Circular No. 76/2014/TT-BTC guiding certain provisions of Decree No. 45/2014/NĐ-CP dated May 15, 2014 of the Government on land use fee collection

CIRCULAR

Guidelines for certain provisions of Decree No. 45/2014/NĐ-CP dated May 15, 2014 of the Government on land use fee collection

 year 2014 of the Government on land use fee collection

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 Pursuant to the Land Law dated November 29, 2013;

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

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

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

Pursuant to Decree No. 45/2014/NĐ-CP dated May 15, 2014 of the Government on the collection of land use fees;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the State Asset Management Agency,

The Minister of Finance issues this Circular guiding certain provisions of Decree No. 45/2014/NĐ-CP dated May 15, 2014 of the Government on land use fee collection.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the determination and procedures for determining and collecting land use fees; exemption and reduction of land use fees; recording and settlement of land use fee debts; and guidance on transitional measures and certain specific contents stipulated in Decree No. 45/2014/NĐ-CP of the Government dated May 15, 2014 on land use fee collection (hereinafter referred to as Decree No. 45/2014/NĐ-CP).

Article 2. Applicability

1. Economic organizations, foreign-invested enterprises, households, individuals, overseas Vietnamese (hereinafter collectively referred to as economic organizations, households, individuals) that are granted land by the State with payment of land use fees, permitted to change land use purposes, or recognized land use rights under circumstances requiring payment of land use fees according to the Land Law and Decree No. 45/2014/NĐ-CP.

2. Other relevant agencies, organizations, and individuals.

Chapter II

SPECIFIC PROVISIONS

Section 1

DETERMINATION AND COLLECTION OF LAND USE FEES

Article 3. Determination of land use fees when being granted land by the State with payment of land use fees

The determination of land use fees payable when being granted land by the State with payment of land use fees shall be carried out in accordance with Article 4 of Decree No. 45/2014/NĐ-CP; some contents of this article are specifically guided as follows:

1. Economic organizations, households, individuals who are granted land by the State with payment of land use fees without going through public auction procedures shall have their land use fees payable determined by multiplying the land use fee calculation price based on the purpose of the granted land at the time of the land grant decision by the area subject to payment of land use fees, wherein:

1.1. Regarding the land use fee calculation price:

a) In cases where the land use fee calculation area of the plot or area of land has a value (based on the land price in the Land Price Table) of 30 billion VND or more for central cities; 10 billion VND or more for mountainous and highland provinces; and 20 billion VND or more for other provinces, the land use fee calculation price is the specific land price decided by the People's Committee of the province or centrally-administered city (hereinafter referred to as the provincial People's Committee), which is determined according to direct comparison, residual, income, and surplus methods prescribed in the Government's Decree on land prices.

b) In cases where the land use fee calculation area of the plot or area of land has a value (based on the land price in the Land Price Table) below 30 billion VND for central cities; below 10 billion VND for mountainous and highland provinces; and below 20 billion VND for other provinces, the land use fee calculation price is determined by multiplying the land price specified in the Land Price Table by the land price adjustment coefficient set by the provincial People's Committee.

1.2. The land use fee calculation area is the area of land subject to payment of land use fees recorded in the land grant decision.

2. The land price adjustment coefficient for determining the land use fee calculation price shall be determined annually by the Department of Finance in charge, for each area, road section, and location corresponding to each land use purpose, in line with market conditions and socio-economic development in the locality, and submitted to the provincial People's Committee for issuance after soliciting opinions from the Standing Committee of the People's Council at the same level.

In cases where the land use density (building density, height of construction) at certain locations within the same area or road section differs from the average of the area or road section, the provincial People's Committee shall set a higher or lower land price adjustment coefficient than the average to calculate land use fees for these cases and specify this in the Decision on issuing the land price adjustment coefficient for the locality.

Article 4. Determining land use fees when the State permits economic organizations to change the purpose of land use

When changing the purpose of land use, economic organizations must pay land use fees in accordance with Clause 1, Article 5 of Decree No. 45/2014/NĐ-CP; some contents of this clause are specifically guided as follows:

1. In cases where the purpose of land use changes from agricultural land, non-agricultural land that is not residential land, which has been leased or granted by the State with payment of land use fees, to residential land for implementing investment projects to construct houses for sale or houses for sale combined with rental, the following land use fees must be paid:

1.1. In cases where the organization is currently being leased land with payment made once for the entire lease period, when permitted by the competent state agency to change the purpose of land use together with transferring from leasing to granting land, the amount of money to be paid shall be equal to the difference between the land use fee according to the purpose of the land after the change of purpose determined in accordance with Clause 1, Article 3 of this Circular, minus the amount of land lease fee paid once for the remaining lease period at the time of the decision allowing the change of land use purpose issued by the competent state agency.

The amount of land lease fee paid once for the remaining lease period specified herein shall be determined according to the following formula:

1.2. In cases where the State grants land with payment of land use fees and the organization has paid the land use fees in accordance with the law before July 1, 2014, when permitted by the State to change the purpose of land use to residential land, the economic organization must pay the amount of money equal to the difference between the land use fee according to the purpose of the land after the change of purpose determined in accordance with Clause 1, Article 3 of this Circular, minus the land use fee calculated based on the price of the land before the change of purpose for the remaining period of land use at the time of the decision allowing the change of land use purpose issued by the competent state agency.

