Circular No. 77/2014/TT-BTC guides certain provisions of Decree No. 46/2014/NĐ-CP dated May 15, 2014, of the Government on land rental fee collection and water surface rental fee collection.

CIRCULAR

Guidelines for certain provisions of Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government on land rent and water surface rent collection

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. 46/2014/NĐ-CP dated May 15, 2014 of the Government on the collection of land rent and water surface rent;

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. 46/2014/NĐ-CP dated May 15, 2014 of the Government on land rent and water surface rent collection.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the determination and procedures for determining and collecting land rent and water surface rent; exemptions and reductions of land rent and water surface rent; and provides guidance on transitional measures and specific contents stipulated in Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government on land rent and water surface rent collection (hereinafter referred to as Decree No. 46/2014/NĐ-CP).

Article 2. Applicability

1. Economic organizations, public service establishments with financial autonomy (public service establishments that self-finance all regular operating costs), people's armed forces units, foreign organizations with diplomatic functions, foreign-invested enterprises, overseas Vietnamese, households, and individuals are entitled to be leased land and water surfaces by the State; recognition of land use rights under cases where land rent must be paid according to the provisions of the Land Law and Decree No. 46/2014/NĐ-CP.

2. Other relevant agencies, organizations, and individuals.

Chapter II
SPECIFIC PROVISIONS

Section 1
DETERMINATION AND COLLECTION OF LAND RENT

Article 3. Determination of annual rental rate

1. In cases where annual land rent is paid without going through auction

The annual rental rate is determined by multiplying (x) the percentage rate (%) with the land price for rent collection, wherein:

a) The percentage rate (%) for calculating the annual rental rate shall be specified by the People's Committee of the province or centrally governed city (hereinafter referred to as the provincial-level People's Committee) specifically for each area and road corresponding to each land use purpose as stipulated in Point a Clause 1 Article 4 of Decree No. 46/2014/NĐ-CP and shall be publicly announced during implementation.

b) For cases where land rent is paid annually without going through auction and the value of the land plot or land area subject to rent collection (based on the land price in the Land Price Table) is 30 billion VND or more for centrally governed cities; 10 billion VND or more for mountainous and highland provinces; and 20 billion VND or more for other provinces, the land price for rent collection shall be the specific land price determined by the provincial-level People's Committee according to direct comparison, residual, income, and surplus methods prescribed in the Government's Decree on land prices.

c) For cases where land rent is paid annually without going through auction and the value of the land plot or land area subject to rent collection (based on the land price in the Land Price Table) is less than 30 billion VND for centrally governed cities; less than 10 billion VND for mountainous and highland provinces; and less than 20 billion VND for other provinces, the land price for rent collection shall be the land price calculated based on the land use purpose specified in the Land Price Table by the provincial-level People's Committee multiplied (x) by the land price adjustment coefficient.

d) The land price adjustment coefficient to determine the land price for rent collection shall be determined by the Department of Finance in charge, for each area, road, and location corresponding to each land use purpose, in accordance with the market and socio-economic development conditions at the local level, and submitted to the provincial-level People's Committee for issuance annually after soliciting opinions from the Standing Committee of the People's Council at the same level.

In cases where the land use ratio (building density, height of structures) at some locations within the same area or road differs from the average ratio of the area or road, the provincial-level People's Committee shall specify a higher or lower land price adjustment coefficient than the average ratio to calculate land rent for these cases and specify it in the Decision on issuing the land price adjustment coefficient of the locality.

2. In cases where land rent is paid once for the entire lease period without going through auction

The single payment rental rate for the entire lease period is the land price determined according to the land use term corresponding to the lease period, wherein:

a) For cases where land rent is paid once for the entire lease period without going through auction and the value of the land plot or land area subject to rent collection (based on the land price in the Land Price Table) is 30 billion VND or more for centrally governed cities; 10 billion VND or more for mountainous and highland provinces; and 20 billion VND or more for other provinces, the land price for rent collection shall be the specific land price determined by the provincial-level People's Committee according to direct comparison, residual, income, and surplus methods prescribed in the Government's Decree on land prices;

b) For cases where land rent is paid once for the entire lease period without going through auction and the value of the land plot or land area subject to rent collection (based on the land price in the Land Price Table) is less than 30 billion VND for centrally governed cities; less than 10 billion VND for mountainous and highland provinces; and less than 20 billion VND for other provinces, the single payment land price for rent collection for the entire lease period shall be the land price of the lease term specified in the Land Price Table by the provincial-level People's Committee multiplied (x) by the land price adjustment coefficient as stipulated in Point d Clause 1 of this Article;

c) In cases where the lease term is shorter than the term specified in the Land Price Table for the type of land, the land price for determining the rental rate shall be calculated according to the following formula:

3. In cases where the starting price for auctioning the right to use leased land is determined

a) In the case of auctioning the right to use land under the annual lease payment form, the starting unit price for conducting the auction shall be the land price determined according to the purpose of the leased land corresponding to the lease term specified in the Land Price Table multiplied (x) by the land price adjustment coefficient multiplied (x) by the percentage rate (%) as prescribed by the Provincial People's Committee for calculating the annual land rent rate.

b) In the case of auctioning the right to use land under the lump-sum lease payment form for the entire lease period, the land price for determining the starting unit price for conducting the auction shall be determined based on direct comparison, residual, income, and excess methods.

4. Cases of adjusting the unit rental price of land

For the case of annual lease payments, upon expiration of the stable period of the land rental price as stipulated in Clause 1, Article 14 of Decree No. 46/2014/NĐ-CP, the unit rental price of land applicable for the next stable period shall be determined by multiplying the land price in the Land Price Table (x) with the land price adjustment coefficient (x) with the percentage rate (%) prescribed by the Provincial People's Committee at the time of adjusting the unit rental price of land.

5. Cases of determining the value of the right to use land included in the enterprise value when corporatizing, if the corporatizing enterprise chooses the lump-sum lease payment form for the entire lease period, then the land price for the lump-sum lease payment for the entire lease period shall be determined in accordance with Clause 2 of this Article.

6. Responsibility for determining the unit rental price of land

a) The tax authority, within its jurisdiction as prescribed in Clause 1, Article 11 of Decree No. 46/2014/NĐ-CP, shall determine the unit rental price of land for the cases prescribed in Clauses 1, 2, and 4 of this Article.

b) The financial agency shall determine the starting price for auctioning the right to use leased land and the value of the right to use leased land to be included in the enterprise value when corporatizing as prescribed in Clauses 3 and 5 of this Article.

Article 4. Area Subject to Payment of Land Rent

1. The area subject to payment of land rent is the area of land with land rent recorded in the decision on granting the lease. If the area recorded in the lease contract is larger than the area recorded in the decision on granting the lease, the leased area shall be determined according to the area recorded in the lease contract.

2. In cases where there is no decision on granting the lease or lease contract but the land is being used for purposes that must be leased according to the provisions of the Land Law, the area subject to payment of land rent is the actual area being used.

