Circular No. 89/2017/TT-BTC guiding certain provisions of Decree No. 35/2017/NĐ-CP on land use fee collection, land lease fee collection, and water surface lease fee collection in Economic Zones and High-Tech Zones

CIRCULAR

GUIDANCE ON CERTAIN PROVISIONS OF THE GOVERNMENT DECREE NO. 35/2017/NĐ-CP OF APRIL 3, 2017 ON THE COLLECTION OF LAND USE FEES, LEASE RENTAL FEES FOR LAND AND WATER SURFACE IN ECONOMIC ZONES AND HIGH-TECH INDUSTRIAL ZONES

Pursuant to Decree No. 35/2017/NĐ-CP dated April 3, 2017 of the Government stipulating land use right fee collection and land rent collection for economic zones and high-tech industrial parks;

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. 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. 87/2017/NĐ-CP dated July 26, 2017, issued 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 to provide guidance on certain provisions of the Government Decree No. 35/2017/NĐ-CP dated April 3, 2017 on the collection of land use fees, lease rental fees for land and water surface in Economic Zones and High-Tech Industrial Zones.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular provides specific guidance on the collection of land use fees, lease rental fees for land and water surface, and transitional measures under the Government Decree No. 35/2017/NĐ-CP dated April 3, 2017 on the collection of land use fees, lease rental fees for land and water surface in Economic Zones and High-Tech Industrial Zones (hereinafter referred to as Decree No. 35/2017/NĐ-CP).

Article 2. Applicability

1. Organizations and individuals receiving land from the State for lease or sublease in Economic Zones and High-Tech Industrial Zones in accordance with laws on land.

2. Management Boards of Economic Zones and High-Tech Industrial Zones.

1. Rural areas refer to administrative regions not including urban wards under districts and cities as provided for in the Government's Decree on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas.

Chapter II

SPECIFIC PROVISIONS

Section 1. COLLECTION OF LAND USE FEES, LEASE RENTAL FEES FOR LAND AND WATER SURFACE IN ECONOMIC ZONES

Article 3. Determination of Land Use Fees and Lease Rental Fees for Land Not Through Auction

1. For cases of leasing land with annual payment

a) The lease rate is determined by multiplying (x) the specific land price as stipulated in Clause 1, Article 4 of Decree No. 35/2017/NĐ-CP by a percentage rate (%). In which:

- The percentage rate (%) for determining the lease rate ranges from 0.5% to 3%, to be determined by the Department of Finance at the location of the Economic Zone in coordination with the Management Board of the Economic Zone and relevant agencies according to each land position, area, and road corresponding to each land use purpose; to be submitted to the People's Committee of the province or centrally governed city (hereinafter collectively referred to as the Provincial People's Committee) for issuance and public announcement during implementation.

- The specific land price is determined based on the land price adjustment coefficient method prescribed in the Government's Decree on land prices. The land price adjustment coefficient is determined by the Department of Finance at the location of the Economic Zone in coordination with the Management Board of the Economic Zone and relevant agencies according to each land position, area, and road corresponding to each land use purpose, consistent with the market and socio-economic development conditions in the locality; to be submitted annually to the Provincial People's Committee for issuance after seeking opinions from the Standing Committee of the Provincial People's Council and public announcement during implementation.

In cases where land positions within the same area or road have land usage factors (building density, height of structures) different from the average of the area or road, the Provincial People's Committee shall determine a higher or lower adjustment coefficient than the average to calculate lease rental fees for these cases and specify it in the Decision on issuing the land price adjustment coefficient applicable to the Economic Zone. The survey date for establishing the land price adjustment coefficient is conducted from October 1st of each year. Costs related to land price surveys and organizing the establishment of the land price adjustment coefficient for calculating lease rental fees (including costs for hiring consulting organizations if necessary) are funded from the state budget in accordance with the law on state budget. Selection of consulting organizations for land price surveys and establishment of the land price adjustment coefficient is carried out in accordance with the law on bidding.

b) The lease rental fee payable is calculated by multiplying (x) the lease rate by the area subject to payment of the lease rental fee.

