When receiving leased land transfer, can I continue to enjoy land rental incentives in Vietnam?

When receiving leased land transfer, can I continue to enjoy land rental incentives in Vietnam?

According to Clause 1, Article 20, Decree 46/2014/ND-CP stipulates reduction in land rent and water surface rent, as follows:

1. The land rents and water surface rents shall be reduced in these following cases:

a) A land rent for the land leased by a cooperative to be used as business and production premises shall be reduced by 50%.

b) A rent for the land or water surface leased to serve the purposes of agricultural production, forestry, aquaculture and salt making shall be reduced by a corresponding rate if less than 40% of its yield is damaged by disaster or conflagration; exempted if 40% or more of its yield is damaged in such year.

b) A rent for the land or water surface leased to serve the purposes of production and business other than the agricultural production, forestry, aquaculture and salt making or the case prescribed in the Clause 2 this Article shall be reduced by 50% during the pause in production and business in case of disaster, conflagration or force majeure.

At Point 10, Clause 5, Article 3, Decree 135/2016/ND-CP stipulates as follows:

10. If an entity who has the land leased out by the state with annual land rents and remains in the period of entitlement to exemption, reduction of land rents assigns its properties on the leased land to another and the assignee shall be entitled to the lease of the land for the remaining lease term provided that the land use purpose remains unchanged, the exemption, reduction of land rents shall be instructed as follows:

a) The assignor shall not include exempted, reduced land rents in the assignment price.

b) The assignee shall continue to enjoy exemption, reduction of land rents for the remaining preferential period.

If the assignee ceases to continue using the land according to the use purpose at the time of assignment after receiving the assignment of land but uses it for other purposes, the assignee shall perform his/her financial obligations as prescribed in Clause 4, Article 12 herein.

According to this Article, your company has received the transfer of land use rights and assets attached to the leased land and has paid a lump sum for the entire rental period of the cooperative (the cooperative has received a 50% reduction in land rent). Your company will not enjoy the 50% discount on land rent because it is not eligible in Vietnam.

When receiving leased land transfer, can I continue to enjoy land rental incentives in Vietnam? (Image from the Internet)

Can parties in a notarized land transfer contract arbitrarily cancel the contract in Vietnam?

According to Article 51 of the Notary Law 2014, it regulates notarization of the modification, supplementation or cancellation of contracts or transactions, accordingly:

1. The modification, supplementation or cancellation of a notarized contract or transaction may be notarized only with the written agreements or commitments of all parties to that contract or transaction.

2. The modification, supplementation or cancellation of a notarized contract or transaction shall be notarized at the notarial practice organization that has conducted the notarization and shall be made by a notary. If the notarial practice organization that has conducted the notarization has terminated its operation or been transformed, transferred or dissolved, a notary of the notarial practice organization that is keeping the notarial records shall modify, supplement or cancel the contract or transaction.

3. Procedures for notarization of the modification, supplementation or cancellation of a notarized contract or transaction are the same as procedures for notarization of contracts and transactions prescribed in this Chapter.

Thus, the parties of a notarized land transfer contract are not allowed to arbitrarily cancel the contract but must do so at a notary practice organization and by a notary in Vietnam.

What are cases where land use rights cannot be transferred in Vietnam?

Pursuant to Article 191 of the 2013 Land Law, it is stipulated that cases in which acquisition or donation of land use rights is not allowed are as follows:

1. Organizations, households, individuals, communities, religious institutions, overseas Vietnamese and foreign-invested enterprises may not receive transfer or donation of land use rights in case the transfer or donation of land use rights is prohibited by law.

2. Economic organizations may not acquừe the rights to use paddy land, protection forest land or special-use forest land from households or individuals, except the case of change in land use purpose in accordance with the land use master plan and plans approved by competent state agencies.

3. Households and individuals not directly engaged in agricultural production may not receive the transfer or donation of paddy land use rights.

4. Households and individuals may not receive the transfer or donation of residential land use rights and agricultural land use rights with regard to the land located in the areas of protection forests, strictly protected zones and ecological rehabilitation zones in special-use forests if they do not live in such protection forests or special-use forests.

With the above regulations in Vietnam, individuals and organizations in these cases will not be allowed to receive land use rights transfer.

Best regards!