3. In cases where land is simultaneously used for purposes subject to payment of land rent and purposes not subject to payment of land rent, the amount of land rent payable shall be determined based on the allocation of the area according to the purpose of land use, specifically as follows:

a) In cases where the area of land serving production and business, service purposes subject to payment of land rent can be separated, the area subject to payment of land rent is the actual area used for production and business, service purposes.

b) In cases where the area of land serving production and business, service purposes subject to payment of land rent cannot be separated, the calculation of land rent shall be carried out using the allocation method. The amount of land rent payable shall be calculated based on the area of land, the area of buildings, workshops used for production and business, service purposes. In cases where allocation cannot be made based on the aforementioned areas, the allocation criterion is the revenue from goods and services of production and business, service activities compared to the total revenue of the organization, entity implementing in the year.

c) The tax authority shall take the lead in coordinating with relevant agencies to determine, calculate, and collect land rent for the cases prescribed in Points a and b of this Clause.

Article 5. Determination of Land Rent Payment

1. The determination of annual land rent payment and lump-sum land rent payment for the entire lease period shall be carried out in accordance with Clause 1 and Clause 2 of Article 12 of Decree No. 46/2014/ND-CP. The amount of land rent payable to the state budget shall be determined after deducting (-) the amount of exempted and reduced land rent (if any) and compensation for land clearance and site clearance as prescribed in Decree No. 46/2014/ND-CP.

2. In cases where an economic organization legally acquires the right to use agricultural land from households or individuals in accordance with Point a of Clause 4 of Article 12 of Decree No. 46/2014/ND-CP to implement investment projects in line with land use planning and plans, and must change the purpose of land use after acquisition and fulfill financial obligations regarding land rent payments, the amount paid for acquiring the right to use the land may be deducted from the land rent payable; the amount deductible from the land rent payable shall be determined based on the land price of the purpose of acquired land at the time it is permitted by competent state authorities to change the purpose of land use but shall not exceed the corresponding compensation and support amount if the State were to reclaim the land, specifically:

a) In cases where the land lessee chooses the form of lump-sum land rent payment for the entire lease period, the amount paid for acquiring the right to use the land shall be determined in accordance with Clause 4 and Clause 5 of Article 4 of Decree No. 46/2014/ND-CP.

b) In cases where the land lessee chooses the form of annual land rent payment, the amount paid for acquiring the right to use the land mentioned above shall be converted into the time completed for fulfilling the obligation to pay annual land rent at the time it is permitted by competent state authorities to change the purpose of land use. The conversion of this amount into years and months of completed obligation to pay annual land rent when choosing the form of annual land rent payment shall be carried out according to the following formula:

Where:

- n: Number of years and months completed for fulfilling the obligation to pay land rent

- The amount paid for legally acquiring the right to use agricultural land from households or individuals shall be determined based on the land price of the purpose of acquired land at the time it is permitted by competent state authorities to change the purpose of land use and in accordance with Clause 4 and Clause 5 of Article 4 of Decree No. 46/2014/ND-CP.

- Annual land rent payable shall be determined by multiplying (x) the annual land rent rate at the time it is permitted by competent state authorities to change the purpose of land use with the area of land subject to land rent payment.

3. In cases where the right to use non-agricultural production and business land that is not commercial or service land is legally transferred, and subsequently changed to commercial or service land in accordance with Point g of Clause 1 of Article 57 of the Land Law, the amount paid for acquiring the right to use the land may be deducted from the land rent payable if the form of lump-sum land rent payment for the entire lease period is chosen. If the lessee chosen by the State to lease land chooses the form of annual land rent payment, the amount paid for acquiring the right to use the land shall be converted into the time completed for fulfilling the obligation to pay annual land rent at the time it is permitted by competent state authorities to change the purpose of land use.

The determination of the amount paid for acquiring the right to use the land to be deducted from the land rent payable or converted into the time completed for fulfilling the obligation to pay land rent and shall be determined as follows:

a) For cases where the form of lump-sum land rent payment for the entire lease period is chosen, the amount paid for acquiring the right to use the land shall be determined by the lump-sum land rent payable for the remaining period of land use before changing the purpose of land use but shall not exceed the compensation and support amount when the State reclaims the land and shall be determined in accordance with Clause 4 and Clause 5 of Article 4 of Decree No. 46/2014/ND-CP.

b) For cases where the form of annual land rent payment is chosen, the amount paid for acquiring the right to use the land shall be converted into years and months of completed obligation to pay annual land rent according to the formula prescribed in Point b of Clause 2 of this Article.

4. In cases where households or individuals are granted agricultural land within the limit of agricultural land use by the State and are now permitted by competent state authorities to change the purpose of land use to non-agricultural production and business purposes and choose the form of leasing land, the value of the right to use agricultural land may be deducted from the land rent payable; the deduction amount shall not exceed the land rent payable. The value of the right to use agricultural land to be deducted from the land rent payable shall be determined as follows:

a) If the land price to determine the annual land rent rate is determined by the method of adjusting land prices by coefficients, then the agricultural land price shall also be determined by the method of adjusting land prices by coefficients at the time it is permitted by competent state authorities to change the purpose of land use.

b) If the land price to determine the annual land rent rate is the specific land price decided by the Provincial People's Committee and determined by direct comparison, subtraction, income, and surplus methods, then the agricultural land price shall also be determined by the corresponding specific land price and decided by the Provincial People's Committee at the time it is permitted by competent state authorities to change the purpose of land use.

5. In cases where the State leases land for lump-sum land rent payment for the entire lease period without going through auction procedures and has paid the land rent in accordance with the law, but during the implementation of the project, the organization leased land by the State requests changes to the detailed construction planning leading to an increase in the land use coefficient (building density, height of buildings), the matter shall be handled as follows:

a) In the case where the land price for calculating the one-time payment for the entire lease period is determined using direct comparison, discounting, income, and residual methods, the difference between the land rent calculated according to the land price determined by these methods before and after the adjustment of the detailed construction planning at the same time permitted by the competent state authority shall be collected.

b) In the case where the land price for calculating the one-time payment for the entire lease period is determined using the land price adjustment factor method, the difference between the land rent calculated according to the land price determined by these methods before and after the adjustment of the detailed construction planning at the same time permitted by the competent state authority shall be collected.

6. In the case where an organization is granted land for lease with a one-time payment for the entire lease period through auction bidding and has paid the auction bid amount as prescribed by law, but during the implementation of the project, the organization requests to change the detailed construction planning leading to an increase in the land use coefficient (building density, height of structures), then it shall be handled as follows:

a) In the case where the starting price for auctioning the right to use land is determined using direct comparison, discounting, income, and residual methods, the difference between the land rent calculated according to the land price determined by these methods before and after the adjustment of the detailed construction planning at the same time permitted by the competent state authority shall be collected.

b) In the case where the starting price for auctioning the right to use land is determined using the land price adjustment factor method, based on the Land Price Table, the land price adjustment factor, and the principle of adjusting this factor prescribed by the provincial People's Committee, the difference between the land rent calculated according to the land price determined by the land price adjustment factor method corresponding to the detailed construction planning before and after the adjustment at the same time permitted by the competent state authority shall be collected.

