the area of land subject to payment of land use fees recorded in the land grant decision of the competent state agency.

b) The land price for charging land use fees is determined in accordance with Point b and Point c, Clause 3, Article 3 of this Decree.

c) Compensation and land clearance costs deducted from the land use fee include compensation, support, resettlement, and implementation costs for compensation and land clearance approved by the competent state agency that the investor has voluntarily paid to the State.

3. In the case of residential buildings or multi-story mixed-use buildings attached to land granted by the State for multiple users, the land use fee shall be allocated to each floor and user.

4. The Ministry of Finance shall provide detailed guidance on this Article.

Article 5. Charging land use fees when changing the purpose of land use

1. For economic organizations:

a) Changing from agricultural land or non-agricultural land granted without payment of land use fees to residential land; changing from agricultural land or non-agricultural land granted without payment of land use fees to cemetery or burial land shall result in the collection of 100% of the land use fee based on the price of the land after the change of purpose.

b) Changing the purpose of use from agricultural land or non-agricultural land other than residential land granted with payment of land use fees or leased land to residential land shall be charged as follows:

- In the case where agricultural land or non-agricultural land other than residential land was granted with payment of land use fees before July 1, 2014, upon changing the purpose to residential land, the land use fee shall be paid by the difference between the land use fee calculated based on the residential land price minus the land use fee calculated based on the price of the previous land type for the remaining period of land use at the time the competent state agency permits the change of land use purpose.

- In the case where agricultural land or non-agricultural land other than residential land was leased annually, upon changing the purpose to residential land simultaneously with changing from lease to grant, the full land use fee shall be paid based on the residential land price at the time the competent state agency permits the change of land use purpose.

- In the case where agricultural land or non-agricultural land other than residential land was leased in a lump sum, upon changing the purpose to residential land simultaneously with changing from lease to grant, the land use fee shall be paid by the difference between the land use fee calculated based on the residential land price minus the lump sum lease fee of the previous land type for the remaining period of land use at the time the competent state agency permits the change of land use purpose.

For land of public service organizations with financial autonomy, centrally-managed state-owned enterprises, the provincial People's Committee shall decide on the change of land use purpose together with the conversion of the function of state assets according to regulations after obtaining written agreement from the Ministry of Finance.

c) Changing the purpose of use from agricultural land granted with payment of land use fees or leased land to cemetery or burial land shall be charged according to the principle set forth in Point b of this Clause.

d) Changing the purpose of land use for cases where economic organizations legally acquire land use rights to implement investment projects and must change the purpose of land use shall be charged as follows:

- In the case where economic organizations legally acquire land use rights to implement investment projects and must change the purpose of land use to residential land or cemetery/burial land, they shall pay the land use fee based on the price of the land after the change of purpose as stipulated in Point b and Point c, Clause 3, Article 3 of this Decree.

- The amount paid by the economic organization to acquire the land use rights shall be deducted from the land use fee payable upon changing the purpose. This amount is determined based on the price of the acquired land use right at the time the competent state agency permits the change of land use purpose but shall not exceed the compensation and support corresponding to the case where the State recovers the land according to the law.

- The amount paid by the economic organization to acquire the land use rights mentioned above shall be determined as follows:

+ In the case where the land price for calculating the land use fee of the land after the change of purpose is determined by the adjusted land price method, the price of the acquired land use right shall also be determined by the adjusted land price method.

+ In the case where the land price for calculating the land use fee of the land after the change of purpose is determined by direct comparison, deduction, income, and surplus methods, the price of the acquired land use right shall also be recalculated according to these methods.

2. For households and individuals:

a) Transfer land from garden or pond within the same plot of land with residential buildings in residential areas that have not been recognized as residential land according to Clause 6, Article 103 of the Land Law to residential land; transfer land with origins as garden or pond attached to residential buildings but the land users have separated for transferring rights or units conducting surveys have separated into individual plots before July 1, 2004 when measuring and drawing cadastral maps, then collect land use fee equal to 50% of the difference between the land use fee calculated based on residential land price and the land use fee calculated based on agricultural land price at the time of the competent state agency's decision to change the purpose of land use.

b) Transfer land from agricultural land granted by the State without collecting land use fees to residential land, then collect land use fee equal to the difference between the land use fee calculated based on residential land price and the land use fee calculated based on agricultural land price at the time of the competent state agency's decision to change the purpose of land use.

c) Change the purpose from non-agricultural land that is not residential land to residential land shall be collected land use fee as follows:

- In cases where non-agricultural land has been used stably and long-termly before July 1, 2004, which has been recognized by the State with a stable and long-term right to use land, but not land granted or leased by the State, when changing the purpose to residential land, no land use fee needs to be paid.

- In cases where non-agricultural land has been used under the form of land granted by the State with land use fees paid before July 1, 2014, when changing the purpose to residential land, collect land use fee equal to the difference between the land use fee calculated based on residential land price and the land use fee calculated based on non-agricultural land price for the remaining period of land use at the time of the competent state agency's decision to change the purpose of land use.

