MINISTRY Of fiNANCE     The Socialist Republic of Vietnam
  No. 70/TC-TCT           Independence-freedom-Happiness

                                 Hanoi, August 18, 1994

CIRCULAR GUIDING THE IMPLEMENTATION Of BUDGET COLLECTION ITEMS fROM THE GRANTING Of LIVING HOUSES OWNERSHIP, URBAN LAND USE RIGHT CERTIfiCATES ACCORDING TO DECREE No. 60/ CP DATED JULY 5, 1994 AND PURCHASING-SELLING AND SERVING Of LIVING HOUSE ACCORDING TO DECREE No.61/CP DATED JULY 5, 1994 Of THE GOVERNMENT

To execute the Decree No. 61/CP regarding " living house ownership and urban living land use right certificate and Decree No. 61/CP regarding "purchasing -selling and serving of living house " dated July 5, 1994 of the Government, on basis of the existing collection policy, hereby Ministry of finance guides collection / payment of tax and other collection items relating to implementation of the above Decree as follows:

A. fOR GRANTING Of LIVING HOUSE OWNERSHIP, URBAN LAND USE RIGHT CERTIfiCATES Person who wants to get living house ownership and urban living land use right certificate, is responsible to pay tax and other collection items as follows:

I.IN CASE Of HAVING IS ENOUGH Of LEGAL DOCUMENTS:

1. for living land legally transferred before October 15,1993 and other use of land with legal documents, fees to be paid include: a) Certificate granting fee;
b) Tax of house and land according to the Law on tax of house and land.

2. for living land transferred legally entrusted from October 15,1993 to July 5,1994; a) Land using fee which is equal to 40% of the land price specified by the people's committee of province, city under directly management of the Central Government. If this payment has not been done when entrusting the land, it shall be paid now.
b) Certificate granting fee;
c) Tax of house and land according to regulations of the law on tax of house and land.

3. for living land legally entrusted after July 5, 1994: a) Land using fee according to land price specified by the people's committee, city direct management of under the Central Government
b) Certificate granting fee;
c) Register fee;
d) Tax of house and land according to regulations of the law on tax of house and land.

II. IN CASE Of HAVING NOT ENOUGH Of LEGAL DOCUMENT BEfORE THE DATE Of PROMULGATING DECREE No 60/CP

1. In case of having not any legal document. If having sufficient condition for granting the house ownership and living land use right certificates, the following items must be paid:

a) Land use fee according to the land price specified by the people's committee of province/city under direct management of the Central Government
b) Certificate granting fee
c) Register fee
d) Tax of house and land according to the regulations of law on tax of house and land.

2. In case of having legal documents of land use right but having no legal documents of house construction or house ownership; when it is considered to grant the house ownership and living land use right certificates, the following items must be paid:

a) Land using fee according to the guidance in clause 1 and 2, article 1, part A mentioned above;
c) Certificate granting fee;
c) Tax of house and land according to regulations of the law on tax of house and land.

3. In case of having the house construction permission but still having no legal documents on living land use right; when it is considered to grant the house ownership and living land use right certificates, the following items shall be paid:

a) Land using fee according to the land price specified by the people's committee
of province / city under direct management of the Central Government
b) Certificate granting fee;
c) Register fee;
d) Tax of house and land according to regulations of the law on tax of house and land.

B.fOR PURCHASE, SALE AND BUSINESS Of LIVING HOUSE According to regulation in article 2, Decree No. 61/CP dated July 5, 1994, living house purchase sale and business include the following forms:

1. Sale of living house belonging to the state ownership to the present renter;

2. Business of living house;

3. Purchase and sale of living house without trading purpose / State budget collection/payment system for each form is as follows:

I. SALE Of LIVING HOUSE BELONGING TO STATE OWNERSHIP TO THE PRESENT RENTER 1. for the house selling party: Collection, payment, management and use of the collection items on selling living house as regulated in article 11, Decree No. 61/CP dated July 5,1994, including the expenses for selling the house, ill be implemented accord ing to a separate regulation of the Ministry of finance. 2. The house buying party shall pay the following taxes and fees.

a) Certificate granting fee and subject to the completed cadastral work, the house selling party or house buying party have to pay the cadastral fee as per regulation.
b) Register fee when getting living house ownership and living land use right certificates granted by authority.
c) Tax of house and land counting from the date when the bought house is used as per the contract according to regulations of the law on tax of house and land.