7. In the case where due to management requirements, the state adjusts the detailed construction planning, resulting in a decrease in the land use coefficient (building density, height of structures), leading to a reduction in land rent for organizations granted land for lease with a one-time payment for the entire lease period, such organizations shall be refunded the difference between the land rent determined according to the detailed construction planning before and after the adjustment at the same time permitted by the competent state authority to adjust the planning. The determination of the refund amount shall be carried out in accordance with Clause 5 and Clause 6 of this Article.

The refund of land rent as stipulated in this Clause shall be implemented either directly or by offsetting against the financial obligations of the organization towards the state in accordance with the laws on state budget and tax administration.

8. In the case where a land user acquires the transfer of non-agricultural production and business land use rights from the state before July 1, 2014, when transferring to lease land with a one-time payment for the entire lease period to implement an investment project with a longer lease term than the remaining usage period of the transferred land, they must pay the land rent according to the new land use purpose at the time of transferring from land grant to lease and can deduct the amount received from the transfer.

The amount received from the transfer of land use rights deducted from the land rent as prescribed in this Clause shall be determined according to the following formula:

9. The model Notice of the amount of land rent to be paid shall be implemented in accordance with the annex promulgated together with this Circular.

Article 6. Handling of 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 lease through auction or non-auction methods and not falling under the exemption or reduction of land rent fees, the entity receiving state land lease must pay the land rent 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 in accordance with the provisions of the law on the state budget.

In cases where the budget cannot be balanced to implement compensation and land clearance, when leasing land through annual land rent payment, the People's Committee of the province shall consider and decide that the entity receiving state land lease pays the advance land rent equivalent to the amount of compensation and land clearance according to the plan approved by the competent state agency, and this amount will be converted into the number of years and months to fulfill the obligation of annual land rent payment.

2. In cases where the Land Development Fund provides capital to organizations responsible for compensation and land clearance to create clean land for lease and falls under the exemption or reduction of land rent fees, the repayment of compensation and land clearance funds to the Land Development Fund shall be carried out as follows:

a) In cases where the entity receiving state land lease is exempted from all land rent fees during the lease period as stipulated in Article 19 of Decree No. 46/2014/NĐ-CP, the entity must repay the compensation and land clearance costs according to the plan approved by the competent state agency into the state budget, and this cost will be included in the project investment capital. The repayment of compensation and land clearance funds to the Land Development Fund shall be carried out in accordance with the provisions of the law on the state budget;

b) In cases where the entity receiving state land lease is exempted or reduced from part of the land rent fees as stipulated in Article 19 and Article 20 of Decree No. 46/2014/NĐ-CP, the entity must repay the compensation and land clearance costs according to the plan approved by the competent state agency into the state budget, and this cost can be deducted from the land rent payable in the case of paying the entire lease period at once or converted into the number of years and months to fulfill the obligation of annual land rent payment according to the policy and land price at the time of state land lease; the remaining amount (if any) will be included in the project investment capital. The repayment of compensation and land clearance funds to the Land Development Fund shall be carried out in accordance with the provisions of the law on the state budget.

3. In cases where the entity receiving state land lease voluntarily advances the compensation and land clearance funds according to the plan approved by the competent state agency, the advanced amount can be deducted from the land rent payable according to the approved plan.

In cases where the advanced amount for compensation and land clearance according to the plan approved by the competent state agency exceeds the land rent payable, only the payable land rent amount can be deducted; the remainder will be included in the project investment capital.

In cases where the entity receiving state land lease pays annual land rent, the advanced compensation and land clearance amount according to the plan approved by the competent state agency can be deducted from the payable land rent, converted according to the policy and land price at the time of state land lease, and determined as the time completed for annual land rent payment.

5. Financial agencies shall record the income and expenditure of the compensation and land clearance funds that the entity receiving state land lease has voluntarily advanced and deducted from the payable land rent and water surface rent according to the provisions of the law on the state budget.

Article 7. Procedures for Determining Ground Rent Unit Prices and Collecting Ground Rent Payments

1. For new land lease cases

a) Based on the land lease decision and land administration files transferred by the natural resources and environment agency, the tax authority shall determine the ground rent unit price as follows:

- In the case of applying direct comparison, discount, income, and residual methods: based on the specific land price determined by the provincial People's Committee, the percentage rate specified by the provincial People's Committee, the tax authority shall determine the ground rent unit price for the first stable period to notify in writing to the lessee and transfer to the natural resources and environment agency as the basis for recording in the land lease contract according to the provisions of the law.

- In the case of applying the land price adjustment factor method: based on the Land Price Table, the land price adjustment factor, and the percentage rate specified by the provincial People's Committee, the tax authority shall determine the ground rent unit price for the first stable cycle to notify in writing to the lessee and transfer to the natural resources and environment agency as the basis for recording in the land lease contract according to the provisions of the law.

b) Based on the ground rent unit price determined under Point a of this Clause and the area subject to ground rent payment; the amount of compensation, clearance, and land right transfer fees deducted from the ground rent payment, if any, determined and transferred by the financial authority, the tax authority shall determine and issue a notification of the ground rent payment amount and open a record to monitor the collection and payment of ground rent.

c) The financial authority shall determine the amounts deductible for compensation, clearance, and land right transfer fees from the ground rent payment amount, if any, according to Decree No. 46/2014/ND-CP, guided by this Circular, and transfer to the tax authority as the basis for determining the ground rent payment amount.

2. For cases adjusting the ground rent unit price at the end of the stable ground rent unit price cycle

When it is time to adjust the ground rent unit price according to Clause 1, Article 14 of Decree No. 46/2014/ND-CP; based on the land price in the Land Price Table, the land price adjustment factor, and the percentage rate specified by the provincial People's Committee, the tax authority shall re-determine the ground rent unit price and notify the annual ground rent payment amount for the subsequent stable cycle to the lessee.

3. Annually, the tax authority shall notify the ground rent payment directly to the payer. If the basis for calculating the ground rent changes, the ground rent must be recalculated according to Decree No. 46/2014/ND-CP and guided by this Circular, and a notification shall be sent to the lessee to implement.

The year for ground rent payment is calculated according to the Gregorian calendar, from January 1st to December 31st each year. For the first year of leasing land or the final year of leasing land that does not last a full twelve months, the ground rent for the first and final years shall be calculated based on the number of leased months. If the leasing period of the first month or the final month of leasing does not last a full month:

a) If the number of days of leasing is fifteen days or more but less than a full month (>= 15 days), then it shall be counted as one full month.

b) If the number of days of leasing is less than fifteen days (< 15 days), then no ground rent shall be charged.

