Công văn 7876/BTC-TCT

To: Provincial/municipal Tax Departments

Recently, the Ministry of Finance has received feedback on the implementation of the provisions of law on the registration fee applicable to the transfer of land use right to infrastructure business companies and enterprises in industrial parks and export processing zones, the Ministry of Finance ventures the following specific guidance:

According to Point 3 (d), Section III, Part I of the Finance Ministry’s Circular No. 95/2005/TT-BTC of October 26, 2005, guiding the implementation of the provisions of law on the registration fee,  the registration fee is not collected in the following cases: "Land assigned by the State to organizations and individuals for the following purposes: …, d/ Land for construction of houses for sale for which licensed housing business organizations and individuals have paid land use levies according to the provision of law (except for construction of houses for residence, inn business, hotel business, lease, or for other business activities).

Therefore, economic organizations assigned by the State land for infrastructure construction investment for transfer or lease (regardless of whether land is located inside or outside industrial parks or export-processing zones), need not to pay the registration fee for the grant of land use right certificates. Organizations, households and individuals that receive land use rights from infrastructure construction investment organizations shall pay the registration fee before they are granted for grant use right certificates.

The Ministry of Finance would like to notify the above guidance to provincial/municipal Tax Departments for compliance.-