The land use fee of the land before the change of purpose for the remaining period of land use specified herein shall be determined according to the following formula:

1.3. The amount of land lease fee paid once for the remaining lease period specified in Point 1.1 of this Clause and the land use fee of the land before the change of purpose for the remaining period of land use specified in Point 1.2 of this Clause shall be determined based on the land price at the time the competent state agency allows the change of land use purpose; specifically:

a) If the land price for calculating the land use fee according to the purpose of the land after the change of purpose falls under the case determined according to the method of adjusting land price coefficients, then the land price for calculating the land lease fee paid once for the remaining lease period or the land price for calculating the land use fee of the land before the change of purpose shall also be determined according to the method of adjusting land price coefficients at the time the competent state agency allows the change of land use purpose.

b) If the land price for calculating the land use fee according to the purpose of the land after the change of purpose falls under the case determined according to direct comparison methods, deduction methods, income methods, or residual methods, then the land price for calculating the land lease fee paid once for the remaining lease period or the land price for calculating the land use fee of the land before the change of purpose shall also be the specific land price determined according to these methods at the time the competent state agency allows the change of land use purpose.

The determination of the case for determining the land price for calculating the land use fee according to the method of adjusting land price coefficients or other valuation methods shall be carried out in accordance with Clause 1, Article 3 of this Circular.

2. In cases where economic organizations legally acquire the right to use agricultural land within the limit of agricultural land use of households and individuals; agricultural land, non-agricultural land granted with a term (where the previous land user has fulfilled their financial obligations regarding land use fees) to implement investment projects to construct houses for sale or houses for sale combined with rental or construction projects of cemetery infrastructure, the land use fees to be paid shall be determined as follows:

2.1. In cases where the method of adjusting land price coefficients is used to determine the land use fees when changing the purpose of land use:

a) Based on the land registry files, the land price in the Land Price Table, and the land price adjustment coefficient prescribed by the People's Committee of the province, the amount of money that the economic organization has paid to acquire the right to use the land shall be determined by the finance authority within five working days from the date of receiving all relevant information. The tax authority shall determine the land use fee according to the type of land after the change of purpose of the project at the time of the decision to change the purpose and the land use fee to be paid after deducting the amount of money paid by the economic organization to acquire the right to use the land.

b) The amount of money that the economic organization has paid to acquire the right to use the land shall be converted to the time when the competent state agency allows the change of land use purpose according to the following formula:

- For land acquired through transfer that is agricultural land, non-agricultural land with a source obtained from the State grant with a term and the land user has paid the land use fees:

Where: The area of land changed in purpose is the area for which the previous land user has completed the financial obligation regarding the land use fees.

- For land acquired through transfer that is agricultural land granted within the limit of land use of households and individuals:

Based on information about compensation and clearance costs of the project corresponding to the case where the land is recovered by the State transferred by the People's Committee with authority or the Organization responsible for compensation and clearance, the amount of money that the economic organization has paid to acquire the right to use the land shall be converted according to the above formula. The finance authority shall determine the specific amount that the economic organization can deduct from the land use fee to be paid according to the principle stipulated in Point d, Clause 1, Article 5 of Decree No. 45/2014/NĐ-CP and transfer it to the tax authority for implementation.

The procedure and time for circulating files to determine financial obligations regarding land use fees between the natural resources and environment agency, tax authority, and finance department shall be carried out in accordance with the guiding circular of the Ministry of Finance and the Ministry of Natural Resources and Environment.

2.2. In cases where direct comparison methods, deduction, income, and surplus methods are used to calculate land use fees when changing the purpose of land use:

Based on the specific land price of the type of land after changing the purpose of land use and the specific land price of the type of land before changing the purpose of land use for the remaining period of land use determined by the provincial People's Committee; based on the amount of money that the economic organization has paid to acquire the right to use the transferred land, which is deducted from the land use fee payable as determined by the finance department according to the formula below and in accordance with the principle stipulated in Point d Clause 1 Article 5 Decree No. 45/2014/NĐ-CP; within five working days from the date of receiving complete information related to the above, the tax authority shall determine and notify the amount of land use fee payable.

- For land acquired through transfer that is agricultural land, non-agricultural land with a source obtained from the State grant with a term and the land user has paid the land use fees:

Where: The area of land changed in purpose is the area for which the previous land user has completed the financial obligation regarding the land use fees.

- For land acquired through transfer that is agricultural land allocated within the household land use quota:

3. In cases where the purpose of non-agricultural land (currently in use or with origins from transfer) is changed to residential land as provided in Clause 1 and Clause 2 of this Article, the land price of the type of land before changing the purpose is the land price of the corresponding non-agricultural land as prescribed by the Government on land prices (commercial service land in rural areas; non-agricultural production and business land not being commercial or service land in rural areas; commercial service land in urban areas; non-agricultural production and business land not being commercial or service land in urban areas).

4. If the remaining period of land use determined according to the formulas specified in Points 1.1, 1.2 Clause 1 and Point 2.1 Clause 2 of this Article does not form a full year, it shall be calculated in months; if the period is less than a month, a period of 15 days or more shall be counted as one month, while a period under 15 days shall not be counted towards the land use fee.

Article 5. Determination of Land Use Fee When Households and Individuals Are Permitted to Change the Purpose of Land Use to Residential Land

In cases where households and individuals are permitted by competent state agencies to change the purpose of land use to residential land, they must pay the land use fee as prescribed in Clause 2 Article 5 Decree No. 45/2014/NĐ-CP; some contents of this clause are guided as follows:

1. In cases where households and individuals are granted the lease of non-agricultural land (not residential land) by the State in the form of paying the land lease fee once for the entire lease period, and at the same time, when changing the purpose to residential land and transferring from leasing to allocation, they must pay the land use fee equal to the difference between the land use fee calculated based on the residential land price minus (-) the one-time land lease fee payable based on the non-agricultural land price for the remaining lease period at the time of permission to change the purpose of land use as stipulated in Point c Clause 2 Article 5 Decree No. 45/2014/NĐ-CP, specifically:

The one-time land lease fee for the remaining lease period is determined according to the formula specified in Point 1.1 Clause 1 Article 4 of this Circular. The land price for calculating the one-time land lease fee payable for the remaining lease period is determined according to the adjusted land price coefficient method if the value of the land area subject to the land use fee (calculated based on the residential land price in the Land Price Table at the time of the decision of the competent state agency permitting the change of land use purpose) is under 30 billion VND for central cities; under 10 billion VND for mountainous and highland provinces; under 20 billion VND for other provinces. In cases where the value of the land use rights of the land area subject to the land use fee exceeds these values, the land price for calculating the one-time land lease fee payable for the remaining lease period is determined according to the direct comparison, deduction, income, and surplus methods prescribed in the Government's Decree on land prices.

