Vietnam: Preferential policies regarding land rent and non-agricultural land use tax for the Da Nang hi-tech park

Specifically, according to Article 5 of Decree No. 04/2018/ND-CP of Vietnam’s Government, preferential policies regarding land rent and non-agricultural land use tax are as follows:

- Exempting the entire land rent for the entire duration of the investment lease project in the following cases:

+ Land for constructing transportation infrastructure, technical infrastructure, green areas, water bodies, and public parks according to approved general and zonal planning;

+ Land for constructing public works of public-sector organizations;

+ Land for establishing high-tech human resource training facilities as regulated by high-tech laws;

+ Land for implementing housing projects for experts and leased workers working in the high-tech park according to approved planning by competent state authorities;

+ Projects listed in the special investment incentive sectors (excluding construction and operation investment projects for high-tech infrastructure).

- The level of exemption or reduction in land rent for projects not falling under the cases specified above shall be as follows:

+ Exemption from land rent during the basic construction period, but for a maximum of 03 years from the date of the land lease decision (excluding cases of investment in renovation and expansion of production and business facilities);

+ Exemption from land rent after the land rent exemption period during the basic construction period for 15 years for investment projects not falling under the investment incentive sector list; investment projects for constructing and operating high-tech park infrastructure;

+ Exemption from land rent after the land rent exemption period during the basic construction period for 19 years for investment projects falling under the investment incentive sector list;

+ Exemption from land rent during the period when production or business is forced to cease due to natural disasters, fires, or force majeure accidents.

- The list of investment incentive sectors and the list of investment incentive sectors with special preferences shall be implemented in accordance with investment laws.

- In the case of land users leasing land in the high-tech park to implement socialized projects in the fields of education, vocational training, healthcare, culture, sports, and environment, the level of land rent exemption or reduction shall be applied according to the Government's policies on promoting socialization in the fields of education, vocational training, healthcare, culture, sports, and environment.

- Land users are exempt from non-agricultural land use tax for the entire duration of land use.

View more: Decree No. 04/2018/ND-CP of Vietnam’s Government takes effect from February 20, 2018.

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