On May 29, 2024, the General Department of Taxation issued Official Dispatch No. 2272/TCT-CS regarding the reduction of land lease pursuant to Decision No. 25/2023/QĐ-TTg dated October 3, 2023.
Decision No. 25/2023/QĐ-TTg stipulates a 30% reduction in the land lease payable for the year 2023 for land lessees who are organizations, units, enterprises, households, or individuals directly leasing land from the State under a Decision, Contract, or Certificate of Land Use Rights, House Ownership, and Other Assets Attached to the Land issued by a competent state authority, in the form of annual land lease payments. Consequently, if an entity requesting the reduction in land lease according to Decision No. 25/2023/QĐ-TTg is not the lessee specified in the Decision, Contract, or Certificate of Land Use Rights, House Ownership, and Other Assets Attached to the Land, it does not qualify for the reduction under Decision No. 25/2023/QĐ-TTg issued by the Prime Minister.
In cases where an enterprise undergoes equitization, changes its business structure, divides, splits, merges, or consolidates, it is required to complete land lease procedures and re-sign the land lease contract with the competent state authority. If an entity has not completed the legal procedures regarding land use rights and is not directly leasing land from the State under a Decision, Contract, or Certificate of Land Use Rights, it does not meet the conditions to be considered for a land lease reduction according to Decision No. 25/2023/QĐ-TTg.
