Thông tư 104/2000/TT-BTC

CIRCULAR

GUIDING THE IMPLEMENTATION OF THE GOVERNMENT’S DECREENo.19/2000/ND-CP OF JUNE 8, 2000 DETAILING THE IMPLEMENTATION OF THE LAW ON LAND USE RIGHTTRANSFER TAX AND THE LAW AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE LAW ONLAND USE RIGHT TRANSFER TAX

Pursuant to the Law on Land Use Right Transfer Tax and the Law Amendingand Supplementing A Number of Articles of the Law on Land Use Right Transfer Tax.
Pursuant to the Government’s Decree No.19/2000/ND-CP dated June 8,2000 detailing the implementation of the Law on Land Use Right Transfer Tax and the lawAmending and Supplementing A Number of Articles of the Law on Land Use Right Transfer Tax.
The Ministry of Finance hereby guides the implementation of the saidDecree as follows:

I. SCOPE OF APPLICATION

1. Land use right transfer tax payers

Organizations, family households and individuals having the right touse land, when transferring their land use right under the provisions of the landlegislation, shall all have to pay the land use right transfer tax, except for casesdefined at Point 3, Section I of this Circular.

In cases where current land users possess one of the papers stipulatedin Clause 2, Article 3 of the Government’s Decree No.17/1999/ND-CP dated March 29,1999 on the procedures for exchange, transfer, lease, sub-lease and inheritance of theland use right as well as the mortgage and capital contribution with the land use rightvalue (hereinafter called the Government's Decree No.17/1999/ND-CP for short) but have notbeen granted new land use right certificates, when transferring their land use right withcertification by the competent authorities as prescribed, they shall also have to pay theland use right transfer tax under the guidance of this Circular.

The papers stipulated in Clause 2, Article 3 of Decree No.17/1999/ND-CPare determined to include the following concrete valid papers:

a/ Decisions on land allotment or land lease issued by the competentState agencies according to the provisions of the land legislation;

b/ Papers on land allotment or land lease granted by the competentState agencies in the course of implementation of the land policies in each period of theState of the Democratic Republic of Vietnam, the provisional Revolutionary Government ofthe Republic of Southern Vietnam and the State of the Socialist Republic of Vietnam,provided that the land has been used constantly by the allottees;

c/ Provisional land use right certificates issued by the competentState agencies or the land users' names are recorded in the land administration books,provided that the land is not in dispute;

d/ Papers issued by the competent authorities of the old regime to theland users that have been using the land since then without any dispute;

e/ Papers on land and house inheritance, presentation or donation,which were issued before the 1993 Land Law as certified by the commune/ward/ townshipPeople's Committees and the land is not in dispute;

f/ Judgements or decisions of the people's courts or decisions on thesettlement of land disputes, issued by competent State agencies, which have taken legaleffect;

g/ Papers on the hand-over of houses of gratitude;

h/ Papers on land transfer, house sale and purchase together with theland use right transfer: Where the sellers have valid papers, the purchasers have notfilled in the transfer procedures at the competent State agencies, even where the transferhas been made more than once and the current owners non apply for the land use rightcertificates; if, after examination, the commune/ward/township People’s Committeescertify that the land is not in dispute and this examination result is verified by thePeople's Committees of urban/rural districts, provincial towns or cities, the current landuse right transferees shall have to make declaration for payment of the land use righttransfer tax and registration fee.

2. Object of the land use right transfer tax

Object liable to the land use right transfer tax is the value of the land area on theuse right transfer as prescribed by law, including land with houses and constructionsthereon.

Where exist houses and constructions on the land on the use righttransfer, the land use right transfer tax shall be calculated only with the value of theland on the use right transfer, without the value of houses or constructions thereon.

3. Tax-free cases

Cases not subject to the land use right transfer tax are stipulated inArticle 3 of the Government’s Decree No.19/2000/ND-CP dated June 8, 2000 detailingthe implementation of the Law on Land Use Right Transfer Tax and the Law Amending andSupplementing a Number of Articles of the Law on Land Use Right Transfer Tax (hereinaftercalled the Government’s Decree No.19/2000/ND-CP for short). More concretely:

3.1. The State allots or leases land to organizations, familyhouseholds or individuals for use according to the provisions of the land legislation.