4. Lessees shall pay the ground rent based on the notification of ground rent payment at the location specified in the ground rent payment notification within the prescribed time limit, specifically:

a) For annual land and water surface lease payments

- Each year's payment is divided into two periods: the first period requires a minimum of 50% to be paid before May 31; the second period before October 31 each year. For new land leases where the financial obligation for the first year's ground rent payment falls after October 31, the tax authority shall issue a notification of ground rent payment for the remaining part of the year.

- Beyond the deadline for each period's ground rent payment as stated in the tax authority's notification, the lessee must pay late payment penalties on the unpaid amount according to the legal provisions on tax management.

b) For cases where the ground rent is paid in one lump sum for the entire lease period

- Within thirty days from the date of signing the ground rent payment notification issued by the tax authority, the lessee must pay fifty percent of the ground rent as notified.

- Within the following sixty days, the lessee must pay the remaining ground rent as notified.

- Beyond the above-mentioned deadlines, if the State-leased land recipient has not fully paid the ground rent as notified, they must pay late payment penalties on the unpaid ground rent according to the legal provisions on tax management.

5. The State Treasury, commercial banks authorized to collect state budget revenues, or tax authorities when collecting ground rent must use revenue receipts for state budget collections according to the regulations guiding centralized management of state budget revenues through the State Treasury.

6. The delegation of ground rent and water surface rent collection from organizations and individuals leasing land and water surfaces in civil airports and airfields to the Civil Aviation Port Authority shall be carried out according to the legal provisions on tax management.

7. The tax authority must open a record of ground rent collection and payment at the local level according to the legal provisions on tax management.

Article 8. Application of land rental price

1. For projects renting land and paying annual land rent before the effective date of Decree No. 46/2014/ND-CP and currently within the period to stabilize the land rental price, but the current land rental price is higher than the land rental price prescribed in this Decree, they shall be adjusted according to the provisions of Article 4 of Decree No. 46/2014/ND-CP if the land lessee requests it in writing. The tax authority shall take the lead in coordinating with relevant agencies to re-determine the land rental price for the above cases; the time for re-determination and stabilization of the land rental price shall apply from January 1, 2015.

2. For projects renting land before the effective date of Decree No. 46/2014/ND-CP, where one of the following three types of documents specifies the land rental price and the principle for adjusting the land rental price: Investment Certificate (Investment License), Decision on Land Lease, or Land Lease Contract issued by the competent state agency (signed), the adjustment of the land rental price shall be carried out as follows:

a) For investment projects where one of the three types of documents mentioned above specifies the land rental price and the principle for adjusting the land rental price according to the regulations on land rental prices of the Ministry of Finance (Decision No. 210A-TC/VP dated April 1, 1990, Decision No. 1417/TC-TCĐN dated December 30, 1994, Decision No. 179/1998/QĐ-BTC dated February 24, 1998, Decision No. 189/2000/QĐ-BTC dated November 24, 2000, Decision No. 1357/TC/QĐ-TCT dated December 30, 1995) or has already implemented the replacement of the Investment Certificate (Investment License) or changed the model of the Land Lease Contract due to administrative procedures, where the replaced documents no longer contain the principle for adjusting the land rental price but the purpose of land use remains unchanged; when Decree No. 46/2014/ND-CP comes into effect without having adjusted the land rental price according to Clause 2, Article 9 of Decree No. 142/2005/ND-CP dated November 14, 2005 of the Government and not falling under the provisions of point a, Clause 1, Article 18 of this Circular, the tax authority shall report to the People's Committee of the province to adjust the land rental price corresponding to each adjustment cycle according to the principle that after each five-year stabilization period, the land rental price increases by 15% compared to the previous period.

b) For investment projects where one of the three types of documents mentioned above specifies the land rental price, water surface rental price, and the principle for adjusting the land rental price according to the regulations on land rental prices and water surface rental prices of the Ministry of Finance as specified in point a of this Clause but have already adjusted the land rental price according to Clause 2, Article 9 of Decree No. 142/2005/ND-CP dated November 14, 2005 of the Government or have already replaced the Investment Certificate (Investment License) or changed the model of the Land Lease Contract due to administrative procedures, where the replaced documents no longer contain the principle for adjusting the land rental price but the purpose of land use remains unchanged and have already adjusted the land rental price according to Clause 2, Article 9 of Decree No. 142/2005/ND-CP, when subsequent adjustment periods occur, the tax authority shall report to the People's Committee of the province to decide the level of adjustment of the land rental price but not exceeding the percentage rate of adjustment of the land rental price already stipulated in one of the three types of documents mentioned above compared to the adjusted land rental price of the previous stabilization period and apply it to the remaining lease term based on the written request of the land lessee.

Section 2
DETERMINATION AND COLLECTION OF LAND RENT FOR UNDERGROUND CONSTRUCTION, LAND RENT WITH WATER SURFACE, AND WATER SURFACE RENT

Article 9. Determination and Collection of Land Rent for Underground Construction Projects

1. In accordance with Clause 1, Article 5 of Decree No. 46/2014/NĐ-CP, the Department of Finance shall cooperate with relevant agencies to establish and submit to the Provincial People's Committee for issuance regulations on the unit price of land for underground construction projects not connected to surface construction projects for business purposes, in line with local socio-economic conditions.

2. For land used for underground construction projects attached to the underground part of surface construction projects where the area of the underground construction project exceeds the surface land area subject to rent, the additional land rental price for this excess area shall be determined according to the provisions of Clause 1 of this Article.

3. Based on the collection rate stipulated by the Provincial People's Committee and land administration information provided by the natural resources and environment agency, the Tax Department shall determine the amount of land rent payable for cases specified in Clauses 1 and 2 of this Article and notify the land lessee to pay the rent in accordance with the law.

4. The land rental price for annual payment of land rent for underground construction projects shall remain stable for five years. At the end of the price stabilization period, the tax authority shall adjust the land rental price for underground construction projects according to policy and land prices at the time of adjustment.

Article 10. Determination and Collection of Land Rent for Water Surface Areas

1. In accordance with Points b and c, Clause 1, Article 6 of Decree No. 46/2014/NĐ-CP, the Department of Finance shall cooperate with relevant agencies to establish and submit to the Provincial People's Committee for issuance the collection rates for water surface areas, including:

a) For cases located in remote, mountainous, highland, island, economically disadvantaged, and extremely disadvantaged regions, where water surface areas are used for agricultural, forestry, aquaculture, salt production purposes, or as production and business sites for encouraged investment projects and particularly encouraged investment projects, the water surface land rental price shall be set at 50% of the rental price of adjacent land with the same purpose.

b) For cases not covered under Point a of this Clause, the water surface land rental price shall be no less than 50% of the rental price of adjacent land with the same purpose.

2. For organizations, overseas Vietnamese individuals, and foreign-invested enterprises leasing water surface areas for investment projects, based on the collection rate stipulated by the Provincial People's Committee and land administration information provided by the natural resources and environment agency, the Tax Department shall determine the amount of water surface land rent payable and notify the land lessor in accordance with the law. The amount of water surface land rent payable shall be calculated as the sum of the land rent for the non-water surface area plus the water surface area rent.

