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sadfasEnglish > Investors > Cooperation investment > Order, procedure of investment (Part 2)
Order, procedure of investment (Part 2) 

CHAPTER III. PROCEDURES TO EXECUTE INVESTMENT PROJECT
Section 1. LAND LEASE AND ALLOCATION AND COMPENSATION,
SUPPORT AND RESETTLEMENT

Article 19: Land lease and allocation

1. Land lease and allocation:

a. The investor of projects which use public land should choose one of two forms: renting land or being allocated land with fee of land use according to the regulations of the law to complete the procedure to lease land or allocate land after the Investment Certificate is granted.

b. When land are being used by other organizations or individuals, the investor rents land, cooperates with them or is transferred from the legal land users to carry out the project The State will give legal support and create favorable condition to the investor in order that he could perform the agreement on compensation and premises clearance.

c. The State ensures and encourage the self-investment on the land which is being used and is in the area to be recovered for the investment projects in production, business or housing building according to Article 42 Decree No 84/2007/ND-CP dated December 25, 2007 of the Government completing the regulations on the issue of Certificate of the right to use land, procedures for compensation, support and resettlement when the State resumes land and solving the complaint about land (hereafter called Decree No 84/2007/ND-CP), the details are as follows:

When land is in the area to be recovered for the investment projects in production, business or housing building and the user (or some users of next land) applies for investment and when he answers the following requirements, he is entitled to invest himself or choose organization/individual to contribute capital to set up investment project:

- The land area which is being used is suitable to the plan in land use and building project in details is suitable to building size approved by the state competent authorities;

- Investment project is set up according to regulations on investment project;

- The ability to implement the investment project is suitable to the requirement and progress according to the project approved.

2. Cost of land allocation and land lease:

a. Land is allocated at market cost in Normal condition for each category of land at time land is allocated (except auction or bid): Department of Finance will verify the cost then submit to the provincial People's Committee for decision.

b. Unit price of land and water surface lease:

Based on land cost which is announced annually by the provincial People's Committee and the ratio frame of unit price for land and water premises lease is determined by the provincial People's Committee:

- Director of Finance Department will decide unit price for land and water premises lease for each specific case, the renter of land and water surface is economic organization, Vietnamese people residing in foreign countries.

- Chairperson of People's Committee at district level will decide unit price for land and water premises lease for each specific case, the renter of land and water surface is domestic household and individual;

- Unit price for land and water premises lease for each project will be stable in 05 years. After this stable time, Director of Finance Department and Chairperson of People's Committee at district level will decide to adjust unit price for land and water premises lease for next period.

Article 20: Compensation and support to premises clearance and resettlement

1. Premises clearance, resettlement and agriculture-resettlement.

a. The project of compensation for premises clearance, resettlement and agriculture-resettlement (if any) should be set up together with investment project.

Premises clearance is carried out in series group by group according to works and the procedures for allocating land and leasing land should be completed in order that the investor could execute the project in conformity to the investment progress stated in Investment Certificate.

In case the project uses land by compensation for premises clearance and by leasing or allocating public land, the procedures for allocating public land should be performed immediately when the project in compensation for premises clearance and resettlement is approved in order that the investor could implement the project and the duration of investment is from the day this land is allocated. The State will realize the compensation for premises clearance to allocate the remained land to the investor on the execution of the project.

b. It is advisable to transfer the purpose of land use according to the current regulations for land which is used for works building is not specified in the decision of land allocation or land rent. Projects which use forest and forest land should transfer the purpose of land use and cut trees to clear premises shall apply one of the following methods:

- To encourage the investor to pay compensation for forest value on land, the investor will exploit forest himself and clear the premises according to exploitation certificate and he is entitled to use forest product.

- In case forest product value could ensure to make up for exploitation expenses and tax, the forest owners are assigned to exploit forest and consume forest product then pay tax to the State budget according to the current regulations.

- In case forest product value could not ensure to make up for exploitation expenses and tax, the investor will exploit forest and clear premises according to the Permission then hand over total forest product to forest owners for consumption and tax payment to the State budget according to the current regulations.

