The Ministry of Finance is seeking feedback on a draft decree by the Government on reducing land rent for the year 2024 to boost production and business activities.
According to the draft, two options for reducing land rent are proposed: Option 1 suggests a 15% reduction compared to the land rent payable for the year, while Option 2 proposes a 30% reduction.
These reductions will be applied to the land rent payable for the year 2024 and exclude any debts from previous years and late payment fees (if any). In cases where the lessee is already receiving a reduction in land rent or is compensated for site clearance in accordance with the law, the proposed reduction will be calculated based on the land rent payable (if any) after such reductions or compensations have been made.
Entities eligible for this rent reduction policy include organizations, units, enterprises, households, and individuals who are directly leasing land from the State. Whether they are currently exempt from land rent or not, all can be considered for additional reductions in 2024.
The Ministry of Finance proposes a 15-30% reduction in land rent for businesses. (Illustrative image)
With these two options, the state budget is expected to reduce land tax by VND 2,000-4,000 billion in 2024. However, the Ministry of Finance considers this a necessary trade-off to support businesses and the economy through difficult times. They believe that the economy still faces risks and uncertainties, negatively affecting sustainable growth.
To benefit from this policy, lessees only need to submit a dossier requesting a reduction in land rent to the tax authority or competent authority. Lessees are also responsible for the truthfulness and accuracy of the information provided, ensuring that they meet the criteria for rent reduction.
The reduction in land rent is expected to ease the financial burden on businesses, stabilize production and business operations, and create favorable conditions for investment and production activities, contributing to economic growth. This is especially beneficial for businesses affected by recent storms and floods, helping them to quickly resume production.
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