3. For households and individuals leasing water surface areas for business purposes, based on the collection rate stipulated by the Provincial People's Committee and land administration information provided by the natural resources and environment agency, the Tax Office shall determine the amount of water surface land rent payable and notify the land lessor in accordance with the law, similar to the case specified in Clause 2 of this Article.

4. In cases where frequent changes in water levels make it impossible to accurately determine the land and water surface areas at the time of state lease, the water surface area shall be determined based on the average level over the year as the basis for calculating the rent for this area.

Article 11. Determination and Collection of Water Surface Rental Fees

1. Based on the water surface rental fee framework stipulated in Clause 1, Article 7 of Decree No. 46/2014/NĐ-CP, the Department of Finance shall take the lead and coordinate with relevant agencies to submit to the Provincial People's Committee for decision on the specific unit price of water surface rental for each project (except projects under Clause 2 of this Article), including:

a) Projects using fixed water surfaces as defined in Point a, Clause 1, Article 7 of Decree No. 46/2014/NĐ-CP are water surfaces used for fixed activities at a specific location; clearly defining the location and fixed coordinates of the water surface for lease throughout the implementation period of the project.

b) Projects using non-fixed water surfaces as defined in Point b, Clause 1, Article 7 of Decree No. 46/2014/NĐ-CP are water surfaces leased without clearly defined locations, without clearly defined boundaries within a specific coordinate range, and where the project does not operate at a fixed water surface location.

c) The area of water surface rented for calculating water surface rental fees is the area decided by competent state authorities for leasing according to the provisions of the law.

d) The time for calculating water surface rental fees is the time when competent state authorities decide to lease according to the provisions of the law.

e) The amount of water surface rental fees to be paid is determined according to the provisions of Clause 3, Article 12 of Decree No. 46/2014/NĐ-CP.

2. For oil and gas exploitation projects in territorial waters and the continental shelf of Vietnam, the determination of water surface rental fees (sea surface) shall be carried out as follows:

a) The area for calculating water surface rental fees (sea surface) is the area allocated for exploration and exploitation of oil and gas.

b) The unit price of water surface rental (sea surface) is applied at the maximum price level of the water surface rental fee framework stipulated in Clause 1, Article 7 of Decree No. 46/2014/NĐ-CP and is stabilized for five years according to the provisions of Clause 2, Article 14 of Decree No. 46/2014/NĐ-CP or according to separate commitments made by the Government of Vietnam with foreign governments or organizations under signed agreements. For oil and gas exploitation projects currently leasing water surfaces and applying rental prices according to Article 5 of Decree No. 142/2005/NĐ-CP dated November 14, 2005, the current rental prices will continue to apply for the remaining lease period of the project; upon expiration of the project’s water surface lease term, the rental price will be applied according to Clause 1 and Clause 2 of Article 7 of Decree No. 46/2014/NĐ-CP and the guidance provided in this Circular.

c) The time for calculating water surface rental fees (sea surface) starts from the date the water surface is allocated for exploration and exploitation of oil and gas.

d) For oil and gas exploitation projects under the product-sharing mechanism as stipulated in Decree No. 33/2013/NĐ-CP dated April 22, 2013 of the Government regarding the issuance of model contracts for oil and gas product-sharing contracts, foreign contractors are exempted from paying water surface rental fees (sea surface) according to Decree No. 46/2014/NĐ-CP and the guidance provided in this Circular.

3. Based on the unit price of water surface rental and the area of water surface rented, tax authorities shall determine and notify the amount of water surface rental fees to be paid and organize their collection according to the provisions of the law.

Section 3
EXEMPTION AND REDUCTION OF LEASE PAYMENTS FOR LAND AND WATER SURFACE

Article 12. Application of Exemptions and Reductions in Land and Water Surface Rental Fees

1. Investment projects that use land and are eligible for exemptions and reductions in land and water surface rental fees are those established, reviewed, and approved according to the provisions of the law.

2. Investment projects eligible for exemptions and reductions in land rental fees are those where the investor is granted new land leases for the first time on the actual project site or is granted extensions of existing land leases upon expiration of the original lease terms according to the laws on land.

3. Operating projects that have been granted exemptions and reductions in land and water surface rental fees but with lower levels of exemption and reduction than those specified in Articles 19 and 20 of Decree No. 46/2014/NĐ-CP shall continue to apply the exemption and reduction levels specified in Articles 19 and 20 of Decree No. 46/2014/NĐ-CP for the remaining exemption and reduction periods. The remaining exemption and reduction period for land rental fees is calculated according to the time specified in Articles 19 and 20 of Decree No. 46/2014/NĐ-CP minus the time already exempted or reduced before the effective date of Decree No. 46/2014/NĐ-CP. Operating projects that have been granted exemptions and reductions in land and water surface rental fees are those that have received Investment Incentive Certificates (recorded in the Investment License) or have had decisions on exemptions and reductions issued by tax authorities according to the law before the effective date of Decree No. 46/2014/NĐ-CP.

In cases where the start date for land rental fees is before the effective date of Decree No. 46/2014/NĐ-CP but the procedures for requesting exemptions and reductions are initiated after the effective date of Decree No. 46/2014/NĐ-CP, the provisions on exemptions and reductions and other provisions according to Decree No. 46/2014/NĐ-CP shall apply.

4. Operating projects that were not eligible for exemptions and reductions in land and water surface rental fees before the effective date of Decree No. 46/2014/NĐ-CP but become eligible according to Decree No. 46/2014/NĐ-CP shall implement exemptions and reductions for the remaining incentive periods based on the investor's request.

5. Those who are granted land leases by the State can only enjoy exemptions and reductions in land rental fees after completing the procedures required to obtain such exemptions and reductions according to the law. If they are eligible for exemptions and reductions in land rental fees but fail to complete the necessary procedures, they must pay the land rental fees according to the law. If the procedures for obtaining exemptions and reductions in land rental fees are delayed, the period of delay will not be exempted or reduced.

If the application for exemptions and reductions in land rental fees is submitted after the time for exemptions and reductions has expired according to Articles 19 and 20 of Decree No. 46/2014/NĐ-CP, the person granted the land lease will not be considered for exemptions and reductions in land rental fees; if they are still within the period for exemptions and reductions according to the regulations, they will only be exempted or reduced for the remaining incentive period starting from the date all valid documents for the application for exemptions and reductions in land rental fees are submitted.

6. During the process of management and supervision, if competent state agencies discover that land users who have been exempted or reduced from land rental fees or water surface rental fees according to Decree No. 46/2014/NĐ-CP do not meet the conditions for exemption or reduction of land rental fees due to reasons from the land users themselves or improper use of the land for purposes other than those specified in the land lease decision or lease contract, but not in cases where the land is subject to recovery according to laws on land, then the tax authority shall determine and report to the People's Committee of the province (for organizations, overseas Vietnamese, foreign-invested enterprises) or report to the People's Committee of the district (for households, individuals) to decide on recovering the amount of land rental fees exempted or reduced according to the policy and land price at the time of exemption or reduction, plus late payment interest calculated on the amount of land rental fees exempted or reduced according to the legal provisions on tax administration.

