07:46 | 23/07/2024

Has Resolution 76/NQ-CP 2024 provided guidance on the subjects eligible for land rent and water surface rent reduction under Resolution 07/NQ-CP 2023?

Has Resolution 76/ND-CP 2024 been issued to guide the subjects eligible for land rent and water surface rent reduction according to Resolution 07/ND-CP 2023? Ms. B.T - Hanoi

Is there Resolution 76/ND-CP 2024 guiding the subjects eligible for land rent and water surface rent reduction under Resolution 07/ND-CP 2023?

On May 24, 2024, the Government of Vietnam issued Resolution 76/ND-CP 2024 regarding subjects eligible for land rent and water surface rent reduction under Resolution 07/ND-CP 2023 of the Government of Vietnam for the year 2022 for those affected by the Covid-19 pandemic.

Resolution 76/ND-CP 2024 supplements and clarifies the subjects in Article 1 of Resolution 07/ND-CP 2023 of the Government of Vietnam as follows:

The impact of the Covid-19 pandemic as stipulated in Article 1 of Resolution 07/ND-CP 2023 of the Government of Vietnam is a general impact on the economy nationwide. Organizations, units, enterprises, households, and individuals currently leasing land and water surfaces directly from the state under Decisions or Contracts or Certificates of land use rights, ownership of houses, and other assets attached to land issued by competent state agencies in the form of annual land rent and water surface rent are all subjects eligible for land rent and water surface rent reduction as stipulated in Article 1 of Resolution 07/ND-CP 2023 of the Government of Vietnam.

Resolution 76/ND-CP 2024 guiding the subjects eligible for land rent and water surface rent reduction under Resolution 07/ND-CP 2023

Resolution 76/ND-CP 2024 guiding the subjects eligible for land rent and water surface rent reduction under Resolution 07/ND-CP 2023 (Image from the Internet)

When does Resolution 76/ND-CP 2024 take effect?

According to Article 2 of Resolution 76/ND-CP 2024, Resolution 76/ND-CP 2024 takes effect from May 24, 2024.

For land and water surface lessees who have submitted a set of applications for the reduction of land rent and water surface rent for the year 2022 as stipulated in Article 2 of Resolution 07/ND-CP 2023 of the Government of Vietnam, the implementation shall follow the regulations of this Resolution (including applications for the reduction of land rent and water surface rent that have been duly submitted but have not been processed by the effective date of this Resolution).

Tax, fee, and charge exemptions and reductions to support the recovery of enterprises, cooperatives, and business households according to the Economic Recovery and Development Program

According to point a of sub-item 3, Item II of Resolution 11/ND-CP 2022 which is replaced by Article 3 of Resolution 07/ND-CP 2023 stipulates the following tax, fee, and charge exemptions and reductions to support the recovery of enterprises, cooperatives, and business households:

- In 2022, goods and services currently subject to a 10% value-added tax rate are reduced by 2% (to 8%) for businesses calculating VAT using the credit-invoice method, and a 20% reduction in the percentage-based calculation method for business establishments, households, and individuals calculating VAT based on revenue, excluding the following groups: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals and metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, and goods and services subject to special consumption tax.

- A 50% reduction in environmental protection tax for jet fuel according to Resolution 13/2021/UBTVQH15 dated December 31, 2021, of the National Assembly’s Standing Committee.

- Costs supporting, sponsoring businesses, and organizations for COVID-19 prevention and control in Vietnam during the 2022 tax period can be deducted when determining taxable corporate income.

- A 30% reduction in land rent and water surface rent for the year 2022 for organizations, units, enterprises, households, and individuals directly leasing land from the state under Decisions or Contracts or Certificates of land use rights, ownership of houses, and other assets attached to land issued by competent state agencies, payable annually due to the impact of the COVID-19 pandemic.

- Application of export, import tax rates according to Decree 101/2021/ND-CP and related documents.

- A 50% reduction in vehicle registration fees for domestically manufactured or assembled cars according to Decree 103/2021/ND-CP.

- Continuation of reviewing and reducing various fees and charges to support and alleviate difficulties for those affected by the COVID-19 pandemic.

Furthermore, to support the recovery of enterprises, cooperatives, and business households according to the Economic Recovery and Development Program and implement Resolution 43/2022/QH15, the following measures are included:

- Extension of payment deadlines for corporate income tax, personal income tax, value-added tax, special consumption tax, and land rent in 2022.

- 2%/year interest rate support for 2 years (2022 - 2023) through the commercial banking system for commercial loans to businesses, cooperatives, and business households with repayment capacity and recovery prospects in the following sectors: aviation, warehousing transportation; tourism, accommodation, catering services, education, and training; agriculture, forestry, and fisheries; manufacturing and processing industries (including machinery, equipment, pharmaceuticals, chemicals, medicinal materials); software publishing; computer programming and related activities; information services activities; loans for renovating old buildings, constructing social housing, and housing for workers to buy, rent, or rent-to-own.

Support conditions: Eligible beneficiaries should have secured loans or meet the loan conditions accepted by commercial banks.

- Research into stabilizing the maximum short-term capital for medium and long-term loans, calculating reasonable reserve requirements, engaging in open market operations, refinancing, and directing credit institutions to continue reducing operational costs to aim for a loan interest rate reduction of about 0.5% - 1% in 2022 and 2023, particularly for priority areas.

- Continuation of restructuring repayment periods, exemption, reduction of loan interest, and maintaining debt groups for customers affected by the COVID-19 pandemic, closely monitoring economic trends and the monetary market to implement timely solutions supporting businesses and citizens, ensuring the operational safety of the credit system.

- Increasing charter capital from post-tax profits, following fund allocations for 2021 - 2023 for commercial joint-stock banks where the state holds over 50% of charter capital, and from the state budget for the Vietnam Bank for Agriculture and Rural Development.

- Reviewing and amending regulations to resolve difficulties in the spending and management policies of the Corporate Science and Technology Development Fund; facilitating businesses to innovate technology, nurture technological startups, commercialize research results, and acquire technology; purchasing equipment, machinery, and raw materials for technological innovation directly serving the production and business activities of enterprises.

- Continuing to research and consider reducing electricity and water bills for businesses and individuals.

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