In case the artificial forest has not come to the harvest yet, the investor has to compensate for artificial forest value.

c. The State will realize the compensation for and support to resettlement and premises clearance. The building of resettlement and agriculture-resettlement area should be realized before clearing premises.

- For projects of which the quantity of resettlement and agriculture- resettlement is small, the resettlement and agriculture-resettlement will be arranged in the State building;

- For projects of which the quantity of resettlement and agriculture- resettlement is big, the investor has to build the resettlement and agriculture- resettlement area.

- For projects invested by the State budget, the investor has to build the resettlement and agriculture-resettlement area on behalf of the State.

2. Expenditure of compensation for and support to premises clearance and building of resettlement and agriculture-resettlement area.

a. When the State invested in composition of infrastructure of the projects which invest in industrial parks, the State ensure to pay compensation for and support to premises clearance and resettlement. The investor is encouraged to advance expenditure of compensation which will be deducted from land rent and land use fee.

b. When land is allocated with land use fee and leased with land rent and the project is not in the area as mentioned at point a of this Article, the investor has to pay compensation for and support to premises clearance and resettlement and will be deducted compensation for and support to land from land rent and land use fee which should be paid to the State; this deduction should not exceed land rent and land use fee which should be paid to the State. Expenses of compensation for and support to farm produce, architectural object, other supports, expenses of premises clearance and resettlement should not be deducted and counted in investment of the project.

c. When land is allocated without land use fee and leased without land rent and the project is not in the area as mentioned at point a of this Article, the investor has to pay compensation and support to resettlement and these expenses are counted in the project investment.

Foreign organizations, individuals and Vietnamese people residing in foreign countries, who invest in Vietnam shall not pay compensation for and support to resettlement.

d. Lam Dong People's Committee encourages the investor advance expenses of compensation which will be deducted expenses of compensation for and support to land from land rent and land use fee.

3. To advance compensation for and support to premises clearance

a. The investor should advance at least 500 million/ha for building projects in residential quarter and new urban center in order that the State could pay compensation for premises clearance and resettlement to households on which the projects exert influence.

b. For projects which are not mentioned at point a above, the investor should advance compensation for and support to premises clearance as follows:

- For projects in artificial forests, agriculture and forestry production under forest leaves canopy: the advance is 1 % (one per cent) of tota1 project investment.

- For projects in agriculture production: the advance is 2% (two per cent) of total project investment.

- For other projects: the advance is 5% (five per cent) of total project investment.

- For projects which the investor carries out on land under his legal use right, he has not to advance for compensation for and support to premises clearance.

c. Time of advance for compensation for and support to premises clearance

- Within 30 days counting from the day the Investment Certificate is issued, the investor should pay an advance 50% of expenses mentioned at points a and b of this Article.

- Within 30 days counting from the day the total projects in compensation for and support to premises clearance is approved, the investor should pay an advance 50% of expenses mentioned at points a and b of this Article.

d. Expenses of compensation for and support to premises clearance are advanced by investor are paid to the State treasure in the district, Bao Loc Town, Da Lat City for projects of which the investment location is approved by the provincial People's Committee at district level.

e. Expenses of compensation for and support to advanced by the investor shall be counted in total expenses premises clearance are advanced by the investor then be deducted according to current regulations.

f. 08 months later counting from the day the state appropriate authorities approve the general project in compensation, support and resettlement, if the State has not cleared premises to allocate land to the investor due the State fault, the State should pay the interest of the advance the investor had paid. This interest will be based on rate of savings Non-fix term of the State bank at the compensation time.

Article 21: Procedures for renting and allocating land to execute the investment projects of all sources of capital for case in which the whole premises were cleared or case without premises clearance.