7. In the case where land users who have been exempted or reduced from land rental fees according to Article 19 and Article 20 of Decree No. 46/2014/NĐ-CP subsequently obtain permission from competent state agencies to transfer projects according to the law, the financial obligations shall be implemented as follows:

a) The transferrer shall not include the amount of land rental fees already exempted or reduced in the transfer price.

b) For the transferee

- If the transferee continues to implement the project, they will continue to be exempted or reduced from land rental fees according to investment laws for the remaining period of the project.

- If the transferee does not continue to implement the project for the purpose it was transferred for, but instead uses it for another purpose, they must pay land rental fees according to the law.

- If the transferrer has fulfilled part of the financial obligations related to land, the transferee shall inherit the portion of the financial obligations that the transferrer has paid.

c) If the transferrer is currently deducting compensation and clearance costs from the land rental fees payable according to the law, the transferee shall inherit and continue to deduct the remaining compensation and clearance costs from the land rental fees payable; any remaining amount (if any) shall be included in the project's investment capital.

Article 13. Reduction of Land Rental Fees and Water Surface Rental Fees in Certain Cases

1. The reduction of land rental fees for cooperatives stipulated in Point a Clause 1 Article 20 of Decree No. 46/2014/NĐ-CP shall apply throughout the entire period of land rental.

2. The reduction of land rental fees for agricultural, forestry, aquaculture, and salt production purposes affected by natural disasters or fires, as stipulated in Point b Clause 1 Article 20 of Decree No. 46/2014/NĐ-CP, shall be implemented as follows:

a) If the damage is less than 40% of the yield, the reduction of land rental fees shall be considered according to the corresponding percentage of the damage.

b) If the damage is 40% or more of the yield, the land rental fees for the year of damage shall be waived.

The percentage of yield damage shall be based on the harvest yield under normal production conditions of the immediately preceding crop season or the most recent normal production harvest and shall be determined by competent state agencies.

Article 14. Documents for Exemption and Reduction of Land Rent and Water Surface Rent

1. The documents for exemption and reduction of land rent shall be implemented in accordance with the provisions of the tax management laws.

2. The land lessee shall submit the application documents for exemption and reduction of land rent to the direct tax administration agency.

Article 15. Procedures and Formalities for Exemption and Reduction of Land Rent and Water Surface Rent

1. Within a maximum period of 10 working days from the date of receiving the decision on land lease, the land lessee shall submit the application documents for exemption and reduction of land rent to the direct tax administration agency.

2. Based on the documents for exemption and reduction of land rent, the tax authority shall issue a decision on exemption and reduction of land rent for the exempted and reduced period according to the authority stipulated in Clause 1, Article 21 of Decree No. 46/2014/NĐ-CP, specifically:

a) For cases where land is leased annually, the amount of exemption and reduction shall be determined as follows:

- In cases where the land price is determined through direct comparison, deduction, income, and surplus methods: the tax authority shall determine the amount of land rent exempted and reduced by multiplying the area subject to payment of land rent by the land price in the Land Price Table, then by the percentage rate, by the adjustment factor for land prices, and by the number of years exempted and reduced, and record the specific amount exempted and reduced in the Decision on Exemption and Reduction of Land Rent.

- In cases where the land price is determined for land rent collection through the adjustment factor method: the tax authority shall determine the amount of land rent exempted and reduced by multiplying the area subject to payment of land rent by the land price in the Land Price Table, then by the percentage rate, by the adjustment factor for land prices, and by the number of years exempted and reduced, and record the specific amount exempted and reduced in the Decision on Exemption and Reduction of Land Rent.

b) For cases where land is leased with a lump sum payment for the entire lease period, the amount of land rent exempted shall be determined as follows:

- In cases where the land price is determined through direct comparison, deduction, income, and surplus methods: the tax authority shall determine the amount of land rent exempted for the entire lease period by multiplying the area subject to payment of land rent by the land price in the Land Price Table corresponding to the lease period, then by the adjustment factor for land prices, and record the specific amount exempted in the Decision on Exemption of Land Rent.

- In cases where the land price is determined for land rent collection through the adjustment factor method: the tax authority shall determine the amount of land rent exempted by multiplying the area subject to payment of land rent by the land price in the Land Price Table corresponding to the lease period, then by the adjustment factor for land prices, and record the specific amount exempted in the Decision on Exemption of Land Rent.

The decision on exemption or reduction of land rent must clearly state: the reason for exemption and reduction; the lease period; the period exempted and reduced from land rent and the amount of land rent exempted and reduced, and must clearly state the content: "In case the land lessee is required to repay the State budget the amount of land rent that has been exempted and reduced according to Clause 7, Article 18 of Decree No. 46/2014/NĐ-CP dated May 15, 2014, they must return the amount of land rent exempted and reduced according to the policy and land price at the time of exemption and reduction of land rent plus an equivalent amount to the late payment fee for the period exempted and reduced."

3. For cases of exemption of land rent during the basic construction period specified in Clause 2, Article 19 of Decree No. 46/2014/NĐ-CP, based on the documents for exemption and reduction of land rent, the tax authority shall cooperate with relevant agencies to inspect, evaluate, determine the basic construction period, and issue a decision on exemption of land rent for each investment project but not exceeding three years from the date of the land lease decision.

4. For cases affected by natural disasters, fires, or unforeseen accidents, based on the Record of Damage Assessment and other related documents, the tax authority shall issue a notice reducing land rent according to Points b and c, Clause 1, Article 20 of Decree No. 46/2014/NĐ-CP.

5. Within 15 working days from the date of receiving complete documents as prescribed, the tax authority shall issue a decision on exemption and reduction of land rent or notify the land lessee of the reasons why they do not qualify for exemption and reduction. The decision on exemption and reduction of land rent shall be issued according to the model prescribed in the Appendix attached to this Circular.

Article 16. Determination of land rent money in cases of exemption or reduction of land rent money

1. Case of Annual Payment of Land Rent and Water Surface Rent

a) In cases of exemption from land rent money and water surface rent money as prescribed in Article 19 of Decree No. 46/2014/NĐ-CP, the annual amount of land rent money and water surface rent money to be paid at the time when payment for land rent and water surface rent is due after the exemption period has expired shall be determined as follows:

The unit price of land rent and water surface rent is determined according to the policy and land price at the time when payment for land rent and water surface rent is due. The stable cycle of the unit price of land rent and water surface rent is calculated from the time when payment for land rent and water surface rent is due.

b) In cases of reduction of land rent money and water surface rent money as prescribed in Article 20 of Decree No. 46/2014/NĐ-CP

Article 2. Cases of paying land rent and water surface rent money once for the entire lease period

a) In cases of exemption from land rent and water surface rent money as prescribed in Article 19 of Decree No. 46/2014/NĐ-CP

Where:

- Y: The unit price of land rent collected once for the entire lease period

- N: Number of years of land lease

- n: Number of years exempted from land rent

b) In cases of reduction of land rent money and water surface rent money as prescribed in Article 20 of Decree No. 46/2014/NĐ-CP

The unit price of land rent and water surface rent collected once for the lease term is determined according to Clause 2, Clause 4, Clause 5 of Article 4 of Decree No. 46/2014/NĐ-CP and Article 3 of this Circular.

