Reduction in land rent and water surface rent in 2022 for entities affected by covid-19 in Vietnam under Resolution 7/NQ-CP in 2023

Reduction in land rent and water surface rent in 2022 for entities affected by covid-19 in Vietnam under Resolution 7/NQ-CP in 2023 (Internet image)

Reduction in land rent and water surface rent in 2022 for entities affected by covid-19 in Vietnam

According to Article 1 of Resolution 7/NQ-CP, 30% reduction in the land rent and water surface rent in 2022 is applied to organizations, units, enterprises, households and individuals that are directly leasing land from the State under decisions or contracts or certificates of land use rights and rights to ownership of house and other properties associated with the land issued by competent state authorities via the method of land lease with annual rental payment due to COVID-19.

(Previously, the reduction in the land rent and water surface rent in 2022 applied to organizations, units, enterprises, households and individuals being directly leasing land from the State and had to stop production and business because effects of the COVID-19 pandemic.)

At the same time, the Ministry of Finance shall submit to the Prime Minister for promulgation a Decision regulating the reduction of land rent and water surface rent according to the contents specified in Article 1 of Resolution 7/NQ-CP.

Resolution 7/NQ-CP comes into force from the date of signing and replaces the fourth paragraph Point a Section 3 Part II of Resolution 11/NQ-CP dated January 30, 2022 of the Government on the Socio-Economic Development and Recovery Program and implementation of Resolution 43/2022/QH15 of the National Assembly on fiscal and monetary policies applied to support the Program.

Beneficiaries of support for a 30% reduction in land and water surface rents in Vietnam

Pursuant to Resolution 11/NQ-CP dated January 30, 2022, the beneficiaries and duration of support for a 30% reduction in land and water surface rents in Vietnam are as follows:

- Entities eligible for support (beneficiaries) include:

= People, workers affected by the COVID-19;

= Enterprises, cooperatives and household businesses;

= Industries and fields creating motives for recovery and development of the economy.

-  Duration of support is mainly in a 2-year period of 2022-2023; Some policies may be prolonged or their resources may be added depending on developments of the epidemic.

Other policies on tax, fee and fee exemption and reduction according to Resolution 11/NQ-CP

In addition to the policy of reducing land and water surface rents mentioned above, Resolution 11/NQ-CP also stipulates a number of policies on exemption and reduction of taxes, fees, and other fees to support subjects affected by the COVID-19 epidemic, specifically:

- 50% reduction in environmental protection tax on aviation fuel is applied according to Resolution No. 13/2021/UBTVQH15 dated December 31, 2021 of the Standing Committee of National Assembly.

- Include contributions and donations of enterprises and organizations to Covid-19 prevention and control activities in Vietnam in deductible expenses of the tax year 2022.

- The export and import tax rates are prescribed in Decree No. 101/2021/ND-CP dated November 15, 2021 and relevant documents.

- 50% deduction of the registration fee for domestically manufactured and assembled motor vehicles is applied according to Decree No. 103/2021/ND-CP dated November 11, 2021.

- Continue reviewing and deducing fees and charges in order to support and solve difficulties caused by the COVID-19 to affected entities.

In addition, support interest of 2% per year in the 2-year period of 2022-2023 via the commercial bank system to enterprises, cooperatives and business households which are capable of repaying debts and recovering in aviation, warehousing transport; tourism, accommodation, food and drink, education and training; agriculture, forestry and fisheries;

Processing and manufacturing industry (including machinery, equipment, medicines, pharmaceuticals and herbal materials); software production; computer programming and related activities; information services; loans on renovation of old condominiums, construction of social houses and houses for purchase, lease and lease-purchase by workers.

Requirements for support: entities are entitled to beneficiary, received loans or meet requirements for loans approved by the commercial bank.

Nguyen Nhu Mai

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