Ministry of Finance proposes to reduce land rent after Typhoon Yagi

According to the Ministry of Finance, in order to have more resources to support businesses and people to cope with difficulties and challenges in the coming time, and at the same time support localities affected by storm No. 3 Yagi, and prepare for natural disaster scenarios that may affect many localities across the country; The Ministry of Finance submitted to the Government a Decree regulating the reduction of land rent in 2024 after receiving the approval of the National Assembly Standing Committee.

The main content of the Decree is on the subjects of application and the reduction of land rent in 2024 and the subjects of application. Specifically, the drafting agency proposed 2 options: reducing 15% or 30% of the land rent payable in 2024.

The Ministry of Finance proposes to reduce land rent after Typhoon Yagi. (Photo: CLO)

The reduction in land rent is calculated on the land rent payable in 2024 according to the provisions of law. The reduction will not be applied to the outstanding land rent of years prior to 2024 and late payment fees (if any).

In case the land lessee is receiving a reduction in land rent according to regulations or/and deductions for compensation and site clearance according to regulations of law on land rent, the reduction in land rent is calculated on the amount of land rent payable (if any) after being reduced or/and deducted according to regulations of law.

The subjects of application are expected to be organizations, units, enterprises, households and individuals who are being leased land by the State, directly according to the Decision or Contract or Certificate of land use rights, house ownership rights and other assets attached to land of the competent state agency (calculated at the time the land lessee submits the application for land rent reduction according to regulations) in the form of annual land rent payment (hereinafter referred to as land lessee).

This regulation applies to both cases where the land lessee is not eligible for exemption or reduction of land rent, and cases where the land lessee is receiving a reduction in land rent according to the provisions of the law on land (the Law and documents detailing the Law) and other relevant laws; the competent authority handling the land rent reduction dossier; other relevant agencies, organizations and individuals.

The expected reduction in land rent according to the draft Decree is around VND2,000 billion. However, the Ministry of Finance believes that the reduction in land rent according to this policy will not significantly affect the state budget revenue in general but will have a major impact on the recovery and development of production and business of organizations, individuals, households and enterprises; thereby increasing the budget revenue from taxes to compensate for the reduction in revenue due to the reduction in land rent.

Source: https://www.congluan.vn/bo-tai-chinh-de-xuat-giam-tien-thue-dat-sau-bao-yagi-post314007.html