On the tenth of August 2020, the Prime Minister promulgated Decision No. 22/2020/QD-TTg on reducing land rental in 2020 for lessees affected by Covid-19 according to Resolution No. 84/NQ-CP dated May 29, 2020. The Decision has come into effect on the date of promulgation.
The beneficiaries to the land rental reduction policy are enterprises, organizations, households and individuals that (i) lease land from the State under a decision or contract of a competent authority in the form of annual land rental payment; and (ii) are forced to suspend production and business for 15 days or more due to Covid-19 pandemic.
The reduction rate is set at 15% of payable land rental in 2020, which does not include outstanding land rent prior to 2020 and late payment.
To receive this favor, the taxpayers must prepare a dossier of application for land rental reduction and send it to tax authorities, namely: (i) Application for land rental reduction in 2020 according to the form in the Appendix enclosed with the Decision; and (ii) Land lease decision or land lease contract issued by a competent authority (copy).
On the basis of the land rental reduction dossier submitted by the lessee, within 20 days from the date of receipt of valid dossier, the competent authority shall determine the reducible amount and issue a decision on the reduction under the law on collection of land rental.
Given that the pandemic is causing tremendous damage to the economy, Decision no. 22/2020/QD-TTg shows the government’s endeavor to mitigate its adverse impact on individuals and organizations.