Instruction PMO NLMA 3204 Collection of Fees and Charges
- 1. Lao People’s Democratic Republic Peace Independence Democracy Unity Prosperity ~~~~~~~~~~~~~~~ Prime Minister’s Office National Land Management Authority No. 3204/PMO.NLMA VCC, Date 9 Dec, 2008 Instruction on Collection of Fees and Service Charges by Land Management Sector - Pursuant to the Prime Minister’s Decree No. 67/PM, dated 18 May 2004, regarding the organizations and activities of the National Land Management Authority - Pursuant to the Presidential Decree No. 03/PO, dated 19 November 2008, on Fees and Service Charge (Part II; Chapter 16, Part III; Chapter 16, and Part IV; Article 98); - Pursuant to Article 14 of the Prime Minister’s Decree No. 88/PM, dated 3 June 2008, on the implementation of the Land Law. In order to guarantee the efficiency and suitability with the laws and regulations of fees and service charges collection done by the land management sectors Minister to the Prime Minister’s Office, Head of NLMA has issued the Instruction as follows: 1. Land Management Sector Shall Fallow the Following Steps in Collecting Fees and Service Charge: 1.1. Fees to be collected land management sector consist of: - Fee for land parcel registration and for registration of document concerning land; - Fee for registration of transaction in the land parcel registration system; - Fee for granting land lease or concession; - Fee for land conversion from one to another purpose. 1.2 Service charge to be collected by land management sector consist of: - Fee for measuring construction land and agriculture land; - Fee for issuing the certificate for the rightness of the Land Title in order to get the legitimacy testified by the notary office. 2. Fee Rate of Land Management Authority 2.1 Referring to Article 50 of the Presidential Decree No. 03/PO, dated 19 November 2008, the fee rate for land parcel registration and for registration of document concerning land being set as follows: - Fee for land parcel registration: No. Land Parcel Registration Fee Rate for each parcel Kip/Land Title Municipal areas and Rural areas peripheries 1. Systematic or sporadic 30,000 15,000 - Fee for registration of document concerning land: No. Detail of Land Parcel Registration Fee Rate 1. Issuing LT to the heirs who are children 0.1% of land value obtained through land (offspring, adopted children, stepchildren) valuation process done specifically for each 1
- 2. and relatives of direct lineage of the dead zone and each type of land person 2. Issuing LT to the heirs who are relatives 0.3% of land value obtained through of direct lineage (parents or paternal grand valuation process done specifically for each parent and maternal grandparents or great zone and each type of land grandparents) of the dead person 3. Issuing LT to the heirs who are relatives 0.5% of land value obtained through of horizontal lineage (older and younger valuation process done specifically for each brothers and sisters, or paternal uncles and zone and type of land aunts and maternal uncles and aunts, or nephews and nieces) of the dead person 4. Issuing LT to the person who receive land 1% of land value obtained through use rights transferred from the former valuation process done specifically for each owner, and the entitled heirs by will who zone and type of Land are not in relative lineage as specified in the above 1,2, and 3 rows. Remarks: The rate of land value such as 0.1%, 0.3%, 0.5%, and 1% in which the actual valuation was done periodically for each zone and type of land shall be collected in full rate (100%). Furthermore, the 35% rate, which in the past had been used as the basis for calculating land use rights transferring fee, should be cancelled, as specified in the Ministerial Decision No. 1760/MF, dated 25 September 2003 and the Ministerial Decision No. 611/NLMA dated 16 August 2007; 2.2 Pursuant to Article 51 of the Presidential Decree No. 03/PO, dated 19 November 2008, the fee for the registration of transaction in the land parcel registration system being set as follows: No. Contents of Document Registration Fee (Kip/time) 1. Registration of land use right transaction relating to 50,000 loan contract 2. Registration of land use right transaction relating to 70,000 land lease agreement 2.3 Pursuant to Article 52 of the Presidential Decree No. 03/PO, dated 19 November 2008, the fee rate for granting document authorizing for the lease or concession of state land is set at 50,000 kips/document. 2.4 Pursuant to Article 53 of the Presidential Decree No. 03/PO, dated 19 November 2008, the fee rate for land conversion is set as follows: No. Land Conversion Objectives Land Conversion Fee m2/kip Urban Area Peripheries Rural Area 1. Conversion of agricultural land into 30,000 20,000 15,000 construction land for commercial purpose 2. Conversion of agricultural land into 300 200 100 construction land for family’s residential (except paddy land) 3. Conversion of construction land into 8 5 3 agricultural land 2
