On 9 September 2016, the Government issued Decree 135/2016/ND-CP (“Decree 135”) to supplement and amend a number of articles of Decree 46/2014/ND-CP of the Government dated 15 May 2014 on collection of land and water surface rentals and Decree 45/2014/ND-CP of the Government dated 15 May 2014 on collection of land use fees. Decree 135 takes effect from 15 November 2016. The significant and noticeable amendments of this Decree 35 are summarised as below.
Decree 135 now stipulates that the investor must pay to the State an additional amount corresponding to the land use fee in case of failing to put the land allocated by the State into use or delaying the land use schedule as recorded in the investment project. Such amount shall be determined as follows:
- In case the investor is allowed to extend the land use term as stipulated under the Land Law, the additional amount corresponding to the land use fee over the period of delay shall be equal to the annual land rental amount; and
- In case the investor is not eligible for extension of the land use term or fails to complete the procedure for extension of the land use term or fails to put the land into use after the extension expires as stipulated under the Land Law and a decision on land retrieval has not yet been issued, the additional amount shall be equal to the land rental payble annually over the period between the date of land allocation and the date when the land retrieval decision is
Developers of industrial zones, industrial complexes, export processing zones, economic zones or high-technology zones who have lands leased out by the State shall be eligible for land rental exemption after the basic construction period, particularly as follows: (i) exemption for 11 years for projects in administrative divisions of rural districts which are not within the list of areas entitled to investment incentives under investment laws; (ii) exemption for 15 years for projects in administrative divisions of rural districts within the list of areas with difficult socioeconomic conditions under investment laws; and (iii) exemption for the entire lease term for projects in the list of areas with extraordinarily difficult socioeconomic conditions under investment laws