Circular No. 70-TC/TCT guides the implementation of budget revenues from the issuance of certificates of ownership rights to residential houses and land use rights in urban areas pursuant to Decree No. 60-CP dated July 5, 1994, and the buying and selling of residential houses pursuant to Decree No. 61-CP.

CIRCULAR

DIRECTIVE NO. 70-TC/TCT OF THE MINISTRY OF FINANCE ON AUGUST 18, 1994 GUIDING THE IMPLEMENTATION OF REVENUES TO THE STATE BUDGET FOR THE ISSUANCE OF CERTIFICATES OF OWNERSHIP RIGHTS TO HOUSING AND USE RIGHTS TO URBAN RESIDENTIAL LAND ACCORDING TO DECREE NO. 60/CP OF JULY 5, 1994 AND THE PURCHASE AND SALE AND BUSINESS OF HOUSING ACCORDING TO DECREE NO. 61/CP OF JULY 5, 1994 OF THE GOVERNMENT

Pursuant to Decree No. 60/CP on "Ownership Rights to Housing and Use Rights to Urban Residential Land" and Decree No. 61/CP on "Purchase and Sale and Business of Housing" dated July 5, 1994 of the Government, based on current revenue policies, the Ministry of Finance guides the collection, payment of taxes and other revenues related to the implementation of the above Decrees as follows:

A. REGARDING THE ISSUANCE OF CERTIFICATES OF OWNERSHIP RIGHTS TO HOUSING AND USE RIGHTS TO URBAN RESIDENTIAL LAND

The person receiving the certificate of ownership rights to housing and use rights to urban residential land has the obligation to pay taxes and other revenues as follows:

I. CASES WITH COMPLETE LEGAL DOCUMENTS:

1. Cases where land was legally allocated before October 15, 1993 and cases using land with other valid documents must pay:

a. Fee for issuing the certificate

b. Property tax according to the laws on property tax.

2. Cases where land was legally allocated from October 15, 1993 to July 5, 1994 must pay:

a. Land use fee at 40% of the land price set by the Provincial People's Committee or the Municipal People's Committee directly under the Central Government. If the land use fee was not paid when the land was allocated, it must be paid now;

b. Fee for issuing the certificate;

c. Property tax according to the laws on property tax.

3. Cases where land was allocated after July 5, 1994 must pay:

a. Land use fee according to the land price set by the Provincial People's Committee or the Municipal People's Committee directly under the Central Government;

b. Fee for issuing the certificate;

c. Stamp duty;

d. Property tax according to the laws on property tax.

II. CASES WITHOUT COMPLETE LEGAL DOCUMENTS BEFORE THE ISSUANCE OF DECREE NO. 60/CP

1. Case without any valid documents:

If they meet the conditions to obtain the certificate of ownership rights to housing and use rights to urban residential land, they must pay:

a. Land use fee according to the land price set by the Provincial People's Committee or the Municipal People's Committee directly under the Central Government;

b. Fee for issuing the certificate;

c. Stamp duty;

d. Property tax according to the laws on property tax.

2. Case with valid documents regarding land use rights but no valid documents regarding construction or ownership of housing; when obtaining the certificate of ownership rights to housing and use rights to urban residential land, they must pay:

a. Land use fee according to the guidance at Clause 1 and Clause 2 of Section I of Part A above;

b. Fee for issuing the certificate;

c. Property tax according to the laws on property tax.

3. Case with building permit but no valid documents regarding land use rights; when obtaining the certificate of ownership rights to housing and use rights to urban residential land, they must pay:

a. Land use fee according to the land price set by the Provincial People's Committee or the Municipal People's Committee directly under the Central Government.

b. Fee for issuing the certificate;

c. Stamp duty;

d. Property tax according to the laws on property tax.

B. REGARDING THE PURCHASE AND SALE AND BUSINESS OF HOUSING

According to Article 2 of Decree No. 61/CP dated July 5, 1994, the purchase and sale and business of housing include the following forms:

1. Selling state-owned housing to tenants;

2. Housing business;

3. Purchase and sale of housing not for business purposes.

The revenue collection and payment system to the State Budget for each form is as follows:

I. SELLING STATE-OWNED HOUSING TO TENANTS

1. For the seller: The collection, payment, and management of funds from selling housing according to Article 11 of Decree No. 61/CP dated July 5, 1994, including costs for selling the house will be implemented according to specific guidelines of the Ministry of Finance.