- 3. Remarks: For the conversion of agricultural land into construction land for family’s residential area with exceptional for paddy land, it means that the conversion fee for paddy land should be collected based on the rate specified in the above category 1. 2.5 Pursuant to Article 54 of the Presidential Decree No. 03/PO, dated 19 November 2008, the fee rate for converting natural forest land into other objectives should be collected as follows: No. Land Conversion Objectives Fee Rate m2/kip Urban Area Peripheries Rural Area 1. Conversion of natural forest land 40,000 35,000 30,000 into another objectives 3. Service Charge in Land Management Sector 3.1 Pursuant to Article 78 of the Presidential Decree No. 03/PO, dated 19 November 2008, service charge collected by land management sector are as follows: - Service charge for measuring construction land: No. Area Conducted Survey/Measurement Service Charge (kip/ m2) Municipal Peripheries Rural Area Area 1. Low land area 350 300 250 2. Plateau 300 250 200 3. Mountainous area 200 150 100 - Service Charge for Measurement of Agricultural Land: No. Area Conducted Service Charge (kip/ m2) Survey/Mearsurement Municipal Peripheries Rurual Area Area 1. Low land area 300,000 250,000 230,000 2. Plateau 250,000 230,000 200,000 3. Mountainous area 200,000 180,000 150,000 - Service charge for issuing document attesting the accuracy of the LT in order to submit to the Notary Office for certifying the legitimacy of the LT: No. Content of the Document (Kip/document) 1. Issuing a document attesting the accuracy of the LT in order 20,000 to be used as collateral for loan contract 2. Issuing a document attesting the accuracy of the LT to be 50,000 used as the basis for sale-purchase or transfer and exchange of land. 4. Exemption of Fee and Service Charge by the Land Management Sector Referring to Article 98 of the Presidential Decree No. 03/PO, dated 19 November 2008 - Fee exemption for the conversion of other types of land to natural forest rehabilitation, issue title for state land and collective land; - Service charge exemption for land measurement for issuing LT or LSC for state land use and collective land to state organization, political organization, Lao Front for 3
- 4. National Construction, mass organization, and state economic organization, as specified in the Land Law. 5. Penalty Measures 5.1 Pursuant to Article 102 of the Presidential Decree No. 03/PO, dated 19 November 2008, concerning the penalty imposed toward the person in charge of the management of fee and service charges. Government sector in each level is in charge of collecting fees and service charges from individual, juridical entity, and organization who has violated the rules for collecting, declaring, handing over, and reporting of fees and service charges will be imposed with measures based on each case listed below: 1. Case: The delay in submitting the payment declaration or in paying fee and service charges shall be imposed to the 5% fine of the amount collected in each month. 2. Case: The act of carrying wrong account, declaring incomplete payment, money collected are not in correspond with the specified rate and without providing receipt officially based on the standard form set out by Ministry of Finance, counterfeiting other accounting documents, failing to record the information and report on a regular basis, shall be imposed to 3 penalty measures as follows: - Repay with the complete amount, including the fine for the delay of 5% per month; - Make an additional pay for 30% of the repaid amount; - Pay fines in accordance with the state accounting regulations; If the 2nd infringement occurs again, besides repaying the complete amount the violator must: - Pay an additional of 60% of the repaid amount; - Pay fines in accordance with the state accounting regulations; - Notify through mass media. 3. Case: Collect fees out of the list specified in the Presidential Decree, disallow officials to inspect, fail to declare the payment and fail to remit the collected money to the national treasury, shall be imposed to 3 penalty measures as follows: - Pay the fee in accordance with the amount specified in the annual plan; - Pay an additional of 50% of the planning amount; - Pay fines in accordance with the state accounting regulations. If the 2nd infringement occurs, besides paying in accordance with the plan, the violator must: - Pay 100% of the planning amount; - Pay fines in accordance with the state accounting regulations; - Notify through mass media. 5.2 Pursuant to Article 103 of the Presidential Decree No. 03/PO, dated 19 November 2008, concerning fines imposed toward the persons who fail to pay fees and service charges. If individuals, juridical entities and organizations having obligations to pay fees and service charges, infringe the rules by failing to pay fees, service charges, or declaring wrong attestation document and basic fee calculation, forfeiting of documents issued by the state management sector, shall be imposed to the following measures: - First time: Educate/advise, repay and pay a fine of 10% of the repaid amount; - 2nd time: Pay a fine of 30% of the repaid amount; - 3rd time: Pay a fine of 60% of the repaid amount; - 4th time: Being proceeded following the justice process. 6. Measures for Implementation 4
