REDUCTION OF LAND LEASE FEES IN 2023

The policy of reducing land rents, in effect since 2020 until now, has shown positive impacts on sectors such as real estate, manufacturing, and mining. Amidst continued economic and social challenges post-pandemic, the Government has issued Decision No. 25/2023/QD-TTg on November 17, 2023, regarding the reduction of land rents for the year 2023, outlining significant and noteworthy content.

Here, let’s explore the details together with Bizlawyer!

Applicable Entities: Decision No. 25/2023/QD-TTg applies to the following entities:

Organizations, units, enterprises, households, individuals directly leased land by the State according to Decisions, Contracts, or Certificates of land use rights, ownership of residential houses, and other properties attached to land by authorized state agencies under the form of annual land rent payment;

Cases where tenants do not fall under the exempted or reduced land rent categories, or when the exemption or reduction period for land rent has expired;

Tenants currently receiving reduced land rent according to land and related legal documents.

Reduction Percentage of Land Rent: As per this Decision, tenants in the mentioned cases will receive a 30% reduction in the land rent payable for the year 2023; this reduction doesn’t apply to outstanding land rents from previous years before 2023 and late payment fees (if any).

Significance:

Provides additional support resources for businesses amid the global economic phase and the specific challenges Vietnam faces due to continuous monetary policy tightening and consequences from ongoing wars;

Addresses economic bottlenecks and shortcomings, fostering positive effects and confidence among production and business households;

Significant cost savings from the land rent reduction policy could provide financial aid to businesses to overcome capital flow difficulties during this period.

The above constitutes the entire content of the news: Reduction of land taxes in 2023. Decision No. 25 will come into effect from November 20, 2023.

This news is solely intended to inform about newly issued legal regulations and is not meant for specific advisory or application purposes.

We hope this information is beneficial to our readers.