"Recently, a series of policies regarding land rental reduction have been issued by the Government to support organizations and individuals in recovering and stabilizing their production and business. The most recent one is the policy to reduce land rental by 30% for the year 2023 for those affected by the COVID-19 pandemic, as stated in Decision No. 01/2023/QD-TTg dated January 30, 2023 ("Decision 01"). ATA Legal Services has updated this information here.
On October 3, 2023, the Prime Minister continued to issue Decision No. 25/2023/QD-TTg ("Decision 25") regarding the reduction of land rental for the year 2023, with the following notable contents.
1. Applicable entities
The reduction of land rental under Decision 25 applies to tenants, including organizations, units, enterprises, households, and individuals currently leasing land directly from the State on an annual rent basis according to Decisions, Contracts, or Certificates of land use rights, ownership of residential houses, and other properties attached to the land of competent state agencies.
These entities include tenants who are not eligible for exemption or reduction of land rental, whose exemption or reduction of land rental has expired, and those currently benefiting from the reduction of land rental according to the regulations on land and related laws.
2. Determining the reduction rate of land rental
a. Reduction rate of land rental:
Reduce 30% of the land rental due for the year 2023, without applying the reduction to the outstanding land rental from years before 2023 and late payment charges (if any).
b. Cases where tenants are currently benefiting from the reduction of land rental according to regulations and/or deduction for compensation, land clearance as stipulated by land rental laws:
The 30% reduction of land rental is calculated on the land rental due (if any) after being reduced and/or deducted according to legal provisions.
According to Decision 01, in cases where entities enjoying the land rental reduction policy for the year 2022 have made full payments for the land rental of that year, the excess amount paid will be deducted from the land rental of the subsequent or following year. However, this excess amount will not be considered for the 30% reduction of land rental for the year 2023 as per Decision 25.
Thus, the land rental due = Land rental due for the year 2023 – 30% * (Land rental due for the year 2023 – Amount reduced and/or deducted (if any)) – Excess payment as per Decision 01 (if any).
Decision 25 is effective from November 20, 2023. Entities must submit and send their land rental reduction request documents to the competent authority no later than March 31, 2024. Any submissions after this deadline will not be eligible for the benefits under this Decision.
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