Reduced land rent: More support for people and businesses

Accordingly, the Government has just issued Decree 87/2025/ND-CP regulating the reduction of land rent in 2024 on April 11, 2025, stating that enterprises, organizations, households and individuals who are directly leasing land from the State will receive a 30% reduction in land rent from last year. It is expected that nearly 30,000 enterprises and households will benefit from the 30% reduction in land rent. The tax authority will receive applications until July 31. In case land users submit applications after the above deadline, they will no longer enjoy this policy.

From 2020 to 2024, Vietnam has issued many policies from extending the deadline for paying some taxes and land rents to exempting and reducing taxes with an amount of up to hundreds of thousands of billions of VND to support businesses and people to overcome difficulties from internal and external impacts.

The Ministry of Finance said: The amount of land and water surface rent reduced according to the Prime Minister's decisions for 2020 - 2023 is 2,890 billion VND/year, the average for 2021, 2022, 2023 is 3,734 billion VND/year. Thereby, it has contributed to supporting businesses, organizations, units, households, and individuals in overcoming difficulties caused by the impact of the COVID-19 pandemic so that they can soon restore production and business activities after the pandemic and promote production and business activities.

According to Deputy Minister of Finance Bui Van Khang, when implementing this policy in 2023, nearly 30,000 subjects have benefited from the policy, with a scale of about 4,000 billion VND. Of these, there are 23,487 enterprises, 6,247 households and individuals. Thus, this policy is widely covered from large enterprises, small and medium enterprises to households, business households and individuals.

For 2024, the expected reduction in land rent according to the decree is about VND 4,000 billion (equivalent to the expected reduction in land rent in 2023 with a reduction of 30% nationwide), corresponding to 0.26% of the total state budget revenue for one year and 9% of the state budget revenue from land rent for one year (calculated according to 2023 data).

Speaking to the press, Mr. Le Dai Quang, Deputy General Director of Supertex Textile Company (Hanoi) said that tax exemption and tax extension are also a great motivation for the factory to try to promote and take advantage of the advantages to improve productivity and restore production better.

According to economic experts, the reduction in land rent in 2024 will be a driving force for businesses to maintain production and business, without having to borrow and pay interest.

Mr. Mac Quoc Anh, Vice President of the Hanoi Association of Small and Medium Enterprises, commented: For small and medium enterprises with limited scale, sales and revenue, tax and fee reduction is extremely important. With this policy, it helps businesses reduce fixed costs, because from fixed costs, businesses can return to invest in production activities, scientific and technological innovation, and human resources.

According to Ms. Nguyen Thi Cuc, Chairwoman of the Vietnam Tax Consulting Association, to support businesses and people to overcome difficulties from both internal and external impacts, the Ministry of Finance has proactively submitted to the Government and the National Assembly many policies from extending the deadline for payment of some types of taxes, fees, land rents to tax exemptions and reductions with an amount of up to hundreds of thousands of billions of VND. These are policies that have been issued very promptly and appropriately.

After many years of implementation, the policy of extending tax payment deadlines is considered a very effective solution in supporting businesses. Land rent alone is a significant expense, especially in the context of businesses facing difficulties.

Currently, relevant agencies are implementing support solutions so that preferential subjects can benefit from the policy.

Source: https://baohatinh.vn/giam-tien-thue-dat-them-tro-luc-cho-nguoi-dan-va-doanh-nghiep-post286337.html