- In cases where the State leases non-agricultural land that is not residential land under the form of paying land lease fees once for the entire lease period, when changing the purpose to residential land simultaneously with changing from leasing land to granting land, pay land use fee equal to the difference between the land use fee calculated based on residential land price minus the land lease fee paid once calculated based on non-agricultural land price for the remaining period of land use at the time of the competent state agency's decision to change the purpose of land use.

- In cases where non-agricultural land that is not residential land has been used under the form of annual payment of land lease fees by the State, collect land use fee equal to 100% of the land use fee calculated based on residential land price at the time of the competent state agency's decision to change the purpose of land use.

d) When changing the purpose of land use with origins from legally transferring land use rights according to land laws from land users to residential land, base on the origin of transferred land to collect land use fee according to the provisions set out in Point a, Point b, and Point c of this Clause.

3. The Ministry of Finance shall provide detailed guidance on this Article.

Article 6. Collection of land use fee when recognizing land use rights (issuing Certificate of Land Use Right) for households and individuals for land used stably before October 15, 1993 without any of the types of documents specified in Clause 1, Article 100 of the Land Law.

1. Households and individuals currently using land with residential buildings or other construction works before October 15, 1993; at the time of starting to use the land, there were no violations as stipulated in Article 22 of the Government Decree detailing implementation of certain provisions of the Land Law, if issued a Certificate of Land Use Right, collect land use fee as follows:

a) In cases where land has residential buildings, the land user does not need to pay land use fee for the area of residential land being used within the recognized residential land limit for each household or individual; for the area of residential land exceeding the recognized residential land limit (if any), must pay land use fee equal to 50% of the land use fee according to the price of land specified in Point b and Point c of Clause 3, Article 3 of this Decree at the time of the competent state agency's decision to recognize land use rights.

b) In cases where land is used for construction works that are not residential buildings, if issued a Certificate of Land Use Right for non-agricultural production and business land use rights in the form of land granted by the State with land use fees paid with a long-term land use period, no land use fee needs to be paid.

2. Households and individuals using land for residential purposes, at the time of starting to use the land, had one of the violations as stipulated in Article 22 of the Government Decree detailing implementation of certain provisions of the Land Law, but now if issued a Certificate of Residential Land Use Right, must pay 50% of the land use fee for the area of land within the recognized residential land limit according to the land price specified in the Land Price Table; pay 100% of the land use fee for the area of land exceeding the recognized residential land limit according to the land price specified in Point b and Point c of Clause 3, Article 3 of this Decree at the time of the competent state agency's decision to recognize land use rights.

In cases where land is used for construction works that are not residential buildings, if issued a Certificate of Land Use Right for non-agricultural production and business land use rights in the form of land granted by the State with land use fees paid with a long-term land use period, must pay 50% of the land use fee according to the land price specified in Point b and Point c of Clause 3, Article 3 of this Decree of the highest land use period of non-agricultural production and business land specified in Clause 3, Article 126 of the Land Law at the time of the competent state agency's decision to recognize land use rights.

Article 7. Collection of land use fee when recognizing land use rights (issuing Certificate of Land Use Right) for households and individuals for land used from October 15, 1993 to before July 1, 2004 without documents specified in Clause 1, Article 100 of the Land Law.

1. Households and individuals currently using land and at the time they began using the land did not have any of the violations stipulated in Article 22 of the Government Decree detailing implementation of certain provisions of the Land Law, if granted a Certificate of Land Use Right, shall pay the land use fee as follows:

a) In cases where households and individuals currently using land with residential buildings must pay a land use fee equal to 50% of the land use fee for the area within the residential land allocation limit according to the land price table; for the excess residential land area (if any), they must pay 100% of the land use fee according to the land price specified in Points b and c, Clause 3, Article 3 of this Decree at the time of the competent state agency's decision recognizing land use rights.

b) In cases where land is used for construction projects that are not residential buildings, if granted a Certificate of Land Use Right for non-agricultural production and business purposes in the form of land allocation with payment of land use fee for long-term use, they must pay 50% of the land use fee according to the land price specified in Points b and c, Clause 3, Article 3 of this Decree for the highest duration of use of non-agricultural production and business land as stipulated in Clause 3, Article 126 of the Land Law at the time of the competent state agency's decision recognizing land use rights.

2. Households and individuals using residential land who, at the time they began using the land, had any of the violations stipulated in Article 22 of the Government Decree detailing implementation of certain provisions of the Land Law, but now if granted a Certificate of Residential Land Use Right, must pay 100% of the land use fee according to the land price table for the area within the residential land allocation limit; for the excess residential land area (if any), they must pay 100% of the land use fee according to the land price specified in Points b and c, Clause 3, Article 3 of this Decree at the time of the competent state agency's decision recognizing land use rights.

In cases where land is used for construction projects that are not residential buildings, if granted a Certificate of Land Use Right for non-agricultural production and business purposes in the form of land allocation with payment of land use fee for long-term use, they must pay 100% of the land use fee according to the land price specified in Points b and c, Clause 3, Article 3 of this Decree for the highest duration of use of non-agricultural production and business land as stipulated in Clause 3, Article 126 of the Land Law at the time of the competent state agency's decision recognizing land use rights.