In cases where lease rental fees are exempted according to point a, point b, point d, Clause 6, Article 8 of Decree No. 35/2017/NĐ-CP or there are deductions from the lease rental fee payable converted into time to complete financial obligations regarding lease rental fees, the amount of lease rental fee payable is determined based on the policy and land price at the start of the lease rental fee payment period. Among them:

- Deductions from the lease rental fee payable include: compensation, support, resettlement funds, and organizational expenses for compensation and land clearance (collectively referred to as compensation and land clearance funds) that the lessee must repay or voluntarily advance.

- The start of the lease rental fee payment period is after the exemption period for lease rental fees and the period determined to complete financial obligations regarding lease rental fees due to deductions from the lease rental fee payable as stipulated by law. During the exemption period and the period determined to complete financial obligations regarding lease rental fees, the lease rate will not be adjusted.

- If the total duration of lease rental fee exemptions as stipulated by law and the period determined to complete financial obligations regarding lease rental fees due to deductions from the lease rental fee payable is less than the duration of the first stable lease rate cycle, the lease rate for the remaining period of the cycle is the lease rate determined at the time of the Decision granting the lease.

- After deducting the lease rental fee exemption period as stipulated by law and the period determined to have completed financial obligations regarding lease rental fees due to deductions from the lease rental fee payable, if the actual remaining lease rental fee payment period is less than five years and the lessee wishes to prepay the lease rental fee for this period, the Management Board of the Economic Zone shall report to the Provincial People's Committee for consideration and decision. The land price for calculating lease rental fees is determined based on the policy and land price at the time the Provincial People's Committee approves the prepayment of lease rental fees for the actual remaining lease rental fee payment period. The lessee has land rights equivalent to those for annual lease rental fee payments.

c) The rental land price is stabilized for five years from the date the Management Board of the Economic Zone or the provincial People's Committee decides to lease the land. At the end of the stabilization period, the Management Board of the Economic Zone adjusts the rental land price applicable for the subsequent period according to the policy and land price at the time of adjustment equal (=) to the land price in the Land Price Table multiplied (x) by the land price adjustment factor multiplied (x) by the percentage rate (%) specified by the provincial People's Committee.

2. In the case of leasing land with payment made in one lump sum for the entire lease period

a) In cases where the area subject to land rent payment of a plot or area has a value (based on the land price in the Land Price Table) of 30 billion VND or more, the specific land price shall be determined based on direct comparison, residual, income, and excess methods as prescribed by the Government regarding land prices.

In cases where land rent payments are exempted according to point a, point b, and point d, Clause 6, Article 8 of Decree No. 35/2017/NĐ-CP, based on the decision of the Economic Zone Management Board regarding the exemption period for land rent payments, the Department of Natural Resources and Environment shall determine the specific land price for land rent payment according to the payment period and transfer it to the Land Price Appraisal Council of the locality organized by the Department of Finance as the permanent council for appraisal, and submit it to the provincial People's Committee for approval according to the Government's regulations on land prices.

The payment period for land rent equals (=) the lease term minus (-) the exemption period for land rent payments as stipulated in point a, point b, and point d, Clause 6, Article 8 of Decree No. 35/2017/NĐ-CP.

b) In cases where the area subject to land rent payment of a plot or area has a value (based on the land price in the Land Price Table) below 30 billion VND, the Economic Zone Management Board shall determine the specific land price for land rent payment based on the land price in the Land Price Table, the land price adjustment factor, and the lease term; specifically as follows:

- In cases where the lease term is equal to the term of the land type in the Land Price Table, the single rental land price paid in one lump sum for the entire period is the land price in the Land Price Table multiplied (x) by the land price adjustment factor.

- In cases where the lease term is shorter than the term of the land type in the Land Price Table, the single rental land price paid in one lump sum for the entire lease period is determined according to the following formula:

In cases where rent is exempted, the rental price for land collected in one lump sum for the entire lease period shall be determined according to the following formula:

Wherein: The payment period for land rent equals (=) the lease term minus (-) the exemption period for land rent payments as stipulated in point a, point b, and point d, Clause 6, Article 8 of Decree No. 35/2017/NĐ-CP.

c) The determination of the amount of land rent payable is as follows:

- In cases where compensation and clearance costs are not deducted, the amount of land rent payable equals (=) the rental land price multiplied (x) by the area subject to land rent payment.