Section 4
HANDLING TRANSITION AND SOME SPECIFIC ISSUES

Article 17. Handling some transition contents

1. In cases where the People's Committee of the province has not yet issued the adjustment factor for land prices as prescribed in Decree No. 46/2014/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. 94/2011/TT-BTC dated June 29, 2011 of the Ministry of Finance and apply it until December 31, 2014 to determine the unit price of land rent.

2. For applications to determine land rent and water surface rent money that have been accepted by competent state agencies before July 1, 2014, such agencies shall continue to take the lead in handling them.

3. In cases where the State has allocated land and the user has paid the land use fee before July 1, 2014, and now wishes to switch to leasing the land, they will not need to pay land rent for the remaining period of land use as prescribed in Clause 2 of Article 31 of Decree No. 46/2014/NĐ-CP. If the lease period is longer than the remaining period of land use before switching to leasing, then the additional period must be paid for with land rent.

4. In cases where the State has allocated land without collecting the land use fee before July 1, 2014, when switching to leasing the land as prescribed in Clause 2 of Article 60 of the Land Law 2013, they must pay land rent as prescribed in Article 4 of Decree No. 46/2014/NĐ-CP.

5. In cases where investors have prepaid compensation and clearance of construction sites according to the plan approved by the competent state agency under the compensation, support, and resettlement policy when the State recovers land as prescribed in the Land Law 2003 but are gradually deducting the compensation and clearance costs from the annual land rent payable or are still within the preferential exemption period for land rent, the remaining compensation and clearance costs will be converted into the number of years and months completing the financial obligation for land rent according to the unit price of land rent determined on January 1, 2015 as prescribed in Decree No. 46/2014/NĐ-CP and will be considered as the number of years and months completed in paying annual land rent.

6. In cases where the State leases land with payment made once for the entire lease period and the financial obligation has been fulfilled before July 1, 2014, but during project implementation, the organization leasing the land requests changes to the detailed construction planning leading to an increase in the land use coefficient (building density, height of structures), the following measures shall be taken:

a) In cases where the land rent money has been calculated and paid according to the policy on land rent collection based on the detailed construction planning indicators of the project, if the competent state agency permits changes to the detailed construction planning indicators of the project (land use coefficient, building density, height of structures), then the difference in land rent money (if any) must be determined and collected according to the legal provisions at the time the competent state agency issues the decision to change the planning indicators.

b) In cases where the land rent money has been calculated and paid according to the policy on land rent collection without reference to the architectural planning indicators of the project, if the competent state agency permits adjustments to the project planning indicators, there is no need to determine additional land rent money (if any).

Article 18. Handling certain specific issues

1. Handling payment of land rent for investors constructing and operating industrial infrastructure in industrial zones, clusters, and export processing zones

a) In cases where an investor is granted land lease by the State to pay annual land rent for investment in construction and operation of industrial infrastructure in industrial zones, clusters, and export processing zones, and one of the three types of documents: Investment Certificate (Investment License), Decision on Land Lease, or Land Lease Contract issued by competent state agencies (signed) contains the principle for adjusting the unit price of land rent but has already subleased the land with infrastructure under a lump-sum payment method for the entire lease period before January 1, 2006 without having adjusted the unit price of land rent according to Clause 2, Article 9 of Decree No. 142/2005/NĐ-CP dated November 14, 2005 of the Government on collecting land rent and water surface rent, the investor constructing and operating industrial infrastructure must pay to the State a lump sum land rent determined based on the time, area of land subleased, and the annual unit price of land rent set by competent state agencies according to the unit price of land rent at the time of subleasing (increasing by 15% every five-year cycle) and deducting the annual land rent paid to the State according to the aforementioned principle for this area from the time of subleasing (if applicable).

Example: In 1999, Company A was granted land lease by the State to pay annual land rent for a term of 50 years. In 2004, Company A signed a contract with Company B to sublease the land under a lump-sum payment method for the entire lease period of 45 years. At the time of signing the sublease contract (in 2004), the annual land rent that Company A had to pay was 100 million VND. On January 1, 2015, Company A processed to pay the lump sum land rent to the State for the area of land subleased according to the lump-sum payment method for the entire lease period. The amount of land rent that Company A must pay to the State according to Clause 1, Article 32 of Decree No. 46/2014/NĐ-CP in this case is calculated as follows:

- First lease cycle from 2004 to 2009 (n1) = 100 million VND x 5 years = 500 million VND

- Second lease cycle (n2) = n1 x (1 + 15%) = 575 million VND

- Third lease cycle (n3) = n2 x (1 + 15%) = 661.25 million VND

- Fourth lease cycle (n4) = n3 x (1 + 15%) = 760.44 million VND

- Fifth lease cycle (n5) = n4 x (1 + 15%) = 874.50 million VND

- Sixth lease cycle (n6) = n5 x (1 + 15%) = 1,005.68 million VND

- Seventh lease cycle (n7) = n6 x (1 + 15%) = 1,156.53 million VND

- Eighth lease cycle (n8) = n7 x (1 + 15%) = 1,330.01 million VND

- Ninth lease cycle (n9) = n8 x (1 + 15%) = 1,529.51 million VND

The annual land rent that Company A has paid to the State according to the aforementioned principle for this area from the time of subleasing (from 2004 to the end of 2014) is: 100 million VND x 5 years + 100 million VND (1 + 15%) x 5 years = 1,075 billion VND.

The total amount of land rent that Company A must pay (N) = (n1 + n2 + n3 + n4 + n5 + n6 + n7 + n8 + n9) – 1,075 billion VND = 7,325 billion VND.

b) In cases stipulated in Point a, Clause 1 of this Article, when implementing the issuance of new Investment Certificates (Investment Licenses) or changing the model of Land Lease Contracts due to administrative procedures, if the newly issued documents no longer contain the principle for adjusting the unit price of land rent and have not adjusted the unit price of land rent according to Clause 2, Article 9 of Decree No. 142/2005/NĐ-CP, organizations shall also apply the payment of land rent to the State according to the number of years the secondary lessee has paid the lump sum land rent for the area subleased according to Clause 1, Article 32 of Decree No. 46/2014/NĐ-CP as stipulated in Point a, Clause 1 of this Article.

