LAND RENTAL REDUCTION – A NEW POLICY TO SUPPORT BUSINESSES

In 2025, the Government is expected to continue implementing a land rental reduction policy, offering a 30% reduction for organizations, individuals, enterprises, and households leasing land directly from the State. This proposal from the Ministry of Finance follows the support policies that have been implemented from 2020 to 2024. The policy not only helps reduce financial pressure but also serves as a driving force for investment, production, and economic recovery after a period of significant fluctuations. This article will help you better understand the conditions, scope, and benefits of the 2025 land rental reduction policy.

Government Proposes a 30% Reduction in Land Rental Fees for 2025

According to information from the Government Newspaper (September 2024), the Ministry of Finance has submitted a proposal to the Prime Minister for a 30% reduction in land rental fees payable in 2025 for entities leasing land directly from the State under the annual payment method.

This policy aims to continue supporting businesses facing challenges as the economy remains affected by global economic slowdown, rising input costs, and unstable consumer markets.

The proposed 2025 land rental reduction decree is expected to apply to:

• Enterprises, economic organizations, households, and individuals leasing land with annual rental payments.

• Public non-business units that are financially self-sufficient in covering their operating expenses.

Similar to the 2024 policy, the reduction will be calculated based on the land rental amount payable for the year and will not include outstanding debts from previous periods.

The primary objective of the proposal is to ease financial burdens, helping businesses maintain production activities, preserve jobs, and strengthen resilience during the economic recovery period.

Will Land Rental Fees Be Reduced in 2025?

If the draft proposal is approved, 2025 will continue to be a year in which businesses can benefit from the Government’s land rental exemption and reduction policies.

Specifically:

• Reduction rate: 30% of the land rental fee payable for 2025.

• Eligible beneficiaries: All enterprises, business households, and individuals leasing land directly from the State with annual rental payments.

• Not applicable: Cases where land rental fees are paid in a lump sum for the entire lease term.

This policy is expected to help hundreds of thousands of businesses save trillions of VND in costs, thereby:

• Maintaining employment opportunities for workers;

• Supporting reinvestment and production innovation;

• Enhancing competitiveness amid market volatility.

The 2025 land rental exemption and reduction policy is a continuation of the support measures implemented during the 2020–2024 period, when the Government consistently issued decrees providing a 30% reduction in land rental fees during years affected by the pandemic and economic downturn.

2025 Land Rental Reduction Decree: Expected Scope and Procedures

According to the Ministry of Finance, the 2025 land rental reduction decree will inherit the provisions of Decree No. 44/2023/ND-CP and Decision No. 25/2024/QD-TTg, ensuring simple and transparent procedures.

Scope of Application:

• Land lessees with decisions or lease agreements directly issued by state authorities.

• The reduction applies to land rental fees payable for 2025.

• Application submission period: During 2025.

Required documents for land rental reduction applications include:

• Application form for land rental reduction (according to the prescribed template).

• Copy of the land lease decision/agreement.

• Documents proving fulfillment of financial obligations to the State.

Receiving authority: The Tax Department or Sub-department of Taxation directly managing the taxpayer.

The implementation of this policy will not require a revaluation of land rental rates. However, businesses are encouraged to proactively assess the value of land use rights as a basis for cost calculation and to ensure reasonableness when working with financial authorities or banks.

Benefits of the 2025 Land Rental Reduction Policy for Businesses

The 30% land rental reduction policy in 2025 brings significant positive impacts to the business community:

• Reduced operating costs: Businesses can save from hundreds of millions to billions of VND annually.

• Increased reinvestment capacity: The savings provide additional working capital for business expansion.

• Improved liquidity and cash flow: Financial pressure is reduced amid post-COVID recovery and slower economic growth.

• Encouragement for SMEs: This policy is particularly important for startups and businesses operating in sectors heavily affected by land-related costs.

According to financial experts, the 2025 land rental exemption and reduction policy is not only a financial support measure but also a macroeconomic welfare policy that contributes to maintaining stability in production, employment, and state budget revenues.

What Should Businesses Do to Take Advantage of the 2025 Land Rental Reduction Policy?

To avoid missing out on these benefits, businesses should proactively prepare their application documents and accurately determine the actual value of leased land through professional land valuation services.

This is an important step to:

• Ensure accurate documentation and avoid declaration errors;

• Optimize rental costs, especially for businesses with multiple production sites or those undergoing land-use conversion;

• Establish a solid legal basis when working with tax authorities or banks.

Accurate Land Valuation Solutions Under the 2025 Land Rental Reduction Policy

As the 2025 land rental reduction policy is implemented, the demand for land valuation services to determine actual land value and optimize financial obligations continues to grow.

Indochina International Appraisal & Investment JSC (SunValue), licensed by the Ministry of Finance, provides professional, fast, and accurate land valuation services, supporting clients in:

• Determining reasonable land rental values as a basis for applying for land rental reductions or exemptions;

• Advising on land-related financial strategies to help businesses plan land use effectively;

• Supporting legal documentation related to land leasing, transfer, or mortgage financing.

Indochina International Valuation not only ensures transparent valuation results but also accompanies clients throughout the process of working with tax authorities, financial institutions, and banks, helping businesses maximize the benefits of the 2025 land rental reduction decree.

⋙ Contact SunValue today for consultation, accurate land valuation, and support in completing your 2025 land rental reduction application quickly and efficiently:

Indochina International Appraisal & Investment JSC (SunValue)

• Address: Indochina International Appraisal System

• Phone: 081 519 8877

• Email: contact@sunvalue.vn

• Facebook: Indochina International Appraisal And Investment J.S.C

• Website: inavn.vn

Conclusion

The 2025 land rental reduction policy is a positive signal demonstrating the Government’s efforts to support businesses and promote economic recovery. To effectively benefit from this policy, businesses should proactively reassess land values and ensure transparent and accurate declarations. With more than 23 years of experience in land valuation, Indochina International Valuation is confident in providing optimal solutions to reduce land rental costs and help businesses achieve the highest possible benefits once the 2025 land rental reduction policy is officially enacted.