Pursuant to Decree No. 71/2001/ND-CP dated 10 October 2001 of the Government on investment incentives to build houses for sale and rent;

Pursuant to Decree No. 175/CP dated 28/10/1994 of government mandates, powers and organization of the Ministry of finance;

The Ministry of Finance shall guide the implementation of the incentive to use land, land lease, land use tax (land tax), corporate income tax for preferential investment projects to build houses for sale and rent as follows: a. the APPLICABLE OBJECT i. enterprises in the economic component is the investor of the project construction investment in the provisions of article 2 Decree No. 71/2001/ND-CP of the Government, tax incentives are included: 1. domestic business:-State enterprises established and operating under the State Enterprise Law;

-Enterprise established and operating under the enterprise law;

-Businesses of the political organization, social-political organizations, the professional associations; Enterprise security, defense establishment and operation in accordance with the law;

-Cooperative established and operated under the law on cooperatives;

-Business due to the settlement of Vietnam in foreign direct investment in Vietnam; the business due to long-term resident foreigners in Vietnam direct investments in Vietnam; businesses do the same Vietnam citizens established with Vietnam who settled abroad, with foreigners long resident in Vietnam.

2. Enterprise with foreign capital established and operated under the law on foreign investment in Vietnam.

II. Objects in an incentives at the point I section A of this circular to enjoy the preferential tax and other revenues prescribed by Decree No. 71/2001/ND-CP of the Government must have the following conditions:-the housing business is registered under the provisions of the law;

-Make investment in high rise housing projects (from 5 storeys or more for the city of Hanoi and Ho Chi Minh City, from 3 stories up for the province, other cities); has the structure type of self-contained apartments, there are stairs and walkways; housing projects of land use structure in from 60% of the total land area of building is home to condominiums, sell, rent priority for objects under the provisions of article 5 of Decree 70/2001/ND-CP of the Government; Sale price, the price for the rent to be determined on the principle of conservation of capital and interests of business establishments; For the sale price and the price for the apartment rental condominiums are not calculated into the price incentive to use land, land tax, land lease (according to the provisions in clause 1, article 6 of Decree 70/2001/ND-CP).

-Implement fully the provisions of the law, accounting, invoices; the private accounting business results of the project are entitled to tax incentives and the revenues of the land.

B. the PREFERENTIAL TAX and LAND REVENUES I. for DOMESTIC ENTERPRISES: enterprises in the country referred to in point I. 1 part A to this circular, made housing projects as defined in article 2, of Decree No. 71/2001/ND-CP of the Government referred to as the project owner for tax incentives are as follows : 1. money preferences land use: a) Are free to use the land for land construction of condominiums;

b) 50% reduction of land use money to build houses in condominiums is not within the scope of the project (if any);

c) Are free to use the land for the project to build the type of houses in the area have socio-economic conditions of difficulty or special difficulties (specified in list B or C of the appendix to the Decree No. 51/1999/ND-CP on 08/7/1999 of the Government);

d) Are slow to pay for the land use section land must pay land use, in accordance with the construction progress of each project according to the decision of the provincial PEOPLE'S COMMITTEE, the city, but the time was slowly paid use of land must not exceed 5 years, since the assigned land.

e) project investor was given the land use land and money to compensate damage to land as defined in paragraph 2, article 8 of Decree No. 71/2001/ND-CP dated October 5, 2001, the Government's compensation for damages on the ground that are deducted from the amount payable land use , but must not exceed the total amount of land use that investors must file.

Investors do not count the cost to support moving the provisions in clause 1, article 8 of Decree 70/2001/ND-CP on 5/10/2001 of the Government on the compensation of damage to land except on land use money to be paid or deducted from the account to pay for other budget (if any).

2. tax incentives in land use, soil building construction project: investors are exempt from the land use tax, construction land within 3 years, since the land is allocated for land to build condominiums. The case of the land to build condominiums complete has sold or delivered for the use in time before three years are tax time end land use since the land transfer.