2. Changing the purpose of land use with origins from the transfer of land from a lawful land user to residential land shall be charged as follows:

a) Land with origins as garden or pond within the same plot of land with a house in a residential area that is not recognized as residential land shall be charged a land use fee equal to 50% of the difference between the land use fee calculated based on the residential land price and the land use fee calculated based on the agricultural land price.

b) Land acquired through transfer with origins as agricultural land allocated within the household agricultural land use quota shall be charged a land use fee equal to the difference between the land use fee calculated based on the residential land price and the land use fee calculated based on the agricultural land price.

c) Land acquired through transfer with origins as non-agricultural land that has already been charged a land use fee shall be charged a land use fee equal to the difference between the land use fee calculated based on the residential land price and the land use fee calculated based on the non-agricultural land price for the remaining period of land use.

The amount of non-agricultural land use fee for the remaining period of land use specified in this point is determined according to the formula specified in Point 1.2 Clause 1 Article 4 of this Circular.

3. The land price for calculating the land use fee for the cases specified in Clause 1 and Clause 2 of this Article is the land price at the time of the decision granting permission to change the purpose of land use by the competent state agency, specifically:

a) For the area of land within the allocation limit for residential land, the land price for calculating the land use fee before and after changing the purpose is the land price specified in the Land Price Table corresponding to each purpose.

b) For the area of land exceeding the allocation limit for residential land, the land price for calculating the land use fee before and after changing the purpose is the land price corresponding to each purpose and each case applying the land valuation methods specified in Point 1.1 Clause 1 Article 3 of this Circular.

c) In the case where the purpose of non-agricultural land that is not residential land (currently in use or originated from transfer) is changed to residential land, the price of the type of land before changing its purpose shall be the price of the corresponding non-agricultural land according to the Government's regulations on land prices (commercial service land in rural areas; non-agricultural production and business land that is not commercial or service land in rural areas; commercial service land in urban areas; non-agricultural production and business land that is not commercial or service land in urban areas).

Article 6. Allocation of land use fee for users in mixed-use construction projects with housing

The allocation of land use fees for cases where multi-story buildings are constructed on land allocated by the State to multiple users as stipulated in Clause 3, Article 4 of Decree No. 45/2014/ND-CP shall be implemented as follows:

1. For high-rise buildings, apartment buildings, or buildings with mixed purposes (excluding the cases specified in Clause 2 of this Article), the land use fee shall be allocated to each user based on a factor (x) multiplied by the area of the building belonging to each user as follows:

a) The allocation factor is determined by the ratio between the area of land used for constructing the building and the total area of the building belonging to all users.

b) In the case of buildings with basement floors, 50% of the area of the basement floor shall be added to the total area of the building belonging to all users to calculate the allocation factor.

If the area of the basement floors is determined to be jointly owned by the residents of the building, then the area of the basement floors shall be evenly allocated among the users of the building.

If the area of the basement floors is determined to be owned by the developer, then the area of the basement floors shall be allocated to calculate the land use fee for the developer.

2. In the case of selling state-owned housing to tenants, the allocation of land use fees shall be carried out according to the laws governing the sale of state-owned housing.

Article 7. Determination of the limit of residential land allocation for calculating land use fees when households and individuals are permitted by the State to change land use purposes or recognize land use rights

Households and individuals who are permitted by the State to change land use purposes or recognize land use rights and must pay land use fees as stipulated in Articles 5, 6, 7, and 8 of Decree No. 45/2014/ND-CP; the area of residential land within the limit for calculating land use fees shall be determined as follows:

1. The determination of the area of land within the limit must ensure the principle that each household (including households formed through division according to the law) and individual can only be determined once for the limit of residential land allocation or recognition of residential land use rights within the scope of one province or centrally-administered city.

In the case where a household or individual has multiple plots of land within the scope of one province or centrally-administered city, the household or individual may accumulate the area of these plots to determine the area of land within the limit for residential land allocation or recognition of residential land use rights, but the total selected area must not exceed the limit of residential land allocation or recognition of residential land use rights at the first chosen location.

Example 1:

Mr. A currently uses two plots of land; the first plot is residential land without legal documents as stipulated in Clause 1, Article 100 of the Land Law 2013, stably used without dispute since 1997, with an area of 60 square meters in District X, City Z; the second plot is 1,640 square meters of agricultural land intermixed in a residential area in County Y, City Z, now included in the local land use plan for residential land. The limit for recognizing land use rights in District X, City Z is 100 square meters; the limit for recognizing land use rights in County Y is 150 square meters. City Z is a centrally-administered city.

In 2015, Mr. A was recognized by the State for his land use rights on the first plot and allowed to change the purpose of the second plot to residential land. Mr. A chose the first plot to determine the area of land within the limit.

When the Certificate of Land Use Right was issued for the first plot, the 60 square meters mentioned above were determined as the area within the limit, and Mr. A had to pay 50% of the land use fee according to the land price table.

