THE GOVERNMENT

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of application

This Decree prescribes the collection of land use levy in cases where organizations, family households and individuals (hereinafter referred collectively to as land users) are assigned land by the State, allowed by the latter to change the land use purposes or buy the State-owned dwelling houses, and granted the land use right certificates according to the provisions of the land legislation.

Article 2.- Subjects liable to pay land use levy

1. The users of land assigned by the State for use for the following purposes:

a/ Family households and individuals, for dwelling house construction;

b/ Economic organizations, for investment in the construction of dwelling houses for sale or lease;

c/ Economic organizations, for investment in the construction of infrastructures for assignment or lease of the land use right closely linked to such infrastructures;

d/ Economic organizations assigned land by the competent State agencies with the collection of land use levy for the creation of capital for construction of infrastructures under projects decided by the Prime Minister.

2. Land users that are allowed by the competent State agencies to change the use purposes of land of the following categories into the purposes defined in Clause 1 of this Article:

a/ Land for agricultural production, forestry, aquaculture and salt-making;

b/ Land used for purposes of national defense, security, national interests or public interests;

c/ Special-use land and land of other categories, which had earlier been assigned without the collection of land use levy;

d/ Land leased by the State.

3. Land users that have not yet obtained valid papers on land use right but are now granted the land use right certificates by the competent State agencies, except for cases otherwise prescribed by law.

4. Land users that are allowed to buy the State-owned houses which they are renting, liquidated or priced houses, except for cases otherwise prescribed by law.

Article 3.- Subjects not liable to pay land use levy

1. Users of land assigned by the State according to the provisions in Article 7 of the Government�s Decree No. 04/2000/ND-CP of February 11, 2000 on the implementation of the Law Amending and Supplementing a Number of Articles of the Land Law (hereinafter called Decree No. 04/2000 for short).

2. Users of land leased by the State.

3. Land users having valid papers on the land use right defined in Article 3 of the Government�s Decree No. 17/1999/ND-CP of March 29, 1999 on the procedures for the transfer, assignment, lease, sublease, inheritance of land use right as well as the mortgage of and capital contribution with, the land use right value (hereinafter called Decree No.17/CP for short), that are granted or exchange the land use right certificates for the entire land area being used in conformity with the said papers, except for cases of land use right transfer after October 15, 1993, which shall comply with Article 7 of this Decree.

4. Land users that are allowed to buy the State-owned houses in cases where such houses are liquidated or priced for sale to the current tenants before July 5, 1994 (date of promulgation of the Government�s Decree No. 61/CP on dwelling house purchase, sale and business, which, hereinafter, is called Decree No. 61/CP for short), provided that they have fully paid money therefor as prescribed and the selling prices already include the factor of the house position or the land use levy, or the liquidation/pricing papers state the house area as well as the land area in use.

5. Land users that have already paid the land use levy and are allowed by the competent State agencies to change the land use purposes for dwelling house or project construction.

Chapter II

BASES AND METHOD FOR DETERMINATION OF LAND USE LEVY

Article 4.- Bases for determination of land use levy

Bases for determination of land use levy are the land area, land price and land use levy rates

1. Land area calculated in square meter (m2) is the area of land assigned by the State; allowed to change the use purposes, or considered for the granting of a land use right certificate; the land area closely linked to houses in case of liquidation, pricing and purchase of State-owned houses being currently rented.

Land limits for calculation of land use levy rates defined in this Decree are the limits of residential land set by the People�s Committees of the provinces and centrally-run cities.

Article 5.- Land use levy rate in case of being assigned land by the State

Users of land assigned by the competent State agencies for use for purposes defined in Clause 1, Article 2 of this Decree, that do not have to pay compensation for the land-related damage to people having land recovered, shall have to pay 100% of the land use levy; where they have to pay compensation for the land-related damage, their actual compensation money amount shall be deducted from the payable land use levy amount, but the deduction level shall not exceed 90% of the land use levy amount payable to the budget.

Article 6.- Land use levy rates in case of permitted change of land use purposes

1. For family households and individuals:

a/ Family households and individuals that are pond land, garden land or special-use land in population areas and allowed by the competent State agencies to convert such land into the land for dwelling house construction, shall not have to pay land use levy for the land area within the residential land limit;

b/ Family households and individuals, that are using agricultural land, forestrial land, land with water surface for aquaculture or land for salt- making and allowed by the competent State agencies to convert such land into the residential land strictly according to the ratified planning, shall have to pay 40% of land use levy for the land area within the residential land limit;

c/ For individuals who are using land assigned by the State to organizations for use not for the dwelling house construction purpose and without having to pay the land use levy, but these organizations have arbitrarily divided the land to individuals for dwelling house construction, if such individuals are granted the land use right certificates by the competent State agencies, they shall have to pay land use levy according to the following stipulations:

- If the house or land had been distributed before October 15, 1993, the current land users shall have to pay 40% of land use levy for the land area within the residential land limit; and 100% of land use levy for the land area in excess of the residential land limit;

- If the land division took place after October 15, 1993, the current land users shall have to pay 100% of land use levy.

