Order and procedures to reduce 30% of land rent and water surface rent in Vietnam 2022

Order and procedures to reduce 30% of land rent and water surface rent in Vietnam 2022 (Internet image)

1. Order and procedures to reduce 30% of land rent and water surface rent in Vietnam 2022

The order and procedures for 30% reduction of land rent and water surface rent in 2022 shall comply with Article 5 of Decision 01/2023/QD-TTg, specifically:

- Land and water surface tenants shall submit 01 application for reduction of land rent or water surface rent (by electronic or other methods) to the tax authority, the Economic Zone Authority, the High-Tech Park Management Board, and other agencies as prescribed by law from January 31, 2023, to the end of March 31, 2023.

The reduction of land rent or water surface rent as prescribed in Decision 01/2023/QD-TTg shall not be applied to cases where land and water surface renters submit dossiers after March 31, 2023.

- Pursuant to the application for reduction of land rent or water surface rent submitted by land or water surface renters as prescribed in Clause 1, Article 5 of Decision 01/2023/QD-TTg, within 30 days from the date of receipt of a complete and valid dossier as prescribed in Article 4 of Decision 01/2023/QD-TTg, the competent authority shall determine the reduced land and water surface rents and promulgate a Decision on reduction of land rent and water surface rent in accordance with the law on collection of land and water surface rent and the law on tax administration.

- In case the lessee of land or water surface has been decided by a competent authority to reduce the land rent or water surface rent according to the provisions of Decision 01/2023/QD-TTg but then the state management agency discovered through inspection and examination that the land and water surface renters were not eligible for a reduction in land and water surface rents according to the provisions of Decision 01/2023/QD-TTg, the lessee of land or water surface must refund to the state budget the reduced land and water surface rent and the late payment interest calculated on the reduced amount in accordance with the law on tax administration.

- If a lessee of land or water surface has already paid the land rent or water surface rent for the year 2022, but the competent authority determines and decides to reduce the land rent or water surface rent, if there is an excess of land rent or water surface rent, the overpaid amount may be deducted from the land rent or water surface rent of the following period or the following year in accordance with the provisions of the tax administration law and other relevant laws.

In case there is no longer a period to pay the next land rent or water surface rent, the overpaid amount shall be cleared or refunded according to the provisions of the law on tax administration and other relevant laws in Vietnam.

2. Reduction of land and water surface rents in Vietnam

Article 3 of Decision 01/2023/QD-TTg stipulating the reduction of land rent and water surface rent in 2022 as follows:

- 30% reduction of land and water surface rent payable in 2022 for land and water surface renters specified in Article 2 of Decision 01/2023/QD-TTg; do not reduce the amount of land rent, water surface rent owed in the years before 2022 and late payment interest (if any).

- The reduction of land and water surface rents specified above is calculated on the payable land and water surface rents of 2022 in accordance with law.

In case the land or water surface lessee is entitled to a reduction in land rent or water surface rent according to regulations and/or deduction of compensation and ground clearance in accordance with the law on land rent and water surface rent, 30% reduction of land rent, water surface rent is calculated on the payable land rent or water surface rent (if any) after the reduction and/or deduction as prescribed by law.

Decision 01/2023/QD-TTg takes effect from the date of signing and promulgation.

Nguyen Nhu Mai

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