How many years are investment projects in economic zones with difficult socio-economic conditions exempt from specific land rental levels in Vietnam?

How many years are investment projects in economic zones with difficult socio-economic conditions exempt from specific land rental levels in Vietnam?

Pursuant to Point b, Clause 6, Article 8 of Decree No. 35/2017/ND-CP stipulating specific land rental exemption and reduction levels are prescribed below:

a/ Land rental shall be exempted for the capital construction period which must not exceed 3 years counting from the date of issuance of the land lease decision by a competent state agency (except cases of renovation and expansion of production and business establishments).

b/ After the period of capital construction during which land rental is exempted (except the case specified at Point d of this Clause), land rental shall be further exempted as follows:

- For 11 years, for investment projects outside the list of sectors eligible for investment incentives but in economic zones located in district-level geographical areas not eligible for investment incentives.

- For 13 years, for investment projects outside the list of sectors eligible for investment incentives but in economic zones located in district-level geographical areas with difficult socio-economic conditions.

- For 15 years, for investment projects outside the list of sectors eligible for investment incentives and in economic zones located in district-level geographical areas with exceptionally difficult socio-economic conditions, and for investment projects on the list of sectors eligible for investment incentives and in economic zones located in district-level geographical areas not eligible for investment incentives.

- For 17 years, for investment projects on the list of sectors eligible for investment incentives and in economic zones located in district-level geographical areas with difficult socio-economic conditions.

- For 19 years, for investment projects on the list of sectors eligible for investment incentives and in economic zones located in district-level geographical areas with exceptionally difficult socio-economic conditions.

The lists of sectors eligible for investment incentives, sectors eligible for special investment incentives, geographical areas with difficult socio-economic conditions, and geographical areas with exceptionally difficult socio-economic conditions referred to in this Decree must comply with the investment law.

c/ Land rental and water surface rental shall be exempted for the entire lease period (except the case specified at Point d of this Clause) for:

- Investment projects on the list of sectors eligible for special investment incentives.

- Investment projects to build houses for workers in economic zones or projects that lease land from the operators of infrastructure facilities in economic zones to build houses for workers according to a master plan approved by a competent state agency; project owners may not include land rental expenses in house rental rates.

- Land for construction of non-business works of public non-business units in economic zones.

- Land for construction of maintenance and repair stations and parking lots (including also ticket sale offices, administration offices and public service facilities) to serve public transportation in economic zones in accordance with the law on road transportation.

- Land for construction of water supply facilities in economic zones, including water exploitation and treatment facilities, pipelines and facilities on the water supply network and works in support of the management and operation of the water supply system (administrative offices, management offices, workshops, supplies and equipment storehouses and storage yards).

d/ Investors that are leased land by the State for construction and commercial operation of infrastructure in functional sub-zones in economic zones are further entitled to land rental exemption after enjoying such exemption during the capital construction period prescribed at Point a of this Clause, specifically as follows:

- For 11 years, if making investment in district-level geographical areas not eligible for investment incentives.

- For 15 years, if making investment in district-level geographical areas with difficult socio-economic conditions.

- For the entire lease period, if making investment in district-level geographical areas with exceptionally difficult socio-economic conditions.

If an economic zone is located in two or more districts, land rental exemption shall be determined based on the area within each district.

Thus, according to the regulations in Vietnam, for projects not on the list of sectors eligible for investment incentives and in economic zones located in district-level geographical areas not eligible for investment incentives, they will exempted from land rent for the period of capital construction for 15 years.

The project will also be exempted for 19 years for projects on the list of sectors eligible for investment incentives and in economic zones located in district-level geographical areas with exceptionally difficult socio-economic conditions.

What are dossiers of request for land rental exemption in Vietnam?

Dossiers of request for land rental exemption in economic zones are prescribed below: is specified at Point a, Clause 11, Article 8 of Decree No. 35/2017/ND-CP as follows:

a/ A dossier of request for land rental exemption for the capital construction period

- A written request for land rental exemption for the capital construction period (original), specifying the leased land area, land lease period, reason for land rental exemption, and exemption period.

- The investment certificate, investment license, investment registration certificate, or investment policy decision (copy) (except cases not requiring this type of paper under the investment law).

- A competent state agency’s land lease decision (copy).

- The investment project (copy) approved in accordance with the investment law serving as a basis for the land lease by the State.

Best Regards!