3.2. Organizations, family households or individuals return land to theState or the State recovers land under the provisions of the land legislation.

3.3. The State sells State-owned houses together with the land useright transfer to the house buyers.

3.4. The land use right is transferred in case of divorce recognized bylaw with division of the land use right upon agreement of the husband and wife ascertified by the commune/ward/township People's Committees or the land use right isdivided under the Marriage and Family Law.

The land use right is transferred in cases where the land use righttransferee is a heir under testament or the land use right is divided under theinheritance legislation.

3.5. The land use right is transferred in the following cases:

- Between wife and husband, which requires the copy of householdregistration book, clearly stating their spousal relationship or their marriagecertificate with the certification by the People's Committee of the commune, ward ortownship where concerned persons register their household of their existing spousalrelationship as recognized by law, provided that at least one of them has his/her name inthe land use right certificate.

- Between fathers or mothers, foster-fathers or foster-mothers andtheir offspring or adopted children; between paternal or maternal grandparents and theirgrandchildren (or vice versa), provided that the land use right transferors must havetheir names in the land use right transfer certificates and have household registrationbooks clearly stating their relationships with the persons having the land use right, orhave birth certificates to determine the relationships between grandparents and parents,between parents and children, or other legal papers proving such relationships.

+ For cases involving foster-fathers or -mothers and adopted children,they must be recognized by law under decisions on recognition of adopted children, issuedby the competent State agencies prescribed in the Government's Decree No.83/1998/ND-CPdated October 10, 1998.

+ For cases involving paternal or maternal grand-parents and theirgrandchildren, there must be birth certificates of the grandchildren and their parentsrelated to the paternal or maternal grandparents or household registration books thatclearly state such relationships.

+ For cases of land use right transfer between siblings, there must bebirth certificates proving that such persons have the same parents or the same father ormother, or a household registration book clearly stating such relationship or other papersproving that they are of the same bloodline.

3.6. Economic organizations, family households or individuals, that areleased land by the State, transfer the leased land use right. The transferor of the leasedland use right must have a land-leasing contract which clearly states the land rent amountalready paid and the remaining payable amount, which is calculated till the time oftransfer, as well as the land-lease term; the transferee of the leased land use rightshall continue complying with the land-lease regime according to the Land Law’sprovisions.

3.7. Organizations, family households or individuals donate their landuse right to the People's Committees of different levels or to political organizations,socio-political organizations, social organizations, socio- professional organizations oreconomic organizations for the construction of cultural, educational, medical, physicaltraining and sport establishments; or charity establishments, including houses ofcompassion or gratitude, orphanages, sanatoriums for elderly, homes for lonely aged ordisabled people, and other humanitarian establishments for non-commercial purposes underprojects already ratified or approved by the competent State bodies in conformity with theplanning.

II. LAND USE RIGHT TRANSFER TAX CALCULATION BASES

Bases for calculation of the land use right transfer tax are the land area on the righttransfer, land prices and land use right transfer tax rates.

1. Land area

Land area for calculation of the land use right transfer tax is theactual land area inscribed in the land use right transfer contract in conformity with theland administration book and map of the commune, ward or township. Where the landadministration book or map is unavailable or the land area inscribed therein is differentfrom that inscribed in the contract, the measurement must be organized to determine thelandmarks with certification by the People’s Committee of the urban/rural district,provincial town or city (referred collectively to as district) where exists the land onthe use right transfer, for land of family households and individuals; or by theprovincial/municipal Land Administrations, for land use right of organizations.

Where the land administration books or excerpts of the landadministration maps are available, the district People's Committees orprovincial/municipal Land Administrations may authorize their immediate subordinates tocertify land areas and categories for the fulfillment of the land use right transferprocedures.

2. Land prices for calculation of the land use right transfer tax

Land prices for calculation of the land use right transfer tax areprescribed in Article 6 of the Government’s Decree No.19/2000/ND-CP of June 8, 2000,More concretely:

1. Land prices for calculation of the land use right transfer tax arethe prices set by the People’s Committees of the provinces or centrally-run citiesaccording to the Government's price bracket for different land categories, which shall bepublicly posted up at the tax agencies and land administration offices.