Article 8. Collection of land use fee when recognizing land use rights (issuing Certificate of Land Use Right) for households and individuals for residential land with origin allocated beyond authority before July 1, 2004.

1. In cases where land is used for stable residential buildings, when granted a Certificate of Land Use Right by the competent state agency, the land use fee shall be collected as follows:

a) In cases where land is used for residential buildings before October 15, 1993 and there is evidence showing payment to agencies or organizations to obtain land use rights, when granted a Certificate of Land Use Right, no land use fee will be required.

b) In cases where land is used for stable residential buildings during the period from October 15, 1993 to before July 1, 2004 and there is evidence showing payment to obtain land use rights, the land use fee shall be collected as follows:

- If the evidence shows payment according to the prescribed collection rate under the 1993 Land Law, no land use fee will be required;

- If the evidence shows payment lower than the prescribed collection rate under the 1993 Land Law, the amount paid will be converted into a percentage of the completed land use fee payment according to policy and land price at the time of payment; for the remaining land area, the land use fee will be collected according to policy and land price at the time of the competent state agency's decision recognizing land use rights.

c) In cases where land is used for stable residential buildings before July 1, 2004 and there is no evidence showing payment to obtain land use rights, when granted a Certificate of Land Use Right, the land use fee shall be collected as follows:

- In cases where land has been used stably since before October 15, 1993, the land use fee shall be 40% of the residential land use fee according to the land price table for the area within the residential land allocation limit at the time of the competent state agency's decision recognizing land use rights; 100% of the residential land use fee for the excess residential land area (if any) according to the land price specified in Points b and c, Clause 3, Article 3 of this Decree at the time of the competent state agency's decision recognizing land use rights.

- In cases where land has been used stably from October 15, 1993 to before July 1, 2004, the land use fee shall be 50% of the residential land use fee for the area within the residential land allocation limit according to the land price table; 100% of the residential land use fee for the excess residential land area (if any) according to the land price specified in Points b and c, Clause 3, Article 3 of this Decree at the time of the competent state agency's decision recognizing land use rights.

2. The remaining land area without residential buildings (if any) shall be determined as agricultural land based on its current use when issuing the Certificate of Land Use Right. If the land user requests conversion to residential land use and is granted a Certificate of Residential Land Use Right by the competent state agency, they must pay the land use fee equivalent to the difference between the residential land use fee and the agricultural land use fee at the time of the competent state agency's decision changing the land use purpose.

3. The Ministry of Finance shall provide detailed guidance on this Article.

Article 9. Collection of land use fee when recognizing land use rights (issuing Certificate) for households and individuals with residential land having origins from unauthorized allocation or encroachment from July 1, 2004 to before July 1, 2014, which are now recognized by the State for issuance of Certificate.

1. Households and individuals using land with origins from encroachment or unauthorized allocation from July 1, 2004 to before July 1, 2014, but now conforming to land use planning, if granted Certificate according to Clause 9, Article 210 of the Land Law, must pay 100% of the land use fee based on the land price stipulated in Points b and c, Clause 3, Article 3 of this Decree at the time of the decision recognizing land use rights issued by the competent state agency.

2. In cases where land is used for construction projects that are not residential buildings, if granted Certificate of non-agricultural production and business land use rights in the form of allocating land with payment of land use fee for long-term use, must pay 100% of the land use fee based on the land price stipulated in Points b and c, Clause 3, Article 3 of this Decree for the highest duration of non-agricultural production and business land use as prescribed in Clause 3, Article 126 of the Land Law at the time of the decision recognizing land use rights issued by the competent state agency.

Section 2

EXEMPTION AND REDUCTION OF LAND USE FEE

Article 10. Principles for Implementing Exemption and Reduction of Land Use Fee

1. Households and individuals eligible for exemption or reduction of land use fee shall only be exempted or reduced once in the case of: being allocated land by the State for housing purposes or permitted to change the purpose of land use from other types of land to residential land or granted Certificate of residential land use rights.

2. In households with multiple members eligible for reduction of land use fee, the reductions of each member can be combined into a total reduction for the household, but the maximum reduction cannot exceed the amount of land use fee payable within the limit of residential land allocation.

3. In cases where individuals are eligible for both exemption and reduction of land use fee as prescribed in this Decree or related legal regulations, they shall be exempted from land use fee; in cases where individuals are eligible for reduction of land use fee but have multiple levels of reduction prescribed in this Decree and related legal regulations, they shall enjoy the highest level of reduction.

4. The exemption and reduction of land use fee when the State allocates land or permits change of land use purpose as prescribed in Articles 11 and 12 of this Decree shall only be directly applied to the eligible recipients and calculated based on the land use fee payable as stipulated in Articles 4, 5, 6, 7, 8, and 9 of this Decree.

5. The legal provisions on investment incentives shall not apply to commercial housing projects for exemption or reduction of land use fee.

6. Land users can only benefit from exemptions or reductions of land use fee after completing the procedures required for such exemptions or reductions as prescribed.