2. For organizations:

a/ Organizations using land defined in Clause 2, Article 2 of this Decree, when allowed by the competent State agencies to change the land use purposes of such land into the land categories defined in Clause 1, Article 2 of this Decree, shall have to pay 100% of land use levy;

b/ Organizations using leased land, when allowed by the competent State agencies to use that land for dwelling house or infrastructure construction for transfer, assignment or lease, shall have to pay 100% of land use levy to the State budget; where those organizations have already paid the land rents with surplus by the time of changing the land use purposes, such surplus shall be subtracted from the land use levy amount payable to the budget; where compensation must be paid for damage caused to the leased land, the actual compensation amount shall be subtracted with the level not exceeding 90% of the land use levy amount payable to the budget.

Article 7.- Collection of land use levy when the granting of land use right certificates is considered

The current land users that do not have valid papers on the land use right but the land conforms to the planning and is not disputed, when granted the land use right certificates, shall have to pay the land use levy as follows:

1. For urban land:

a/ Where the residential land had been used constantly prior to December 18, 1980 (date of promulgation of the 1980 Constitution) no land use levy shall be paid;

b/ Where the residential land was used constantly from December 18, 1980 to October 15, 1993 (effective date of the 1993 Land Law) 20% of land use levy shall be paid;

c/ Where the residential land has been used constantly since October 15, 1993, 100% of land use levy must be paid.

If the land is transferred or assigned by the previous land users without valid papers but only the sale, purchase and transfer papers made between the two parties and certified by the commune/ward/township People�s Committees, 40% of land use levy shall be paid.

2. For rural residential land:

Article 8.- Land use levy rates in case of liquidation, pricing and purchase of State-owned houses being currently rented

1. For cases of liquidation or pricing of State-owned houses before July 5, 1994 (the date of promulgation of the Government�s Decree No. 61/CP on dwelling house purchase, sale and business):

a/ The land area attached to the liquidated or priced houses defined in Clause 4, Article 3 of this Decree shall not be subject to land use levy;

b/ The remaining land area within the premises of the liquidated or priced houses shall be subject to 40% of land use levy, provided that it is within the residential land limit (including land area attached to the liquidated or priced houses and the remaining area of the premises); and 100% of land use levy for the land area in excess of the residential land limit.

2. Land use levy in case of selling State-owned houses to current tenants after July 5, 1994 (the date of promulgation of Decree No. 61/CP), which includes the dwelling house price and the land price, shall be determined as follows:

a/ For land of one-storied houses, multi-storied dwelling houses inhabited each by one family household; multi-storied dwelling houses with land areas divided for separate use by households, and villas (including multi-storied villas accommodating many households), 40% of the land use levy shall be paid for the land area within the residential land limit; and 100%, for the land area in excess of the residential land limit.

b/ For land attached to multi-storied dwelling houses accommodating many households, 10% of land use levy shall be paid and accounted into the house money (referred collectively to as proceeds from the sale of State-owned houses) and applicable to each floor according to the following prescribed coefficients:

3. For expanded land area adjacent to State-owned dwelling houses, the land users, when being granted the land use right certificates by the competent State agencies, shall have to pay 40% of land use levy for the land area within the residential land limit (including land area attached to the purchased State-owned houses and the adjacent expanded land area); and 100% of land use levy for the area in excess of the residential land limit.

Chapter III

EXEMPTION, REDUCTION OF LAND USE LEVY

Article 9.- Principles for exemption, reduction of land use levy

The exemption, reduction of land use levy shall comply with the following principles:

1. The land use levy exemption and reduction for cases of being assigned land by the State for dwelling house construction; being permitted to change the land use purposes or purchase the currently rented State-owned houses; and being granted land use right certificates shall be effected only once.

2. The land use levy reduction level shall be calculated on the land use levy amount payable to the State budget according to the provisions in Chapter II of this Decree.

3. Where in a family household many members are entitled to the land use levy reduction, the reduction level for each member shall be added up into a general reduction level for the whole family household, which, however, must not exceed the land use levy amount payable for the residential land limit.

4. Where a person is entitled to different land use levy exemption or reduction regimes, the highest preferential level for him/her shall apply.