Subsequently, Mr. A proceeded with the procedures and was allowed to change the purpose of the second plot to residential land, the land use fee was determined as follows:

- The remaining limit of the first plot transferred is 40 square meters (= 100 square meters - 60 square meters). This 40 square meter area will be priced according to the land price table to calculate the land use fee.

- The excess area is 1,600 square meters (= 1,640 square meters - 40 square meters). Assuming the land price of the second plot calculated according to the residential land price in the land price table of City Z is 20,000,000 VND/square meter, the value of the second plot based on the excess area (according to the residential land price in the land price table) is:

1,600 square meters x 20,000,000 VND/square meter = 32,000,000,000 VND

Since the value of the excess area exceeds 30 billion VND, the land use fee for changing the purpose of the excess area shall be calculated based on the specific land price determined by direct comparison, deduction, income, residual methods, and decided by the provincial People's Committee.

2. In the case where households and individuals jointly own the right to use one plot of land, the area within the limit for residential land allocation shall be determined as follows:

a) In the case where households and individuals are allowed by competent authorities to divide the plot of land for each household, the determination of the area within the limit for calculating the land use fee shall be calculated separately for each plot when applying for the Certificate of Land Use Right, and according to the principle that each household or individual divided shall only be determined once for the limit of residential land allocation or recognition of residential land use rights within the scope of one province or centrally-administered city as stipulated in Point a, Clause 3, Article 3 of Decree No. 45/2014/ND-CP.

b) In cases where households or individuals do not carry out or are not permitted by competent state agencies to divide land parcels, the determination of the area within the land allocation limit shall be calculated according to the standard for determining the limit of the household or individual appointed as the representative of co-owners to handle the procedures for issuing the Land Use Right Certificate.

Example 2:

Mr. A, Mr. B, and Mrs. C inherited one land parcel of 210 square meters located in County X, Province Y, with the origin being land without documentation according to Clause 1, Article 100 of the Land Law 2013, having a house and being stably used from October 15, 1993, to before July 1, 2004, without disputes, and in accordance with the local land use planning. Neither Mr. A nor Mr. B has been determined the area of land within the limit for calculating land use fees; Mrs. C has already been determined sufficient area within the limit for calculating land use fees for another land parcel. The land use limit in County X is 100 square meters. In 2016, the aforementioned land parcel was permitted by competent state agencies to issue the Land Use Right Certificate, and the land use fee was determined as follows:

- If Mr. A, Mr. B, and Mrs. C agree and complete the division of the land parcel into three parcels, each 70 square meters, then:

+ Mr. A and Mr. B will be issued the Land Use Right Certificate for each portion of 70 square meters they have divided, which will be recognized as the area within the limit, and Mr. A and Mr. B must pay 50% of the land use fee based on the land price stipulated in the Provincial People's Committee's Land Price Table for the land parcel issued the Land Use Right Certificate.

+ The 70-square-meter land parcel of Mrs. C will be recognized as exceeding the limit, and Mrs. C must pay 100% of the land use fee based on the land price stipulated in the Land Price Table multiplied by (x) the adjustment factor for land prices at the local level.

- If Mr. A, Mr. B, and Mrs. C appoint Mr. B as the representative to handle the procedures for issuing the Land Use Right Certificate for the entire 210-square-meter land parcel (in the case of not being allowed to divide the land parcel), then they must pay 50% of the land use fee for the 100-square-meter area within the limit recognized as residential land at the local level based on the land price stipulated in the Land Price Table; and pay 100% of the land use fee based on the land price stipulated in the Land Price Table multiplied by (x) the adjustment factor for land prices at the local level for the 110-square-meter area exceeding the limit.

3. In cases where households or individuals inherit the right to use land without paying the land use fee; receive a legal transfer of the right to use land without paying the land use fee or have legitimate documents regarding the right to use land, and now apply for a new Land Use Right Certificate, such cases shall not be counted as having already determined the area within the limit for calculating the land use fee as provided for in Point a, Clause 3, Article 3 of Decree No. 45/2014/NĐ-CP.

Example 3:

In 2012, Mr. A inherited a 250-square-meter land parcel from his parents, received the Land Use Right Certificate, and paid the full land use fee, so Mr. A only needs to handle the name change procedure on the Land Use Right Certificate without paying the land use fee again. Additionally, Mr. A has not yet been determined the area within the limit for calculating the land use fee for any land parcel.

In 2015, Mr. A applied to change the purpose of using 200 square meters of agricultural land, which was allocated by the State in 2004 according to the laws on land, to residential land, and was permitted by competent state agencies to change the purpose of land use, then Mr. A will be determined the area within the limit to determine the land price for calculating the land use fee when changing the purpose of land use for the aforementioned land parcel.

Based on the land administration information transfer form provided by the natural resources and environment agency, which includes the determination of the area within the limit and the area exceeding the limit as provided for in Point a, Clause 3, Article 3 of Decree No. 45/2014/NĐ-CP, the tax authority calculates and issues a notice of the land use fee payable by households or individuals.

5. The consolidation of land parcels to determine the limit for calculating the land use fee as provided for in Clause 1 of this Article shall be applied to cases where households or individuals have their land use purposes changed, or their rights to use land recognized from July 1, 2014. For cases prior to July 1, 2014, where households or individuals have obtained a Land Use Right Certificate for a land parcel that had chosen a limit but the land parcel's area was smaller than the recognized limit or the local residential land allocation limit, if they submit an application for a Land Use Right Certificate for a second land parcel after July 1, 2014, the remaining area within the limit of the first land parcel will be used to calculate the second land parcel when determining the areas within and outside the limit for calculating the land use fee.

Example 4:

Mr. A is currently using two land parcels: The first land parcel is residential land without documentation as stipulated in Clause 1, Article 50 of the Land Law 2003, stably used without disputes since 1997, with an area of 70 square meters in County X, Province K; the second land parcel has an area of 120 square meters in County Y, Province K, which is agricultural land interspersed within a residential area, now included in the local land use planning.