7. Economic organizations allocated land with payment of land use fee by the State, if eligible for reduction of land use fee, shall have rights and obligations within the scope of the value of land use rights paid in accordance with the laws on land.

8. In cases where land users eligible for exemption or reduction of land use fee voluntarily choose to pay the land use fee (without enjoying the benefits), they shall fulfill their financial obligations regarding land as if they were not eligible for exemption or reduction of land use fee and shall have rights and obligations under the laws on land as if they had been allocated land with payment of land use fee by the State for the corresponding type of land use.

Article 11. Exemption from Land Use Fee

The land use fee shall be exempted in the following cases:

1. Exemption from the land use fee within the limit of allocated residential land when using land to implement housing policies for persons who have rendered meritorious services to the revolution, as specified in the laws on persons who have rendered meritorious services; poor households, ethnic minority households in areas with extremely difficult socio-economic conditions, border areas, and islands; land used to construct social housing as prescribed by the laws on housing; houses for people who must relocate due to natural disasters.

The identification of poor households shall be based on the Prime Minister's decision; the identification of ethnic minority households or individuals shall be based on the Government's regulations.

2. Exemption from the land use fee within the limit of allocated residential land when issuing the first Certificate of Land Use Right for land converted from non-residential land to residential land due to household separation for ethnic minority households and poor households in special hardship communes in ethnic minority and mountainous areas as specified in the list of special hardship communes by the Prime Minister.

3. Exemption from the land use fee for the area of land allocated within the limit of allocated residential land for households of fishing villages, river-dwelling people, and those living in lakes and swamps who move to settle in resettlement areas according to planning, plans, and projects approved by competent authorities.

4. Exemption from the land use fee for the portion of land allocated within the limit of allocated residential land for resettlement or allocation to households and individuals in flood-prone areas according to projects approved by competent authorities.

5. The Prime Minister decides the exemption from the land use fee for other cases proposed by the Minister of Finance based on proposals from Ministers, Heads of ministerial-level agencies, and provincial People's Committee Chairmen.

6. The Ministry of Finance shall provide detailed guidance on this Article.

Article 12. Reduction of Land Use Fee

1. A reduction of 50% of the land use fee within the limit of residential land for ethnic minority households and poor households in areas not covered by Clause 2 of Article 11 of this Decree when they are granted land use rights by competent state authorities; recognized (issued Certificate of Land Use Right) for the first time for land currently being used or when the purpose of land use is changed from non-residential land to residential land.

The identification of poor households shall be based on the Prime Minister's decision; the identification of ethnic minority households or individuals shall be based on the Government's regulations.

2. Reduction of the land use fee for residential land within the limit of allocated residential land (including allocation of land, change of land use purpose, issuance of Certificate of Land Use Right for current land users) for persons who have rendered meritorious services to the revolution and are entitled to a reduction in the land use fee as prescribed by the laws on persons who have rendered meritorious services.

3. The Prime Minister decides the reduction of the land use fee for other cases proposed by the Minister of Finance based on proposals from Ministers, Heads of ministerial-level agencies, and provincial People's Committee Chairmen.

4. The Ministry of Finance shall provide detailed guidance on this Article.

Article 13. Authority to Determine and Decide the Amount of Exempted and Reduced Land Use Fee

1. Based on documents and evidence proving that the subject is eligible for exemption or reduction of the land use fee as stipulated in Articles 11 and 12 of this Decree, the tax authority shall determine the amount of land use fee to be paid and the amount of exempted and reduced land use fee, specifically:

a) The Director of the Tax Department issues the decision on the amount of exempted and reduced land use fee for economic organizations; foreign organizations and individuals, and overseas Vietnamese.

b) The Director of the Tax Sub-department issues the decision on the amount of exempted and reduced land use fee for households and individuals.

2. The Ministry of Finance shall guide the procedures and formalities for the exemption and reduction of the land use fee as stipulated in this Article.

Section 3

COLLECTION AND PAYMENT OF LAND USE FEE

Article 14. Procedure for determining and collecting land use fees

1. For economic organizations:

Based on the land administration records (information about the land user, land area, location, and purpose of land use) sent by the Land Registration Office or the natural resources and environment agency; based on the Decision of the Provincial People's Committee approving the specific land price for calculating land use fees of the project or the Land Price Table, land price adjustment coefficient, within five working days from the date of receipt of the Decision approving the land price of the Provincial People's Committee or from the date of receipt of the land administration records of the natural resources and environment agency (or declaration forms of economic organizations), the tax authority (or authorized agencies according to the law on tax management) shall determine the amount of land use fee, issue a notice to pay the land use fee, and send it to the land-using organization.

2. For households and individuals:

Based on the land administration records (information about the land user, land area, location, and purpose of land use) sent by the Land Registration Office or the natural resources and environment agency; based on the Decision of the Provincial People's Committee approving the specific land price for calculating land use fees or the Land Price Table, land price adjustment coefficient, and application forms for issuing certificates, changing the purpose of land use of households and individuals, within five working days, the tax authority shall determine the amount of land use fee, issue a notice to pay the land use fee, and send it to households and individuals.

