Recently, the Prime Minister of Vietnam has issued the Decision No. 22/2020/QĐ-TTg on reduction in land rents of 2020 for those influenced by Covid-19 pandemic in accordance with the Resolution No. 84/NQ-CP .
It is clearly stated in the Decision No. 22/2020/QĐ-TTg of the Prime Minister of Vietnam that enterprises, organizations, households and individuals that are directly leased land by the State under decisions or contracts of competent regulatory agencies in the form of annual land rent payment and have shut down business for 15 days or longer due to the impact of Covid-19 shall be entitled to the reduction of 15% of payable land rents of 2020 for the land lessees; no reduction will be made on the land rent debts of the years prior to 2020 and late payment interest (if any). Application and procedures for land rent reduction are prescribed as follows:
Application for reduction in land rent
- An application form for land rent reduction in 2020 for the land lessee, using the form provided in the Appendix attached to Decision No. 22/2020/QĐ-TTg.
- A land lease decision or land lease contract of a competent regulatory agency (copy).
Procedures for land rent reduction
- The land lessee shall submit 01 set of application for land rent reduction (electronically or otherwise) to the tax authority, the management board of economic zone or high-tech park, and other authorities in accordance with law within the time limit from the effective date of this Decision until the end of December 31, 2020; if the application is submitted from January 1, 2021 onwards, the land rent shall not be reduced according to Decision No. 22/2020/QĐ-TTg.
- Based on the application submitted in Clause 1 of this Article; within 20 days from the date of receipt of a duly complete application as prescribed in Article 4 of this Decision, the competent authority shall determine the reduced land rent amount and issue a decision to reduce the land rent in accordance with law on land rents.
- In cases where a land lessee who had their land rent reduced under this Decision, through the inspection and examination, is found ineligible for such land rent reduction, that lessee must return to the state budget the reduced land rent amount and the late payment interest on the reduced amount according to the provisions of law on tax administration.
- In cases where the land lessee has paid the land rent of 2020, but upon a decision on land rent reduction, there is an excess of land rent, the overpaid amount may be deducted from the land rent of the following period or the following year in accordance with the law on tax administration and other relevant laws; in case there is no following period, the overpaid amount shall be deducted or refunded in accordance with the law on tax administration and other relevant laws.
Note: This provision also applies to the case where the land lessee runs varied lines of business but only stops one line of business in the land parcel which has been directly leased by the State.
View more details at the Decision No. 22/2020/QĐ-TTg of the Prime Minister of Vietnam, effective from August 10, 2020.
Le Hai
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- Decision No. 22/2020/QĐ-TTg