In 2012, Mr. A was recognized by the State for the right to use land at the first land site. The recognized limit for the right to use land in County X, Province K, is 100 square meters. When obtaining the Land Use Right Certificate for the first land parcel, the entire 70-square-meter area was recognized as within the residential land limit.

In 2015, Mr. A continued to handle the procedures and successfully changed the purpose of the second land parcel to residential land, then the land use fee was determined as follows:

- The remaining limit from the first land parcel is 30 square meters (= 100 square meters - 70 square meters), this area will be priced according to the Land Price Table to calculate the land use fee.

- The excess area is 90 square meters (= 120 square meters - 30 square meters), this area will be priced according to the Land Price Table multiplied by (x) the adjustment factor for land prices to calculate the land use fee3. Experts, leading scientists, chief engineers participating in national defense and security industrial activities at key national defense industrial facilities and key security industrial facilities.

Article 8. Determining land use fees when recognizing land use rights (issuing Certificates of Land Use Rights) for households and individuals for residential land with origins from land allocation not in accordance with authority before July 1, 2004

The determination of land use fees when recognizing land use rights (issuing Certificates of Land Use Rights) for households and individuals for residential land with origins from land allocation not in accordance with authority before July 1, 2004 shall be carried out in accordance with the provisions of Article 8 of Decree No. 45/2014/ND-CP; some contents of this article are guided as follows:

Documents proving payment to agencies or organizations to obtain land use rights when determining land use fees as stipulated in Point a and Point b Clause 1 of Article 8 of Decree No. 45/2014/ND-CP include:

1. Receipts, payment vouchers, invoices for payment to obtain land use rights, compensation payments according to Decision No. 186/HĐBT dated May 31, 1990 of the Council of Ministers on compensation for agricultural land and forested land when converted to other purposes.

2. Receipts, payment vouchers, invoices for payment according to Circular No. 60/TC-TCT dated July 16, 1993 of the Ministry of Finance guiding management regulations for the sale of state-owned houses, granting land use rights for house construction and works.

3. Receipts, payment vouchers, invoices, or other types of documents proving payment to obtain land use rights from People's Committees at all levels or from agencies and organizations allocating land not in accordance with authority.

Article 9. Procedures for determining and collecting land use fees

1. For economic organizations

a) In cases where the method of adjusting land price coefficients is applied to determine land use fees: based on the land price adjustment coefficient and the land price list issued by the People's Committee of the province; the amount of compensation, support, resettlement, or the amount received from transferring land use rights (if any) determined by the financial agency; within five working days from the date of receiving the land administration file provided by the natural resources and environment agency, the tax authority shall determine and notify the land use fee to the economic organization.

b) In cases where the methods of comparison, deduction, income, surplus are applied to calculate land use fees: within five working days from the date of receiving the complete land administration file provided by the natural resources and environment agency; the land price for calculating land use fees is decided by the People's Committee of the province; the amount of compensation, support, resettlement, or the amount received from transferring land use rights (if any) determined by the financial agency; the tax authority shall determine and notify the land use fee to the economic organization.

The tax authority shall establish a record for tracking the collection of land use fees for economic organizations according to the form prescribed in Appendix No. 5 issued together with this Circular.

2. For households and individuals:

a) In cases where the State allocates new residential land, changes the purpose of land use to residential land, recognizes land use rights (issues Certificates of Land Use Rights), and the land price for calculating land use fees is determined using the method of adjusting land price coefficients:

Households and individuals submit applications for issuing Certificates of Land Use Rights or changing the purpose of land use at the Land Registration Office or the natural resources and environment agency (in cases where there is no Land Registration Office).

Based on the land administration file transferred by the Land Registration Office or the natural resources and environment agency, within five working days from the date of receiving a complete valid file, the tax authority shall determine the land use fee to be paid based on the land price list, land price adjustment coefficient prescribed by the People's Committee of the province, and the area of land for calculating land use fees, and notify the household or individual.

If there is insufficient basis to determine the land use fee to be paid, within three working days from the date of receipt of the file, the tax authority must notify in writing the Land Registration Office or the natural resources and environment agency to supplement the file.

b) In cases where land is allocated, the purpose of land use is changed, and land use rights are recognized, and the land price for calculating land use fees is determined using the methods of income, surplus, deduction, and comparison: based on the land administration file transferred by the natural resources and environment agency, specific land prices decided by the People's Committee of the province, within five working days, the tax authority shall determine and notify the land use fee to be paid to the household or individual.

The tax authority shall establish a record for tracking the collection of land use fees for households and individuals according to the form prescribed in Appendix No. 5 issued together with this Circular.

3. The process and time frame for circulating files between the natural resources and environment agency, the tax authority, and the financial agency in determining land prices for calculating and collecting land use fees as stipulated in Clause 1 and Clause 2 of this Article shall be implemented in accordance with the guidance of the Ministry of Finance and the Ministry of Natural Resources and Environment.

Article 10. Collection of Land Use Fee when Changing Detailed Construction Planning

1. In cases where economic organizations are allocated land without going through the public auction of land use rights, and have changed the purpose of land use to implement investment projects that have completed financial obligations for land use fees, subsequently being permitted by competent state authorities to change detailed construction planning leading to changes in land use coefficients (density, height of buildings), the following shall be handled:

1.1. In cases where economic organizations propose and are permitted by competent state authorities to change detailed construction planning (density, height of buildings) leading to an increase in land use coefficients, they must pay additional land use fees (if applicable) according to the principle:

a) In cases where the land price for calculating land use fees is determined using direct comparison, deduction, income, and residual methods, the difference between land use fees calculated based on the land prices determined by these methods before and after adjustment at the same time point when detailed construction planning is allowed to be changed by competent state authorities shall be collected.

b) In cases where the land price for calculating land use fees is determined using the land price adjustment coefficient method, the difference between land use fees calculated based on the land prices determined by this method before and after adjustment at the same time point when detailed construction planning is allowed to be changed by competent state authorities shall be collected.

