The official letter 488/TCT-CS 2025 determines financial obligations according to Decree 103/2024/ND-CP.

MINISTRY OF FINANCE GENERAL TAX DEPARTMENT _____ No: 488/TCT-CS Subject: Determining financial obligations according to Decree No. 103/2024/ND-CP

SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness _______________________ Hanoi, February 5, 2025

 

 

To: Hanoi City Tax Department

 

In response to the official letter No. 50247/CTHN-QLĐ dated September 11, 2024, from the Hanoi City Tax Department regarding the determination of financial obligations for land lease fees, the General Tax Department provides the following opinions:

1. Cases where the actual land use purpose does not match the purpose stated in the Decision or the Land Lease Contract
   According to Clause 2, Article 155 of the 2024 Land Law, the criteria for calculating land lease fees include: (1) Land area leased; (2) Lease duration, including extension period; (3) Lease price; (4) The form in which the state leases land and collects rent annually or as a lump sum for the entire lease duration; (5) The state's policies on land lease fee exemptions or reductions. Therefore, Article 23 of Decree No. 103/2024/ND-CP has specified the basis for calculating land lease fees in accordance with the provisions of Clause 2, Article 155 of the 2024 Land Law. As such, in cases where the actual land use is not consistent with the purpose stated in the Decision or Land Lease Contract, the Hanoi City Tax Department is advised to coordinate with the Department of Natural Resources and Environment to review the situation and report to the People's Committee of Hanoi City for proper handling in accordance with legal regulations.

2. Payment of land lease fees in cases where there is no land lease decision or land lease contract
   According to Clause 6, Article 30 of Decree No. 103/2024/ND-CP, in cases where land users have used the land before the competent state authorities issue a land lease decision or before signing a land lease contract (for cases of recognizing land lease rights), and have not paid lease fees for the time they have used the land, they must pay annual land lease fees for this period. The annual lease fee is calculated based on the percentage rate for the land lease price and land value applicable to each year of land use until the state issues the land lease decision. The calculation, collection, and payment of land lease fees from the time the state issues the land lease decision onward will be carried out according to the provisions of this Decree.

3. Determining land lease prices in cases where the adjustment principle for land lease prices was applied previously
   According to Clause 10, Article 51 of Decree No. 103/2024/ND-CP, if land lease occurred before the effective date of this Decree and during the period when the land lease price was stabilized according to previous land law regulations before the 2024 Land Law came into effect, the land lease price will continue to be stabilized until the end of the stabilization period. After the stabilization period, land lease fees will be calculated according to the provisions in Article 30 of this Decree for the next cycle. These lease fees will be stabilized for 5 years, after which adjustments to the land lease fees will be applied according to the provisions of Article 32 of this Decree.

4. Determining land lease fees in cases where the lessee is using a building with mixed-use land purposes
   Based on Articles 11 and 13 of Decree No. 108/2024/ND-CP dated August 23, 2024, of the Government, which regulates the management, use, and exploitation of public land and buildings not for residential purposes assigned to organizations with functions for managing and operating local public housing:
   According to these regulations, Decree No. 108/2024/ND-CP has specified the rental area of houses and how to allocate shared areas to calculate rent for each tenant, including the rental price list and how to determine land lease fees as part of the rental price structure. Therefore, for cases where public land or buildings with mixed-use purposes are being used, the lessee must pay rent according to the rental price list (which includes land lease fees) set by the provincial People’s Committee in accordance with Decree No. 108/2024/ND-CP.

5. Payment of land lease fees by public service units using buildings or facilities with land for business, leasing, joint ventures, or collaborations according to public asset management regulations

• Based on Clause 1, Clause 3, Article 30 of the 2024 Land Law;
• Based on Clause 1, Clause 2, Article 47 of Decree No. 151/2017/ND-CP dated December 26, 2017, detailing the implementation of some provisions of the Public Asset Management and Use Law;
• Based on Clause 39, Article 1 of Decree No. 114/2024/ND-CP dated September 15, 2024, amending and supplementing some provisions of Decree No. 151/2017/ND-CP;

According to these regulations, if a public service unit does not choose to lease land and pay land lease fees under land law regulations, it must pay the state budget a minimum of 2% of the revenue from business, leasing, joint ventures, or collaborations according to points b and c, Clause 5, Article 43 of Decree No. 151/2017/ND-CP (amended by Clause 39, Article 1 of Decree No. 114/2024/ND-CP).

The General Tax Department responds for the Hanoi City Tax Department’s reference.

 

Recipients: As above; Deputy General Director Đặng Ngọc Minh (for information); CST Inspection Department; Public Asset Management Department (MOF); PC Division (GTD); General Tax Department website; Archive: VT, CS.

ON BEHALF OF THE GENERAL DIRECTOR DEPUTY DIRECTOR OF THE POLICY DEPARTMENT Hoang Thi Ha Giang

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