In accordance with the Decree No. 46/2014/ND-CP dated May 15, 2014 of the Government On collection of land rental and water surface rental from July 01, 2014, the water surface rental frame is increased double or triple compared with current frame.
In particular, for projects using fixed water surface: between VND 20,000,000/km2/year and VND 300,000,000/km2/year; for projects using non-fixed water surface: between VND 100,000,000/km2/year and VND 750,000,000/km2/year. The Ministry of Finance shall guide the order and procedures for determination and payment of water surface rental and sea surface rental for projects on oil and gas exploitation in the territorial sea and continental shelf of Vietnam.
Based on the water surface rental frame, provincial-level People’s Committees shall decide on water surface rental unit for each project. In case the leased sea surface lies within administrative boundaries of two or more provinces and centrally run cities, the People’s Committees of such provinces and cities shall reach agreement on the water surface rental; if they cannot reach agreement, they shall report such to the Prime Minister for consideration and decision.
Besides, the Decree also details Land rental and water surface rental exemption. Land and water surface rental exemption is given for the entire lease period to investment projects in the sectors eligible for special investment incentives and implemented in geographical areas facing exceptional socio-economic difficulties; projects using land for construction of condominiums for industrial park workers under approved projects.
In which investors may not account land rental expenses into house rental; projects using land for construction of student dormitories with state budget funds, in which units assigned to manage and use such dormitories may not account land rental expenses into house rental and land for agricultural production of ethnic minority people; land for implementation of projects on planting of protection forests and coastal forests;
Within that land rental and water surface rental exemption or reduction shall be given to each project and applied to new land lease. In case land and water surface lessees are entitled to both rental exemption and reduction, after enjoying land and water surface rental exemption they will continue to enjoy land and water surface rental reduction under regulations for the subsequent land lease period (if any). In case the land rental or water surface rental is reduced at different levels, they will enjoy the highest reduction level.
This Decree takes effect on July 1, 2014 and replaces the Government’s Decree No. 142/2005/ND-CP dated November 14, 2005.
