Taxpayers share about difficulties in accessing tax policies

30% reduction in land rent

The Government has just issued Decree 87/2025/ND-CP (Decree 87) dated April 11, 2025, regulating the reduction of land rent in 2024. Accordingly, enterprises, organizations, households and individuals who are directly leasing land from the State will receive a 30% reduction in land rent in 2024.

Also according to Decree 87, the subjects of land rent reduction in 2024 include: “Land users as prescribed in Article 4 of the 2024 Land Law who are being directly leased land by the State according to the land lease decision or land lease contract or land use right certificate, ownership of assets attached to land of a competent state agency that is effective in 2024 in the form of annual land rent payment. In case in 2024, the land user has not completed the legal procedures on land but by the time of submitting the application for land rent reduction as prescribed in this Decree, the legal procedures on land have been completed, they are eligible for land rent reduction as prescribed in this Decree. This provision applies to both cases where the land user is not eligible for land rent exemption or reduction or the exemption or reduction period has expired and cases where the land user is currently enjoying land rent reduction as prescribed by the law on land and the law on land. other relevant laws”.

It can be seen that from 2020 to 2024, the Government has repeatedly implemented policies to reduce land rents to support businesses and people to overcome difficulties.

According to data from the Tax Department of Region 12, in 2024 alone, in Hue City, a 30% reduction in land and water surface rents was implemented according to Decision 25/2023/QD-TTg, dated October 3, 2023 of the Prime Minister on reducing land rents for 2023 for 336 records, with a reduction of 45.9 billion VND.

To implement the regulation on land rent reduction in 2024, the tax authority has stepped up propaganda to the subjects on the list of beneficiaries of this policy. Accordingly, the tax authority will receive applications for land rent reduction until July 31. In case land users submit applications after the above deadline, they will no longer be eligible for this policy.

Reduce pressure on businesses

The reduction in land rent in 2024 is expected to create motivation for businesses to maintain production and business during the current difficult period.

Since the outbreak of COVID-19, Hue Tourism Joint Stock Company has encountered many difficulties. However, thanks to the Government's fiscal policies such as reducing land rent, extending tax payment deadlines, reducing value added tax, etc., it has contributed significantly to helping the company overcome difficulties and maintain operations.

Mr. Nguyen Khac Toan, Chairman of the Board of Directors of Hue Tourism Joint Stock Company, said that the company is renting land from the State with an annual payment of nearly 2 billion VND. Recently, the company has received a notice from the tax authority on implementing procedures to reduce land rent in 2024. It is expected that the company's land rent will be reduced by more than 600 million VND. The reduction in land rent will help the company reduce financial pressure. At the same time, this policy also demonstrates the government's support for the business community, creating conditions for businesses to take advantage of resources to focus on business activities.

From the perspective of the Hue City Business Association, Mr. Tran Minh Duc, Vice Chairman of the Business Association, Director of Hong Duc Joint Stock Company, said that the policy of reducing 30% of land rent for enterprises according to Decree 87 is a timely and practical move of the Government, demonstrating the companionship and sharing of difficulties with the business community in the context of many economic challenges as present. This policy helps reduce cost pressure for enterprises, because land rent is a significant investment cost for enterprises, especially for enterprises that produce and trade in the real estate sector or use a lot of land. The 30% reduction in land rent will help enterprises reduce financial burdens, have more resources to maintain investment and development activities and ensure jobs for workers.

However, some businesses also believe that support policies need to be issued sooner to help businesses operate better and overcome difficulties in the most timely manner.

Mr. Tran Minh Duc proposed that the tax sector should promote information and propaganda work on the content, subjects, conditions and procedures for implementing the land rent reduction policy in a clear, easy-to-understand and diverse manner on different information channels so that enterprises can grasp it promptly and fully to proactively implement it. Procedures for implementing the policy need to be reviewed and reduced to the maximum, ensuring simplicity, speed and convenience for enterprises; prioritizing the application of information technology so that enterprises can carry out procedures online, minimizing time and costs. At the same time, the tax sector needs to have detailed instructions on the process, necessary documents, how to identify beneficiaries, deadlines for submitting documents and other related issues...

“We believe that, with the drastic and effective implementation from the tax sector, the 30% land rent reduction policy will be an important “tonic”, helping businesses “be healthier” to overcome difficulties, stabilize and develop sustainably, and contribute positively to the city’s socio-economic development”, Mr. Tran Minh Duc expected.

Article and photos: Hoang Anh

Source: https://huengaynay.vn/kinh-te/giam-tien-thue-dat-giam-ap-luc-ve-tai-chinh-cho-doanh-nghiep-153344.html