3. In cases where there are not sufficient grounds to determine the amount of land use fee revenue, within five working days from the date of receipt of the file, the tax authority must notify in writing the relevant agencies, organizations, or individuals to supplement the file; once the supplementary file is complete, the tax authority must issue a notice to pay the land use fee no later than five working days from the date of receiving the complete supplementary file. At the same time, the tax authority shall establish a record to monitor the collection of land use fees according to the form prescribed by the Ministry of Finance.

4. Time limit for paying the land use fee:

a) Within thirty days from the date of signing the Notice of the tax authority, the land user must pay fifty percent of the land use fee as stated in the Notice.

b) Within the following sixty days, the land user must pay the remaining fifty percent of the land use fee as stated in the Notice.

c) If the payment is overdue beyond the time limits specified in Points a and b of this Clause, and the land user has not paid the full amount of the land use fee as stated in the Notice, they must pay late payment interest on the unpaid amount at the rate prescribed by the law on tax management, except in cases where there is an application for deferred payment of the land use fee for cases that are eligible for deferral.

5. In cases where the basis for calculating the land use fee changes, the tax authority must re-determine the amount of land use fee to be paid and notify the person responsible for fulfilling the obligation.

In cases where land is being used and the financial obligations regarding the land use fee have been completed, if the land user requests adjustments to the detailed construction planning which results in new financial obligations for land (if applicable), they must pay additional land use fees into the state budget.

6. The Ministry of Finance shall take the lead in coordinating with the Ministry of Natural Resources and Environment to guide the circulation of files and cooperation between the tax authority, natural resources and environment, finance, and State Treasury in determining, calculating, and collecting land use fees as stipulated in this Article.

Article 15. Handling compensation and land clearance funds

1. In cases where the Land Development Fund provides capital to organizations responsible for compensation and land clearance to create clean land for allocation, individuals receiving land from the State through auction or non-auction methods must pay land use fees and handle compensation and land clearance funds as follows:

a) In cases where they are not exempted or granted reductions on land use fees, individuals receiving land from the State must pay the land use fee into the State budget according to the provisions of the law. The repayment of compensation and land clearance funds to the Land Development Fund shall be carried out by the State budget according to the provisions of the State budget law.

b) In cases where they are exempted from paying land use fees or are allocated land without payment of land use fees, individuals receiving land from the State must pay the entire compensation and land clearance funds according to the approved plan by the competent state agency into the State budget, and this amount will be included in the project investment capital; for infrastructure construction projects and other construction works of the State, it shall be implemented according to the decision of the competent authority.

c) In cases where they are granted reductions on land use fees, individuals receiving land from the State must repay the compensation and land clearance funds according to the approved plan by the competent state agency into the State budget and this amount will be deducted from the land use fee payable. Any remaining amount that has not been deducted (if any) will be included in the project investment capital.

2. In cases where individuals are allocated land by the State without going through the auction process and voluntarily advance compensation and land clearance funds according to the approved plan by the competent state agency, they can deduct the advanced amount from the land use fee payable according to the approved plan; the deduction amount cannot exceed the land use fee payable. For any remaining compensation and land clearance funds that have not been deducted from the land use fee payable (if any), they will be included in the project investment capital.

3. The compensation and land clearance funds specified in Clause 1 and Clause 2 of this Article include compensation, support, resettlement, and organizational expenses for compensation and land clearance.

4. The Ministry of Finance shall provide detailed guidance on this Article.

Article 16. Recording land use fee debts

1. Households and individuals who change land use purposes; those who are issued Certificates of Land Use Rights must pay land use fees according to Articles 5, 6, 7, 8, and 9 of this Decree, and households and individuals who are allocated resettlement land by the State with financial difficulties and a willingness to record debts may record the land use fee payable on the Certificate of Land Use Rights after submitting a request along with the application for issuance of the Certificate of Land Use Rights or the application for changing land use purposes or the application for allocating resettlement land or a request to record debts when notified to pay the land use fee. The land user must gradually repay the debt within a maximum period of five years; if the debt is not fully repaid within five years from the date of recording the debt, the land user must pay the remaining land use fee according to the land price at the time of repayment. If households and individuals settle the debt ahead of schedule, they will be supported with a reduction of 2% per year of the repayment period and calculated based on the amount of land use fee settled ahead of schedule.

2. In cases where individuals have recorded land use fee debts before this Decree takes effect and still owe land use fees within the recorded repayment period, they will enjoy the early settlement support rate as stipulated in Clause 1 of this Article.

3. The Ministry of Finance shall guide the procedures and formalities for recording debts and settling land use fee debts as stipulated in Clause 1 of this Article.

Article 17. Responsibilities of agencies and land users in determining and organizing the collection of land use fees

1. Financial agency:

a) Take the lead in building and submitting to the Provincial People's Committee for issuance the adjustment factor for land prices according to Point c Clause 3 Article 3 of this Decree.

b) Take the lead in determining the amounts to be deducted from the land use fee payable.

c) Serve as the permanent body of the Land Price Appraisal Council at the local level, responsible for organizing the appraisal of specific land prices for the purpose of collecting land use fees based on proposals from the natural resources and environment agency for cases stipulated in Point b Clause 3 Article 3 of this Decree to report to the local Land Price Appraisal Council for consideration before submitting to the Provincial People's Committee for decision.

