Land Lease Rents Cut
On 31 January, the Prime Minister of Vietnam issued a new Decision to cut the cost of land rental for 2022.
Published last week, Decision 10/2023/QD-TTg (“Decision 10”) gives enterprises, households, and individuals directly leasing land under a land-lease decision, land-lease contract, or land-use rights certificate (“LURC”) a 30 per cent discount on the cost of this rental.
To be eligible for this discount, land rental must be paid annually. However, up-front land rental contracts are not eligible for this reduction.
Importantly, real estate companies are able to claim the discount, as the government aims to provide some support to the real estate sector which remains affected by the COVID-19 pandemic.
To claim the discount, applicants must send a request including copies of the land-lease decision, land-lease contract, or LURC to the tax authority no later than 31 March 2023. The tax authority will then issue a land rental reduction decision within 30 days of this application being received.
For more information about Decision 10, or about the real estate sector in Vietnam, just contact us on: firstname.lastname@example.org