General Department of Taxation guides the 30% reduction in land rent and water surface rent for the year 2022 due to the impact of Covid-19.
How does the General Department of Taxation guide the 30% reduction of land rent in 2022 due to the impact of Covid-19?
According to Official Telegram 01/CD-TCT of 2023, the General Department of Taxation requires the Tax Departments of provinces and centrally-run cities to direct the departments and Tax Subdepartments to urgently perform the following tasks according to the regulations in Decision 01/2023/QD-TTg of the Prime Minister of the Government of Vietnam:
- Tax authorities at all levels must widely and fully disseminate the content of the land rent and water surface rent reduction policy for 2022 to organizations, units, enterprises, households, and individuals who are directly leased land by the State under a Land Lease Decision, Land Lease Contract, or Certificate of Land Use Rights, Ownership of Houses, and Other Assets attached to land with annual land rent payments affected by the Covid-19 pandemic, specifically:
+ In each tax management area, tax authorities proactively cooperate with news agencies, radio stations, television stations, and local VCCI branches/representative offices to organize the dissemination and popularization of the content of [Decision 01/2023/QD-TTg](https://lawnet.vn/vb/Quyet-dinh-01-2023-QD-TTg-giam-tien-thue-dat-cac-doi-tuong-bi-anh-huong-boi-Covid19-2022-86DB1.html).+ Develop guidance documents for implementing [Decision 01/2023/QD-TTg](https://lawnet.vn/vb/Quyet-dinh-01-2023-QD-TTg-giam-tien-thue-dat-cac-doi-tuong-bi-anh-huong-boi-Covid19-2022-86DB1.html), post the guidance documents on the Tax Department's website, and send guidance documents via email to organizations, units, enterprises, households, and individuals who are directly leased land by the State under a Land Lease Decision, Land Lease Contract, or Certificate of Land Use Rights, Ownership of Houses, and Other Assets attached to land with annual land rent payments.+ Information dissemination must be regular and continuous in various forms to ensure taxpayers access, clearly understand the scope, objects, deadlines, procedures, and benefits of the land rent reduction policy so that they can correctly and promptly implement the state's support policies and alleviate financial difficulties for taxpayers.
How does the General Department of Taxation guide the 30% reduction of land rent in 2022 due to the impact of Covid-19?
What is the reduction rate for land rent and water surface rent in 2022?
According to Article 3 of Decision 01/2023/QD-TTg, the land rent and water surface rent reduction rates are stipulated as follows:
- A 30% reduction in the land rent and water surface rent payable in 2022 for land and water surface lessees specified in Article 2 of this Decision; the reduction is not applied to the outstanding land rent and water surface rent of previous years and any late payment interest (if any).
- The above-mentioned land rent and water surface rent reduction is calculated based on the land rent and water surface rent payable in 2022 according to legal regulations.
In cases where land or water surface lessees are already receiving land rent or water surface rent reductions and/or compensation and site clearance deduction as prescribed by law on land rent and water surface rent, the 30% reduction in land rent and water surface rent is calculated on the amount payable (if any) after the reduction or compensation and site clearance deduction in accordance with legal regulations.
How to process the dossiers requesting the reduction of land rent and water surface rent according to Decision 01/2023/QD-TTg of the Prime Minister of the Government of Vietnam?
Under Section 2 of Official Telegram 01/CD-TCT of 2023, guidance on handling dossiers requesting the reduction of land rent and water surface rent according to Decision 01/2023/QD-TTg of the Prime Minister is as follows:
Based on the dossier requesting the reduction of land rent and water surface rent for 2022 of the land lessee prescribed in Article 4 of Decision 01/2023/QD-TTg by the Prime Minister submitted by the taxpayer, the managing tax authority shall determine the reduced land rent and water surface rent and issue the Decision to reduce land rent and water surface rent in accordance with the law on land rent collection and tax management law.
At the same time, consolidate the situation of land rent and water surface rent reduction according to Decision 01/2023/QD-TTg in the province/city area, update the information about the reduced land rent and water surface rent of taxpayers, the amount of land rent payable in 2022, and adjust equivalent late payment interest (if any) in the system.
In cases where land and water surface lessees have paid the land rent and water surface rent for 2022 and after the competent authority determines and decides to reduce the land rent and water surface rent resulting in an excess payment, the excess amount shall be deducted from the land rent and water surface rent of the next term or the following year according to tax management law and other related legal regulations.
In cases where there is no subsequent term of land rent or water surface rent, the excess amount shall be offset or refunded according to the provisions of tax management law and other relevant laws.
Note: The head of the tax authority is responsible for assigning related departments within the tax authority to update, check, review, and urge the implementation as prescribed by law.
If cases are found where taxpayers are not eligible for land rent and water surface rent reduction according to the regulations, the taxpayers shall be notified to comply with the current law on land rent (not following Decision 01/2023/QD-TTg of the Prime Minister).
The Tax Department consolidates and reports the implementation of Decision 01/2023/QD-TTg of the Prime Minister (issues, arising problems, proposals, and recommendations (if any)) to the Policy Department - General Department of Taxation before April 15, 2023.
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