2. Natural Resources and Environment Agency, Land Registration Office:

Determine the location, position, area, type of land, purpose of land use, actual date of land handover (for cases where land was allocated prior to the effective date of the Land Law 2013) as the basis for the tax agency to determine the land use fee payable.

3. Tax agency:

a) Determine the amount of land use fee payable, the amount of land use fee exempted or reduced according to this Decree and notify the land user within the prescribed time limit.

b) Organize, guide, inspect, answer inquiries, and resolve complaints regarding the collection and payment of land use fees in accordance with laws on tax management.

4. Treasury agency:

a) Collect the full amount of land use fee into the State Treasury according to the notification of land use fee payment and shall not refuse to collect for any reason.

b) Shall not transfer the collection of land use fees to the next day after receiving all necessary procedures for payment from the person responsible for fulfilling financial obligations.

5. Land user:

a) Implement declarations of land use fees in accordance with the Law on Tax Administration and guiding documents.

b) Pay the land use fee strictly in accordance with the deadline stated in the notification of the tax agency.

c) If the land use fee payment deadline specified in the tax agency's notification is exceeded, the land user must pay late payment fees as stipulated in Article 18 of this Decree.

Article 18. Handling Late Payments

In cases where land use fees are paid late to the state budget, the land user must pay late payment fees. The determination of late payment fees for land use fees shall be carried out according to the rates prescribed by the Law on Tax Administration and guiding documents.

Article 19. Complaints and Resolution of Complaints

Matters concerning complaints and resolution of complaints about land use fees shall be implemented in accordance with the Law on Complaints and guiding documents. During the waiting period for resolution, the complainant must pay the land use fee within the prescribed time limit and in full.

Article 20. Transitional Provisions

1. In cases where economic organizations are allocated land by the State according to the Land Law 2003 but have not completed their financial obligations regarding land use fees before the effective date of this Decree, the following measures shall be taken:

a) Where the land use fee payable has been determined and notified by the competent state agency in accordance with the provisions of the law, the economic organization is responsible for continuing to pay the land use fee into the state budget at the rate notified by the competent state agency and must pay late payment fees (if applicable) in accordance with the relevant laws during each period.

b) Where the land use fee payable has been determined and notified by the competent state agency, but is not consistent with the legal provisions at the time of determination and notification of the land use fee payable, the Provincial People's Committee shall direct the re-determination based on the actual situation in the locality to ensure compliance with the legal provisions. Any additional amount to be paid (if any) will be notified for the economic organization to supplement into the state budget without having to pay late payment fees for the supplementary amount before the re-determination. For the land use fee already determined and notified by the competent state agency before the re-determination, the economic organization continues to pay according to the notified amount; if the payment is insufficient, it must now pay the remaining amount and must pay late payment fees as stipulated in Point a of this Clause.

c) Where the competent state agency has not issued a notification of land use fee payment and the economic organization has not paid or only temporarily paid part of the land use fee into the state budget, the following measures shall be taken:

The temporarily paid land use fee (if any) will be converted into the area of land for which the land use fee has been paid (fulfilling financial obligations) at the actual date of land handover. The remaining area of land that needs to pay the land use fee will be calculated according to the policy and land price at the actual date of land handover, and the handling of late payment of land use fee for this case will be as follows:

- In cases where the delay in paying the land use fee is due to subjective reasons from the economic organization, the economic organization must pay an equivalent amount of late payment fees for land use fees in accordance with the relevant laws on tax management during each period.

- In cases where the delay in paying land use right fees is not due to subjective reasons from the economic organization, the economic organization does not need to pay an amount equivalent to the late payment of land use right fees.

The late payment period for land use fees is calculated from the actual date of land handover to the formal date of notification of payment into the state budget according to the percentage of late payment fees for financial obligations as stipulated by the relevant laws during each period.

d) In cases where the actual land handover has not occurred, but the competent state agency still issues a notification of land use fee payable and the economic organization has paid the money into the state budget, it shall be considered as a temporary payment and handled as stipulated in Point b of this Clause.

đ) The actual handover date of the land is determined as follows:

- In the case of handing over land that has been cleared, the actual handover date of the land is the decision date of the competent state authority to hand over the land.

- In cases where land is allocated without clearance of the site, the actual date of land handover is the date of land handover after clearance of the site according to the progress of land allocation recorded in the approved investment project; in cases where the completion of site clearance does not match the progress of land allocation recorded in the approved investment project, the actual date of land handover is the date of land handover after actual site clearance.

For projects with site clearance periods of two years or more, if the approved project does not specify the progress of land allocation, the actual land handover will be carried out annually in line with the actual completion of site clearance on-site.

