THE MINISTRY OF FINANCE

CIRCULAR No.57-TC/TCT OF SEPTEMBER 23, 1996 GUIDING THE IMPLEMENTATION OF DECREE No.45-CP OF AUGUST 3, 1996 OF THE GOVERNMENT ON THE AMENDMENTS TO ARTICLE 10 OF DECREE No.60-CP OF JULY 5, 1994 OF THE GOVERNMENT ON THE OWNERSHIP OF DWELLING HOUSES AND THE RIGHT TO USE RESIDENTIAL LAND IN URBAN CENTERS

In implementation of Decree No.45-CP of August 3, 1996 of the Government on the amendments to Article 10 of Decree No.60-CP of July 5, 1994 of the Government on the ownership of dwelling houses and the right to use residential land in urban centers, the Ministry of Finance shall guide the collection of land rent when considering the granting of certificates of ownership of dwelling houses and the right to use residential land as follows:

"- In case the land had been used over a long time as residential land before December 18, 1980 (date of promulgation of the 1980 Constitution) without valid papers, but is judged conforming to the master plan, is not disputed, and is recognized by the People�s Committee of the ward, the owner shall be considered for the granting of a certificate of ownership of the dwelling house and the right to use the residential land, and he/she shall not have to pay land rent.

- In case the land was used over a long time as residential land during the period from December 18, 1980 to October 15, 1993 (date when the Land Law took effect) without valid papers, but is now judged conforming to the master plan and is not disputed, the owner shall be considered for the granting of a certificate of ownership of the dwelling house and the right to use the residential land, and shall have to pay 20% of the land rent.

- In case the land has been used as residential land after October 15, 1993 without valid papers, but is now judged conforming to the master plan and is not disputed, the owner shall be considered for the granting of a certificate of ownership of the dwelling house and the right to use the residential land, and shall have to pay 100% of the land rent."

Thus, according to the above stipulations:

a) Regarding all cases of using residential land without valid papers as stipulated in cases 1 and 2 (the first and second dashes), if they are to be legitimized, they shall have to comply with the stipulation in Point 3 of the above-mentioned cases.

b) The granting of certificates of ownership of dwelling houses and the right to use the residential land is based on the actual situation of the residential land of the house owner without referring back to previous transfers of the land through many owners. Therefore, the point of time to differentiate the land rent rates is the time when the house owner who is owning the house and using the land applies for the legitimation of his/her dwelling house and residential land.

Example: Mr. A bought a plot of land without valid papers from Mr. B who had his land sale voucher verified by the People�s Committee of the ward in 1992. Mr. B has lived on that plot of land since 1979. Now if Mr. A applies for the granting of a certificate on the ownership of his dwelling house and the right to use that residential land, the point of time for deciding the land rent rate is 1992.

a) Before filing a dossier for legitimation of the ownership of a dwelling house and the right to use a residential land to the authorized agency, the house owner must fill a declaration form and pay the land rent as stipulated in this Circular.

In addition to the papers specified by the General Land Administration for legitimation of the ownership of a dwelling house and the right to use a residential land, when coming to the tax office to pay the land rent, the house owner must fill the declaration form attached to this Circular. The declaration form shall be done in two copies, one is given back to the house owner after the rate of land rent is calculated and decided (in place of a notice), and the other is kept by the tax office. In cases where the owner does not have to pay the land rent, the tax office must write it clearly in the declaration form of the house owner. In addition to the declaration form for paying the land rent, the attached papers required for each specific case include:

- For case 1:

+ Receipts for payment of house and land tax as stipulated in the Ordinance on House and Land Taxes (a notarized copy) bearing the name of the person who applies for legitimation of the ownership of his/her dwelling house and the right to use the residential land corresponding to the period he/she has been using that dwelling house and residential land.

+ A copy of the household register (if any).

+ Verification by the People�s Committee of the ward that he/she is the owner of the dwelling house and user of the residential land at that point of time;

+ Other papers (if any) concerning the dwelling house and residential land which show the point of time when the house owner begins owning the dwelling house and using the residential land.

- For case 2:

+ Receipts for payment of house and land taxes as stipulated in the Ordinance on House and Land Taxes (a notarized copy) bearing the name of the person who applies for legitimation of the ownership of his/her dwelling house and the right to use the residential land corresponding to the period he/she has been using that dwelling house and residential land.

+ A copy of the household register (if any).

+ Other papers (if any) concerning the dwelling house and residential land.

- For case 3:

+ Receipts for payment of house and land taxes as stipulated in the Ordinance on House and Land Taxes (a notarized copy) bearing the name of the person who applies for legitimation of the ownership of his/her dwelling house and the right to use the residential land, corresponding to the period he/she has been using that dwelling house and residential land.

+ A copy of the household register (if any).

Any house owner who has not yet paid his/her house and land taxes must make the back payment. In addition, he/she shall be fined depending on the seriousness of his/her violation as stipulated by the law currently in force.

b) Within 10 days at the latest after the tax office receives the dossier of the house owner, it must calculate and write down in the declaration form the amount of land tax that must be paid and notify the applicant (in the declaration form). Basing himself/herself on the amount of land tax stated in the declaration form, the house owner shall directly pay (in cash or money transfer) to the State Treasury. If the Treasury has not yet organized the collection of taxes, he/she should pay directly to the tax office.

c) If the house owner has already paid the land tax, but for some reason he/she has not yet received a certificate of ownership of his/her dwelling house and the right to use the residential land (with comments from the public agency authorized to grant certificates of ownership of dwelling houses and the right to use residential land), the house owner can send an application enclosed with receipts of payment for house and land taxes to the tax office in order to get back the money he/she has paid. Within 15 days at the latest after the tax office receives the application, it must refund to the owner the sum he/she has paid.

If the house owner falsifies his/her papers before sending them to the tax office, he/she shall not be refunded the sum paid to the State budget. If the sum already paid is not enough to pay the tax for the actual area and position of the land and house which is allowed to be legitimized after examination and verification by the agency authorized to issue the certificate, the house owner must pay the amount still due before he/she is granted a certificate.

This Circular takes effect from August 3,1996 and replaces the guidance on the collection of land tax stipulated in Section II, Part A, of Circular No.70-TC/TCT of August 18, 1994 of the Ministry of Finance. If any problem arises while implementing this Circular, the localities should report it to the Ministry of Finance for consideration and timely settlement.

For the Minister of Finance

Vice Minister

VU MONG GIAO