Investor wants to use land of which he whole premises were cleared or without premises clearance, the investor prepares the application for land lease and allocation as follows:

1. Applications include: 02 exemplars, including:

a. Application for land lease and allocation;

b. Investment Certificate or agreement on investment location signed by the State competent authorities (for case the projects perform only the investment registration without requirement for the issue of Investment Certificate) or other equivalent documents; written agreement on compensation concluded with land users in case the investor do the agreement himself with land owners.

c. The Permission and map of survey and exploitation of mine for project in survey and exploitation of minerals; in case, land is used to produce brick, tile and pottery, it is advisable to have the business decision or registration of brick and tile production or investment project approved by the State appropriate authorities.

d. When land used is forest land, it is compulsory to have report on inventory of forest resources and written verification of Department of Agriculture and Rural Development.

e. Written certificate of Department of Agriculture and Rural Development of the respect of the Law on land for projects of which the State leased and allocated land before.

f. Other papers concerned (if any): Transfer of the right to use land and contract of capital contribution by right to rent and use land.

2. Duration and procedures for handling documents

a. Places to collect applications and return result: Department of Resources and Environment.

b. Duration: within 20 working days counting from the day the legal documents are fully collected:

- Department of Resources and Environment receives and verifies documents then asks Office of registration of the right to use land to copy the land map or survey land for the area which has not land map yet. Department of Resources and Environment verifies documents and drafts the decision of the provincial People's Committee, then prepares the statement and passes the document to the provincial People's Committee {through Office of the provincial People's Committee): 16 days;

- Office of the provincial People's Committee submits the document and statement to the provincial People's Committee for promulgation and returns result to Department of Resources and Environment: 03 days;

- Department of Resources and Environment returns document to the investor: 01 day.

Article 22: Procedures for renting and allocating land to execute the investment projects of which the premises are not cleared (for case the State recover land according to regulations of the law)

1. Documents conclude: According to Item 1, Article 21 of these regulations.

2. Procedures and duration to consider the documents:

a. Stage 1: To consider for approval the scope and area: within 20 working days.

- Document collection place: Department of Resources and Environment;

Department of Resources and Environment receives and verifies documents, copies land map and submits to the provincial People's Committee (through Office of the provincial

- People's Committee) the agreement on scope, frontier and area: 16 days;

- Office of the provincial People's Committee passes the agreement on scope, frontier and area to the provincial People's Committee for signature then returns the document to Department of Resources and Environment (at the same time the document is also sent to People's Committee at district level and agencies concerned): 03 days;

- Department of Resources and Environment returns document to the investor: 01 day;

- After receiving the written approval for scope and area ; People's Committee at district level has to guide and disseminate the policy on land recovery, regulations on land recovery, compensation, support and resettlement when land is resumed; People's Committee at commune level has to post up the policy on land recovery at the office of People's Committee at commune level and at meeting- place of the residential quarter and the policy on land recovery could be made public through radio and television).

b. Stage 2: To set up, verify and consider for approval the general project in compensation, support and resettlement (hereafter called general project):

- To setup general project: To pay compensation for premises clearance (with the participation of the investor), to prepare general project according to available data and documents provided by Department of Resources and Environment. The main content of the general project is as follows (according to Item 1 Article 51 Decree No 84/2007/ND-CP DATED May 25, 2007 of the Government):

+ Foundation of the project;

+ General data on area of land categories, rank of cultivated land, map number, plot number; estimated value of assets on land;

+ General data on number of households, population and number of workers in the land recovery area, of which it is necessary to specify number of workers who have to change work and number of households which have to be resettled;

+ Expectation of rate of compensation and support and expectation of location, resettlement area or resettled housing, mode of resettlement;

+ Expectation of assistant method to create employment and training plan to change work;

+ List and size works of the State, religious establishment and residential community have to be removed and expectation of location for the removal;

+ Numbers of graves should be moved and expectation of location for the removal;

+ Estimate for the implementation of the project;

+ Source of expenses to carry out the project;

+ Progress of the project;

- Authorities take the project into consideration for approval:

+ The provincial People's Committee considers and approves the general projects of which the total compensation and support is over 20 milliard Vietnam dongs in Da Lat City, Bao Loc Town, Due Trong District, Bao Lam District and the general projects of which the total compensation and support is over 10 milliard Vietnam dongs in the remained districts in the province;

+ People's Committees of Da Lat City, Bao Loc Town, Due Trong District and Bao Lam District consider and approve the local general projects of which the total compensation and support is under 20 milliard Vietnam dongs;

+ People's Committees of other districts consider and approve the local general projects of which the total compensation and support is under 10 milliard Vietnam dongs;

- Authorities verify the project:

+ Department of Finance verifies the general projects which are considered and approved by the provincial People's Committee;

+ Bureau of Finance Planning verifies the general projects which are considered and approved by People's Committee at district level;

- Duration: within 22 working days counting from the day the documents are fully received.

- Procedures:

+ Projects under the competence for approval of the provincial People's Committee:

Department of Finance receives document, verifies project and submits it to the provincial People's Committee (through Office of the provincial People's Committee) for approval: 15 days; ’

Office of the provincial People's Committee passes the document to the provincial People's Committee and returns it to the Department of Finance: 06 days;

Department of Finance returns the document to the investor: 01 day;

+ Projects under the competence for approval of People's Committee at district

Document reception office receives and returns document then passes it to the Bureau of Finance Planning: 01 day;

Bureau of Finance Planning verifies project and returns verified result to document reception and return office: 15 days;

Document reception and return office works with Office of People's Committee at district level for approval and returns the result: 06 working days.

c. Stage 3: Announcement of land recovery:

Within 03 days after general project is approved, compensation for premises clearance body takes responsibility to inform land users about the reason for land recovery; expectation of rate of compensation, support and resettlement; method to change work and create employment; time to remove and hand over resumed land mentioned in the general project.

d. Stage 4: Decision of land recovery

- 20 days later counting from the day of announcement according to Point c of this Article, the authorities of Resources and Environment have to submit the decision of land recovery to People's Committee of the same rank for promulgation;

- Within 05 working days counting from the day receiving the statement of the authorities of Resources and Environment, People's Committee of the same rank undertakes responsibility to consider and sign the decision of land recovery;

- When the resumed land is under the recovery competence of the provincial People's Committee and People's Committee at district level, the provincial People's Committee comes to common decision of land recovery for all plots in the area and decision of land recovery for each plot under its recovery competence ;

- Within 15 working days counting from the day receiving the common decision of land recovery from the provincial People's Committee, the People's Committee at district level in the area comes to decision of land recovery for each plot under its recovery competence.

e. Stage 5: Project in compensation, support and resettlement:

- To enumerate, inventory and determine land origin:

After receiving the decision of land recovery, compensation for premises clearance body takes responsibility to enumerate and inventory land and assets on land and determine land origin. Procedures for enumerating, inventorying and determining the land origin are performed according to Article 55, Decree No 84/2007/ND-CP.

- To setup projects in compensation, support and resettlement:

+ To set up projects in compensation, support and resettlement:

Within 60 days counting from the day the land survey is finished, the compensation for premises clearance body (with the participation of the representatives of the investor and households whose land is resumed) bears responsibility to make concrete project in compensation, support and resettlement (hereafter called compensation project). Compensation project is carried out according to point b Article 56 Decree No 84/2007/ND-CP.

+ To collect suggestion about compensation project:

After establishing the compensation project, the compensation for premises clearance body has to collect suggestion about compensation project.

Mode, location and time to collect suggestion are carried out according to Item 2 Article 56 Decree No 84/2007/ND-CP.

+ To complete compensation project:

When the duration to put up announcement and collect suggestion is overdue, the compensation for premises clearance body assumes responsibility to complete compensation project according to Item 3 Article 56 Decree No 84/2007/ND-CP.

f. Stage 6: Verification and consideration for approval of project in compensation, support and resettlement:

- Documents (02exemplars) include:

+ Proposal for verifying and considering for approval compensation project;

+ Compensation project;

+ Software of detailed data on compensation for and support to each household (unit) of which the land is resumed.

