The Decree regulating the reduction of land rent in 2024

On 11/4/2025, the Government issued Decree No. 87/2025/ND-CP regulating the reduction of land rent in 2024.

According to the Decree, land users as prescribed in Article 4 of the 2024 Land Law are being directly leased land by the State according to the Land Lease Decision or Land Lease Contract or Certificate of land use rights, the ownership of assets is attached to land of the competent state agency in effect 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 according to the provisions of this Decree, the legal procedures on land have been completed (with a Land Lease Decision or Land Lease Contract or Certificate of Land Use Rights, Ownership of Assets Attached to Land in the form of annual land rent payment), he/she is eligible for land rent reduction according to the provisions of this Decree. This provision applies to both cases that the land user is not eligible for land rent exemption or reduction or the exemption or reduction period has expired and cases that the land user is currently eligible for land rent reduction according to the provisions of the law on land and other relevant laws.

The land rent reduction level according to the Decree is 30% of the land rent payable in 2024 for land users who are subject to the above provisions.

The land rent reduction only applies to the land rent incurred in 2024, not to the outstanding land rent of previous years or late payment (if any). In cases that land users are receiving land rent reductions under other regulations or are entitled to deductions for compensation and site clearance, the 30% reduction will be calculated on the remaining land rent after reduction or deduction in accordance with the provisions of law.

Regarding the application for land rent reduction, land users must submit a Land Rent Reduction Application for 2024 according to the Form prescribed in the Appendix issued with the Decree.

Land users are also responsible before the law for the truthfulness and accuracy of the information in their application and request for land rent reduction, ensuring that they are eligible for the policy. The application submission procedure is also clearly regulated to facilitate people and businesses. Accordingly, the dossier can be sent to the tax authority or competent authority in the following forms: directly, via postal service, electronically, or other forms as prescribed by the law on tax management.

The deadline for receiving dossiers is from April 11, 2025 to July 31, 2025. After this deadline, the land rent reduction policy under the Decree will not be applied. Based on the complete and valid dossier, the competent authority will determine the amount of land rent to be reduced and issue a Decision on land rent reduction in accordance with the law on land use fees, land rent and tax management within 30 days from the date of receipt of the land user's Request. In case of detecting violations in the incorrect declaration of the subject, the land user will have to pay back the entire amount of the reduced amount and late payment fees in accordance with the law.

In addition, the Decree also specifically stipulates how to handle cases that land users have paid land rent in 2024 before the competent authority decides to reduce it. If after the reduction, there is an excess amount paid, this amount will be deducted from the land rent of the following period or the following year, according to the provisions of the law on tax administration. In cases that the land user has no more period to pay land rent, the excess amount paid will be offset or refunded in accordance with the provisions of law.

This Decree takes effect from the date of signing and promulgation.