100% of members of the National Assembly Standing Committee voted in agreement with the Government's issuance of a Decree to reduce land rent in 2024.
On the morning of March 11, the National Assembly Standing Committee gave opinions on the reduction of land rent in 2024 and the issuance of a Government decree regulating the reduction of land rent in 2024.
100% of the members of the National Assembly Standing Committee present voted in principle to approve the Government's issuance of a Decree regulating land rent reduction in 2024.
Presenting the Government's proposal, Deputy Minister of Finance Bui Van Khang said that 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 organizations and individuals in localities affected by natural disasters and climate change, the Government submitted to the National Assembly Standing Committee for opinions on reducing land rent in 2024 so that the Government can issue a Decree regulating the reduction of land rent in 2024 according to its authority.
The Government proposed to regulate the land rent reduction at 30% of the land rent payable in 2024.
Deputy Minister of Finance Bui Van Khang presented the report.
This level is calculated on the land rent payable in 2024 according to the provisions of law. No reduction is made on the outstanding land rent of years prior to 2024 and late payment fees (if any).
In case the land user 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.
This regulation applies to land users who are being directly leased land by the State according to a land lease decision or land lease contract or certificate of land use rights and ownership of assets attached to land issued by a competent state agency in the form of annual land rent payment, which is effective in 2024.
In case in 2024, the land user has not completed the legal procedures on land but by the time of submitting the application for land rent reduction according to the provisions of this Decree, the legal procedures on land have been completed, then he/she is eligible for land rent reduction.
According to Deputy Minister Bui Van Khang, the expected reduction in land rent according to the draft Decree is about VND 4,000 billion, equivalent to 0.26% of the total state budget revenue per year and 9% of the state budget revenue from land rent per year (calculated according to 2023 data).
At the conference to review tax work in 2024 and deploy tax work tasks in 2025 on December 19, 2024, the General Department of Taxation reported that the total state budget revenue in 2024 managed by tax authorities is estimated at VND 1,732,000 billion, equal to 116.5% of the estimate (exceeding VND 245,587 billion), equal to 113.7% compared to the implementation in 2023.
Therefore, the 2024 budget revenue estimate has been reached and exceeded. The land rent reduction under this policy does not significantly affect the overall state budget revenue but will have a major impact on the recovery and development of production and business of organizations, individuals, households and enterprises; thereby increasing budget revenue from taxes (personal income tax, corporate income tax...) to compensate for the reduction in revenue due to land rent reduction.
Chairman of the Economic and Financial Committee Phan Van Mai presented the audit report.
Presenting the audit report, Chairman of the Economic and Financial Committee Phan Van Mai said that the majority of opinions in the audit agency agreed on the necessity of continuing to reduce land rent in 2024 as proposed by the Government.
However, according to the Economic and Financial Committee, the 2024 fiscal year has ended. On February 25, the Government submitted to the National Assembly Standing Committee for comments on the reduction of land rent in 2024, which is slow and difficult to collect, pay, refund land rent or impose late payment penalties for cases of late payment of land rent in 2024 by land users.
In addition, reducing land rent will reduce costs, increase taxable income corresponding to the amount of land rent reduction, thereby increasing corporate income tax payable in 2024.
Thus, businesses must also declare and adjust tax reports and financial reports for 2024, including land rent and corporate income tax.
Therefore, the Economic and Financial Committee and the Standing Committee of the Culture and Social Affairs Committee propose that the Government direct the clarification of the impact of the reduction in state budget revenue, as well as the handling of the above issues when implementing the policy of reducing land rent in 2024 in 2025.
After listening to the submission and the report on the review of this content, 100% of the members of the National Assembly Standing Committee voted in agreement with the Government to issue a Decree to reduce land rent in 2024 for the subjects as submitted by the Government.
The National Assembly Standing Committee assigns the Government to be responsible for the content of the proposal, the accuracy of the information and reported data, the necessity of developing and promulgating the Government's Decree regulating the reduction of land rent in 2024 to ensure compliance with legal provisions; direct the handling of difficulties and problems in the collection, payment, refund of land rent or late payment penalties for cases of late payment of land rent in 2024 by subjects eligible for land rent reduction.
Source: https://www.baogiaothong.vn/uy-ban-thuong-vu-quoc-hoi-thong-nhat-giam-30-tien-thue-dat-nam-2024-192250311095547033.htm
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