Authorities consider the project for approval:

+ The provincial People's Committee considers for approval the projects of which the total compensation, support is over 20 milliard Vietnam dongs in Da Lat City, Bao Loc Town, Due Trong District, Bao Lam District and the projects of which the total compensation and support is over 10 milliard Vietnam dongs in the remained districts in the province;

+ People's Committees of Da Lat City, Bao Loc Town, Due Trong District and Bao Lam District consider and approve the local projects of which the total compensation and support is under 20 milliard Vietnam dongs;

+ People's Committees of other districts consider and approve the local projects of which the total compensation and support is under 10 milliard Vietnam dongs;

- Authorities verify the project:

+ Department of Finance verifies the projects which are considered and approved by the provincial People's Committee;

+ Bureau of Finance Planning verifies the projects which are considered and approved by People's Committee at district level.

Document collection place: Department of Finance (for projects under the competence in verifying of the provincial People's Committee) at document reception and return office at district level (for projects under the competence in verifying of People's Committee at district level).

- Duration: within 30 working days.

- Procedures:

+ Projects under the competence for approval of the provincial People's Committee:

Department of Finance receives document, verifies project and submits it to the provincial People's Committee (through Office of the provincial People's Committee) for approval: 22 days;

Office of the provincial People's Committee passes the document to the provincial People's Committee and returns it to the Department of Finance: 07 days;

Department of Finance returns the document to the investor: 01 day;

+ Projects under the competence for approval of People's Committee at district level:

Document reception and return office receives and a return document then passes it to the Bureau of Finance Planning: 01 day;

Bureau of Finance Planning verifies project and returns verified result to document reception and return office: 22 days;

Document reception and return office works with Office of People's Committee at district level for approval and returns the result: 07 days.

g. Stage 7: To publicize the project in compensation, support and resettlement:

Within 03 days counting from the day receiving the approved project in compensation, support and resettlement, the compensation for premises clearance body should publicize the project in compensation, support and resettlement. The publicity for the project is performed according to Article 57 Decree No 84/2007/ND-CP.

h. Stage 8: To realize the compensation, support and resettlement

Within 05 days counting from the day the notice of project in compensation, support and resettlement is sent to recovered land owners, the compensation for premises clearance body has to pay compensation for and support to resettlement.

Procedures and principle paying compensation for premises clearance and resettlement are carried out according to Article 58 Decree No 84/2007/ND-CP.

i. Stage 9: To decide to allocate land and lease land to execute the project:

After paying the compensation for premises clearance, the compensation for premises clearance body gives advice to People's Committee at district level to make report on result then send it to the provincial People's Committee to decide to allocate land and rent land, at the same time, the report is also passed to Department of Resources and Environment.

Within 03 days counting from the day receiving the report of People's Committee at district level, Department of Resources and Environment makes report to send to submit to the provincial People's Committee (through the Office of the provincial People's Committee) for decision of land allocation and land lease. In case, land is newly cleared, it is advisable to survey land to prepare report on land recovery; time to survey land to prepare report is within 10 days.

Within 02 days, the Office of the provincial People's Committee submits decision of land allocation and land lease to the provincial People's Committee for signature and returns document to Department of Resources and Environment then gives back it to the investor.

3. In case, a part of land which is applied for allocation or lease is in the public plot or of which the premises do not need to be cleared, this part of land should be allocated and leased immediately to the investor.

Procedures for leasing land in this case are complied with Article 21 of these regulations.

4. In case the compensation for premises clearance of the whole land area has not realized yet, if the investor asks for land allocation according to the progress of compensation for premises clearance, it is necessary to rent and allocate land immediately in the area of which the compensation and premises clearance were realized.

Procedures for leasing land in this case are complied with Point i, Article 2 of these regulations.