- In cases where compensation and clearance costs are deducted, the amount of land rent payable equals (=) the rental land price multiplied (x) by the area subject to land rent payment minus (-) the deductible compensation and clearance costs as prescribed by law.

3. The determination of land use fees for cases where land is allocated with payment of land use fees, land use purpose conversion, or acquisition of land use rights transfer within the Economic Zone to implement commercial housing projects for sale or sale combined with lease according to planning; allocation of residential land, recognition of residential land, permission to convert land use purpose to residential land for households and individuals within the Economic Zone shall be carried out according to the Government's regulations on land use fee collection and guiding documents for implementation.

4. In cases where the land user legally acquires land use rights to implement investment projects consistent with land use planning and plans and must convert land use purposes after acquisition and pay land use fees and land rents as prescribed, the handling of the acquired transfer amount shall be carried out according to the Government's regulations on land use fee collection, land rent collection, water surface rent collection, and guiding documents for implementation.

5. The area subject to land use fee payment and land rent payment is the area of land with land use fees and land rents recorded in the land allocation decision or lease decision. In cases of leasing land where the area recorded in the lease contract is larger than the area in the lease decision, the leased land area shall be determined according to the area recorded in the lease contract.

Article 4. Determining land usage fees and land rental fees when leasing land through auction

1. For cases of annual land rental fee payment

a) The starting price for auctioning the right to lease land with annual rental fee payments is the annual rental fee unit price determined and approved by the Management Board of the Economic Zone after obtaining the unified opinion of the Department of Finance based on the land price in the Land Price Table, land price adjustment coefficient, and percentage rate issued by the provincial People's Committee.

b) In cases where the lease term of the plot or auctioned area is shorter than the lease term of the same type of land with the same purpose in the Land Price Table, the land price for determining the starting price shall be calculated according to the following formula:

c) The winning auction unit price is stabilized for ten years. At the end of the stabilization period, the Management Board of the Economic Zone adjusts the unit rental fee for the subsequent period according to policy and the land price at the time of adjustment, which equals the Land Price Table land price multiplied (x) by the land price adjustment coefficient multiplied (x) by the percentage rate prescribed by the provincial People's Committee; the adjustment level does not exceed 30% of the winning auction unit rental fee or the unit rental fee of the previous stabilization cycle.

2. For cases of land usage fee and one-time land rental fee payment for the entire lease period, the determination of the starting price for auctioning the right to use land is regulated in point c, clause 4, Article 4 of Decree No. 35/2017/NĐ-CP.

3. The land price adjustment coefficient and percentage rate (%) for determining the starting price stipulated in clauses 1 and 2 of this Article are the land price adjustment coefficient and percentage rate (%) issued by the provincial People's Committee to determine the land price for land usage fee and land rental fee collection in cases of land transfer and land lease without auction. In cases where the plot or auctioned area belongs to urban areas, transportation hubs, concentrated residential areas with advantages and profitability, based on actual conditions, the Department of Finance will coordinate with the Management Board of the Economic Zone to report to the provincial People's Committee to decide on increasing the land price adjustment coefficient and percentage rate (%) for determining the starting price.

Article 5. Determination and Payment of Water Surface Land Rental Fees

1. Based on the provisions in points b and c, clause 6, Article 4 of Decree No. 35/2017/NĐ-CP, the Department of Finance will coordinate with the Management Board of the Economic Zone and relevant agencies to build and submit to the provincial People's Committee for issuance of the collection rates for water surface land areas; wherein:

a) For cases located in remote, mountainous, island, and economically disadvantaged areas; water surface land areas used for agricultural, forestry, aquaculture, salt production purposes; water surface land used as production and business sites for projects in encouraged investment sectors and particularly encouraged investment sectors, the water surface land rental unit price is determined at 50% of the unit rental price of adjacent land with the same purpose.

b) For cases not falling within the scope defined in point a of this clause, the water surface land rental unit price is determined at no less than 50% of the unit rental price of adjacent land with the same purpose.

2. In cases where the fluctuation of water levels makes it impossible to accurately determine the land area and water surface area at the time of lease by the competent authority, the water surface area is determined based on the average annual level as the basis for calculating the rental fee for this area.