2. Where the land use right is transferred by mode of auction, the taxcalculation land prices shall be the auction-winning prices, which must not be lower thethose set by the People's Committees of the province or centrally-run cities according tothe Government’s price bracket for different land categories.

Where the land use right is transferred together with the sale ofassets affixed thereto in form of auction while the land prices cannot be determinedseparately from the auction-winning prices, the tax-calculation land prices shall be theland prices set by the People's Committees of the provinces or centrally-run cities,according to the Government’s price bracket for different land categories.

3. Where apartments in multi-storied land multi-apartment buildings aresold together with the land use right transfer, the tax-calculation land prices shall bedetermined according to the coefficients prescribed for different stories by theGovernment's Decree No.38/2000/ND-CP dated August 23, 2000 on the collection of land uselevy.

4. For the transfer of the right to use pond or garden land in ruralpopulation quarters or residential land in urban areas, the land prices for calculation ofthe land use right transfer tax shall be determined according to the land categoriesinscribed in the land use right certificates or the currently taxed land categories: ifthe land is being levied with the agricultural land use tax, the tax calculation pricesshall be the agricultural land prices; if the land is being levied with the housing-landtax, the tax calculation prices shall be the prices of residential land or land forproject construction.

- For a number of land use right transfer cases where specific landprices are unavailable in the local price bracket for different land categories, or theland lots have been under infrastructure renovation or construction planning, thus makingtheir value higher than the pre-planning value; or where the land prices change tooirrationally as compared with the prices in the price bracket, the tax agency shallcoordinate with the finance agency and land administration agency in organizing there-determination of the land prices to make them conform with the actual situation (a landprice-setting council may be set up) and report such to the People's Committee of theprovince or centrally-run city so that the latter tray specify land prices for calculationof the land use right transfer tax.

3. Land use right transfer tax rates

The land use right transfer tax rates are determined according to theprovisions in Article 7 of the Government's Decree No.19/2000/ND-CP dated June 8, 2000.More concretely:

a/ For land used for agricultural production, forestry, aquaculture orsalt making, the tax rate shall be 2% (two per cent).

b/ For residential land, land for project construction and landcategories other than those stipulated at Point a above, the tax rate shall be 4% (fourper cent).

III. TAX DECLARATION AND PAYMENT

1. A dossier of the land use right transfer tax declaration includes:

- The land use right transfer tax declaration, which is made accordingto the form set by the tax agency.

- The land use right certificate or valid papers on land use rightprescribed in Article 3 of the Government’s Decree No.17/1999/ND-CP and specified atPoint 1, Section I of this Circular.

The above-mentioned papers must be the originals, each attached with acopy notarized by the State Notary Public for archives by the tax agency.

- The land use right transfer contract (made according to form 02provided for in the Government’s Decree No.17/1999/ND-CP) between the land use righttransferor and transferee with certification of the People’s Committee of thecommune, ward or township where exists the land on the right transfer.

Where the land use right transfer had been made before the effectivedate of the Government’s Decree No.17/1999/ND-CP dated March 29, 1999, with the landuse right transfer contract being no longer available or not made, there must be papers onthe sale, purchase, transfer, inheritance, donation or presentation at the time oftransferring the land use right, with certification of the People's Committee of thecommune, ward or township where exists the land on the right transfer.

2. Declaration and determination of payable tax amount

The land use right transfer tax payers shall have to declare the landuse right transfer tax according to the declaration form set by the tax agencies andsupply other necessary documents related to the tax calculation at the requests of the taxagencies as well as papers related to the tax reduction or exemption.

Dossiers for declaration of the land use right transfer tax shall besubmitted at tax divisions if the land use right certificates are granted by thePeople’s Committees of the rural/urban districts, provincial towns or cities(referred collectively to as districts); or at the provincial/municipal tax departments ifthe land use right certificates are granted by the provincial/municipal People'sCommittees.

For localities with townships or towns being far away from theprovincial/municipal centers, the provincial/municipal tax departments may assign theirdistrict/town divisions to fill in the procedures for land use right transfer taxcollection. After the land use right transfer tax has been fully paid, the dossiers shallbe handed over by the tax divisions or tax payers to the competent agencies for carryingout the procedures for issuance of land use right certificates.

