The Prime Minister issued on November 23 Decision No. 2093/QD-TTg to slash annual land rents payable by operating businesses in production sectors for 2011 and 2012. Trading and service businesses won’t benefit from the discount.
Accordingly, these businesses will enjoy a 50-percent reduction of annually payable rents for land areas leased to them as calculated under Decree No. 121/2010/ND-CP of December 30, 2010, provided that such land areas have been properly and lawfully used and these businesses are paying more than twice the amounts they did in 2010 after land rents were re-determined under Decree No. 121.
If land rent amounts after reduction are still larger than twice those payable for 2010, businesses may enjoy another reduction of 2011 and 2012 land rents so that these two years’ rents equal twice those of 2010.
While authorities are considering cutting land rents, eligible businesses may pay rents at the 2010 rate. After obtaining land rent reduction decisions, they would pay the remaining rent (if any) and be subject to no late payment fine.-