The Government proposes 30% reduction in the land lease fee for 2025
In order to implement the Government’s directive under Resolution No. 233/NQ-CP dated December 10, 2024, on supporting individuals and businesses in developing production and business activities, the Government is currently drafting the Draft Decree regulating the reduction of land rental fees for 2025 (“Draft”).
Land rental reduction rate
The Draft proposes a 30% reduction in land rental fees, calculated based on the payable land rental amount for 2025. This reduction will not apply to any outstanding land rental fees from years prior to 2025 or to any late payment interest (if any).
If a land user is concurrently entitled to other land rental reductions and/or is entitled to deduct compensation and site clearance expenses from the payable land rental amount, the 30% reduction will be applied to the land rental amount payable after such other reductions and/or deductions in accordance with legal regulations.
Eligible entities to rent reductions
The Draft proposes that the land rental reduction will apply to lawful land users who are currently leasing land from the State based on a Land Lease Decision, a Land Lease Contract, or a Certificate of Land Use Rights and Ownership of Assets Attached to Land issued by a competent state authority, effective during 2025, under the form of annual land rental payment.
It is notable that the Draft proposes that the reduction will apply even to cases where the land user is not eligible for, or has exhausted the period of, other land rental exemptions or reductions, as well as to cases where the land user is already enjoying other forms of land rental reductions.
Application Dossier, Procedures, and Process
To be entitled to the 30% reduction in the payable land rental amount for 2025, the land user must submit the following documents:
- A written request for the 2025 land rental reduction (using the template attached to the Draft); and
- A certified copy of the Decision of land lease or Agreement of land lease or Certificate of land use rights, ownership of assets attached to the land.
Within 30 days from the receipt of a complete and valid application, the competent authority will determine the reduced land rental amount and issue a Decision on land rental reduction in accordance with the laws on land use fees, land rental fees, and tax administration.
With the goal of achieving an 8% economic growth rate in 2025 as set out in Resolution No. 233/NQ-CP, this Draft is expected to ease the financial burden and create more favorable conditions for individuals and businesses to improve their production and business activities, thereby fostering the intended economic growth momentum.
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