Continuing from Part 1, this article will further discuss notable changes regarding land and water surface rent collection in Decree 123/2017/ND-CP of Vietnam’s Government, which was issued to amend and supplement certain provisions of Decree 46/2014/ND-CP.
Article table of contents
Notable points include:
11. Certain provisions on unit price of leased land have been amended and supplemented
12. Supplementing and amending certain provisions on water surface rent brackets. Rented sea surface area is specified in Clause 2 Article 3 of Decree 123/2017/ND-CP of Vietnam’s Government
13. The determination of land rent and water surface rent is amended and supplemented as follows:
- Where land lessees lease land from the State in accordance with regulations of law on land are using houses or land at multi-purpose construction works under state ownership or have pieces of land under state management that fail to separate for each land user, they shall pay the land rent equal to distribution coefficients of used floor area.
- The land user that has not made payment related to land rent and requests modification of detailed construction planning for which new land-related payment arises (if any) shall:
+ pay in full the land rent determined according to the detailed construction planning before it is modified and the corresponding amount of late payment;
+ pay additional land rent which is equal to the difference between the payable land rent based on the planning before and after it is modified and determined at the same time when the competent state authority allows modification of planning (if any).
- Supplementing 03 cases in Point 6a, 7a, 8a Clause 3 Article 3 of Decree No. 123/2017/ND-CP.
14. Supplementing and amending certain provisions on the handling of compensation and land clearance amounts:
- Supplementing provision on the application for deduction from the compensation, which consists of:
+ A copy of the plan for compensation approved by the competent state authority;
+ The documentation and declaration of payment for compensation.
- Supplementing Clause 3a to Article 13 stipulating cases where the State appropriates land, provides compensation and leases out land in the form of annual land rent but fails to balance the state budget for providing compensation.
15. Supplementing the provision on payment for land rent upon change in land use purposes
In case of annually rental land, the stable cycle of the land rent/m2 shall be calculated from the time when a decision on land lease term extension is given by a competent state authority.
In case the land lease term expires before the decision land lease term extension is given by the competent state authority, the land user shall make payment for annual land rent for such extension in line with the land rent/m2 based on land prices on the land price list, coefficient k and rate (%) for calculating the land rent/m2 provided by the People’s Committee of province.
16. Supplementing and amending certain provisions on rules for exempting, reducing land rent and water surface rent
17. The procedures for the exemption and reduction in the land rents and water surface rents are amended
18. Supplementing and amending certain provisions on collection and payment for land rent and water surface rent
If the time for determination of payment for payable land rent or water surface rent is between October 31 and December 31 inclusive in the first year, the tax authority shall provide the land/water surface lessee with a notice of making payment for land rent or water surface rent in the remaining months of the year and the time limit for making payment shall be 30 days from the effective date of the notice.
After the aforesaid time limit, the land/water surface lessee shall make payment for extra amount of late payment in conformity with regulations of law on tax administration.
In case of the lessee leasing land or water surface from the State before July 15, 2014 and being obliged to pay for land rent or water surface rent in arrears:
- Within 30 days from the effective date of the notice of making payment for land rent or water surface rent in arrears, the land/water surface lessee shall pay 50% of the land rent/water surface rent stated in such notice;
- Within the next 60 days, the land/water surface lessee shall pay 50% of the remaining land rent/water surface rent.
- The land/water surface lessee failing to make full payment for land rent/water surface rent after the time limit mentioned in Point a or Point b this Clause shall make payment for extra amount of late payment in conformity with regulations of law on tax administration.
Decree No. 123/2017/ND-CP of Vietnam’s Government takes effect from January 01, 2018.