3. the preferential enterprise income tax rates: a) tax rate of 15% for investment in construction of condominiums and other housing types in geographical socio-economic conditions particularly difficult (defined in list C of the appendix to the Decree No. 51/1999/ND-CP on 08/7/1999 of the Government).

b) tax rate of 20% for investment in construction of condominiums and other housing types in geographical socio-economic difficulties (specified in list B of the appendix to the Decree No. 51/1999/ND-CP on 08/7/1999 of the Government).

c) tax rate of 25% of the investment construction of condominiums and other housing types in the rest.

Investors have to separate accounting organization of business results of the projects enjoy preferential tax rates on corporate income tax; If not held the private accounting of each project, the applied tax rate for the highest corporate income tax which the owner has manufacturing operations, business.

II. for ENTERPRISES with FOREIGN INVESTMENT: businesses have foreign capital established and operated under the law on foreign investment in Vietnam (hereafter referred to collectively as the investors), join to build housing projects as defined in article 2 of Decree No. 71/2001/ND-CP of the Government in the municipality , enjoy tax incentives and the revenues of the land according to Decree No. 71/2001/ND-CP DATED as follows: 1. On the land lease: a) Are free for land to build condominiums throughout time and land rent.

The case building condominiums for sale, free time from the date of contract for leasing land for sale is completed to date of apartments condominiums.

b) Is free, first, since the land lease contract for the area that investors must pay a land lease to build houses (excluding construction of condominiums), next time be free investor must declare land leasing according to regulations.

Cases residential land has sold or delivered to the users in the previous 3 years time then the time was free to end since the transferred land.

c) where the project is halted or suspended building works there are approved by competent State agencies for land rent, the 50% reduction of land rents correspond to time suspend construction.


When get a approval of competent authorities allow suspended construction or halted operations, investors must send copies (stamped of the unit) to collect agency rents to reduce land rents within 10 days of receiving the written approval of the competent authority.

d) where investors sell House is not House condominiums in the scope of the project to build condominiums to pay land use (tied housing sold) and minus the actual land rental already paid into the State budget of this area , but shall not exceed the amount of land use. Land damage compensation are not counted when calculating the deductible of currency used land.

-Land area must pay land use and land rent deduction is the land associated with the House sold.

-The price of the land use fee payable is the price of the land by the provincial PEOPLE'S COMMITTEE, the city of centrally regulated on the basis of the framework of government regulation and is calculated according to the price of the land at the time of the transfer.

2. The preferential enterprise income tax: investors make home building projects as defined in article 2 of Decree No. 71/2001/ND-CP on 5/10/2001 of the Government in the municipality enjoy preferential corporate income tax rates as follows: a) the 10% tax rate for investment in building condominiums and other housing types in municipality in the area there are social-economic conditions particularly difficult (specified in section A, the category encouraged investment, Appendix I attached to Decree No. 24/2000/ND-CP dated 31/7/2000 of the Government).

b) tax rate of 15% for investment in construction of condominiums and other housing types in municipality in geographical socio-economic difficulties (specified in section B of the list encouraged investment, Appendix I attached to Decree No. 24/2000/ND-CP of the Government).

c) tax rate of 20% for investment in construction of condominiums and other housing types in the municipality rest.

Investors have to separate accounting organization of business results of the projects enjoy preferential tax rates on corporate income tax, if not organized the private accounting of each project, the applied tax rate for the highest corporate income tax that investors have produced , business.

C. IMPLEMENTATION I. for investors: investors must submit 1 a copy of the decision or project owner project investment licenses, decisions, lease the land. (has seal of the unit) for the tax Department, central cities where the headquarters of the main unit and 1 copy for the tax office where the tax revenue management implementation within 10 days of the decision being made to register for tax incentives.

1. About the Declaration paid use of land, exempt, reduce the amount of land use, land-use payer: slow-investors have to declare paid land use, making long, reducing land use money sent to direct agency tax management according to the instructions in circular 115/2000/TT-BTC on 11/12/2000 of the Ministry of finance proposed exemption, reduction of land use money within 15 days from the date of handing over land.

