Currently, the Government is finalizing and gathering opinion on a draft decree stipulating a reduction in land lease fee for 2024 to boost production and business.

This Decree is intended to be applied to organizations, units, enterprises, households, and individuals directly leased land by the State under Decisions, Contracts, or Certificate of land-use rights and ownership of house and other property on land, with annual land lease payments, and not falling under cases exempted from or being reduced land lease fee as per the Land Law.

The draft proposes two options for reducing land lease fee at a rate of 15% or 30% on the total land lease fee due in 2024. This reduction does not apply to outstanding land lease fee from previous years or late payment penalties. If a lessee has already made their 2024 land lease payment and an overpayment arises from the decision on reducing land lease fee, the overpaid amount will be deducted from subsequent lease payments or refunded/offset according to regulations on tax management and other relevant laws.

If issued, the Draft Decree will form a major support policy for businesses, helping to reduce costs for enterprises in the context of the current economic difficulties.