Official in Vietnam: 30% reduction in land rents payable of 2023

Official in Vietnam: 30% reduction in land rents payable of 2023 (Internet image)

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

On October 3, 2023, the Prime Minister issued Decision 25/2023/QD-TTg on reducing land rent in 2023.

Official in Vietnam: 30% reduction in land rents payable of 2023

30% reduction in land rents payable of 2023 shall be given to land lessees prescribed in Article 2 of this Decision; the reduction shall apply to the land rents incurred before 2023 and late payment interests thereon (if any).

The reduction in land rents prescribed above shall apply to the land rents payable of 2023 as prescribed by laws.

In case a land lessee is being given a reduction in land rents as prescribed and/or a deduction of compensation and ground clearance from land rents under regulations of laws on land rents, the 30% reduction shall apply to the land rents payable (if any) after reduction or/and deduction (except for land rents that have been reduced according to Decision 01/2023/QD-TTg dated January 31, 2023 of the Prime Minister). 

Procedures for reduction in land rents in Vietnam according to Decision 25/2023/QD-TTg

Specifically, Article 5 of Decision 25/2023/QD-TTg stipulates the procedures for reduction in land rents as follows:

- A land lessee shall submit 01 application for reduction in land rents (via an online method or in person or by post) to a tax authority assigned to collect land rents, Economic Zone Management Board, Hi-Tech Park Management Board or another agency as prescribed by laws on tax administration from the effective date of this Decision to the end of March 31, 2024.

The regulations in this Decision shall not be applicable to land lessees who submit their applications after March 31, 2024.

- Based on the application submitted by the land lessee as prescribed in Clause 1 of Article 5 of Decision 25/2023/QD-TTg, within 30 days from the date on which the satisfactory application is received as prescribed in Article 4 of Article 5 of Decision 25/2023/QD-TTg, the competent authority shall determine the reduction and issue a Decision on reduction in land rents as prescribed by laws on collection of land rents and laws on tax administration.

- In case a regulatory authority discovers that a land lessee is not eligible for land rent reduction after a land rent reduction has been issued by a competent authority, the land lessee must return the reduction granted plus (+) late payment interest thereon to the state budget as prescribed by laws on tax administration.

- If land rent reduction is granted by a competent authority after the lessee has paid the land rent of 2023, the overpaid rent shall be deducted from the land rent payable in the next period or the next year as prescribed by laws on tax administration and other relevant laws.

If land rents will no longer be paid, the overpaid rent shall be offset or refunded as prescribed by laws on tax administration and other relevant laws.

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

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