2. Determining the land use fee for households and individuals granted land for residential purposes before this Decree takes effect:

a) Households and individuals granted land for residential purposes (newly allocated land) by competent state agencies from October 15, 1993 to July 1, 2004 without paying the land use fee, if they are issued a Land Use Right Certificate by the competent state agency, shall pay the land use fee as follows:

- Pay 50% of the land use fee based on the residential land price at the time of submitting a valid application for issuance of the Land Use Right Certificate or at the time of declaring payment of the land use fee for the area within the land allocation limit at the local level according to the land price specified in the Land Price Table.

- Pay 100% of the land use fee based on the residential land price at the time of submitting a valid application for issuance of the Land Use Right Certificate or at the time of declaring payment of the land use fee for the area exceeding the land allocation limit at the local level (if any) according to the land price specified in Points b and c Clause 3 Article 3 of this Decree.

b) Households and individuals granted land for residential purposes (newly allocated land) by competent state agencies after July 1, 2004 and before this Decree takes effect without paying the land use fee, if they are issued a Land Use Right Certificate by the competent state agency, shall pay the land use fee as follows:

- In cases where the land use fee payable has been determined and notified by the competent state agency in accordance with the provisions of the law at the time of determining and notifying the payment of the land use fee, it shall continue to be paid into the State budget at the notified rate and must pay late payment fees in accordance with the provisions of the law applicable to each period.

- In cases where the land use fee payable has been determined and notified by the competent state agency but is not in compliance with the provisions of the law at the time of determining and notifying the land use fee payable, the tax authority shall re-determine it in accordance with the provisions of the law. Households and individuals must pay any additional land use fee (if any) into the State budget and will not be subject to late payment penalties for this additional revenue during the period before re-determination. For the land use fee that has already been determined and notified by the competent state agency before re-determination, households and individuals may continue to follow the notified amount, and if not fully paid, now must pay the remaining amount and the late payment fee for the land use fee.

In cases where there has been no notification by the competent state agency regarding the payment of the land use fee and households and individuals have not paid or have only partially paid the land use fee, the temporarily paid land use fee (if any) shall be converted into the area of land for which the financial obligation has been completed at the time of the land allocation decision. The remaining area of land for which the land use fee must be paid shall be calculated according to the policy and land price at the time of the land allocation decision, and the late payment of the land use fee for this case shall be handled as follows:

If the late payment of the land use fee is due to subjective reasons from the household or individual using the land, the household or individual must pay an amount equivalent to the late payment fee for the land use fee in accordance with the provisions of the law on tax management applicable to each period.

If the late payment of the land use fee is not due to subjective reasons from the household or individual, the household or individual does not need to pay an amount equivalent to the late payment fee for the land use fee.

The late payment period for the land use fee is calculated from the date of the land allocation decision to the date officially notified to pay the fee into the State budget according to the percentage of late payment of financial obligations as stipulated by the law applicable to each period.

c) The land price for calculating the land use fee for the cases specified in Point a and Point b of this Clause is the land price for the purpose of allocation as specified in Points b and c Clause 3 Article 3 of this Decree at the time of the land allocation decision.

This provision shall not be applied retrospectively to cases where the land use fee has already been paid into the State budget.

3. The land price for calculating the land use fee for households and individuals who have submitted complete and valid applications for issuance of the Land Use Right Certificate or for changing the purpose of land use before this Decree takes effect but now determine the land use fee:

a) For the area within the land allocation limit at the local level, the land price for calculating the land use fee is the land price specified in the Land Price Table.

b) For the area outside the land allocation limit at the local level: In cases where the application was submitted before March 1, 2011, the land price for calculating the land use fee is the land price set by the Provincial People's Committee in the Land Price Table. In cases where the application was submitted from March 1, 2011 to before this Decree takes effect, the land price for calculating the land use fee is the land price specified in the Land Price Table multiplied by the adjustment factor for land prices.

4. In cases where economic organizations have prepaid compensation and land clearance costs according to the plan approved by the competent state agency under the policy of compensation, support, and resettlement when the State recovers land before the Land Law 2013 took effect, they shall continue to deduct the prepaid amount from the land use fee payable according to the law on collecting the land use fee before this Decree takes effect, applicable to each period.

5. Overseas Vietnamese, organizations, and foreign individuals who have been leased land by the State in the form of paying a one-time land lease fee or participating in land auctions organized by the State for land projects to build houses for sale or for sale combined with leasing, if they have paid a one-time land lease fee equal to the land use fee payable in the case of allocating land with payment of the land use fee for residential land or according to the auctioned land price as stipulated in the Land Law 2003, and wish to convert to allocating land with payment of the land use fee according to the provisions of the Land Law 2013, shall not need to pay the land use fee.

