This circular guides the exemption of land registration fees for land allocated to organizations and individuals for constructing houses for sale and investing in infrastructure. The document specifies which cases are exempted and when the fee must be paid.
Scope of application
Provincial Tax Departments
Key points
- Economic organizations granted land by the state for investment in infrastructure construction, when transferring or leasing such land, do not have to pay the land registration fee upon issuance of the land use right certificate (Point 3, Section III, Part I Circular No. 95/2005/TT-BTC).
- Organizations, households, and individuals receiving land use rights from economic organizations investing in infrastructure construction must pay the land registration fee before obtaining the land use right certificate.
- For land used to construct houses for sale where organizations or individuals have already paid the land use fee as prescribed, no land registration fee is collected (except for cases of constructing residential buildings, hotels, or renting out houses).
- Infrastructure companies and enterprises in industrial zones and export processing zones are exempt from the land registration fee when transferring land use rights.
- Not subject to exemptions must pay according to current regulations.
🌐 Social impact of this document
- Reduce costs for economic organizations investing in infrastructure and constructing houses for sale.
- Increase financial burden on individuals and households receiving land use rights from economic organizations that must pay the land registration fee.
❓ Frequently asked questions
Which companies are exempted from the land registration fee when transferring land use rights?
These are economic organizations investing in infrastructure construction to transfer or lease, regardless of whether they are inside or outside industrial zones and export processing zones.
What cases are eligible for exemption from the land registration fee?
For land used to construct houses for sale where organizations have already paid the land use fee as prescribed, no land registration fee is collected (except for cases of constructing residential buildings, hotels, or renting out houses).
Which entities must pay the land registration fee?
Organizations, households, and individuals receiving land use rights from economic organizations investing in infrastructure construction must pay the land registration fee.
When are infrastructure companies exempted from the land registration fee?
When an enterprise is granted land by the state for investment in infrastructure construction and transfers or leases such land.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 7876/BTC-TCT DATED JUNE 26, 2006
REGARDING STAMP DUTY
Respected: Provincial and Central City Tax Departments
Recently, the Ministry of Finance has received feedback regarding the implementation of legal provisions on stamp duty when transferring land use rights to infrastructure development companies and enterprises in industrial zones and export processing zones. The Ministry of Finance hereby provides specific guidance as follows:
According to point 3 (d) Section III, Part I Circular No. 95/2005/TT-BTC dated October 26, 2005 issued by the Ministry of Finance guiding the implementation of legal provisions on stamp duty, no stamp duty is levied for: "Land granted by the State to organizations and individuals for use in the following purposes:... d. Land for constructing houses for sale where the organization or individual has been permitted to engage in housing business and has paid land use fees as prescribed by law (except for cases of constructing houses for residence, for operating guesthouses, hotels, or renting out houses and other commercial activities).
Therefore, economic organizations granted land by the State to invest in infrastructure construction for transfer or lease (regardless of whether it is within an industrial zone or export processing zone) do not have to pay stamp duty when receiving a certificate of land use rights. Organizations, households, and individuals who receive land use rights from economic organizations investing in infrastructure construction must pay stamp duty before obtaining the certificate of land use rights.
The Ministry of Finance hereby informs Provincial and Central City Tax Departments for their knowledge and implementation./.
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DEPUTY MINISTER OF FINANCE Truong Chi Trung |
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