1.2. In cases where due to management requirements, the State adjusts detailed construction planning leading to a decrease in land use coefficients (density, height of buildings) resulting in a reduction in land use fees, economic organizations shall be refunded the difference in land use fees calculated based on detailed construction planning before and after adjustment at the same time point when detailed construction planning is allowed to be adjusted by competent state authorities. The determination of the refund amount shall be carried out according to the provisions of Point 1.1 of this Clause.

The refund of land use fees stipulated in this Clause shall be implemented in the form of direct refunds or offset against the organization's financial obligations to the State according to the laws on state budget and tax administration.

2. In cases where economic organizations are allocated land through public auctions of land use rights to implement investment projects that have completed financial obligations for land use fees, subsequently proposing to change detailed construction planning leading to changes in land use coefficients (density, height of buildings), they must determine and pay additional land use fees (if applicable) according to the principles set forth in Clause 1 of this Article; specifically:

a) In cases where the starting price for the public auction of land use rights is determined using direct comparison, deduction, income, and residual methods, the difference between land use fees calculated based on the land prices determined by these methods before and after adjustment at the same time point when detailed construction planning is allowed to be changed by competent state authorities shall be collected.

b) In cases where the starting price for the public auction of land use rights is determined using the land price adjustment coefficient method, based on the Land Price Table, land price adjustment coefficients, and the principles for adjusting these coefficients prescribed by the provincial People's Committee, the difference between land use fees calculated based on the land prices determined by this method corresponding to detailed construction planning before and after adjustment at the same time point when detailed construction planning is allowed to be changed by competent state authorities shall be collected.

3. Determination of land use fees in cases of changing detailed construction planning indicators for cases that have been allocated land, transferred land use purposes, and completed financial obligations before July 1, 2014.

a) For cases that have calculated and paid land use fees according to policies on collecting land use fees with land prices determined based on detailed construction planning indicators of the project (land use coefficients, density, height of buildings), when permitted by competent state authorities to change project planning indicators, they must recalculate and collect any differences in land use fees (if applicable) according to the laws at the time when the competent authority issues a decision to change planning indicators.

b) For cases that have calculated and paid land use fees according to policies on collecting land use fees with land prices not based on project planning indicators, when permitted by competent state authorities to adjust and change project planning indicators, there is no need to recalculate to collect any differences in land use fees (if applicable).

Article 11. Handling compensation and land clearance funds

The handling of compensation and land clearance funds shall be carried out in accordance with the provisions of Article 15 of Decree No. 45/2014/NĐ-CP. Some specific contents of this provision are detailed as follows:

1. In cases where land is transferred through public auction, the refund of compensation and land clearance costs shall be implemented by the state budget in accordance with the laws on the state budget.

2. In cases where land is not transferred through public auction, the refund of compensation and land clearance costs to the state budget shall be carried out by the person receiving the land and shall be paid into the state budget. This amount may be deducted from the land use fee payable (if applicable) or included in the project investment capital (in cases where the land user does not have to pay the land use fee).

3. In cases where the land user voluntarily advances the compensation and land clearance funds in accordance with Clause 2 of Article 15 of Decree No. 45/2014/NĐ-CP, the financial agency shall record the compensation and land clearance funds that are deducted from the land use fee payable in accordance with the laws on the state budget.

Article 12. Recording and paying off land use fees

Households and individuals who change the purpose of land use, receive certificates and must pay land use fees according to this Decree, and households and individuals who are allocated resettlement land by the State and have financial difficulties and wish to record debts shall record their land use fees payable according to Article 16 of Decree No. 45/2014/NĐ-CP; some specific contents of this provision are detailed as follows:

1. Procedures for recording and paying off land use fees

a) Households and individuals eligible to record land use fees payable under Article 16 of Decree No. 45/2014/NĐ-CP submit a request along with the application for issuance of the Land Use Right Certificate or the application for changing the purpose of land use or the allocation of resettlement land, or submit a request to record debt when receiving a notification to pay land use fees to the Land Registration Office or the Department of Natural Resources and Environment (in cases where there is no Land Registration Office) at the district People's Committee where the land is located.

b) Based on the cadastral records, including the request to record land use fees payable submitted by households and individuals transferred by the Land Registration Office (or the Department of Natural Resources and Environment), the tax authority determines the land use fees payable of households and individuals according to regulations and establishes a record of land use fees payable (the record is detailed according to the area within and outside the limit); simultaneously transferring information about the land use fees payable to the Land Registration Office or the natural resources and environment department.

c) Based on the land use fees determined by the tax authority, the Land Registration Office (or the Department of Natural Resources and Environment) submits to the district People's Committee for issuing the Land Use Right Certificate to households and individuals, which includes recording the land use fees payable on the certificate. In cases where households and individuals submit a request to record land use fees payable after receiving a notification to pay land use fees and the district People's Committee issues the Land Use Right Certificate to households and individuals, which includes recording the land use fees payable on the certificate, the Land Registration Office transfers information about recording land use fees payable to the tax authority at the same level to establish a record of land use fees payable and pay off the land use fees according to regulations.

2. Paying off land use fees:

a) When paying off land use fees, households and individuals go to the tax authority to declare payment of the debt according to the form prescribed in Appendix No. 03 issued together with this Circular, the tax authority bases on the record of debt to process the payment of debt for households and individuals.

