Principles of Exemption and Reduction of Land Rent According to Circular 156/2014/TT-BTC

Principles of land rent exemption, reduction according to Circular 156/2014/TT-BTC (Illustrative image)

The principles of land rent exemption and reduction are determined as follows:

- Maximum level: Exempt from land rent for the entire duration of the project within the land lease period granted by the State.

- Minimum level: No less than the incentives for projects eligible for incentives under the investment laws stipulated in Article 19 of Decree 46/2014/ND-CP dated May 15, 2014 of the Government of Vietnam regulating land rent and water surface rent (hereinafter referred to as Decree 46/2014/ND-CP).

- In case the project is allowed by a competent state authority to extend the land lease term, it shall not be entitled to land incentives as stipulated in Circular 156/2014/TT-BTC.

- No later than six (06) months from the effective date of Decree 59/2014/ND-CP, based on the fields and regional areas incentivizing private investment in the locality, the provincial People's Committee shall issue and publicly announce policies on the exemption and reduction of land rent for facilities implementing private investment using land in urban areas after obtaining the opinion of the Standing Committee of the People's Council at the same level.

- Every three (03) years, the provincial People's Committee shall review to amend and supplement the list of fields and areas incentivizing private investment in the locality accordingly; as a basis for amending and supplementing policies on land rent exemption and reduction for facilities implementing private investment using land in urban areas; issue and publicly announce after obtaining the opinion of the Standing Committee of the People's Council at the same level.

More details can be found in Circular 156/2014/TT-BTC, which took effect from December 15, 2014.

Thuy Tram

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