Vietnam: 30% reduction of land rent in 2022 for enterprises affected by COVID-19 according to Resolution 7/NQ-CP in 2023?
Reduction of land rent and water surface rent in Vietnam in 2022 due to the impact of Covid-19?
According to Article 1 of Resolution 7/NQ-CP in 2023, 30% reduction of land rent and water surface rent in 2022 for organizations, units, enterprises, households and individuals being leased land by the State directly under the decision or contract or certificate of land use rights, ownership of houses and other land-attached assets of a competent state agency in the form of land lease with annual payment due to the influence of the Covid-19.
(Previously, the reduction in land rent and water surface rent in 2022 applied to organizations, units, enterprises, households and individuals being directly leased land by the State and had to stop production and business because effects of the COVID-19.)
Simultaneously, the Ministry of Finance submitted to the Prime Minister for promulgation a Decision regulating the reduction of land rent and water surface rent according to the contents specified in Article 1 of Resolution 7/NQ-CP in 2023.
Resolution 7/NQ-CP in 2023 takes effect from the date of signing and promulgates and replaces the fourth bullet point, point a, section 3, part II of the Government's Resolution 11/NQ-CP in 2022 on Socio-economic recovery and development program and implementation of Resolution 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Program.
Vietnam: 30% reduction of land rent in 2022 for enterprises affected by COVID-19 according to Resolution 7/NQ-CP in 2023?
Who is entitled to reduce 30% of land rent and water surface rent in Vietnam?
Pursuant to Resolution 11/NQ-CP in 2022 as amended by Resolution 7/NQ-CP in 2023, the beneficiaries and duration of support for a 30% reduction in land and water surface rents are specified as follows:
- Supported beneficiaries include:
+ People and employees affected by the epidemic;
+ Enterprises, cooperatives, business households;
+ Sectors and fields that create impetus for economic recovery and development.
- Support period: mainly in 2 years 2022-2023; Some policies may be prolonged and additional resources may be implemented depending on the development of the pandemic.
What are other policies on exemption and reduction of taxes, fees and charges under Resolution 11/NQ-CP?
In addition to the policy of reducing land rent and water surface rent mentioned above, Resolution 11/NQ-CP in 2022 also stipulates a number of policies on exemption and reduction of taxes, fees and other fees to support those affected by the epidemic. COVID-19, specifically:
- Reduce 50% of the environmental protection tax rate for jet fuel according to Resolution 13/2021/UBTVQH15 dated December 31, 2021 of the National Assembly Standing Committee.
- Included in deductible expenses when determining corporate income taxable income for support and sponsorship expenses of enterprises and organizations for COVID-19 prevention and control activities in Vietnam for the period taxes in 2022.
- Apply the export tax rate and import tax rate according to Decree 101/2021/ND-CP and related documents.
- 50% reduction in registration fee when registering domestically manufactured or assembled cars according to Decree 103/2021/ND-CP.
- Continue to review and reduce fees and charges to support and remove difficulties for those affected by the Covid-19.
In addition, support 2%/year interest rate for 2 years 2022 - 2023 through the system of commercial banks for commercial loans to enterprises, cooperatives, business households that are able to repay, have the ability to recover in the following industries and fields:
Aviation, transportation and warehousing; tourism, accommodation, catering, education and training services; agriculture, forestry and fishery; processing and manufacturing industries (including machinery, equipment, drugs, pharmaceutical chemicals, and medicinal herbs); software publishing; computer programming and related operations; information service activities; loans to renovate old apartment buildings, build social houses, houses for workers to buy, rent and hire-purchase.
Support conditions: Belonging to beneficiaries, have received loans or meet loan conditions, and are approved by commercial banks.
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