Article 23: To transfer the purpose of land use for domestic and foreign organizations, foreign individuals and Vietnamese citizens residing in foreign countries

1. Documents: 02 exemplars

- Application for transfer of the purpose of land use (available form);

- Certificate of the right to use land. If the Certificate of the right to use land has not been issued yet, it is compulsory to provide one of 05 papers on the right to use land according to Items 1,2 and 5 Article 50 of Law on Land;

- Certified copy of Investment Certificate or approved Investment Project, other equivalent agreement or documents;

- Other papers concerned (if any).

2. Document collection place: Department of Resources and Environment.

3. Duration: within 10 working days

- Department of Resources and Environment verifies and sets up documents, and submits to the provincial People's Committee (through Office of the provincial People's Committee): 07 days;

- Office of the provincial People's Committee passes the document to the provincial People's Committee for approval then returns the document to Department of Resources and Environment: 02 days;

- Department of Resources and Environment returns document to the investor: 01 day.

Section 2. CONSTRUCTION PROCEDURES

Article 24: To issue the building permit

On the execution, the investor prepares the procedures for issuing the building permit for the whole project or for each building work, except works are exempt from building permit according to Construction Law or regulations concerned.

1. Documents conclude:

- Application for building permit;

- Certified copy of one paper relate to the right to use land according to the regulations on land;

- Written assessment of basic design and complementary documents according to the requirements for written assessment of basic design (if any); drawing of building design for projects of which the basic design has not assessed yet or approved basic design is changed;

- Investment Certificate or receipt of investment registration;

- Papers related to fire regulations and environmental impact.

2. Authorities issue building permit:

a. Construction Department issues building permit for special building projects at the 01st grade in the table classifying buildings according to Decree No 209/2004- ND-CP dated December 16, 2004; religious buildings, historical cultural monuments, statue buildings; advertising buildings and big pictures in Lam Dong Province; buildings along urban route with secure corridor of more than 20 meters.

b. People's Committee at district level issues building permit to the remained buildings and urban separate housing in the administrative borders of district management.

c. People's Committee at commune level issues building permit to the programmed rural housing in the administrative borders of commune management.

d. Industrial parks management issues building permit to the projects in industrial parks.

Article 25: To execute investment project

1. The progress of investment projects in building should obey the regulations of Construction Law. The execution duration to put the projects into operation is as follows:

- Projects in group A: Within 10 years;

- Projects in group B: Within 04 years;

- Projects in group C: Within 02 years;

2. Within 12 months counting from the day the investment is registered or the Investment Certificate is issued (For projects which use land allocated or leased by the State, the limit duration is from the day the investor is allocated land), the investor should complete all procedures and implement the construction. If this limit time is overdue and the projects have not be executed yet, the provincial issuer of Investment Certificate the withdraw Investment Certificate and stop the operation of the investment project.

3. The investor is advised to carry out the project according to the progress undertaken in investment project and stated in Investment Certificate. Projects which are executed more slowly than the progress mentioned in the Investment Certificate or in the content of the Investment Certificate without suitable reason won't be granted extension by the Investment Certificate issuer and the Investment Certificate shall be withdrawn or notice of investment registration of the investor is invalid and the operation of investment project is terminated.

4. Only the investor to whom the Investment Certificate is granted is allowed to execute the project. Any change in the project investor due to the Joint-Venture, Association, Contribution or Privatization should reach the approval from the Investment Certificate issuer before realizing the project; the project shall be terminated when there is the change in the project investor without the approval of the Investment Certificate issuer.

5. Investment operation shall be terminated in case of any violation according to the current regulations concerned.

CHAPTER IV. PREFERENTIAL INVESTMENT APPLIED IN LAM DONG
PROVINCE ACCORDING TO THE REGULATIONS
OF THE GOVERNMENT

Section 1. CONDITION OF PREFERENTIAL INVESTMENT

Article 26: Condition of preferential investment

The investment projects which answer the followings requirements are entitled to enjoy the preferential treatment according to the regulations; the preference will be stated in the Investment Certificate:

1. The investment in the special preferential field and preferential field in conformity with the list in appendix I promulgated in conjunction with Decree No 108/2006/ND-CP dated September 22.2006 of the Government.

