The above land plot has been granted a certificate of land use rights and ownership of houses and other land-attached assets in the form of a one-time rental of land and a 50% reduction in land rent for the entire lease period (according to Point a, Clause 1, Article 20 of Decree No. 46/2014/ND-CP dated May 15, 2014 of the Government).

Ms. Oanh asked, in case her company (joint-stock company, without foreign elements) receives the transfer of the above-mentioned land use rights and properties attached to the leased land of the cooperative, will it continue to receive the reduction 50% of the land rent or do I have to pay the rent in full?

The Ministry of Finance responded to this issue as follows:

Pursuant to Point a, Clause 1, Article 20 of Decree No. 46/2014/ND-CP dated May 15, 2014 of the Government providing for collection of land rent and water surface rent;

Pursuant to Clause 7, Article 12 of Circular No. 77/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance guiding a number of articles of Decree No. 46/2014/ND-CP dated May 15, 2014 of the Ministry of Finance. The Government shall stipulate the collection of land and water surface rents;

Pursuant to Point 10, Clause 5, Article 3 of Decree No. 135/2016/ND-CP dated September 9, 2016 of the Government amending and supplementing a number of articles of the Decrees on land use levy collection, collect land rent and water surface rent;

In case the joint stock company receives the transfer of land use rights and assets attached to the leased land, the payment has been made once for the entire lease period of the cooperative (the cooperative has been entitled to a 50% reduction in land rent as prescribed by law) at Point a, Clause 1, Article 20 of Decree No. 46/2014/ND-CP), the financial obligations of land rent and the reduction of land rent for joint-stock companies are determined as follows;

Joint stock companies are not entitled to the 50% reduction of land rent specified at Point a, Clause 1, Article 20 of Decree No. 46/2014/ND-CP because they are not subject to land rent reduction.

Regarding the determination of financial obligations on land rent for the transferee: Request the Tax Department of Hai Phong City cooperates with the Department of Natural Resources and Environment of Hai Phong City shall base on specific documents and regulations of law at the time of issuance of the decision on land lease of the competent authority for the transferee to determine the financial obligation of land rent for to joint-stock companies in accordance with the provisions of law.