Article 6. Determination of Water Surface Rental Fees

1. Based on the framework of water surface rental fees stipulated in Clause 1, Article 5 of Decree No. 35/2017/NĐ-CP, the Management Board of the Economic Zone shall coordinate with the Department of Finance to submit to the Provincial People's Committee for decision on the unit price of water surface rental for each specific project (except those specified in Clause 3 of this Article), including:

a) Fixed water surface projects as defined in Point a, Clause 1, Article 5 of Decree No. 35/2017/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 rent throughout the implementation period of the project.

b) Non-fixed water surface projects as defined in Point b, Clause 1, Article 5 of Decree No. 35/2017/NĐ-CP are water surfaces rented without clearly defining the location or boundaries within a specific coordinate range, and the project operates non-fixedly at a specific water surface location.

The area of water surface for calculating rental fees is the area decided by the competent state agency for lease according to the provisions of the law.

The time for calculating water surface rental fees is the time when the competent state agency decides to lease according to the provisions of the law.

2. The amount of water surface rental fees payable shall be determined as follows:

a) In cases where water surface rental fees are paid annually, the amount of water surface rental fees equals the area of leased water surface multiplied by the unit price of water surface rental.

b) In cases where water surface rental fees are paid once for the entire rental period, the amount of water surface rental fees equals the area of leased water surface multiplied by the rental period multiplied by the unit price of water surface rental.

3. For exploration and exploitation oil and gas projects in the Economic Zone (if any), they shall be implemented according to the legal provisions on collecting water surface rental fees (sea surface) for exploration and exploitation activities.

Article 7. Organization of Management, Collection, and Refund of Land Use Fees, Land Rental Fees, Water Surface Rental Fees, and Compensation and Evacuation Costs

1. The Management Board of the Economic Zone shall determine and notify the amount payable to land users according to the Notification Form attached to Circular No. 76/2014/TT-BTC dated June 16, 2014, and Circular No. 77/2014/TT-BTC dated June 16, 2014, issued by the Ministry of Finance; simultaneously sending the Notification to:

a) The Land Registration Office for coordination and submission to the competent state agency for issuance of the Certificate of Land Use Right, House Ownership, and Other Property Rights Attached to the Land.

b) The Tax Authority for monitoring, urging, determining late payment penalties, and applying compulsory collection measures according to the legal provisions on tax management.

2. The time for paying land use fees, land rental fees, water surface rental fees, and compensation and evacuation costs to be refunded shall be carried out according to the provisions of Point c, Clause 1, Article 6, and Clause 3, Article 11 of Decree No. 35/2017/NĐ-CP.

In cases where land and water surface rentals are paid annually, if the first year or the final year does not have a full 12 months, then the rental fee for the first year and the final year shall be calculated based on the number of months rented. If the duration of the first month of rental or the last month of rental is less than a full month:

- If the number of rental days is 15 days or more but less than a full month (>= 15 days), it shall be rounded up to one month.

- If the number of rental days is less than 15 days (< 15 days), no rental fee will be charged.

3. The State Treasury or units authorized by the State Treasury to collect land use fees, land rental fees, water surface rental fees, and compensation and evacuation costs to be refunded upon occurrence of revenue shall transfer the collection receipts to the Management Board of the Economic Zone and the Tax Authority for management, tracking, reconciliation, and urging payment according to regulations.

Financial agencies, State Treasuries, and tax authorities at all levels shall be responsible for coordinating and guiding the Management Board of the Economic Zone to promptly and fully determine and notify revenue from land.

Article 8. Principles for Applying Land Rent and Water Surface Rent Exemptions and Reductions

1. Investment projects that utilize land and are subject to consideration for exemptions and reductions in land rent and water surface rent are those established, reviewed, and approved in accordance with the provisions of the law.

2. Investment projects that are granted exemptions and reductions in land rent and water surface rent are linked to the new leasing of land, applicable when the competent state authority leases the land for the first time on the project area or extends the lease upon expiration according to the laws on land.