2. Investment in the location of preferential investment in Lam Dong Province according to the list in appendix II promulgated in conjunction with Decree No 108/2006/ND-CP dated September 22, 2006 of the Government, the details are as follows:

a. The socio-economic conditions of the location are in difficulty: Bao Loc Town.

b. The socio-economic conditions of the location are in deep difficulty: All districts in Lam Dong Province (except Da Lat City and Bao Loc Town).

Section 2. EXEMPTION AND DEDUCTION OF BUSINESS TAX,
PREFERENCCE IN IMPORT-EXPORT DUTIES

Article 27: Preferential duties and the duration to apply the preferential business tax

1. Tax rate 20% is applied in 10 years counting from the business operation starts for:

a. Co-operative is established in Da Lat City;

b. Business is newly set up from the investment projects in profession and field in preferential investment list;

c. Business is newly set up from the investment projects in Bao Loc Town;

2. Tax rate 15% is applied in 12 years counting from the business operation starts for:

a. Co-operative is established in Bao Loc Town;

b. Business is newly set up from the investment projects in profession and field in preferential investment list and operated in Bao Loc Town;

3. Tax rate 10% is applied in 15 years counting from the business operation starts for:

a. Co-operative and business are newly established from the investment projects in districts in the province;

b. Business is newly set up from the investment projects in profession and field in special preferential investment list;

4. When the duration of preferential duties is overdue, the co-operative and business should pay business rate tax 28%.

Article 28: Exemption and deduction of tax for new business which is set up by the displacement of investment project and business

1. New business which is set up when the investment project and business is transferred out of urban area according to the project approved by the competent authorities is exempted from tax in 02 years counting from the day it has taxable earnings and reduced 50% of tax in the next 02 years.

2. New business which is set up by the project invested in fields in list of preferential investment is exempted from tax in 02 years counting from the day it has taxable earnings and reduced 50% of tax in the next 03 years.

3. New business which is set up by project which invests in Bao Loc Town and by business which is transferred to Bao Loc Town is exempted from tax in 02 years counting from the day it has taxable earnings and reduced 50% of tax in the next 06 years.

4. New business which is set up by the project invested in fields in list of preferential investment in Bao Loc Town is exempted from tax in 03 years counting from the day it has taxable earnings and reduced 50% of tax in the next 07 years.

5. New business which is set up by the project invested in fields in list of special preferential investment or invested in districts is exempted from tax in 04 years counting from the day it has taxable earnings and reduced 50% of tax in the next 09 years.

6. The preferential tax rate as stipulated by Items 1, 2 and 3 Article 27 and the exemption and deduction of tax as prescribed in this Article are only applied for new business which enters in the accounts independently and its business tax is registered to pay according to the enumeration.

New business which is established by investment project with tax exemption and reduction running many business operations should control the earnings account of business operations with tax exemption and reduction separately. In case the business does not control the earnings account of business operations with tax exemption and reduction separately, the revenue ratio of business with tax exemption and reduction is determined by the total revenue of the business.

Article 29: Tax exemption and reduction for additional earnings of business which invests in building of new production chain, extends the activities, innovates technology, improves ecologic environment and heightens productive capacity

1. Project which invests in installing new production chain in Da Lat and is not in the field of special referential investment o preferential investment is exempted from tax in 01 year counting from the day it has taxable earnings and reduced 50% of tax in the next 02 years.

2. Project which invests in profession and field in list of preferential investment or invests in Bao Loc Town is exempted from tax in 01 year counting from the day it has taxable earnings and reduced 50% of tax in the next 04 years.

3. Project which invests in profession and field in list of special preferential investment in districts is exempted from tax in 02 years counting from the day it has taxable earnings and reduced 50% of tax in the next 03 years.

4. Project which invests in profession and field in list of preferential investment in Bao Loc Town is exempted from tax in 03 years counting from the day it has taxable earnings and reduced 50% of tax in the next 05 years.