Article 10.- Exemption, reduction of land use levy

1. To exempt land use levy for subjects defined in Clause 1, Article 10 of the Government�s Decree No. 04/2000/ND-CP of February 11, 2000 detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Land Law.

2. To exempt or reduce land use levy according to the Prime Minister�s Decision No. 118/TTg of February 27, 1996 on supports for people with meritorious services to the revolution to improve their housing conditions.

3. To exempt or reduce land use levy according to the Prime Minister�s Decision No. 20/2000/QD-TTg of February 3, 2000 on supports for people who had participated in revolutionary activities before the 1945 August Revolution to improve their housing conditions.

4. Users of land assigned by the competent State agencies for the execution of investment projects eligible for investment preferences shall enjoy land use levy exemption or reduction according to the provisions of the domestic investment promotion legislation.

5. The land use levy exemption or reduction for other cases shall be decided by the Prime Minister at the proposal of the Finance Ministry.

Chapter IV

DECLARATION, COLLECTION AND PAYMENT OF LAND USE LEVY

Article 11.- Responsibility of land users

Land users shall have the responsibility:

1. To declare and fully supply necessary papers related to the determination of land use levy and the exemption or reduction thereof (if any) according to the forms set by the Finance Ministry;

2. To pay land use levy according to the tax agencies� notices;

3. Where the declarers of land use levy payment are unidentified, the current land users or the authorized persons shall have to declare and pay land use levy according to the provisions in Clauses 1 and 2 of this Article.

Article 12.- Time-limits for payment of land use levy in case of being assigned land by the competent State agencies

1. Where the land use levy must be paid, the payers shall have to fully pay it in lump-sum before being granted the land use right certificates, except otherwise prescribed by law.

2. Where land is assigned with the collection of land use levy under the land legislation, but the land use levy has not been paid or fully paid, the payers shall, within 1 year after this Decree takes effect, have to fully pay the land use levy. Where the payment is delayed without permission of the competent State agencies, a fine shall be imposed thereon according to the provisions in Clause 5 of this Article.

3. Where the land is assigned after this Decree takes effect, the land users shall have to make declaration and fully pay the land use levy within 60 days after they accept the hand-over of landmarks of the ground already cleared up for use.

4. Where a land plot needs to be handed over part by part, the calculation of land use levy shall be based on the actual land area handed over to the units for use.

5. Domestic organizations assigned land by the State according to the ratified investment projects for construction of dwelling houses, residential quarters, new urban areas or infrastructure for assignment or lease, may delay the payment of land use levy. The duration of deferred payment shall not exceed 5 years from the date of issuance of the land assignment decision, which shall also apply to cases of land assignment before the effective date of this Decree. Past the deferred payment time-limit prescribed in this Article, if the said organizations still fail to fully pay the land use levy, they shall, besides having to fully pay it as prescribed, be subject to a fine of 0.1% (one thousandth) of the land use levy payable to the State budget for each day of late payment.

Article 13.- Time-limit for payment of land use levy when being allowed by the competent State agencies to change the land use purposes

In cases where the land use purposes are changed, from a land use levy-free category into a levy-liable category subject to land use levy as prescribed in Article 6 of this Decree, the land use levy payment must be made within 60 days after the tax agency issues a payment notice. Past this time-limit, if land use levy has not been paid or fully paid, the fine on late payment shall also be imposed according to the provisions in Clause 5, Article 12 of this Decree.

Article 14.- Time-limit for land use levy payment when being considered for granting of land use right certificates by the competent State agencies

1. Current land users granted with the land use right certificates according to the provisions of Article 7, this Decree shall have to pay the land use levy within 60 days after the tax agencies issue payment notices.

2. Land users that fully pay the land use levy in lump-sum according to notices of the tax agencies shall enjoy 20% reduction of the payable land use levy amount.

3. In cases where the land users meet with difficulties in their lives; are the hunger elimination and poverty alleviation policy beneficiaries; meet with accidents, or suffer chronic diseases that require long hospitalization, with certification by the People�s Committees of communes, wards or townships where they reside, they shall be entitled to delay the payment of land use levy and have their payable amounts recorded as debits on their land use right certificates. Such land users shall be granted new land use right certificates after fully paying the land use levy amount allowed for the deferred payment; such amount must also be fully paid upon the transfer of the land use right.

Article 15.- Time-limit for payment of land use levy when buying currently rented State-owned houses

Time-limit for payment of land use levy when State-owned houses are sold to current tenants shall be 10 years at most. The amount paid for the first year shall not be under 20% and not under 8% for each subsequent year. In case of lump-sum payment at the time of signing house-purchase contracts, a 20% reduction of the payable land use levy amount shall apply.

