PRINCIPLES IN EXEMPTION AND REDUCTION OF LAND RENTAL IN ECONOMIC ZONES
On August 23, 2017, the Ministry of Finance issued the Circular No. 89/2017/TT-BTC guiding the implementation of a number of articles of the Decree No. 35/2017/ND-CP dated April 03, 2017 of the Government prescribing the collection of land use levy, land rental and water surface rental in economic zones and hi-tech zones.
Accordingly, the Circular points out some principles of exemption and reduction of land rental and water surface rental. An investment project using land shall be eligible for consideration for exemption or reduction of land rental and/or water surface rental if it is established, appraised and approved. An investment project shall have land rental or water surface rental exempted or reduced in cases the lease of land is approved by a competent authority for the first time for implementing the project or have the land lease period extended; An operating project that has been making annual payment of land rental and/or water surface rental June 20, 2017 shall not be eligible to enjoy rental exemption and reduction…
An organization or individual that is leased land or water surface by the management board of the economic zone may enjoy exemption or reduction of rental only after completing procedures for requesting rental exemption or reduction, such as if a lessee of land or water surface is eligible for exemption or reduction of rental but fails to carry out procedures for requesting rental exemption or reduction, it/he/she must pay the land rental or water surface rental. If the procedures for requesting land rental exemption or reduction are carried out late, no land rental or water surface rental shall be exempted or reduced for the late period. If an application for rental exemption or reduction is submitted when the prescribed incentive period ends, no land rental or water surface rental shall be exempted or reduced. If it is submitted while rental exemption and reduction incentives remain valid, land rental or water surface rental shall be only exempted or reduced for the remaining incentive period as from the receipt of a valid application.
This Circular takes effect on October 06, 2017.
