VietNamNet Bridge - The Government has issued Decree No 53/2011/ND-CP detailing and guiding the implementation of a number of articles of the Law on Non-Agricultural Land Use Tax on July 1.

The Decree stipulates the following will be taxed – residential land in rural and urban areas; non-agricultural production; and business land including land for the construction of industrial parks, land for the construction of production and business establishments, land for mineral exploitation and processing and land for the production of construction materials and pottery, as well as land that is not taxable but is used for commercial purposes.

Lands that will not attract tax include land used for public benefit, land used by religious institutions and land for construction of State organisation and non-business works, etc.

Taxable land area is that which is actually in use.

In the case where tax payers own more than one residential land lot in a province, the taxable land area will be the total of all taxable land lots. Regarding residential land used for apartment with several households, the taxable land area will be the allocation coefficient multiplied by the actually area used by those stated in the house purchase contract or land use rights certificate. The allocation coefficient will be counted according to the formulas provided in this Decree.

In addition, the price of one square metre of taxable land is the land price promulgated according to its use as stated by the people's committee at provincial level, which will remain unchanged for five years beginning on January 1, 2012.

This decree takes effect from January 1, 2012 and replaces Decree No 94-CP dated August 25, 1994.

Passportless foreigners

The Ministry of Public Security passed Circular No 45/2011/TT-BCA on guiding the issuance of exit and entry permits to foreigners who reside in Viet Nam but with no passport before June 29. Accordingly, the foreigner applying for an exit and entry permit must meet the following conditions:

(i) have a permanent residency card issued by the Department of Immigration of Viet Nam; (ii) have no passport issued by a competent authority of a foreign country and (iii) have not been temporarily suspended from exit and entry into or out of Viet Nam according to Vietnamese law.

The foreigner applying for an exit and entry permit will submit the dossier which includes: (i) application in standard form. (ii) photocopy of a permanent residency card (the original copy will be requested for comparison), two photos (4x6cm, bareheaded, front view, showing the face and ears clearly, without glasses and on a white background) to the Immigration Office of the provincial Police Department where the foreigner resides or at the Department of Immigration of Viet Nam.

If the above conditions are met, an exit and entry permit will be issued if its term is less than the term for exchange of a permanent resident card – one month. The exit and entry permit is not valid to replace a passport and must state the nationality of the foreigner. The foreigner bearing the exit and entry permit together who has a permanency card will be exempted from needing a visa when exiting and entering Viet Nam within the valid period of the permit.

This circular takes effect from August 14, 2011.

Lower tax on scrap iron

On July 4, 2011, the Ministry of Finance issued Circular No 95/2011/TT-BTC amending the export tax rate on goods of HS code 7204 on the Table of Export Tax.

Accordingly, the export tax rate on goods of HS code 7204 – ferrous waste and scrap stainless steel will fall from 22 per cent to 15 per cent.

This Circular takes effect from August 18, 2011.

New rule on tour transit

On June 29, 2011, the Ministry of Public Security issued Circular No 44/2011/TT-BCA guiding the issuance of a Viet Nam Touring and Travelling Licence to transit foreigners.

Accordingly, transit foreigners who want to tour and travel in Viet Nam must have an agreement with an international travel company. The company must get the licence at the Immigration Department. If approved, the Immigration Office at a border gate shall issue the Licence to transit foreigners.

The duration of a Viet Nam Touring and Travelling Licence will reflect time of transit and touring but must not exceed 15 days. Foreigners who get a Viet Nam Touring and Travelling Licence must pay a levy.

When the transit foreigners leave, they must return the Viet Nam Touring and Travelling Licence to the Immigration Office at a border gate.

This Circular takes effects from August 14, 2011.

Source: VNS