VCN – HCM City Customs Department has provided instructions on the 30% reduction in land rent under the Prime Minister’s Decision 27/2021.
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Enterprises enjoy a 30% reduction in land rent. Photo: Internet.
On September 25, the Prime Minister issued Decision 27/2021 on reduction of land rent in 2021 for those affected by the Covid-19 pandemic. Organizations, units, enterprises, households and individuals that directly leased State’s land and pay the annual land rent, are subject to the regulation.
The Decision stipulates a 30% reduction in payable land rent in 2021 but no reduction on the outstanding land rent of years before 2021 and late payment interest (if any). This decision also applies to cases where the tenant is not eligible for land rental exemption or reduction, and the tenant is receiving a reduction in land rental.
The 30% reduction of the land rent is calculated on the payable land rent after it has been reduced in accordance with the law.
According to HCM City department’s instruction, the application for land rent includes an application for a reduction of land rent in 2021 under the form as prescribed in the Appendix issued with this decision; a decision or contract for land rent issued by the State agency (copy).
Regarding the application process, the tenant must submit the application for reduction to the tax authorities, economic zone management board, and technology park management board and other agencies from September 25 to end-December 31, 2021. If the application is submitted from January 1, 2022 or later, the reduction of land rent will be not applied.
If the tenant has paid the land rent for 2021, but when the competent authority determines and decides to reduce the land rent, there is an excess of the land rent and the overpaid amount will be deducted from the land rent of the next period or next year. If there is no longer a period to pay the next land rent, the overpaid amount will be refunded according to the law.