In cases where households and individuals pay off the debt five years after the date of recording on the Land Use Right Certificate, or within five years but have not fully paid off the debt, the remaining land use fees payable for each type of area within and outside the limit are converted into the percentage of the financial obligation not completed, and households and individuals must pay the land use fees for this area as follows:

The land use fees payable equal the remaining land use fees payable divided by the total land use fees calculated based on the land price at the time of issuing the Land Use Right Certificate multiplied by the land use fees recalculated based on the land price at the time of repayment.

b) After the land user has completed the payment of debt, based on the record of debt, the tax authority confirms according to the Model prescribed in Appendix No. 04 issued together with this Circular so that the land user can go to the Land Registration Office (or the Department of Natural Resources and Environment) to process the cancellation of the land use fees payable on the Land Use Right Certificate.

3. Households and individuals who record land use fees payable when transferring land must pay the remaining land use fees payable. In cases where partial land division is permitted, based on the land division permit file, the tax authority determines the corresponding land use fees for the transferred area. In cases where the right to inherit land use rights is received and the person leaving the inheritance has not yet paid off the land use fees, the heir is responsible for continuing to pay off the debt according to the laws on inheritance.

Section 2

EXEMPTION AND REDUCTION OF LAND USE FEE

Article 13. Exemption from Land Use Fee

The exemption from land use fee shall be implemented in accordance with Article 11 of Decree No. 45/2014/NĐ-CP; some contents of this Article are specifically guided as follows:

1. The exemption from land use fee within the limit of residential land allocation for those who are granted land by the State, permitted to change land use purpose, or recognized land use rights by the State for persons with meritorious service shall be carried out in accordance with the laws on persons with meritorious service. The exemption from land use fee for persons with meritorious service can only be implemented when there is a decision by the competent state agency regarding the permission to exempt land use fee according to the laws on persons with meritorious service.

3. New residential land recipients under relocation projects due to natural disasters shall be exempted from paying the land use fee when they are not compensated for land at the place of relocation (place of departure).

Article 14. Reduction of Land Use Fee

The reduction of land use fee shall be implemented in accordance with Article 12 of Decree No. 45/2014/NĐ-CP; some contents of this Article are specifically guided as follows:

2. The reduction of land use fee for persons with meritorious service as stipulated in Clause 2, Article 12 of Decree No. 45/2014/NĐ-CP can only be implemented when there is a decision by the competent state agency regarding the permission to reduce land use fee according to the laws on persons with meritorious service (Provincial People's Committee or authorized agencies).

Article 15. Application Documents and Places to Accept Application for Exemption and Reduction of Land Use Fee

1.1. A request for exemption and reduction of land use fee; specifying clearly: area, reasons for exemption and reduction;

1.2. Proof documents showing that the applicant falls into one of the cases eligible for exemption and reduction of land use fee (certified copies), specifically:

a) In the case of persons with meritorious service, relevant documents concerning the exemption and reduction of land use fee as guided in Clause 1, Article 13 and Clause 2, Article 14 of this Circular;

b) For applicants in the poverty category, confirmation from the competent authority regarding poverty status according to the regulations of the Ministry of Labor, Invalids and Social Affairs;

c) For ethnic minority households in areas with difficult and extremely difficult economic and social conditions, border and island regions, permanent residence registration or confirmation from the People's Committee of the commune;

d) For social housing construction projects as stipulated by the laws on housing, approval documents from the competent state agency regarding project approval and decision on exemption from land use fee;

đ) For land for building houses for people relocated due to natural disasters, confirmation from the competent authority that they are not compensated or supported for relocation at the place of relocation.

1.3. Relevant documents about the land plot (if any).

2. Land users submit application documents for exemption and reduction of land use fee as follows:

a) For economic organizations: Within a maximum period of 15 working days from the date of receiving the decision on land allocation, permission to change land use purpose, economic organizations submit the application documents for exemption and reduction of land use fee to the tax authority where the land is located.

b) For household and individuals: Submission of application documents for exemption and reduction of land use fee is carried out together with the application documents for issuance of Certificate of Land Use Rights and change of land use purpose to the Land Registration Office or environmental resources management agency.

Article 16. Procedures and formalities for exemption and reduction of land use fees

Based on the application for exemption and reduction of land use fees received from economic organizations or transferred from the natural resources and environment authority, within 15 working days, the tax authority shall determine and issue the Decision on Exemption and Reduction of Land Use Fees, specifically as follows:

1. In cases where the land price is determined according to direct comparison, residual, income, or surplus methods: the tax authority shall determine the amount of land use fee exempted or reduced by multiplying the area subject to payment of land use fee with the land price in the Land Price Table and the adjustment factor for land prices, and record the specific amount exempted or reduced in the Decision on Exemption and Reduction of Land Use Fee; at the same time, in the Decision on Exemption and Reduction of Land Use Fee, it shall clearly state that "In case the economic organization transfers the right to use the land for the area already exempted or reduced in land use fees, they must pay the land use fees that have been exempted or reduced to the State; the land use fees recorded in this Decision will be recalculated according to the provisions of the law at the time of transfer."

2. In cases where the land price for collection of land use fees is determined by multiplying the land price in the Land Price Table with the adjustment factor for land prices: the tax authority shall determine the amount of land use fee exempted or reduced by multiplying the area subject to payment of land use fee with the land price in the Land Price Table and the adjustment factor for land prices, and record the specific amount exempted or reduced in the Decision on Exemption and Reduction of Land Use Fee.

