Circular No. 70/TC-TCT guiding the implementation of revenue collection from the State budget concerning 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 dated July 5, 1994 of the Government.

CIRCULAR

OF THE MINISTRY OF FINANCE

Guidelines for collecting budget revenues from issuing certificates of ownership rights to housing and land use rights in urban areas under Decree No. 60/CP dated July 5, 1994, and from buying and selling housing under Decree No. 61/CP dated July 5, 1994 of the Government

Implementing Decree No. 60/CP on "Ownership Rights to Housing and Land Use Rights in Urban Areas" and Decree No. 61/CP on "Buying and Selling Housing" dated July 5, 1994 of the Government, based on current revenue policies, the Ministry of Finance provides guidelines for tax collection and other fees related to the implementation of these decrees as follows:

A. FOR THE ISSUANCE OF CERTIFICATES OF OWNERSHIP RIGHTS
HOUSING AND LAND USE RIGHTS IN URBAN AREAS

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

I. CASES WITH COMPLETE LEGAL DOCUMENTS:

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

a. Fee for issuing the certificate of ownership

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 equal to 40% of the land price set by the Provincial People's Committee or the Municipal People's Committee directly under the Central Government. If this fee was not paid at the time of allocation, it must be paid now;

b. Fee for issuing the certificate of ownership;

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 of ownership;

c. Stamp duty;

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

II. CASES WITHOUT COMPLETE LEGAL DOCUMENTS PRIOR TO THE ISSUANCE OF DECREE NO. 60/CP
ISSUE DECREE NO. 60/CP

1. Cases with no valid documents at all:

If eligible to receive a certificate of ownership rights to housing and land use rights, the following must be paid:

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 of ownership;

c. Stamp duty;

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

2. Cases with valid documents regarding land use rights but no valid documents regarding construction or ownership of housing; when granted a certificate of ownership rights to housing and land use rights, the following must be paid:

a. Land use fee according to the guidance in Clause 1 and Clause 2 of Item I, Part A above;

b. Fee for issuing the certificate of ownership;

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

3. Cases with a permit to construct housing but no valid documents regarding land use rights; when granted a certificate of ownership rights to housing and land use rights, the following must be paid:

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 of ownership;

c. Stamp duty;

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

B. FOR THE BUYING AND SELLING OF HOUSING

According to Article 2 of Decree No. 61/CP dated July 5, 1994, the buying and selling of housing includes the following forms:

1. Selling state-owned housing to tenants;

2. Operating housing business;

3. Buying and selling housing not for business purposes.

The revenue collection system for each form is as follows:

I. SELLING STATE-OWNED HOUSING TO TENANTS

1. For the seller: The collection, submission, and management of funds from the sale of housing according to Article 11 of Decree No. 61/CP dated July 5, 1994, including costs for the sale process will be carried out according to specific guidelines issued by the Ministry of Finance.

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

a. Fee for issuing the certificate of ownership and, depending on specific cadastral tasks performed, either the seller or the buyer must pay cadastral fees according to regulations.

b. Stamp duty upon obtaining the certificate of ownership rights to housing and land use rights from the competent authority.

c. Property tax according to the laws on property tax from the date of use of the purchased house, as stipulated in the contract.

II. FOR OPERATING HOUSING BUSINESS:

According to Article 12 of Decree No. 61/CP, operating 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 system is as follows:

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

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

a. The seller must pay:

Business license tax

Income tax, profit tax on income and profits from selling houses and transferring land use rights according to the Law on Income 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 of ownership;

Stamp duty before obtaining the certificate of ownership rights to housing and land use rights from the competent authority;

Property tax according to the laws on property tax from the date of use of the purchased house as stipulated in the contract.

2. Renting houses

a. Organizations and individuals renting houses must pay the following taxes and fees:

Business license tax;

Income 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 specified in the lease agreement.

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, income tax, and profit tax according to current regulations of the Law on Income Tax and the Law on Profit Tax for each service activity.

III. FOR CASES OF BUYING AND SELLING HOUSING NOT FOR BUSINESS PURPOSES
BUSINESS PURPOSE

Taxes and other revenues for the seller and buyer of a house not for business purposes are as follows:

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

2. The buyer of the house must pay:

a. Registration fee for certificate issuance;

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 law on property and land tax from the date of acquiring the right to use the purchased house.

C. IMPLEMENTATION

1. Applications for registration of houses and lands, applications for registration of house ownership and land use rights shall be carried out according to a unified form purchased at local real estate management agencies. The price of each unified form nationwide is 200 VND per form. Revenue from sales is used to offset costs for paper and printing.

2. Stamp duties and land use fees must be paid centrally at the tax office. When collecting, the tax office must issue a receipt for payment issued by the Ministry of Finance (General Department of Taxation) to the payer as the basis for issuing the certificate of house ownership and land use right.

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

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 certificate of land use right may only issue the 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 of entities mentioned 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 requested to report them to the Ministry of Finance for timely consideration and resolution./.