Does the Government of Vietnam prolong the deadline for land rent payment for 50% of the arising land rent payable in 2023?
- What is the deadline for land rent payment in 2023 applicable to organizations and individuals renting land from the State of Vietnam according to current regulations?
- Prolongation of land rent payment for 50% of the arising land rent payable in 2023?
- How is the time of calculating land rent determined?
What is the deadline for land rent payment in 2023 applicable to organizations and individuals renting land from the State of Vietnam according to current regulations?
Pursuant to Clause 3, Article 18 of Decree No. 126/2020/ND-CP stipulating as follows:
Deadlines for payment of tax-related amounts, fees for grant of right to extraction of water resources and minerals, fees for grant of sea area usage, registration fees and licensing fees
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3. Land rents and water surface rents
a) In case rent is paid annually:
a.1) The first rent payment shall be made within 30 days from the day on which the rent notice is issued by the tax authority.
a.2) From the second year, the tenant may choose between paying rents annually or biannually. If the tenant chooses the former, rent shall be paid by May 31. If the tenant chooses the latter, the first 50% shall be paid by May 31 and the rest by October 31.
In case of a new tenant where the rent is determined after October 31, the tax authority shall issue a rent notice for the remaining time of the year.
a.3) In case the declaration is revised, the rent shall be paid within 30 days from the day on which the rent notice is issued.
a.4) In case the rent notice is issued by the tax authority according to documents of another competent authority granting prolongation of land use period due to delay in land use time of the project or changes to the elements that affect the rent:
Within 30 days from the issuance date of the rent notice, the tenant shall pay 50% of the rent specified in the notice;
Within 90 days from the issuance date of the rent notice, the tenant shall pay the remaining 50%.
b) If rent is paid in a lump sum for the entire lease duration:
b.1) Deadline for making first rent payment:
Within 30 days from the issuance date of the rent notice, the tenant shall pay 50% of the rent specified in the notice;
Within 90 days from the issuance date of the rent notice, the tenant shall pay the remaining 50%.
b.2) In case the declaration is revised, the rent shall be paid within 30 days from the day on which the rent notice is issued.
According to the above regulations, the deadline for paying the first land rent in 2023 will be within 30 days from the date of issuing the notice of land rent payment by the tax agency.
In case the tenant has paid the land rent in the previous period, in 2023, the tenant can choose to pay the rent once or twice a year.
In case the taxpayer chooses to pay tax once a year, the tax payment deadline is May 31.
In case the land or water surface lessee chooses to pay the fee twice a year, the time limit for tax payment for each period is as follows: 50% of the payment for the first period is May 31; for the second period, the remaining balance must be paid in full by October 31.
In case an organization or individual who leases land from the State in 2023 pays a lump-sum payment for the entire tax period, the time for paying land rent shall be handled as follows:
In case the year 2023 is the first payment of land rent, the payment must be made within 30 days from the date of issuance of the notice of payment of land rent, within 90 days from the date of issuing notice of payment of land rent for the remaining amount.
Does the Government of Vietnam prolong the deadline for land rent payment for 50% of the arising land rent payable in 2023? (Image from the Internet)
Prolongation of land rent payment for 50% of the arising land rent payable in 2023?
On April 14, 2023, the Government issued Decree No. 12/2023/ND-CP on prolonging the deadline for payment of value added tax, corporate income tax, personal income tax and land rents in 2023.
Pursuant to the provisions of Clause 4, Article 4 of Decree No. 12/2023/ND-CP stipulating the prolongation of land rent payment for 50% of the arising land rent payable in 2023 as follows:
Prolongation of payment of tax and land rent in Vietnam
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4. For land rents
Prolongation of the payment of land rent for 50% of the arising land rent payable in 2023 of enterprises, organizations, households and individuals that are the subjects specified in Article 3 of this Decree which are being directly leased land by the State of Vietnam under a decision or contract of a competent state agency in the form of annual land rental payment. The prolongation period is 06 months from May 31, 2023 to November 30, 2023.
This regulation applies to the case that enterprises, organizations, households and individuals have many decisions, direct land lease contracts of the State and have many different production and business activities, including: economic sectors and fields specified in Clauses 1, 2 and 3, Article 3 of this Decree.
5. In case an enterprise, organization, business household or business individual has production and business activities in many different economic sectors, including the economic branches and domains specified in Clauses 1 and 2 and 2. Clause 3, Article 3 of this Decree: enterprises and organizations are entitled to the prolongation of the entire payable value-added tax and corporate income tax amounts; Business households and individuals are entitled to a full prolongation of the payable value-added tax and personal income tax under the guidance in this Decree.
Thus, the deadline of land rent payment for 50% of the arising land rent payable in 2023 of enterprises, organizations, households and individuals who are directly leased land by the State according to a decision or contract of a competent state agency in the form of annual land rental payment will be prolonged for 6 months from May 31, 2023 to November 30, 2023.
This provision also applies to cases where enterprises, organizations, households and individuals have many decisions, direct land lease contracts of the State and have many different production and business activities, including: economic sectors and fields specified in Clauses 1, 2 and 3, Article 3 of Decree No. 12/2023/ND-CP.
In case an enterprise, organization, business household or business individual has production and business activities in many different economic sectors, including the economic branches and domains specified in Clauses 1, 2 and 3 Article 3 of Decree No. 12/2023/ND-CP, enterprises and organizations are entitled to the prolongation of the entire payable value-added tax and corporate income tax amounts; Business households and individuals are entitled to the prolongation of the entire payable value-added tax and personal income tax under the guidance in Decree No. 12/2023/ND-CP.
How is the time of calculating land rent determined?
Pursuant to Clause 3, Article 108 of the 2013 Land Law of Vietnam as follows:
Bases and time for calculation of land use levy and land rent in Vietnam
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3. The time for calculation of land use levy or land rents is the time when the State decides on the land allocation or land lease, permits change of land use purpose, or recognizes land use rights.
According to the above regulations, the time to calculate the land rent is the time when the State decides to lease the land.
Decree No. 12/2023/ND-CP takes effect from April 14, 2023 to December 31, 2023.
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