Guidelines on collection of land use levy and land rental in economic zones and hi-tech zones

On 6 October 2017, Circular No. 89/2017/TT-BTC (“Circular 89”) issued by the Ministry of Finance guiding Decree No. 35/2017/ND-CP on collection of land use levy, land rental and water surface rental in economic zones and hi-tech zones (“Decree 35”) took effect. 

Accordingly, the land use levy and land rental in Economic zones and Hi-tech zones will be determined on principles as follows:

a. Collection of land use levy and land rental not through auction:

(i) Regarding enterprises leasing land and paying annual land rental:

Total payable land rental = Land rental unit price * Land area subject to land rental

In which, the land rental unit = A percentage (from 0.5% to 3%) * specific land price (which is determined by land price adjustment coefficient method stated in the Decree on Land Price of the Government).

Percentage and land price adjustment coefficient will be set by the Department of Finance where the economic zone is located, in cooperation with the management board of that economic zone and relevant authorities depending on land locations, areas and routes corresponding to each land use purpose.

(ii) Regarding enterprises leasing land and paying one-off land rental for the whole lease period

In cases where the area of the land rental calculation is valued at VND 30 billion or higher, the specific land price will be determined according to the direct comparison, discount, income or surplus method in accordance with the Government’s regulations on land prices; and

In other cases, the specific land price used for land rental calculation will be determined by the management board of the economic zone according to the land price in the land price table, the land price adjustment coefficient and the land lease period.

b. Collection of annually-paid land use levy and land rental through auction:

The reserve price of annual land rental in auction is the annual land rental unit determined by the management board of the economic zone at the price in land price tables, land price adjustment coefficients and specific percentages (%) set by the Provincial-level People's Committee.