The tax agencies shall guide tax payers to make right and fulldeclaration. Upon receiving declarations for land use right transfer tax payment, the taxagencies shall have to make receipts thereof and open books for dossier monitoring. Taxagencies shall examine and verify documents serving as basis for tax calculation,determine the payable tax amounts and issue tax notices strictly according to thetime-limits prescribed in Article 12 of the Government’s Decree No.19/2000/ND-CPdated June 8, 2000.

Where a dossier is invalid or incomplete as prescribed, the tax agencyshall have to notify it in writing to the tax payer so that the latter may supplement thedossier according to stipulations.

3. Tax payment

The land use right transfer tax payment shall comply with theprovisions in Article 12 of the Government’s Decree No.19/2000/ND-CP which arefurther detailed as follows:

The land use right transfer tax shall be remitted into the Statetreasury of the locality where exists the land on the rise right transfer according to thetax agency’s notice. When handing a tax notice to the tax payer, the notice-handingperson shall have to write down clearly the date when the tax payer receives such notice.

The land use right transfer tax must be paid within 30 days from thedate the land use right transferor receives the tax agency’s notice. When collectingtax, the State treasury or the tax agency which directly collects the tax shall have togive tax receipt or voucher issued by the Finance Ministry to the tax payer. Where a taxpayer pays tax in installments, the tax-collecting agency shall have to give receipt foreach installment and certify the full tax payment when the tax is fully paid according tothe tax notice, which shall serve as basis for the competent State agency to issue theland use right certificate. The land use right transfer tax remitted into the State budgetshall be recorded in the corresponding right section, chapter, category, item and grade ofthe current State budget contents.

The competent State agencies shall grant land use right certificates tothe land use right transferees only when the land use right transferors or transfereeshave fully paid the tax (with receipts or papers on money remittance into the Statebudget, issued by the Finance Ministry) or have tax reduction or exemption decisionsissued by the tax agencies or when the land use right transfer tax is debited according tothe provisions at Point 2g, Section VII of this Circular.

The tax departments of the provinces and centrally-run cities shallcoordinate with the land administration agencies in providing detail guidance on the taxdeclaration procedures and dossiers as well as the dossier transfer process between theland administration agencies and the tax agencies according to the provisions on land useright transfer in the Government’s Decree No.17/1999/ND-CP which must also conformwith the local situation, ensuring the simplicity and convenience for the land use righttransfer tax payers as well as the full and timely collection of the land use righttransfer tax. The process of declaration for the transfer of the land use right transfertax dossiers shall be publicized at the tax agencies and the land administration agenciesso that the tax payers may know and implement it.

IV. TAX EXEMPTION AND REDUCTION

1. Subjects eligible for land use right transfer tax exemption

Subjects eligible for land use right transfer tax exemption arespecified in Articles 8, 9 and 10 of the Government’s Decree No.19/2000/ND-CP datedJune 8, 2000, including:

1.1. Family households or individuals that transfer the land use right to move tosettle down in new economic zones, mountainous regions or islands under decisions of thecompetent State agencies;

1.2. Persons conferred with the "heroic Vietnamese mother"title by the State, who transfer their land use right;

1.3. The transfer of the right to use land of various types in ruralmountainous or island communes as prescribed by the Government;

1.4. The mutual exchange of land used for agricultural production,forestry, aquaculture or salt making in order to meet the farming conditions;

1.5. Economic organizations which are allotted land by the State, withthe collection of land use levies, for investment in the construction of dwelling housesfor sale or construction of infrastructure for transfer or lease of the right to use landaffixed with such infrastructure, shall be exempt from the land use right transfer taxcorresponding to the land area for which the land use levy has been paid under eachproject.

Other cases of dealing in real estates involving the land use righttransfer shall not be entitled to the land use right transfer tax exemption prescribedabove.

