Article 157 of the 2024 Land Law provides for exemption and reduction of land use levy and land rent, in which Clause 1 specifies the cases and entities eligible for such exemption or reduction, and Clause 2 authorizes the Government to “stipulate other cases eligible for exemption or reduction of land use levy and land rent not provided in Clause 1 after obtaining the consent of the Standing Committee of the National Assembly (the “SCNA”).”
Based on the Resolution of the SCNA, on August 19, 2025, the Government promulgated Decree No. 230/2025/ND-CP (“Decree 230”) specifically providing for other cases of exemption and reduction of land use levy and land rent pursuant to Clause 2 Article 157 of the 2024 Land Law mentioned above. This is an important implementing instrument, clarifying the financial support mechanism for organizations, households, individuals, and enterprises in the context of implementing the new Land Law, particularly aiming to stabilize socio-economic conditions in areas affected by resettlement and climate change, as well as to promote production and business activities during the economic recovery period.
1. Exemption and Reduction of Land Use Levy to Implement Socio-Economic Policies
a) Exemption from land use levy for land allocated within residential land allocation limits in the following cases:
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Allocation of residential land for resettlement or allocation of land to households and individuals in flood-prone cluster or line residential areas in the Mekong Delta under the Prime Minister’s decision.
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Allocation of residential land to fishing village households and residents living on rivers, lagoons relocated to resettlement sites according to approved planning, schemes, and projects.
b) Reduction of 30% of annual land use levy for cases of defense land combined with production and economic development activities associated with military and defense missions according to land use plans approved by the Minister of National Defense.
c) Exemption or reduction of land use levy in cases deemed necessary to implement socio-economic policies, stabilize the macro-economy, support business development, ensure social security, and address issues arising from annual socio-economic administration based on submissions by the Ministry of Finance.
The provisions under Decree 230 broaden the scope of beneficiaries eligible for exemption and reduction of land use levy, clearly reflecting the orientation towards social security and economic-defense development support by the State.
2. Exemption and Reduction of Land Rent
a) Full exemption from land rent for the entire lease term in the following cases:
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Land for construction of headquarters of the Vietnam Bank for Social Policies and the Vietnam Development Bank.
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Land for construction of headquarters of off-budget state financial funds operating on a non-profit basis and established under regulations of the Government or the Prime Minister.
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Land for construction of Commune Post-Cultural Points.
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Land for construction of research facilities of science and technology enterprises if satisfying conditions under the law on science and technology.
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Land used by entities operating in the fields of digital technology, software, semiconductors, artificial intelligence; land for the construction of concentrated digital technology zones; land of the National Innovation Center.
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Premises and land serving external relations and diplomacy allocated to public service units with the function of managing premises and land for external relations and for foreign organizations with diplomatic functions, foreign offices leased under special preferential policies of the State as decided by competent authorities.
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Land that is not defense land but belongs to military units having the function of providing public services under the model of public service units.
These provisions indicate a high priority for public service units, state financial organizations, innovation facilities, digital technology entities, and external relations, particularly those operating on a non-profit basis. The inclusion of science and technology enterprises, digital technology research centers, concentrated digital technology zones, and the National Innovation Center aligns with the national strategy for digital economy and digital transformation.
b) Exemption or reduction of land rent for enterprises implementing investment projects in agriculture and rural areas.
c) Exemption or reduction of land rent for land users leased by the State with annual rental payment for production and business purposes who suffer from natural disasters, fires, or must suspend operations to remedy consequences caused by natural disasters, fires, or force majeure accidents.
d) Exemption or reduction of land rent for organizations (including enterprises) employing ethnic minorities and persons with disabilities.
e) Exemption or reduction of land rent for establishments engaged in socialization in the fields of education and training, vocational training, healthcare, culture, sports, and environment.
f) 50% reduction of land rent for cooperative groups, cooperatives, and unions of cooperatives leased land by the State with annual rental payment for production and business premises.
g) Exemption or reduction of land rent in cases deemed necessary to implement socio-economic policies, stabilize the macro-economy, support production and business development, ensure social security, and address issues arising from annual socio-economic administration based on submissions by the Ministry of Finance.
3. Reduction of Payable Land Rent for 2025
a) 30% reduction of payable land rent for 2025 for organizations and individuals leased land by the State with annual rental payment (including cases with or without legal land documents but using land subject to land rent payment in 2025 as prescribed, and cases where the land user is using land but has not completed land procedures under the law on land).
b) The reduction amount is calculated based on the land rent amount for 2025 under the Land Rent Payment Notice (if any) or according to the provisions of the law on land rent in case no notice has been issued.
c) No reduction shall apply to:
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Outstanding land rent from previous years (before 2025).
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Late payment interest or amounts of tax already reduced or deducted under other policies.
d) Where the land user has paid land rent for 2025 and, after determination and decision by the competent authority on land rent reduction, an overpayment arises, such amount shall be offset against the subsequent land rent payment period or year under the law on tax administration and relevant regulations; if there is no subsequent land rent obligation, the overpaid amount shall be settled by offsetting or refunding under the law on tax administration and relevant regulations.
e) Land users shall be responsible before the law for the accuracy and truthfulness of the information and request for land rent reduction, ensuring that they fall within the eligible cases under this Decree. If it is later found that they are not eligible for land rent reduction, the land user must return to the state budget the amount of land rent reduced and late payment interest calculated on the reduced amount under the law on tax administration.
4. Transitional Provisions
a) Cases holding land use rights prior to the effective date of this Decree but now falling within the scope of land use levy or land rent exemption or reduction under this Decree shall implement such exemption or reduction from the effective date of this Decree – August 19, 2025.
b) Cases eligible for land rent reduction under Decisions of the Prime Minister on land rent reduction in annual socio-economic administration (such as decisions on tax reductions for entities affected by the COVID-19 pandemic during 2021, 2022, and 2023) and have submitted valid applications for incentives shall continue to enjoy incentives under such previous Decisions.
This Decree takes effect on August 19, 2025.
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