6. Collect land use fees when issuing Certificates of Land Use Rights for households and individuals currently using residential land with origins from economic organizations that were granted land by the State without payment of land use fees for cadres, workers, and employees who borrowed land for residence before July 1, 2004:

a) In cases where there has been stable housing on the land since October 15, 1993, collect 40% of the land use fee according to the residential land price specified in the Land Price Table for the area within the land allocation limit; for areas exceeding the land allocation limit (if any), collect 100% of the land use fee according to the residential land price specified at Points b and c Clause 3 Article 3 of this Decree at the time of the decision recognizing the right to use land by the competent state agency.

b) In cases where there has been stable housing on the land from October 15, 1993 to June 30, 2004, collect 50% of the land use fee according to the residential land price specified in the Land Price Table for the area within the land allocation limit; for areas exceeding the land allocation limit (if any), collect 100% of the land use fee according to the residential land price specified at Points b and c Clause 3 Article 3 of this Decree at the time of the decision recognizing the right to use land by the competent state agency.

7. Collect land use fees when issuing Certificates of Land Use Rights for households and individuals currently using residential land with origins from economic organizations that were granted land by the State without payment of land use fees for selling off assets, valuing construction projects on the land (not houses) before July 1, 2004.

a) In cases where the proceeds from the sale of off-assets or valuation already include the value of the land use rights, no land use fee needs to be paid upon issuance of the Certificate of Land Use Rights.

b) In cases where the proceeds from the sale of off-assets or valuation do not include the value of the land use rights, the land use fee shall be collected as follows:

- In cases where there has been stable housing on the land since October 15, 1993, no land use fee will be collected for the area within the land allocation limit; for areas exceeding the land allocation limit (if any), collect 50% of the land use fee according to the residential land price specified at Points b and c Clause 3 Article 3 of this Decree at the time of the decision recognizing the right to use land by the competent state agency;

- In cases where there has been stable housing on the land from October 15, 1993 to June 30, 2004, collect 50% of the land use fee according to the residential land price specified in the Land Price Table for the area within the land allocation limit; for areas exceeding the land allocation limit (if any), collect 100% of the land use fee according to the residential land price specified at Points b and c Clause 3 Article 3 of this Decree at the time of the decision recognizing the right to use land by the competent state agency.

8. Households and individuals using land stably before October 15, 1993, without documents as stipulated in Clause 1 Article 50 of the 2003 Land Law, who have been issued Certificates of Land Use Rights but still owe land use fees, if they submit valid applications to settle the land use fees from the date this Decree No. 84/2007/ND-CP dated May 25, 2007 of the Government comes into effect, then when settling the debt, they must pay the land use fee as prescribed in Clause 1 Article 6 of this Decree.

Article 21. Organization of Implementation

1. The Ministry of Finance shall be responsible for:

a) Guide the determination and payment of land use fees; procedures and documents for exemption and reduction of land use fees; procedures and documents related to the deduction of compensation and clearance of land use rights according to regulations.

b) Specify the documents, declarations, certificates, and templates for managing the collection of land use fees and the delegation of management of land use fee collection consistent with the delegation of budget management and land laws.

c) Inspect and guide the appraisal of land prices for calculating land use fees according to the law on pricing.

d) Inspect and check the implementation of land use fee collection.

đ) Coordinate with relevant ministries and sectors to review provisions exempting and reducing land use fees for subjects not covered under Articles 11 and 12 of this Decree, report to the Government and the Prime Minister for appropriate handling in accordance with the Land Law.

e) Take the lead and coordinate with the Ministry of Natural Resources and Environment to specify the documents, procedures, and processes for receiving and circulating documents between financial agencies, tax agencies, natural resources and environment agencies, and the State Treasury to determine and collect land use fees.

2. The Ministry of Natural Resources and Environment shall have the responsibility:

Coordinate with the Ministry of Finance to guide the documents, procedures, and processes for receiving and circulating documents between financial agencies, natural resources and environment agencies, tax agencies, and State Treasuries at all levels to determine and collect land use fees.

3. Provincial People's Committees shall be responsible for:

a) Issue the Land Price Table, adjustment factors for land prices, and specific land prices as the basis for determining the land use fees to be paid.

b) Direct local People's Committees at all levels to implement measures to inspect and supervise the use of land by subjects granted land by the State and the collection of land use fees as prescribed in this Decree.

c) Direct specialized agencies under provincial People's Committees to cooperate with tax agencies to organize the management of subjects granted land by the State as prescribed in this Decree.

d) Check and handle violations in declaration and improper exemptions and reductions causing losses to the State and land use fee payers.

đ) Resolve complaints and denunciations regarding the collection of land use fees in accordance with the law on complaints and denunciations.

Chapter III

IMPLEMENTING PROVISIONS

Article 22. Effectiveness

1. This Decree takes effect from July 1, 2014.

2. This Decree replaces Decree No. 198/2004/ND-CP dated December 3, 2004 of the Government on the collection of land use fees; Decree No. 44/2008/ND-CP dated April 9, 2008 of the Government amending and supplementing certain articles of Decree No. 198/2004/ND-CP of the Government on the collection of land use fees; Decree No. 120/2010/ND-CP dated December 30, 2010 of the Government amending and supplementing certain articles of Decree No. 198/2004/ND-CP dated December 3, 2004 of the Government on the collection of land use fees.

Article 23. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of provincial People's Committees directly under the Central Government, organizations, households, and individuals using land are responsible for implementing this Decree./.