2. Subjects eligible for land use right transfer tax reduction

To reduce by 5(%) (fifty per cent) of land use right transfer tax forthe following subjects when they transfer their land use right:

2.1. War invalids of 1/4 and 2/4 grades, and diseased armymen of 1/3and 2/3 grades;

2.2. Members of families of the fallen combatants who are entitled tothe State allowance regime;

2.3. Disabled people who lose their working capacity, minors and lonelyaged people who have no one to support.

3. Dossiers of application for land use right transfer tax exemption orreduction:

3.1. When asking for the land use right transfer tax exemption orreduction, subjects entitled thereto shall, in addition to the dossiers prescribed atPoint 1, Section III of this Circular, have to make applications clearly stating thereasons for or cases of land use right transfer tax exemption or reduction which they fallinto.

3.2. Subjects eligible for land use right transfer tax exemption orreduction must have papers proving their respective cases. More concretely:

+ For family households and individuals moving to settle down in neweconomic zones, mountainous regions or islands, they must produce copies of decisionsissued by the competent State agencies, which are notarized by the State Notary Public.

+ For tax exemption or reduction for family households’ mastersbeing war invalids, diseased armymen, members of families of fallen combatants or personsconferred with the "heroic Vietnamese mother" title, depending on each specificcase, there must be certification attached with the notarized copy of certificate of thegrades of the concerned war invalids or diseased armymen, certificate of heroic Vietnamesemothers, or certificate of families of fallen combatants or monthly allowance bookentitlement for members of families of fallen combatants.

+ Cases of transfer of the right to use land of different categories inrural mountainous and island communes shall comply with the Government’s regulationson mountainous and island communes (except for land in cities, towns and townships).

+ For cases of mutual exchange of land used for agriculturalproduction, forestry, aquaculture or salt making, there must be certifications by thecommune/ward/township administration.

+ For cased involving lonely aged people having no one to support orminors, there must be written certification of the commune/ward/township People’sCommittee for each specific case; for disabled persons’ there must be certificationsbe the district/town medical agencies of the extents of their disability.

+ For cases of land use right transfer tax exemption for economicorganizations allotted land by the State with the collection of land use levies for theexecution of construction investment projects already ratified by the competentauthorities, such exemption shall be effected for investors only when the construction ofprojects has been completed, such as the complete construction of houses for sale toorganizations and households; the construction of infrastructure of industrial parks orresidential quarters for partial or full transfer to other organizations for managementand use; cases of the complete construction of only infrastructure of residential quarterswhich are divided into blocks or grounds for transfer shall not be entitled to the landuse right transfer tax exemption or reduction prescribed herein. The units entitled to theland use right transfer tax exemption must have business registration permits compatiblewith their construction lines, land allotment decisions, already ratified constructioninvestment projects and vouchers proving that they have fully paid the land use levies asprescribed.

The papers defined at Point 2 of this Section must be original orcopies notarized by the State Notary Public so that the tax agencies may clarify dossiersto be archived as prescribed.

4. Competence to consider tax exemption and reduction

- The directors of the provincial/municipal tax departments shall haveto consider and decide the land use right transfer tax exemption or reduction for subjectsthat declare and pay the land use right transfer tax at the tax departments of theprovinces and centrally-run cities and for subjects granted the land use rightcertificates by the provincial/municipal People’s Committees.

- The head of the tax divisions of rural districts, urban districts andtowns shall have to consider and decide the land use right transfer tax exemption orreduction for subjects that declare and pay the land use right transfer tax in ruraldistricts, urban districts, towns and cities of the provinces and centrally-run cities.

The decisions on land use right transfer tax exemption or reductionmust clearly state the land areas eligible for exemption or reduction consideration andthe exempted or reduced tax amounts. Such decisions shall be sent concurrently to the taxpayers and concerned agencies for use as basis for the granting of land use rightcertificates to the land use right transferees.

For cases ineligible for tax exemption or reduction consideration, thetax agencies shall have to reply in writing to the tax payers, land administrationagencies and finance agencies of the same level.

5. Statute of limitations for tax exemption and reduction

- The time-limit for consideration of tax exemption or reduction shallnot exceed 15 days after the receipt of complete dossiers. For complicated cases whichrequire consultation or coordination with the land administration agencies and financeagencies in consideration and the dossier verification, the said time-limit may beprolonged but must not exceed 30 days after the tax agencies receive complete dossiers.