-Investors are slowly paid use of land must be sent to the tax authorities directly managed currency (stamped copies of the unit) in the 10-day period from the date of the provincial people's Committee, the city decided to delay payment to register land use planning land-use payer. The time was filed slowly land use money must not exceed 5 years from when it was delivered to Earth.

2. On Declaration filed land tax, land lease, land tax, land lease is done according to the current rules.

3. On application of enterprise income tax: every year, the investor, the Declaration, the corporate income tax according to preferential tax rates.

4. for investors are making the project has been approved by the competent authority before the date of the Decree No. 71/2001/ND-CP of the Government has enforceable, are eligible under the provisions of article 2, of Decree No. 71/2001/ND-CP and section II of part A of this circular shall direct investors to work with local tax department to determine what the process, projects forward from the date of Decree 70/2001/ND-CP effective enforcement is entitled to the investment incentive under Decree No. 71/2001/ND-CP and the guidance in this circular. Private incentives business income is counted from the year 2002.

5. Upon expiry of the investment under the investment license, if foreign investors not to renew the licence under regulation, the investment must have the responsibility to make delivery not reimbursed the entire infrastructure system within the scope of the project for the competent State agencies of Vietnam under the rule of law and resolve exists pursuant to the the law of Vietnam. The next investor will enjoy the preferential investment levels for the remaining time for the remaining project components not yet entitled to investment incentives.

6. project investor in beneficiaries in housing investment incentives under the provisions of Decree No. 71/2001/ND-CP of the Government, if during the time of construction was the competent authority decided on the changes to investors, the new investors to continue to enjoy the preferential investment levels for the remaining time , for the remaining project components not yet entitled to investment incentives.

II. With REGARD to the TAX AUTHORITIES: tax authorities directly managed currency to list registering investors make their investment projects to build housing, set the track record of each investor, grasp the implementation of the project; the Organization and implementation of tax incentives.

1. implementation of land use, free of charge, reduced land use:-The amount of land used for the investors of the project are made as cash payers to use land as State land according to the instructions in circular No. 115/2000/TT-BTC of the Ministry of finance. The exemption, reduction of land use money made according to current rules.

The long, steady history of land use, land-use amount payable, determined the time was slowly filed, be made at the time of handing over land to the project, or at the time of sale, for foreign investors.

-Sanctioning administrative violations as defined for owner breach the rules on Declaration, filing taxes and revenues of the land according to the regulations.

2. The land tax exemption for investments in housing construction projects as specified in point 3, section IV circular No 83 TC/TCT on 07/10/1994 of the Ministry of Finance shall guide the implementation of Decree No. 95/CP on 25/8/1994 of the Government detailing the Tax Ordinance enforcement home , land.

3. Collect money land lease, exemptions: The currency, paid use of land, land rent exemption is done by decision 189/2000/QD-BTC dated November 24, 2000 of the Minister of finance regarding the issuance of a regulation on land rents, water surface, apply to other forms of foreign investment in Vietnam.

4. Apply enterprise income tax: the tax agency registration base of investment incentives, according to the approved projects to determine the tax amount temporarily paid in the year; Most of the year, receiving the tax of the investor to send, check the project for housing investment, to apply a tariff preferential enterprise income tax, corporate income tax payable, actual implementation of tax under the regulations.

D. EFFECT


This circular has the effect after 15 days from the date of signing. For investment projects and for rent are eligible as defined in article 2 of Decree No. 71/2001/ND-CP on 5/10/2001 of the Government is implementing tax perks and collect money to use land under the provisions of this circular if enjoy preferential rates under other regulations to lower the level of incentives in Conference No. 71/2001/ND-CP dated October 5, 2001, the Government was adopting new incentive levels as stipulated in Decree No. 71/2001/ND-CP for projects or parts of projects made from the date of Decree 70/2001/ND-CP effective enforcement.

The province, central cities are responsible for directing the Department of planning and investment, Tax, Department of finance, Department of-the main Location, the level, the investor in the scope of its powers, functions of management, implementation of investment projects and investment tax incentives under the guidance of this circular.

In the process if there are obstacles, suggest these units reflect timely the Finance Ministry to guide the implementation of timely./.