3. Organizations and individuals renting land and water surfaces from the Management Board of the Economic Zone shall only enjoy the exemption and reduction benefits after completing the procedures to obtain such exemptions and reductions; specifically as follows:

a) In cases where they are eligible for exemptions and reductions but fail to complete the necessary procedures, they must pay the land rent and water surface rent as prescribed by law. If the procedures for exemptions and reductions are delayed, the period of delay will not be exempted or reduced from the land rent and water surface rent.

b) If the application for exemptions and reductions is submitted after the period for exemptions and reductions has expired according to Decree No. 35/2017/NĐ-CP, then no exemptions or reductions in land rent and water surface rent will be granted; if the application is submitted within the period for exemptions and reductions, then only the remaining period of the benefit will be granted starting from the date of submission of a valid application for exemptions and reductions in land rent and water surface rent.

4. Investment projects that were operating and paying annual land rent and water surface rent before the effective date of Decree No. 35/2017/NĐ-CP do not qualify for exemptions and reductions; if they qualify for exemptions and reductions under Decree No. 35/2017/NĐ-CP, they may apply the remaining period of the benefit (if any) from the date of submission of a valid application for exemptions and reductions in land rent and water surface rent as requested by the investor. This provision does not apply to projects specified in points c and d, Clause 2, Article 15 of the Investment Law 2014 leased by the State before July 1, 2015 (the effective date of the Investment Law 2014).

5. Investment projects that were operating and benefiting from exemptions and reductions in land rent and water surface rent according to the law before the effective date of Decree No. 35/2017/NĐ-CP at a lower level than the benefits stipulated in Clause 6, Article 8 of Decree No. 35/2017/NĐ-CP shall adjust and apply the benefits stipulated in this Decree for the remaining period of land rental. The remaining period of exemptions and reductions in land rent shall be calculated based on the period stipulated in Decree No. 35/2017/NĐ-CP minus the period already exempted or reduced according to the law before the effective date of Decree No. 35/2017/NĐ-CP. This provision does not apply to projects specified in points c and d, Clause 2, Article 15 of the Investment Law 2014 leased by the State before July 1, 2015 (the effective date of the Investment Law 2014).

6. Operating investment projects referred to in Clauses 4 and 5 of this Article are those that have been issued with a Certificate of Investment, Investment License, Investment Registration Certificate, or Decision on Investment Policy (except in cases where such documents are not required according to the investment law) and are currently within the lease period as prescribed by law.

Article 9. Exemption and reduction of land use fee and land rental fee for certain cases

1. The exemption and reduction of land use fee within Economic Zones shall be implemented in accordance with the provisions of Article 7 of Decree No. 35/2017/ND-CP; the Management Board of the Economic Zone shall determine the amount of land use fee exempted and reduced in accordance with the Government's regulations on collecting land use fees and record it in the Decision on Exemption and Reduction of Land Use Fee according to the form issued together with Circular No. 76/2014/TT-BTC.

2. Exemption of land rental fee during the construction period

a) Based on the application for exemption and reduction of land rental fee submitted by the land lessee in accordance with point a, Clause 11, Article 8 of Decree No. 35/2017/ND-CP, the Management Board of the Economic Zone shall cooperate with relevant agencies (if necessary) to determine the construction period and issue a Decision on Exemption of Land Rental Fee for each investment project, but not exceeding three years from the date of the decision to lease the land.

In case the Investment Certificate or Investment License or Investment Registration Certificate or Decision on Investment Policy issued by the competent authority initially includes the construction period (project implementation schedule), the Management Board of the Economic Zone shall base on these documents to issue a Decision on Exemption of Land Rental Fee for each project, but not exceeding three years from the date of the decision to lease the land.

b) In case the land lessee requests not to be exempted from the land rental fee during the construction period, the exemption period shall be calculated from the date of the decision to lease the land in accordance with the investment laws. If the application for exemption of land rental fee is submitted late according to the investment laws, only the remaining preferential period (if any) will be exempted from the date when the Management Board of the Economic Zone receives all required documents and no exemption will be granted for the late submission period.

The exemption of land rental fee and water surface rental fee during the construction period shall be carried out in conjunction with new land leasing, transferring from non-rental land allocation to rental land; excluding cases of investment in renovation and expansion of production and business facilities.

3. The amount of land rental fee exempted and reduced as stipulated in Clause 6, Article 8 of Decree No. 35/2017/ND-CP shall be determined in accordance with the Government's regulations on collecting land rental fee and water surface rental fee and recorded in the Decision on Exemption and Reduction of Land Rental Fee according to the form issued together with Circular No. 77/2014/TT-BTC.