- For family households and individuals, the land use right transfertax shall be exempted or reduced only once at places where such households or individualsregister their permanent residence and where exists the land on the right transfer(provinces or centrally-run cities).

- For economic organizations allotted land by the State with thecollection of land use levies for investment in the construction of houses for sale orconstruction of infrastructure for assignment, they shall be entitled to the land useright transfer tax exemption corresponding to the land area for which the land use levyhas been paid under each project.

V. HANDLING OF VIOLATIONS AND COMMENDATION

1. Handling of violations

Violators of the Law on Land Use Right Transfer Tax and the LawAmending and Supplementing A Number of Articles of the Law on Land Use Right Transfer Taxshall be handled according to the provisions of Article 16 of the Government’s DecreeNo.19/2000/ND-CP dated June 8, 2000. More concretely:

a/ For act of making false declaration for tax evasion

- The heads of the tax divisions may impose a fine of up to one timethe evaded tax amount. Cases of imposing fine of more than one time the evaded tax amountmust be proposed by the heads of the tax divisions to the directors ofprovincial/municipal tax departments for decision.

- The directors of the provincial/municipal tax departments may imposefines trebling the evaded tax amounts;

b/ For act of delaying tax payment

The directors of the provincial/municipal tax departments and the headsof the tax divisions may impose fines for the delayed tax and fine payment according tothe provisions of Clause 2, Article 17 of the Law on Land Use Right Transfer Tax.

c/ For tax payers that evade big amounts of tax, commit one of thethree acts of violation prescribed in Article 17 of the Law on Land Use Right Transfer Taxfor the fourth time onward or commit other serious violations, the tax agencies shallcompile dossiers to be transferred to the functional agencies for penal liabilityexamination.

2. Commendation

Tax agencies and officials that well fulfill their assigned tasks andpersons who have merits in detecting violations of the Law on Land Use Right Transfer Taxand the Law Amending and Supplementing a Number of Articles of the Law on Land Use RightTransfer Tax shall be commended or rewarded according to the Government’s commonregime.

VI. SETTLEMENT OF COMPLAINTS

1. Right to make tax complaints

Articles 22 and 23 of the Law on Land Use Right Transfer Tax stipulate:Organizations, family households and individuals have the right to complain about thewrong application of the Law on Land Use Right Transfer Tax.

The written complaints trust be sent to the tax agencies that issue taxnotices or handling decisions within 30 days after the receipt of such tax notices orhandling decisions. Pending the settlement, the complainants shall still have to pay infull and on time the notified tax and fine amounts into the State budget.

If organizations, family households or individuals disagree with thetax agencies’ decisions on the settlement of their complaints or past 30 days aftersending complaints they receive no replies, they may further lodge their complaints to theimmediate superior tax agencies of the complaint-receiving bodies. The decisions of theimmediate superior tax agencies shall have the implementation effect. The FinanceMinister’s decisions shall be the final ones.

2. Responsibilities and powers of the tax agencies

Tax agencies of different levels shall, within 15 days after receivingtax complaints from tax payers, have to consider and settle them. For complicated casesthat require more time for investigation and verification, such must be notified to thecomplainants but the time-limit for the settlement must not exceed 30 days after thereceipt of the complaints.

Tax agencies shall have to return tax and fine money that has beenwrongly collected and pay damages (if any) to the victims within 15 days after receivinghandling decisions.

If detecting and concluding that there’s a false tax declaration,evasion or mistake, the tax agencies shall have to collect tax arrears for 3 years datingback from the date of inspection and detection and handle the violations according to theprovisions of Article 17 of the Law on Land Use Right Transfer Tax.

VII. ORGANIZATION OF IMPLEMENTATION

1. The General Director of Tax shall have to assist the FinanceMinister in organizing the implementation of the Law on Land Use Right Transfer Taxthroughout the country and coordinate with the concerned branches in organizing anddirecting tax collection and payment.

The directors of the tax departments of the provinces and centrally-runcities, the heads of the tax divisions of rural and urban districts, provincial towns andcities shall have to assist the presidents of the People's Committees of the same level inorganizing the implementation of the Law on Land Use Right Transfer Tax in theirrespective localities, organizing tax collection and settling matters related to the landuse right transfer tax in strict accordance with their prescribed jurisdiction scope; andcompile dossiers to oversee the land use right transfer tax debtors according to theassignment of responsibility for land use right transfer tax collection management intheir respective localities.

