Application for land rent reduction according to Decision 25/2023/QD-TTg in Vietnam

Application for land rent reduction according to Decision 25/2023/QD-TTg in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Application for land rent reduction according to Decision 25/2023/QD-TTg in Vietnam

According to Article 4 of Decision 25/2023/QD-TTg, documents for land rent reduction include:

- Request for land rent reduction in 2023 from the land tenant according to the Form in the Appendix issued with Decision 25/2023/QD-TTg.

Appendix

The land lessee is responsible before the law for the truthfulness and accuracy of the information and requests for reduction of their land rent, ensuring the right subjects receive land rent reduction according to regulations in Decision 25/2023/QD-TTg.

- Land lease decision or Land lease contract or Certificate of land use rights, ownership of housing and other assets attached to land from a competent state agency (copy).

2. Order and procedures for reducing land rent in Vietnam

Specifically, Article 5 of Decision 25/2023/QD-TTg stipulates the order and procedures for reducing land rent as follows:

- The land lessee submits 01 set of documents requesting land rent reduction (by one of the following methods: direct, electronic, or postal) to the tax authorities managing land rent collection, the Economic Zone Management Board, the Hi-Tech Park Management Board, and other agencies according to the provisions of the law on tax administration from November 20, 2023, to March 31, 2024.

Land rent reduction as prescribed in Decision 25/2023/QD-TTg is not applied in cases where land tenants submit applications after March 31, 2024.

- Based on the land rent reduction application submitted by the land lessee according to the provisions of Clause 1, Article 5, Decision 25/2023/QD-TTg; no more than 30 days from the date of receipt of complete and valid documents as prescribed in Article 4 of Decision 25/2023/QD-TTg, the competent authority determines the amount of land rent to be reduced and issues a Decision on land rent reduction according to the provisions of the law on land rent collection and the law on tax administration.

- In case the land tenant has been decided by the competent authority to reduce the land rent according to the provisions of Decision 25/2023/QD-TTg but then the state management agency discovers through inspection and examination that the land tenant is not eligible for land rent reduction as prescribed in Decision 25/2023/QD-TTg, the land lessee must repay the state budget for the reduced land rent and late payment interest calculated on the reduced amount according to the provisions of the law on tax administration.

- In case the land tenant has paid the land rent for 2023 but the competent authority determines and decides to reduce the land rent and there is an excess of land rent, the overpaid amount can be deducted from the land rent of the following period or the following year according to the provisions of the law on tax administration and other relevant laws;

In the event that there is no longer a next period for paying land rent, the excess payment shall be offset or refunded in accordance with the provisions of the law on tax administration and other relevant laws.

3. Land rent reduction in Vietnam

Pursuant to Article 3 of Decision 25/2023/QD-TTg, the land rent reduction are as follows:

- 30% reduction in land rent payable (income generated) in 2023 for land tenants specified in Article 2 of Decision 25/2023/QD-TTg; no reduction will be made on the outstanding land rent for the years before 2023 and late payment interest (if any).

- The reduction in land rent specified in Clause 1, Article 3 of Decision 25/2023/QD-TTg is calculated based on the amount of land rent payable (arising revenue) in 2023 according to the provisions of the law.

In case the land tenant is receiving a reduction in land rent according to regulations or/and deduction of compensation and site clearance according to the law on land rent, the 30% reduction in land rent is calculated on the amount of land rent payable (if any) after being reduced and/or deducted according to the provisions of law (except for the reduced land rent amount according to Decision 25/2023/QD-TTg).

More details can be found in Decision 25/2023/QD-TTg, taking effect on November 20, 2023.

Ho Quoc Tuan

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