II. fOR BUSINESS Of HOUSE According to article 12, Decree No. 61/CP, Business of living house include the following forms ;

- Purchase, sale of house;
- House renting ;
- Service activities on purchase, sale of house and house renting.
State budget collection/system in details is as follows: 1. Purchase, sale of house including construction of house for sale or investment in infrastructure construction according to the traced out allocation of houses construction for land use right transfer.

Organisation, individual who do business of purchase, sale of house, including construction of house for sale or investment in infrastructure construction according to the traced out allocation of house construction for land use right transfer, shall pay taxes and fees according to the regulations hereunder: a) the house selling party shall pay ;
- Register fee;
- Sale tax, sale based profit tax of house selling together with the use right transferring of the land related, according to regulations of the law on Sale tax, law on profit tax.
Organisation, individual who use properties and capital of the state shall pay the capital depreciation and collections items on using the state budget capital according to the existing regulations.
- Land using fee when having the land is entrusted for business.
b) The house buying party shall pay:
- Certificate granting fee;
- Register fee before getting living house ownership and living land use right certificate granted by authority;
- tax of house, and land according to regulations of the law on tax of house and land , counting from the date of getting the use right of bought house in accordance with contract.
2. House renting:
a) Organisations, individuals who rent houses, shall be pay tax and fee as follows:
-Register fee;
- Sale tax, profit tax. If there are properties, capital of the state , then depreciation, payment for capital use shall be paid according to related regulations.
- Tax of house, and land according to the regulations of the law on tax of house and land;
- Land using fee or rental of land when the land is entrusted or rented for business by the state.
b) Leaseholder shall pay rent and fully complete the duties written in the renting contract.
c) if any cadastral is required, the required party shall pay cadastral fee according to related regulations.
3. Service activities on purchase, sale of house and house renting:
Service activities on purchase, sale of house and house renting include the mediation service and other activities relating to the purchasing, selling, renting of house.
The party that carries out the above services shall pay register tax, sale tax , profit tax according to the existing regulations of law on sale tax, profit tax for each service activity.

III.fOR THE CASES THAT PURCHASE AND SELL HOUSE WITHOUT TRADING PURPOSE Tax and other collection items for the house selling party and house buying party without trading purpose are as follows:
1. House selling party shall pay: Tax of land use right transfer according to the regulations of law on tax use right transfer.
2. House buying party shall :
a) Certificate granting fee;
b) Register fee before getting land use right and house ownership certificates granted by authority;
c) Tax of house, and land according to the regulations of law on tax of house, and land, counting from the date of getting use right of bought house in accordance with contract.

C. ORGANISATION Of IMPLEMENTATION
1. Declarations of house and land, applications for registration of house ownership and land use right shall be implemented according to the identical forms bought from the local Authority of house and management. Price of each form applied in the whole
country is 200 VND/ one leaf. the collected money shall be used for covering the paper and printing costs.
2. The items of register fee, land using fee shall be paid and concentrated at the tax office. When collecting, the tax office shall give the receipts which are issued by Ministry of finance ( General Department of Tax) to the payers as foundation for con sideration of granting house ownership and use right certificates.
3. Certificate granting fees for house ownership and land use right shall be collected one time with the same collecting level of the certificate granting fee for land use right regulated in the cadastral fee collection policy.
4. All cases, that have continuously entrusted not for agricultural, civil cultural purposes according to the regulations in article 23, law on land and if do not belong to the objects exempt from collection, shall pay the land using money pursuant to the existing regulations and guidance's. the organ that grants the land use right certificate shall grant the land use right certificate only after having sufficient document which proves that land using fee is already paid.
5. Beside the collection/payment items as guided above, all branches, locals shall not carry out any more other collection item for the objects in the scope of this circular.

This Circular comes into force from the date of July 5, 1994 and to be applied for Vietnamese organisations and individual. The cases relating to foreign organisations, individuals shall be implemented according to a separate guiding document.

On the process of implementation, if any entanglement is arisen, the locals are requested to report to Ministry of finance for timely consideration and solution.

for Ministry of finance Vice Minister

NGUYEN SINH HUNG