Bringing the policies on reducing land rent and water surface rent into life


VCN – The tax sector is drastically implementing dissemination and support to make the policy of reducing land rent and water surface rent in 2022 fully effective.

The policy of reducing land rent and water surface rent will contribute to alleviating difficulties for those affected by Covid-19 pandemic. Photo: ST
The policy of reducing land rent and water surface rent will contribute to alleviating difficulties for those affected by Covid-19 pandemic. Photo: ST

Communicate to each target

In 2023, the policy of reducing land and water surface rents will continue to be submitted by the Ministry of Finance to the Government for promulgation with a 30% reduction in support to remove difficulties for businesses following Decision 01/2023/QD-TTg regulating on reduction in land rent and water surface rent in 2022 for entities affected by Covid-19. With this policy, businesses will have an additional financial source, creating motivation to continue the recovery momentum in the general context of facing many difficulties.

To ensure this policy reaches all beneficiaries quickly, the Tax sector has drastically implemented it as soon as the Decision takes effect. The General Department of Taxation has issued an Official Letter to request the director of local tax departments to direct divisions and branches to urgently deploy.

At Hoa Binh Tax Department, right after Decision 01/2023/QD-TTg was promulgated, the Department issued a document directing its affiliated units to thoroughly understand civil servants as well as provide specific instructions on orders and procedures for receiving and handling land lease documents, reducing land rent by 30%. In addition, this unit has promoted communication and sent information about the subjects eligible for a reduction following the order, procedures and deadlines for applying for exemption or reduction of land rent to the tax office on its zalo and facebook page of the Department. As a result, the unit is expected to have about 280 taxpayers, including businesses and individuals who lease land in the area, with a benefit amount of over VND 20 billion. According to statistics, by the beginning of March 2023, Hoa Binh Tax Department had received 50 applications for reduction sent to tax agencies with the proposed amount of VND 3.5 billion.

With a larger scale, in 2023, the Hanoi Tax Department will have about 5,300 organizations and individuals eligible for a 30% reduction in land rent with an expected reduction of nearly VND 1,000 billion. The Hanoi Tax Department said that, up to now, 100% of taxpayers had received the information via email. However, according to this unit, the settlement of reduction of land rent and water surface rent dossiers still has some problems, such as the renter has changed his name but has not completed the registration procedure for land use change on land lease dossier; the annual land lease term or land lease contract has expired but the procedures for extending the lease period have not been completed before the effective date of Decision 01/2023/QD-TTg. These problems have been reported to the General Department of Taxation to guide taxpayers to comply with regulations.

Creating motivation for production and business

Currently, VinaFco Joint Stock Company is leasing more than 4,000 m2 of land in Thanh Tri district (Hanoi). Mr. Hoang Dinh Kien, the company’s financial director, said that the number of orders decreased compared to last year, a lack of capital for production and business, the company is facing many difficulties. With the policy of reducing land rent having just been implemented, the company has been reduced by about VND 1.2 billion, helping the company to balance finance for labor resources and investment in research and development. The reduction in land rent helps to reduce the company’s financial costs in the context that all costs are increasing.

Or like Hoa Binh Tourism Joint Stock Company – Hoa Binh Hotel, this Company is also very excited about this government support policy. With a leased area of about 30,000 m2 of land, the amount of land rent that this business will be reduced by more than VND 400 million, which the company is expected to use to repair the hotel and landscape to better serve customers. Under the guidance of tax officials, the company has completed the procedures to send to the Tax Department of Hoa Binh province to enjoy this policy.

According to many economic experts, the policy of reducing land rent and water surface rent has been one of the most effective financial support policies for people and businesses in recent years. Depending on the size of each object, different amounts of support will be used for different purposes to motivate production and business. The Ministry of Finance expects that the amount of the reduction in 2022 will be about VND 3,500 billion. Although the state budget will lose this large amount of money, this will be an effective “lever” along with other supportive policies to help businesses and the economy recover and develop, thereby creating more stable and sustainable revenue for the state budget.

According to the General Department of Taxation, the deadline for submitting dossiers to the tax office to enjoy 30% reduction in land rent and water surface rent in 2022 is March 31, 2023. Although the remaining time is not much, the tax sector is still launching several supporting solutions. The General Department of Taxation recommends that businesses and individuals should urgently carry out procedures, discuss problems directly with tax authorities to complete dossiers and send them on time, thereby promptly enjoying the Government’s support policies.

By Thuỳ Linh/Thanh Thuy


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