On April 11, 2025, the Government issued Decree No. 87/2025/ND-CP (“Decree 87”) on the reduction of land rental fees in 2024 for enterprises, organizations, and individuals who lease land directly from the State and pay rent annually. This is an important financial support policy in the field of land, directly affecting land use costs for many businesses in 2024. Below are some key points of Decree 87, updated by ATA Legal Services:
According to Decree 87, the land rental fee for 2024 will be reduced by 30% based on the total land rental amount payable in 2024, applicable to the land area directly leased from the State under the annual rental payment scheme.
Eligible beneficiaries Include:
- Entities and individuals who are currently leasing land directly from the State under the annual rental payment scheme, possessing one of the following valid legal documents in 2024: a Land Lease Decision; a Land Lease Contract; or a Certificate of Land Use Rights, Ownership of Residential Housing and Other Assets Attached to Land;
- Those who had not completed land-related legal procedures in 2024 but have obtained all the required legal documents as specified in item (1) by the time of submitting the application for rent reduction.
- Land users who are not eligible for rental exemption or reduction, or whose exemption/reduction period has expired.
- Land users who are already enjoying a lend rental reduction under other regulations may still be considered for further reduction under Decree 87.
Important notes for land users:
1. In cases where land users have already fulfilled their land rental payment obligations before the issuance of Decree 87, any overpaid amount will be deducted from the future payments or offset/refunded in accordance with regulations if there are no subsequent payment periods. However, land users are still required to submit an application for land rental reduction as prescribed in this Decree;
2. If a land user has been granted a rental reduction for 2024, but is later found, through inspection or examination, not to be eligible, they must repay the reduced amount along with late payment interest in accordance with regulations. Therefore, land users should carefully review the eligibility conditions for the 2024 land rental reduction before submitting their application.
3. Land users must submit their application land rental reduction for 2024 in accordance with the guidance provided in Decree 87 within the period from April 11, 2025, to July 31, 2025. Applications submitted after this deadline will not be considered for the rental reduction.
Decree 87 is a practical support policy issued by the Government to ease difficulties for enterprises, organizations, and individuals leasing land from the State in 2024. However, in order to receive the benefit from the 30% land rental reduction, enterprises must carefully review the eligibility conditions, prepare complete documentation, and submit their application within the prescribed deadline. Strict compliance with the required procedures will enable businesses to effectively take advantage of this support policy and avoid unnecessary legal risks.
Decree 87 takes effect from April 11, 2025.
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