Businesses facing difficulties due to Covid-19 get land rent reduction

Mr. Minh• August 13, 2020 21:25

Subjects with land lease contracts with the State and forced to stop production and business due to Covid-19 will receive a 15% reduction in land rent in 2020.

According to Decision 22/2020 just issued, businesses, households and individuals forced to stop production and business for 15 days or more due to Covid-19 and are renting State land will receive a 15% reduction in land rent until the end of this year. The reduction in land rent will not include outstanding rent from previous years and late payment fees (if any). This is a move by the Government to support those facing difficulties due to Covid-19 according to Resolution 84/2020.

Dây chuyền sản xuất bao bì carton tại công ty CP Thiên Phú, Nghi Lộc. Ảnh minh họa Việt Phương

Carton packaging production line at a business in Nghi Loc, Nghe An. Illustrative photo by Viet Phuong

This provision also applies to cases where the land lessee has many different production and business activities, but only stops one production and business activity at the land plot or land plot being rented directly from the State.

To get a reduction in land rent, businesses and people must submit a request for a reduction in land rent in 2020 (a request for land rent reduction, a copy of the lease decision or land lease contract of a competent State agency) to the Tax Authority, the Management Board of the Economic Zone or High-Tech Park... by December 31, 2020. After 20 days of receiving the application, the competent authority will determine the amount to be reduced and issue a decision to reduce the land rent.

In case of paying land rent in 2020, the excess amount after deducting the reduced amount will be calculated in the following period, the following year or the management agency will offset and refund the excess amount according to regulations.