On August 10th, 2020, the Primer Minister granted Decision No. 22/2020/QĐ-TTg on the reduction in land rents in 2020 for entities affected by the Covid-19 epidemic according to Resolution No. 84/NQ-CP which is issued by the Government on May 29th, 2020. It plays an important role to struggle with difficulties in the business operations aimed at maintaining economic growth, strive to achieve socio-economic development objectives and tasks specified by the National Assembly.

1. Regulated entities

Enterprises, organizations, households and individuals are being directly rented land by the State following decisions and contracts of competent authorities in form of annual rents that must suspend business operations because of the Covid-19 pandemic (hereafter called the land lessee). 

2. Land rents reduction

The land lessee is reduced by 15% of the payable land rent in 2020. However, the provisions of land rent reduction are not applied to outstanding debts of land rents in the previous years of 2020 and late land rents (if any).

These provisions also apply to case where land lessees execute different business activities but they only suspend business activities the land areas which are being directly leased by the State.

3. The dossier of reduction in land rents

-        Application form of the reduction in land rents

-        Land lease decision or contract of competent authorities (copy)

4. Procedure for reduction in land rents

-     The land lessee submits 01 sets of application which request the reduction in land rent to the tax authority, Management boards of industrial parks, hi-tech zones, economic zones and other authorities from August 10th, 2020 to the end of December 31st, 2020; the case of where the land lessees submit the application from January 01st, 2021 onwards, they will not reduce land rents.

-     With the basis of the dossier of reduction in land rents provided by the land lessee, the competent authorities determine an amount of reduced land rents and issue the decision of reduction in land rents in accordance with provisions of collection of land rents.

-     In the case where the land lessees are determined reduction in land rents by the competent authorities, but inspection discloses that the tenants exclude from the reduction in land rents, they must refund reduced land rents and the late payments interest calculated according to reduced land rents to the State budget.

-     In the case where the land lessee submits land rents in 2020, however, after the regulatory authority determine and decide the reduction in land rents, an excess of land rents is arisen, therefore, it will be deducted from land rents in the following period or following year; In the case where land leases must not pay the land rents in the next period, authorities shall refund or offset against overpaid amount.

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