Chapter III

IMPLEMENTATION

Article 17. Handling transitional issues arising when this Circular takes effect

1. In cases where the provincial People's Committee has not yet issued the adjustment factor for land prices as prescribed in Decree No. 45/2014/NĐ-CP and guided in this Circular, they may continue to use the adjustment factor for land prices issued in 2014 as prescribed in Circular No. 93/2011/TT-BTC dated April 29, 2011, of the Ministry of Finance, and apply it until December 31, 2014, to determine the land price for collection of land use fees.

2. For applications for determination of financial obligations regarding land use fees submitted to competent state agencies before July 1, 2014, such agencies shall continue to take the lead in handling them.

3. For applications for determination of financial obligations regarding land use fees submitted by households and individuals to the Land Registration Office or the natural resources and environment agency or the district-level People's Committee or transferred to the tax authority before July 1, 2014, they shall continue to be processed according to the policy and land price at the time of submission of a complete and valid application.

For applications for determination of financial obligations regarding land use fees submitted by economic organizations to the Land Registration Office or the natural resources and environment agency or transferred to the tax authority or the finance department before July 1, 2014, they shall continue to be processed according to the policy and land price at the time of issuance of the decision on allocation of land or permission to change the purpose of land use, or the actual date of land handover as stipulated in the law on collection of land use fees before July 1, 2014.

4. For housing projects and new urban area projects that have decisions of competent state agencies allowing the collection and payment of land use fees as prescribed in Resolution No. 33/2008/NQ-CP dated December 31, 2008, of the Government and guided in Circular No. 192/2009/TT-BTC dated October 1, 2009, of the Ministry of Finance on pilot implementation of payment of land use fees for new urban area projects, housing projects, and industrial infrastructure projects as stipulated in Resolution No. 33/2008/NQ-CP before July 1, 2014, they shall continue to be implemented according to these regulations. From July 1, 2014 onwards, housing projects and new urban area projects that have not yet determined the land price and collected and paid land use fees according to Resolution No. 33/2008/NQ-CP dated December 31, 2008, of the Government shall implement the determination and collection and payment of land use fees according to Decree No. 45/2014/NĐ-CP and guided in this Circular.

5. In cases where households and individuals are permitted by competent state agencies to change the purpose of land use or recognized land use rights (issued Certificate of Right to Use Land) from July 1, 2014 onwards, they shall pay the land use fee at the time of issuance of the decision on changing the purpose of land use or recognizing land use rights by the competent state agency.

In cases where households and individuals have submitted valid applications for changing the purpose of land use or requesting issuance of the Certificate of Right to Use Land but the competent state agency has delayed issuing the decision on changing the purpose of land use or recognizing land use rights, the financial obligation regarding land use fees of households and individuals shall be determined according to the policy and land price at the latest deadline for issuance of the decision on changing the purpose of land use or recognizing land use rights as stipulated in the Circular of the Ministry of Finance and Ministry of Natural Resources and Environment guiding the circulation of land users' financial obligation documents for land use fees and land rental fees.

Article 18. Responsibility for Implementation

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

a) Direct the finance authority to take the lead and coordinate with relevant local agencies to build the adjustment factor for land prices to be applied no later than January 1, 2015.

b) Direct the finance, tax, state treasury, natural resources and environment authorities to coordinate with other relevant agencies at the local level to implement the determination and collection of land use fees as guided in this Circular.

c) Inspect and handle violations or complaints and denunciations according to the authority prescribed by law.

d) Specify the coordination procedures among local functional agencies in circulating documents, determining financial obligations for land use fee collection as stipulated in this Circular, in accordance with related documents and local realities; specifying the deadlines and responsibilities of each agency, unit, and land user in declaration, determination, and implementation of land use fee collection.

2. The General Department of Taxation shall be responsible for directing the organization to implement the determination and payment of land use fees according to the administrative reform procedures; directing the examination and decision on exemption and reduction of land use fees as prescribed in Decree No. 45/2014/NĐ-CP and guided in this Circular.

3. The State Treasury shall be responsible for directing the organization to collect land use fees in accordance with the national budget revenue collection procedures and coordinating with tax authorities to organize the collection of land use fees, facilitating those paying land use fees into the state budget.

Article 19. Effective Date

1. This Circular takes effect from August 1, 2014.

2. Cases arising obligations regarding land use fees from July 1, 2014 onwards shall be implemented according to the provisions of Decree No. 45/2014/NĐ-CP dated May 15, 2014 of the Government on the collection of land use fees and the guidance provided in this Circular.

3. Abolish Circular No. 117/2004/TT-BTC dated December 7, 2004 guiding the implementation of Decree No. 198/2004/NĐ-CP dated December 3, 2004 of the Government on the collection of land use fees; Circular No. 70/2006/TT-BTC dated August 2, 2006 of the Ministry of Finance guiding amendments and supplements to Circular No. 117/2004/TT-BTC dated December 7, 2004; Circular No. 93/2011/TT-BTC dated June 29, 2011 of the Ministry of Finance amending and supplementing Circular No. 117/2004/TT-BTC dated December 7, 2004.

4. This Circular abolishes the content regarding the collection of land use fees stipulated in Model No. 01/TKTH-SDDPNN, Model No. 02/TSDĐ, Model No. 03/MGTH issued together with Circular No. 156/2013/TT-BTC dated November 5, 2013 of the Ministry of Finance guiding the implementation of certain articles of the Law on Tax Administration, the Law Amending and Supplementing Certain Articles of the Law on Tax Administration, and Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government; abolishes the content regarding the collection of land use fees stipulated in Model No. 23/QTr-KK issued together with Declaration Procedure No. 1864/QĐ-TCT dated December 21, 2011 on the issuance of management, declaration, payment, and accounting procedures for taxes.

During the implementation process, if there are difficulties or obstacles, it is requested that agencies, units, organizations, and individuals promptly reflect them to the Ministry of Finance for consideration and resolution./.