Ho Chi Minh City reduces 30% land and water surface rent

The department has issued a notice numbered 1465/TB-CTTPHCM on the reduction of land and water surface rental fees in 2022 for organizations, units, businesses, households, and individuals in Ho Chi Minh City that lease land or water surfaces from the State annually.

The notice also applies to those who are not exempt from rental fees and those who are already receiving reduced fees under legal regulations, provided they have been affected by the Covid-19 pandemic.

According to the city’s tax department, the current reduction is 30% of the land and water surface rental fees calculated based on the amount payable in 2022. However, the unpaid rental fees from previous years before 2022 will not be reduced.

In cases where the lessee is already receiving a reduced rental fee under regulations or has deductions for compensation or land clearance as provided by the law, the 30% reduction will be calculated on the rental fees that are already being reduced as per land law and other related laws.

To request a reduction, lessees need to submit an application to the Tax Department of the area where their land or water surface is located, the Economic Zone Management Board, or the High-Tech Zone Management Board. The application includes a request form in the appendix of decision 01/2023/QD-TTg and the lease agreement. Taxpayers can submit their application electronically, in-person, or via postal services before the deadline of March 31.

Recently, in the draft Decision by the Prime Minister on the reduction of land and water surface rental fees in 2023, the Ministry of Finance also proposed a 30% reduction in the rental fees payable this year for businesses, households, and individuals.

The ministry stated that industries such as real estate, mining, agriculture, and others are facing many difficulties, and are significantly affected by the conflict between Russia and Ukraine, tightened credit, decreased market demand, and increased financial access costs.

Therefore, the Ministry of Finance proposed a reduction in land and water surface rental fees to support businesses and individuals in coping with the challenges and difficulties in the near future.