Section 2. COLLECTION OF LAND RENTAL FEE AND WATER SURFACE RENTAL FEE IN HIGH-TECH ZONE

Article 10. Determination of land rental fee and water surface rental fee

1. For cases of leasing land with annual payment

Based on the percentage rate, adjustment factor for land price, and the Land Price Table issued by the Provincial People's Committee in accordance with Clause 1, Article 12 of Decree No. 35/2017/ND-CP, the Management Board of the High-Tech Zone shall determine the land rental fee and adjust the unit price of land rental in accordance with Clause 1, Article 12 of Decree No. 35/2017/ND-CP and the guidance provided in Clause 1, Article 3 of this Circular.

For High-Tech Zones under central management that were allocated land before July 1, 2014 by the Provincial People's Committee, the percentage rate and adjustment factor for land price shall be issued by the Management Board of the High-Tech Zone after obtaining the agreement of the Provincial People's Committee where the High-Tech Zone is located, and applied from January 1st of each year. Specifically:

- The percentage rate for determining the unit price of land rental ranging from 0.5% to 3% shall be specifically defined for each area, road, corresponding to each field of investment and must be publicly announced annually during the implementation process.

- The adjustment factor for land price shall be issued annually for each area, road, location corresponding to each purpose of land use, but not less than 1.0 and applied from January 1st of each year.

2. In the case of leasing land with payment made in one lump sum for the entire lease period

a) The determination of land rental fee paid in one lump sum for the entire rental period for non-agricultural production and business purposes (excluding land used for commercial trade and service activities; commercial housing and office leasing) shall be carried out in accordance with Clause 2, Article 12 of Decree No. 35/2017/ND-CP and the guidance provided in Clause 2, Article 3 of this Circular.

b) The determination of land rental fee paid in one lump sum for the entire rental period for commercial trade and service activities; commercial housing and office leasing in the High-Tech Zone is as follows:

- In case the value of the land plot or area subject to land rental fee (calculated based on the land price in the Land Price Table) is 30 billion VND or more, the specific land price for calculating the land rental fee shall be determined in accordance with point a, Clause 3, Article 4 of Decree No. 35/2017/ND-CP and Clause 2, Article 3 of this Circular for High-Tech Zones under local management.

For High-Tech Zones under central management, the Management Board of the High-Tech Zone shall base on the Government's regulations on land prices to establish a land price plan corresponding to the land rental payment period (after deducting the exempted land rental period if any, as stipulated in Clause 3, Article 14 of Decree No. 35/2017/ND-CP), transfer it to the Land Price Appraisal Council of the locality where the High-Tech Zone is located for appraisal, and seek the agreement of the Provincial People's Committee before determining and announcing the land rental fee payable to the land lessee.

- In case the value of the land plot or area subject to land rental fee (calculated based on the land price in the Land Price Table) is less than 30 billion VND, the Management Board of the High-Tech Zone shall determine the land price for calculating the land rental fee in accordance with point b, Clause 3, Article 4 of Decree No. 35/2017/ND-CP and the guidance provided in Clause 2, Article 3 of this Circular.

c) The determination of land rental fee paid in one lump sum for the entire rental period in Hoa Lac High-Tech Park shall be carried out in accordance with Clause 2, Article 8 of Decree No. 74/2017/ND-CP dated June 20, 2017 of the Government on special mechanisms and policies for Hoa Lac High-Tech Park (hereinafter referred to as Decree No. 74/2017/ND-CP) and Clause 2, Article 12 of Decree No. 35/2017/ND-CP.

Article 11. Organization for management, collection, exemption, and reduction of land rental fees and water surface rental fees

The organization for management, collection, exemption, and reduction of land rental fees and water surface rental fees shall be carried out in accordance with the provisions of Article 14 and Article 15 of Decree No. 35/2017/NĐ-CP and the guidance provided in Article 7, Article 8, and Article 9 of this Circular. For the Hoa Lac High-Tech Park, the collection, submission, and utilization of land rental fees and compensation and clearance costs shall be implemented in accordance with the provisions of Clause 1 of Article 17 of Decree No. 74/2017/NĐ-CP.

