Propose a 15-30% reduction in land rents in 2024 for people affected by typhoon Yagi

	MoF proposes Government to extend payment deadlines of taxes and land and water surface rents in 2022
	Strengthening support for taxpayers to enjoy policy of reducing land and water surface rents
	Completing regulations on land use fees and land rent

The average reduced amount of land and water surface rents in 2020-2023 is VND2,890 billion per year. Photo: H.Anh

Recently, in a report on the damage caused by typhoon No. 3 and solutions to overcome the consequences, the Ministry of Planning and Investment proposed to reduce land and water surface rents for those affected by typhoon No. 3 and typhoon circulation, subsequent flood, and flash floods. Accordingly, the Prime Minister directed the Ministry of Finance to study and provide comments on the content of the report and proposal of the Ministry of Planning and Investment.

On this basis, the Ministry of Finance submitted to the Government a draft Decree regulating the reduction of land rents in 2024 after receiving the approval of the National Assembly Standing Committee.

Accordingly, in the draft, the Ministry of Finance proposed 2 options. Option 1 is reducing 15% of the land rents in 2024 for land lessees. Option 2 is reducing 30% of the land rents in 2024 for land lessees.

The land rent reduction is calculated on the land rent payable in 2024 according to the provisions of law. The reduction will not be applied to the outstanding land rent of years before 2024 and late payment (if any). In case the land lessee is receiving a land rent reduction according to regulations or/and compensation and site clearance deductions according to the provisions of law on land rent, this land rent reduction will be calculated on the land rent payable (if any) after being reduced or/and deducted according to the provisions of law.

According to the Ministry of Finance's calculations, the implementation of this policy is expected to reduce the land rent by about VND 2,000 - 4,000 billion. With the ability to recover and develop the economy in 2024 thanks to the Government's fiscal and monetary policies and the efforts of the entire political system, the estimated state budget revenue in 2024 will be reached and exceeded. Therefore, the land rent reduction under this policy has an insignificant impact on the general state budget revenue, but has a great support for the recovery and development of production and business of households and businesses.

The Ministry of Finance proposes that the subjects of application are organizations, units, businesses, households and individuals who are directly leasing land from the State according to decisions or contracts or certificates of land use rights, house ownership rights and other assets attached to land of competent state agencies (calculated at the time the land lessee submits the application for land rent reduction according to this regulation) in the form of annual land rent payment (land lessee).

This provision applies to both land lessees who are not eligible for exemption or reduction of land rent, and land lessees who are receiving land rent reduction according to regulations of the law on land and other relevant laws; authorized agencies handling land rent reduction applications; other relevant agencies, organizations and individuals.

To simplify administrative procedures and facilitate implementation; to reduce difficulties and harassment when applying for the reduction to the State management agencies, the Ministry of Finance submits to the Government an application consisting of only two types of documents: an application form for reduction and a lease decision or lease contract, or a certificate of land use rights, house ownership rights, and other assets attached to land. At the same time, it is stipulated that the payer must self-declare, self-pay, and be legally responsible for the authentication of the application.

To ensure convenience for timely payment of land rent to the State budget, payers can pay electronically or by other methods to the tax authority or other agencies as prescribed by law.

.