THE GOVERNMENT OF VIETNAM REDUCES 30% OF LAND RENT TO SUPPORT BUSINESS DURING COVID-19
On 25 September 2021, the Prime Minister issued Decision 27/2021/QD-TTg on the reduction of land rent in 2021 (“Decision 27”) for individuals and or organisations affected by the COVID-19 pandemic.
1. Subjects of Decision 27
According to Article 2, organisations, enterprises, household businesses and individuals who directly lease land from the State and annually pay land rent, are eligible for rent reduction.
The rent reduction is also applied to lessees who are ineligible for land rent reduction or exemption, and lessees that are being granted land rent reductions according to the relevant laws on land.
2. Reduction rate
A 30% reduction of 2021 rent shall be granted for subjects who are rent eligible. With respect to subjects who are enjoying a reduction prior to Decision 27, the reduction of 30% shall be applied on payable rent.
However, the reduction under Decision 27 shall not be applied for outstanding amounts accumulated before 2021 and any late payment interest.
3. Dossier and procedure
The lessees shall prepare a standard application and provide a lease decision or a lease agreement with the State.
The dossier should be submitted before 31 December 2021. Late submissions shall be excluded from reduction.
Within 30 days upon the receipt of a valid dossier, the competent authority shall determine the reduction amount and grant a reduction decision in accordance with the law.
For lessees who have already paid 2021 rent and the competent authority later decides to grant a reduction under Decision 27, the exceeded amount shall be deducted for the subsequent payment period. In case of no subsequent payment, the competent authority shall reimburse or return the exceeded amount according to the relevant law.
In addition, in case lessees enjoy a reduction under Decision 27 and later are found to be ineligible for such land rent reduction, these lessees must pay the correct amount without reduction and pay a fine for late payment.