- 5. 6.1 Pursuant to Article 104 of the Presidential Decree No. 03/PO, dated 19 November 2008, concerning the banning rules in determining fees and service charges collection. Government sectors, local administration in each level are absolutely banned from setting any rate and collecting fees and service charges other than the rate specified in this Presidential Decree. Any person who violates this rule shall be punished in accordance with the laws and regulations. 6.2 Pursuant to Article 105 of the Presidential Decree No. 03/PO, dated 19 November 2008, regarding the management of revenue from fees and service charges. The management of revenue from fees and technical service charges should follow the steps below: All revenue collected from fees, technical service charges and fines as specified in this Presidential Decree shall be added into the state budget entirely and timely through double- checking, inspection and assignment from the taxation authorities. All the fee shall be entirely included in the state budget. For the revenue collected from technical service charges shall be calculated through balancing of revenue and expenditure, recorded into the fiscal budget plan of the organization concerned in comply with the government financial regulations and under the management of line sectors and financial sectors. The fine arisen from the failure of implementing this Presidential Decree shall be fully included into the state budget. Revenue from technical service charges which being included in the Government fund shall follow the specific rules of the fund. Fees, technical service charges and fines which being set in foreign currency in this Presidential Decree shall be included in the state budget either in Kip or foreign currency based on the exchange rate periodically set out by the Bank, while the fees and technical service charges collected at the Lao embassies and consulates in foreign countries, fee for flying over Lao PDR territory and some types of revenue in which the government orders to collect in foreign currency shall be paid in foreign currency. 6.3 Pursuant to Article 106 of the Presidential Decree No. 03/PO, dated 19 November 2008, concerning the condition for applying revenue from technical service charges Revenue from technical service charges can be applied under the following condition: - For budget unit containing revenue from technical service charge, there is the need to set annual budget revenue plan based on the procedures and regulations specified in the Law on State Budget; - Technical budget unit shall open its account at the national treasury in order to manage and monitor all expenditures to ensure they are accurate with the budget content and annual budget plan, and shall not allow budget units at all level that gain revenue from technical service charges to open an external specific deposit account without an authorization from the top decision maker; - If the amount of revenue gained from technical service charges are higher than the annual plan, it will be totally assigned to the line sectors to apply in accordance with the government approval. 6.4. Pursuant to Article 107 of the Presidential Decree No. 03/PO, dated 19 November 2008, concerning plan setting, summing up, monitoring and inspecting. All sectors are urged to set plan, implement, sum up and report, monitor and inspection with the following instruction: 1. Setting revenue plan concerning the collection of fee and technical service charges in a yearly basis by submitting to the Ministry of Finance to finalize and propose to the government 5
- 6. for consideration and to be further approved by the National Assembly. The National Assembly is also responsible for collecting fees and technical services charge to be included in the state budget and to propose the plan to use the technical service charges revenue following the authorization of Ministry of Finance. 2. Collect and hand over revenue from fees and service charges to include into the budget at the national treasury in a monthly basis no later than the 10th day of the next month, and report the implementation on a monthly, quarterly, bi-annual and annually basis. The report shall be submitted to the Ministry of Finance prior to the 15th day of the next month; 3. Monitor revenue from fees and technical service charges within one sector by undertaking the rights and other duties as specified in the Law on State Budget; 4. In case that the rate of fee and technical service charges appear not to be in line with the actual situation, there is the need to reconsider and propose to the Ministry of Finance to forward it to the government for consideration. 7. Implementation and Effectiveness Cabinets, departments, centre, provincial land management authority, Vientiane Capital land management authority, district/municipal land management authority, and village land unit as well as all parties concerned are assigned to strictly implement this Instruction and the Presidential Decree No. 03/PO, dated 19 November 2008. The provisional decision of the Minister to the Prime Minister’s Office, Head of NLMA regarding land fees No. 498/PMO.NLMA, dated 09 May 2008 and the provisional decision of the Minister to the Prime Minister’s Office, Head of NLMA regarding the rate of land service charges No. 499/PMO.NLMA, dated 09 May 2008, shall be revoke. This instruction will become into effective from the date it is signed. Any other Decisions or decrees issued earlier which is in contradiction with this Instruction will be void. Minister to the Prime Minister’s Office Head of NLMA Kham-Ouan Boupha 6