Further 30% reduction in land rent for 2023.

Accordingly, the Prime Minister has just decided to reduce land rent for organizations, businesses, households, and individuals leasing land in 2023, subject to the following conditions, procedures, and formalities:

+Eligible entities for land rent reductionThese are organizations, units, enterprises, households, and individuals who are directly leasing land from the State according to Decisions, Contracts, or Certificates of Land Use Rights, Ownership of Houses and Other Assets Attached to Land issued by other competent state agencies in the form of annual land rent payments (collectively referred to as land lessees).

This regulation also applies to cases where the land lessee is not a member of the group.Subjects eligible for exemption or reduction of land rent, upon expiration of the land rent exemption or reduction period, and in cases where the land lessee is already receiving a land rent reduction under the provisions of land law and other relevant laws.

+Land rent reductionThis is 30% of the land rent payable (revenue generated) for the year 2023 for the land lessees as stipulated above; no reduction will be applied to outstanding land rent from years prior to 2023 and late payment penalties (if any). The above-mentioned land rent reduction is calculated based on the land rent payable (revenue generated) for the year 2023 as prescribed by law.

In cases where the land lessee is already receiving a land rent reduction under other regulations or/and a deduction for compensation and land clearance costs as stipulated by the law on land rent, the 30% land rent reduction will be calculated on the amount of land rent payable (if any) after any reductions or deductions have been made as stipulated by law (excluding the amount of land rent reduced under Decision No. 01/2023/QD-TTg dated January 31, 2023 of the Prime Minister).

+The land rent reduction application includes:Application for land rent reduction in 2023 by the land lessee, using the form issued with this Decision. A copy of the land lease decision or land lease contract or Certificate of Land Use Rights, Ownership of Houses and Other Assets Attached to Land issued by the competent state agency. The land lessee is legally responsible for the truthfulness and accuracy of the information and their request for land rent reduction, ensuring that they meet the eligibility criteria for land rent reduction as stipulated in this Decision.

+Procedure for reducing land rent:

Land lessees submit one set of documents requesting a reduction in land rent in person, electronically, or by mail to the tax authority responsible for collecting land rent (if outside an Economic Zone).Economic Zone Management BoardThe Industrial Park Management Board (if within an Economic Zone) and other agencies as prescribed by tax law shall apply from the effective date of Decision No. 25/2023/QD-TTg (November 20, 2023) until March 31, 2024. The land lease fee reduction as stipulated in Decision 25/2023/QD-TTg shall not apply to land lease applications submitted after March 31, 2024.

Based on the land rent reduction application submitted by the land lessee as stipulated in Clause 1 above, within no more than 30 days from the date of receiving a complete and valid application, the competent authority shall determine the amount of land rent to be reduced and issue a decision on land rent reduction in accordance with the law on land rent collection and the law on tax management.

In cases where a land lessee has been granted a land rent reduction by a competent authority in accordance with Decision No. 25/2023/QD-TTg, but the state management agency subsequently discovers through inspection and audit that the lessee does not qualify for the reduction, the lessee must reimburse the state budget the reduced land rent amount plus late payment interest calculated on the reduced amount in accordance with the law on tax management.

In cases where a land lessee has paid land rent for 2023, and after the competent authority determines and decides to reduce the land rent, an overpayment is incurred, the overpaid amount may be deducted from the land rent of the following period or year in accordance with the law on tax administration and other relevant laws; if there are no further periods for which land rent is due, the overpaid amount may be offset or refunded in accordance with the law on tax administration and other relevant laws.

The Decision takes effect from November 20, 2023; assigns the Ministry of Finance the responsibility for organizing the implementation and resolving any difficulties during the implementation of the Decision; and assigns the Minister and heads of ministerial-level agencies, and the Chairmen of provincial People's Committees to organize inspections, examinations, and promptly and strictly handle any violations in accordance with the law.