Article 16.- Responsibility of the financial agencies

1. To guide land users to declare and pay land use levy.

2. To examine and verify the declarations and calculate the payable land use levy amounts.

3. To notify, monitor and urge the payment of land use levy into the State Treasury.

4. To issue receipts on the collection of land use levy according to the provisions of the Finance Ministry.

5. To settle complaints about the collection and payment of land use levy.

6. To certify the exemption, reduction and recording debits of land use levy in the declarations of land use levy payment, which shall serve as basis for the granting of land use right certificates.

7. To send written notices to land use levy declarers in case of lacking grounds for calculation and collection of land use levy.

8. The Finance Ministry shall prescribe vouchers for remittance of land use levy into the State budget.

Chapter V

HANDLING OF VIOLATIONS, COMMENDATION

Article 17.- Sanctioning

1. Land users who fail to fully carry out the procedures on declaration and payment of land use levy in strict compliance with this Decree shall be administratively sanctioned for the tax-related violations and according to the provisions of the land legislation.

2. Any persons who abuse their positions and powers to deliberately cause difficulties or obstacles to declarers of land use levy payment; appropriate or embezzle land use levy; falsify the land-related dossiers, thus causing losses to the State budget revenues shall, depending on the seriousness of their violations, be administratively sanctioned or pay material compensation; if elements constituting crimes are detected, they shall be examined for penal liability according to law provisions.

Article 18.- Complaint

Land users shall have the right to complain about the improper implementation of the regulations on the collection of land use levy according to this Decree. The written complaints must be sent to the agencies directly calculating and collecting land use levy within 30 days after the receipt of notices on land use levy payment from the tax agencies. Pending the settlement of their complaints, the complainants shall have to pay in time and in full the already notified land use levy amounts.

Article 19.- Effective time-limit for the settlement of complaints

1. The agencies receiving complaint dossiers, which are incomplete or invalid and need to be supplemented or further clarified by the complainants, shall have to notify the latter thereof within 10 days.

2. The time-limit for complaint settlement is 30 days after receiving the dossier; for complicated cases, this time may be prolonged but must not exceed 45 days. For mountainous areas and areas difficult to access, this time-limit shall not exceed 60 days after the receipt of the complaint.

3. If the complainants disagree with the handling decisions of the complaint-receiving agencies or past the time-limits prescribed in Clause 2 of this Article their complaints have not been settled yet, they shall have the right to lodge their complaints to the immediate superiors of such agencies.

4. The Finance Minister�s decisions on handling complaints about land use levy collection and/or payment shall be the final ones.

Article 20.- Commendation

Agencies and officials collecting land use levy and other people making achievements in inspection or organization of land use levy collection, detecting acts of violations of the provisions of this Decree shall be commended according to the current regime.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 21.- Organization of implementation

1. The Finance Ministry shall guide the declaration and payment of land use levy, provide guidance on procedures and dossiers and define competence to decide the exemption, reduction or recording debits of land use levy according to the provisions of this Decree.

2. The Construction Ministry shall guide the registration of declaration of dwelling houses and residential land; determine the scope of planning, architecture and construction.

3. The General Land Administration shall guide the determination of land categories, land use area, types of lawful and valid papers on land use right; and issue land use right certificates according to the provisions of the Land Law.

4. The People�s Committees of the provinces and centrally-run cities shall have to direct the agencies and branches under their management to collect the land use levy according to this Decree, inspect and handle cases of false declarations or incorrect determination of the actual land use duration, which cause damage to the State and the land use levy payers as well.

Article 22.- Implementation effect

This Decree takes effect 15 days after its signing.

This Decree shall replace the regulations on land use levy collection in the Government�s Decree No.89/CP of August 17, 1994 on the collection of land use levy and administrative fees, Decree No.60/CP of July 5, 1994 on dwelling house ownership right and residential land use right in urban areas, Decree No.61/CP of July 5, 1994 on dwelling house purchase and business, Decree No.44/CP of August 3, 1996 on supplements to Article 1 of Decree No.89/CP of August 17, 1994 on the collection of land use levy and administrative fees and Decree No.45/CP of August 3, 1996 on the supplements to Article 10 of Decree No.60/CP of July 5, 1994 on dwelling house ownership right and residential land use right in urban areas.

The earlier regulations on calculation and collection of land use levy which are contrary to the provisions of this Decree shall all be annulled.

Article 23.- Responsibility for implementation

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People�s Committees of the provinces and centrally-run cities shall have to implement this Decree.

On behalf of the Government
Prime Minister
PHAN VAN KHAI