5. Project which invests in profession and field in list of special preferential investment in Bao Loc Town is exempted from tax in 03 years counting from the day it has taxable earnings and reduced 50% of tax in the next 07 years.

6. Project which invests in profession and field in list of preferential investment in districts is exempted from tax in 04 years counting from the day it has taxable earnings and reduced 50% of tax in the next 07 years; Project which invests in profession and field in list of special preferential investment in districts.

7. Other businesses are exempted from business tax according to Articles 37, 38, 40 and 41 of Decree No 24/2007/NB-CP dated February 14, 2007 of the Government detailing the implementation of Law on Business Tax.

Article 30: Preference in import-export tax

The preference in import-export tax is based on Decree No 149/2005/NB-CP on December 09, 2005 of the Government detailing the implementation of Law on import-export tax.

Section 3. PREFERENCE IN LAND USE FEE,
LAND AND WATER SURFACE RENT

Article 31: Exemption and reduction of land use fee

The investor to whom the State allocates land with land use fee for production activities is entitled to get the preferential treatment over the land use fee as follows:

1. Business which has to be removed according the State plan shall be reduced 20% of land use fee when the State allocates land; but the maximum area of which the land use fee is reduced should not exceed the area at the removed location.

2. The exemption of land use fee is applied in the following cases:

a. Public building land used for trade according to the socialization policies on education, health, culture and sport. The area of which the land use fee is reduced should not exceed the limit of land use for reach work in the size of the equivalent socialized works.

b. Land is used for multistory apartment building for workers in industrial parks.

Article 32: Exemption of land and water surface rent

1. The following projects are exempted from land and surface rent for the whole operations:

a. Projects which invest in profession and field in list of special preferential investment at districts.

b. Projects which use land for multistory apartment building for workers in industrial parks are approved by the appropriate authorities including selling and rent price without expenses of land rent;

c. Projects which use land for students' dormitory by State budget, the students' dormitory management is only allowed to collect fee for electricity, water, management and other expenses concerned and is not allowed to collect fee for land rent and housing depreciation fee.

d. Projects which use land for public building have trade purpose (socialized) are in education, health, culture, physique, sport science and technology.

2. Projects which are exempted from land and water surface rent on the building of the project are approved by competent authorities; in case, projects which have many building works or separated building stages are free of rent according to the total works or that separate building stage; in case, it is impossible to determine the total works or separate building stage, the building duration is based on the work of which the capital is biggest.

3. Projects which are exempted from land and water surface rent with fixed- term counting from the day the building is finished and is being for use are as follows:

a. Projects which invest in profession and field in list of preferential investment are exempted from tax in 03 years; business is removed due to the plan and the environmental pollution.

b. Projects which invest in Bao Loc Town are exempted from tax in 07 years; projects investment is in list of special preferential investment.

c. Projects which invest in districts are exempted from tax in 11 years; projects investment is in list of preferential investment in Bao Loc T own.

d. Projects which invest in field in list of preferential investment in districts are exempted from tax in 15 years.

4. Projects which are using allocated land change to lease land, if these projects are exempted from land and water surface rent according to Point a Items 1,2 and 3 of this Article, they shall be entitled to be exempted from land rent in the remained time in the duration of land rent exemption.

5. Projects which are in difficulty and have to be ceased temporarily are entitled to be exempted from land and water rent during the time the capital construction and the operation are ceased with the attestation of the Investment Certificate issuer or the issuer of Business Registration Certificate.

Article 33: Reduction of land and water surface rent

Rent of land and water surface is reduced in the following cases:

1. Leased land which is used for business premises of co-operative is exempted from 50% land rent.

2. Leased and water surface that are used for production of agriculture, forestry and aquaculture suffer from natural calamity or fire of which the damage is under 40% output is considered for reduction of equivalent rent; in case damage is over 40%, they are exempted from land rent in the damaged year.

3. Leased and water surface that are not used for production of agriculture, forestry and aquaculture suffer from natural calamity or fire or force majeure accident are reduced 50% of land and water surface rent during the time the business production is ceased.

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