Question:
We kindly ask for your consultation regarding issues related to the reduction of land rent. In which stages will land rent be reduced? Are internal roads, technical infrastructure, and green areas within the industrial cluster eligible for reductions? Is there any specific document that regulates this?
Answer:
In response to the Client's questions, we would like to provide the following opinions:
-
Scope of land area eligible for reduction
Based on Article 202.3 of the Land Law and Article 93.7 of Decree 102/2024/ND-CP, the area of land used for constructing common infrastructure in industrial clusters (including transportation facilities, electricity supply systems, water supply, drainage, telecommunications, green land, and common water bodies for the entire area, as well as wastewater treatment facilities within the industrial cluster) that is approved by the competent authority in the construction planning will not incur land rent.
-
Stages for Land Rent Reduction
Typically, investors must pay land use fees when the tax authority issues a notice of payment.
Since there is no land use fee applicable to the land used for common infrastructure construction within industrial clusters, at the time the tax authority issues the notice for land use payment, it has already determined that the land rent will exclude the area designated for common infrastructure construction.