2. Handling of some remaining problems:

a/ Those who have transferred the land use right before January 1^st,2000 but not yet paid the land use right transfer tax shall be entitled to pay tax at thetax rates prescribed in the Law Amending and Supplementing A Number of Articles of the Lawon Land Use Right Transfer Tax.

b/ For cases where the land use right transfer had been made beforeJanuary 1^st, 2000, the tax has been declared and calculated, and the taxagencies have issued tax notices but the concerned organizations, family households orindividuals still fail to pay tax or have not fully paid it, they shall, as from January 1^st,2000 also be entitled to the tax re-calculation and payment at the tax rates prescribed inthe Law Amending and Supplementing a Number of Articles of the Law on Land Use RightTransfer Tax; at the same time, depending on the seriousness of their violations, the taxdepartments shall impose sanctions according to the regulations on sanctioningadministrative violations in the field of tax.

c/ For cases where the land use right transfer had been made beforeJanuary 1^st, 2000 and the land use right transfer tax had been declared andpartially paid, the payable tax amounts shall be re-calculated at the tax rates prescribedin the Law Amending and Supplementing a Number of Articles of the Law on Land Use RightTransfer Tax as follows:

- If the tax amount paid before January 1^st, 2000 is smallerthan the re-calculated payable amount, the land use right transferor shall have to pay theoutstanding tax amount.

- If the tax amount paid before January 1^st, 2000 is biggerthan the payable amount re-calculated according to the new tax rate, the tax shall beconsidered as having been fully paid and the fine on late payment shall not be imposed butthe overpaid tax amount shall not be reimbursed.

d/ For cases where the land use right transfer had been made beforeJanuary 1^st, 2000 with the availability of one of the valid papers on the landuse right defined in Clause 2, Article 3 of the Government's Decree No.17/1999/ND-CPincluding cases of land use right transfer for many times and through many owners, whenthe current users fill in the procedures of application for land use right certificates orcertificates of the dwelling house ownership right and the residential land use right,they shall have to pay the land use right transfer tax only once according to theprovisions of law.

e/ Cases where the land use right transfer had been made before January1^st, 2000 while the land use right transferors have none of the valid papersprescribed by law shall not be liable to the land use right transfer tax; the land useright transferees shall have to fill in the procedures of application for land use rightcertificates according to the provisions of law.

f/ Cases where the land use right transfer had been made before January1^st, 2000 and the land use right transfer tax had been declared, calculated anddebited in the land use right certificates shall also be considered for re-calculation ofthe payable tax amounts according to the tax rates prescribed in the Law Amending andSupplementing a Number of Articles of the Law on Land Use Right Transfer Tax, when theinvolved persons make declaration for land use right transfer tax payment.

g/ Conditions for having the land use right transfer tax debited:

Where the current land users (the former land use right transferees),that are obliged to pay the land use right transfer tax according to law provisions meetwith difficulties in daily life, being unable to fully pay the land use right transfer taxprescribed by law, as certified by the commune/ward/township administration, being poorhouseholds or households meeting with difficulties in daily life they shall have theirpayable land use right transfer tax amounts debited in their land use right certificates.The tax amounts recorded as debts in the land use right certificates are the amounts to bepaid to the State budget and determined according to the tax agencies' notices.

The duration for land users to have their land use right transfer taxamounts debited shall be 10 years. The tax amounts recorded as debts to the State budgetshall not bear any interests. The land use right transfer tax debtors may repay debts tothe State budget in lump sum or installments during the debiting time. Upon the fullpayment of the land use right transfer tax they shall be granted new land use rightcertificates.

3. This Circular takes effect as from January 1^st, 2000and replaces the Finance Ministry’s Circular No.78/TC-TCT dated September 30, 1994and Circular No.72/TC-TCT dated October 3, 1995 guiding the implementation of theGovernment’s Decree No.114/CP dated September 5, 1994 which details theimplementation of the Law on Land Use Right Transfer Tax.