Article 12. Transitional Provisions

1. In cases where the State leases land on an annual payment basis within Economic Zones and High-Tech Zones before the effective date of Decree No. 35/2017/NĐ-CP and is currently in the period of stabilizing the rental price, which is higher than the price specified in Article 4 and Article 12 of Decree No. 35/2017/NĐ-CP, such prices shall be adjusted according to this Decree from January 1, 2017 onwards.

2. For cases leasing land on an annual payment basis within Economic Zones and High-Tech Zones before January 1, 2006, and currently using the land in accordance with the purpose stated in the decision or lease contract issued by the competent state agency, the adjustment of the rental price for the remaining lease period starting from January 1, 2016 shall be carried out in accordance with the provisions of Clause 8 of Article 15 of Decree No. 46/2014/NĐ-CP (supplemented by Clause 4 of Article 3 of Decree No. 135/2016/NĐ-CP) and Article 4 of Circular No. 333/2016/TT-BTC dated December 26, 2016 of the Ministry of Finance.

3. In cases where the land user has been using land within Economic Zones and High-Tech Zones before the effective date of Decree No. 35/2017/NĐ-CP but has not yet received a lease decision and has not paid the land rental fee due to the lack of regulations on policies and land prices for calculating land rental fees within Economic Zones and High-Tech Zones, and is eligible for exemption of land rental fees under Clause 6 of Article 8 and Clauses 2 and 3 of Article 13 of Decree No. 35/2017/NĐ-CP, the exemption period for land rental fees starts from the actual date of land handover and there is no need to refund the compensation and clearance costs allocated from the actual date of land handover to the date of the lease decision, as stipulated in Clause 1 of Article 6 and Clause 1 of Article 13 of Decree No. 35/2017/NĐ-CP; the remaining compensation and clearance costs that must be refunded shall be paid to the state budget in accordance with the regulations.

The amount of compensation and clearance costs to be refunded allocated for the period from the actual date of land handover to the date of the lease decision equals the total compensation and clearance costs to be refunded as stipulated in Clause 1 of Article 6 and Clause 1 of Article 13 of Decree No. 35/2017/NĐ-CP divided by the duration of the lease term multiplied by the time from the actual date of land handover to the date of the lease decision.

4. For applications for determination of financial obligations regarding land use fees and land rental fees, water surface rental fees; applications for exemption and reduction of land use fees and land rental fees, water surface rental fees submitted to tax authorities before the effective date of Decree No. 35/2017/NĐ-CP, the tax authorities shall continue to handle them in accordance with the regulations. For applications submitted from the effective date of Decree No. 35/2017/NĐ-CP, the Management Board of Economic Zones and the Management Board of High-Tech Zones shall handle them in accordance with Decree No. 35/2017/NĐ-CP.

5. For cases leasing land on an annual payment basis where the adjustment of the rental price before the effective date of Decree No. 35/2017/NĐ-CP has not yet been implemented, the leasing authority shall continue to handle it in accordance with the regulations and transfer the file to the Management Board of Economic Zones and the Management Board of High-Tech Zones for monitoring and adjusting the rental price for the next cycle.

6. For cases leasing land on an annual payment basis within Economic Zones before January 1, 2006, but the tax authority has not processed them according to Decree No. 135/2016/NĐ-CP by the effective date of Decree No. 35/2017/NĐ-CP, the tax authority shall continue to process them in accordance with Decree No. 135/2016/NĐ-CP.

7. For files related to compensation and clearance costs processing; files determining the initial auction price for land use rights submitted to financial agencies before the effective date of Decree No. 35/2017/NĐ-CP, the financial agencies shall continue to process them in accordance with the regulations. For files submitted from the effective date of Decree No. 35/2017/NĐ-CP, the Management Board of Economic Zones and the Management Board of High-Tech Zones shall process them in accordance with Decree No. 35/2017/NĐ-CP.

Chapter III

IMPLEMENTING PROVISIONS

Article 13. Effective Date

1. This Circular takes effect from October 6, 2017.

2. During implementation, if difficulties or obstacles arise, relevant agencies, units, organizations, and individuals are requested to promptly report to the Ministry of Finance for consideration and resolution./.