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The Ministry of Finance (MOF) has proposed a policy aimed at reducing the financial burden on businesses and individuals, thereby stimulating production and business activities. Under this proposal, organizations, enterprises, households, and individuals directly leasing land from the State with annual land rental payment obligations may benefit from a reduction in their 2024 payable land rental amounts.
The MOF has outlined two reduction rates:
- 15 percent or 30 percent reduction of the payable land rental amounts for 2024.
- The reduction will not apply to any unpaid land rental amounts from previous years or associated late-payment interest.
For lessees who already benefit from land rental reductions or have compensation and ground expenses deducted, the reducible amount would be based on the remaining payable land rental amount after applying current deductions or reductions.
Eligibility and Application Process
To qualify for the reduction, land lessees must:
- Submit a formal request to the tax authorities, accompanied by:
- A copy of the land lease decision, land lease contract, or certificate of land use rights and ownership of land-attached assets.
- Ensure compliance and accuracy: Lessees are required to accurately declare their eligibility. They will bear legal responsibility for the truthfulness of their submitted information.
- Reimbursement for ineligible cases: If lessees are found to be unqualified for the reduction after verification, they must repay the reduced land rental amounts along with late-payment interest, as per the law on tax administration.
This proposal represents a proactive measure by the MOF to provide financial relief amid ongoing economic challenges. The reduction in land rental costs is expected to:
- Support businesses in maintaining operations and reducing overhead costs.
- Encourage production and investment activities, particularly in sectors heavily reliant on state-leased land.
- Provide financial breathing room for households and individuals engaged in land-related economic activities.
The MOF’s proposed land rental reductions for 2024 are a timely initiative to support economic recovery and growth. By easing financial pressures on businesses and individuals, the government demonstrates its commitment to fostering a resilient economic environment.
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