2. For cases where the land user has not been granted land lease by the competent state agency, currently using the land for production and business purposes, and has been notified by the tax authority to temporarily pay land rent and water surface rent according to policy and land prices at the time of issuing the temporary payment notification according to Clause 3, Article 32 of Decree No. 46/2014/NĐ-CP, the following handling measures shall be taken:

a) The tax authority shall coordinate with relevant agencies to review and compile reports to the People's Committee of the province to decide on collecting land rent according to the amount that the land user must pay according to the temporary payment notification and shall not adjust the amount of land rent already notified.

b) Based on the land price table, land price adjustment coefficient, percentage of land price to determine the unit price of land rent issued by the People's Committee of the province, actual land area and purpose of use, the tax authority shall coordinate with relevant agencies according to their assigned functions and tasks to determine the unit price of land rent and notify the annual land rent payable from the date Decree No. 46/2014/NĐ-CP takes effect. The land user shall not stabilize the unit price of land rent according to the five-year cycle stipulated in Clause 1, Article 14 of Decree No. 46/2014/NĐ-CP until completing the procedures and obtaining approval from the competent state agency for land lease.

3. For cases where there is a decision on land lease or a land lease contract before Decree No. 46/2014/NĐ-CP takes effect but have not adjusted the unit price of land rent according to Decree No. 142/2005/NĐ-CP, Decree No. 121/2010/NĐ-CP, and paying annual land rent according to the temporary payment notification of the tax authority stipulated in Clause 4, Article 32 of Decree No. 46/2014/NĐ-CP, then:

a) The tax authority shall report to the People's Committee of the province to allow collection of land rent according to the amount that the land user has temporarily paid according to the temporary payment notification and shall not adjust the amount of land rent already notified for cases stipulated in Point a, Clause 4, Article 32 of Decree No. 46/2014/NĐ-CP;

b) The tax authority shall coordinate with relevant agencies to report to the People's Committee of the province on the implementation of adjustments to the land rental price according to the provisions of the law at each period for the cases specified in Point b Clause 4 Article 32 Decree No. 46/2014/NĐ-CP. Based on this, the tax authority shall settle the amount of land rent temporarily paid and collect additional land rent due (if any).

Chapter III
IMPLEMENTATION

Article 19. Responsibility for Implementation

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

a) Direct the finance agency to take the lead and coordinate with relevant agencies at the local level to establish specific rates (%) to determine the land rental price and land price adjustment factor to be applied no later than January 1, 2015.

b) Direct the financial agencies, tax agencies, state treasury, natural resources and environment agencies to coordinate with relevant agencies at the local level to implement the determination and collection of land rent according to the guidance provided in this Circular.

c) Inspect and handle violations or complaints and denunciations within their legal authority.

d) Specify the procedures for coordination among local functional agencies in transferring files, determining financial obligations for land rent and water surface rent as stipulated in this Circular, in accordance with related documents and the actual situation of the locality; clearly defining deadlines and responsibilities of each agency, unit, and land user in declaring, determining, and collecting land rent and water surface rent.

2. The General Department of Taxation shall be responsible for directing the organization of the determination and collection of land rent and water surface rent according to the administrative reform process; directing the examination and decision-making on exemptions and reductions of land rent and water surface rent as prescribed in Decree No. 46/2014/NĐ-CP and the guidance provided in this Circular.

3. The State Treasury shall be responsible for organizing the collection of land rent and water surface rent in accordance with the national budget collection process and facilitating those paying land rent and water surface rent.

Article 20. Effective Date

1. This Circular shall take effect from August 1, 2014.

2. Cases arising from July 1, 2014 shall be implemented according to the provisions of Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government on the collection of land rent and water surface rent and the guidance provided in this Circular.

3. This Circular replaces Circular No. 120/2005/TT-BTC dated December 30, 2005 of the Ministry of Finance guiding the implementation of Decree No. 142/2005/NĐ-CP dated November 14, 2005 of the Government on the collection of land rent and water surface rent; Circular No. 141/2007/TT-BTC dated November 30, 2007 of the Ministry of Finance amending and supplementing Circular No. 120/2005/TT-BTC dated December 30, 2005; Circular No. 94/2011/TT-BTC dated June 29, 2011 of the Ministry of Finance amending and supplementing Circular No. 120/2005/TT-BTC dated December 30, 2005; abolishing Model No. 01/TMĐN, Model No. 02/TMĐN, 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 provisions of the Law on Tax Administration, the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration, and Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government.

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

ANNEX

MODEL NOTICE OF PAYMENT OF LAND RENT, DECISION ON EXEMPTION AND REDUCTION OF LAND RENT AND WATER SURFACE RENT
(Attached to Circular No. 77/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance)

Model No. 01: Notice of Payment of Land Rent and Water Surface Rent

Model No. 02: Decision on Exemption (Reduction) of Land Rent and Water Surface Rent

Model No. 01: Notice of Payment of Land Rent and Water Surface Rent

NOTICE

Regarding the payment of land rent and water surface rent

I. PART DETERMINED BY THE TAX AUTHORITY:

Based on the Land Administration Information Transfer Form to Determine Financial Obligations No. .............................../VPĐK on ......... the ........ Pursuant to Decree No. 32/2019/NĐ-CP dated April 10, 2019 of the Government on assigning tasks, procurement or tendering for the supply of products and services using state budget from regular operating expenses;....... of the Land Registration Office..., the Tax Authority hereby notifies the payment of land rent and water surface rent as follows:

Model No. 02: Decision on Exemption (Reduction) of Land Rent and Water Surface Rent

Pursuant to …;

Regarding the exemption (reduction) of land and water surface rental fees for...(name of taxpayer)...

HEAD OF THE TAX AUTHORITY ISSUES THE DECISION

Based on the Law on Tax Administration and guiding documents;

Based on the Land Law and guiding documents;

Based on Decision No.... dated ...month ...year... of ...regulating the functions, tasks, powers, and organizational structure of the General Department of Taxation/Tax Bureau/Tax Branch; Based on the proposal for exemption and reduction of land and water surface rental fees No.... dated ...month... year... (for organizations) or application (for households, individuals, overseas Vietnamese) attached with the documents of

...(name of taxpayer, tax code, address ).)....;

According to the proposal of ...;

DECISION:

Article 1. Exempt (reduce) land and water surface rental fees for ...(nameof taxpayer, tax code), during the period of ...years, with the total amount of land and water surface rental fees exempted (reduced) being ...VND (in words: ...).

Article 2. In case the lessee of land and water surface is required to refund the state budget the amount of exemption and reduction according to Clause 7, Article 18 of Decree No. 46/2014/NĐ-CP dated May 15, 2014, they must return the amount of land rental fees exempted (reduced) according to the policy and land prices at the time of exemption and reduction of land rental fees plus an equivalent amount to the late payment fee for the period of exemption and reduction.

Article 3. This Decision shall take effect from the date of signing.

...(Bank code for fee and charge collection)..., ...(heads of relevant departments of the tax authority)... are responsible for implementing this Decision./.