2. The buyer must pay the following taxes and fees:

a. Fee for issuing the certificate and depending on specific cadastral works carried out, either the seller or the buyer must pay cadastral fees according to regulations.

b. Stamp duty when the competent authority issues the certificate of ownership rights to housing and use rights to urban residential land.

c. Property tax according to the laws on property tax from the date of using the purchased house, according to the contract.

II. REGARDING HOUSING BUSINESS:

According to Article 12 of Decree No. 61/CP, housing business includes the following forms:

- Buying and selling houses

- Renting houses

- Service activities related to buying and selling houses and renting houses.

The specific revenue collection and payment system to the State Budget is as follows:

1. Buying and selling houses including building houses for sale or investing in infrastructure development according to housing construction plans to transfer land use rights.

Organizations and individuals engaged in housing business, including building houses for sale or investing in infrastructure development according to housing construction plans to transfer land use rights, must pay taxes and fees as follows:

a. The seller must pay:

- Business license tax

- Turnover tax, profit tax on turnover and profit from selling houses and transferring land use rights according to the Law on Turnover Tax and the Law on Profit Tax.

Organizations and individuals using state assets or capital must pay depreciation and usage fees for state capital according to current regulations.

- Land use fee when allocated land for business

b. The buyer must pay:

- Fee for issuing the certificate;

- Stamp duty before the competent authority issues the certificate of ownership rights to housing and use rights to urban residential land;

- Property tax according to the laws on property tax from the date of using the purchased house, according to the contract.

2. Renting houses

a. Organizations and individuals renting houses must pay taxes and fees as follows:

- Business registration tax;

- Turnover tax, profit tax. If using state assets or capital, they must pay depreciation and usage fees for state capital according to regulations;

- Property tax according to the laws on property tax;

- Land use fee or rent when allocated land or rented land for business by the state.

b. The tenant must pay rent and fulfill all obligations stipulated in the lease contract.

c. If there is a request for cadastral services, the requesting party must pay cadastral fees according to regulations.

3. Service activities related to buying, selling, and renting houses

Service activities related to buying, selling, and renting houses include brokerage services and other related service activities.

Those conducting these service activities must pay business license tax, turnover tax, and profit tax according to the current laws on turnover tax and profit tax for each service activity.

III. REGARDING THE SALE AND PURCHASE OF HOUSES NOT FOR BUSINESS PURPOSES

Taxes and other revenues for the seller and buyer of houses not for business purposes shall be as follows:

1. The seller must pay the land transfer tax according to the Law on Land Transfer Tax.

2. The buyer must pay:

a. Fees for issuing certificates;

b. Stamp duty before being granted the certificate of land use right and house ownership by the competent authority;

c. Property and land tax according to the laws on property and land tax from the date of acquiring the right to use the purchased house under the contract.

C. IMPLEMENTATION

1. Applications for registration of house ownership and land use rights, as well as real estate declaration forms, shall be carried out using standardized templates available at local real estate management agencies. The cost of each unified form nationwide is 200 dong per sheet. Revenue from sales is used to cover paper and printing costs.

2. Stamp duties and land use fees must be paid centrally to the tax authority. Upon collection, the tax authority must issue a receipt for payment, issued by the Ministry of Finance (General Department of Taxation), to the payer as evidence for issuing the certificate of house ownership and land use rights.

3. The fee for issuing the certificate of house ownership and land use rights is collected once, at the rate specified in the policy on administrative fee collection for land use right certificates.

4. All cases of continued allocation of land for non-agricultural or forestry purposes as stipulated in Article 23 of the Land Law, if not exempted, must pay the land use fee according to current regulations and guidelines. The agency issuing the land use right certificate may only issue such a certificate after receiving proof of payment of the land use fee.

5. In addition to the revenues specified above, no additional charges may be levied by any sector or locality within the scope defined in this Circular.

This Circular takes effect from July 5, 1994, applicable to Vietnamese organizations and individuals. Cases involving foreign organizations and individuals shall be implemented according to separate guidance documents.

During implementation, if any difficulties arise, localities are advised to report them to the Ministry of Finance for timely consideration and resolution.