Latest procedures for applying for land rent reduction – Detailed instructions

Procedures for applying for land rent reduction is a solution to support businesses and individuals in reducing the burden of land use costs in eligible cases according to legal regulations. Mastering procedures and following the correct order will help land users save costs, maintain business efficiency, while ensuring legal rights and avoiding disputes or being handled for violations during the land use process.

In which cases is applying for land rent reduction permitted?

Pursuant to the provisions of Clause 1, Article 157 of the Land Law 2024, cases of exemption or reduction of land rent include:

• Land used for production and business purposes in investment incentive fields or in investment incentive areas according to investment laws, except land for commercial housing construction, commercial and service land;
• Land to implement housing policies, residential land for people with meritorious services to the revolution, war invalids, sick soldiers unable to work, households of martyrs who no longer have main workers, and the poor;
• Land used for investment projects to build social housing, worker accommodation in industrial parks, housing for the people’s armed forces;
• Residential land for displaced people when the State recovers land due to a threat to human life;
• Residential land for subjects specified in Points a and b, Clause 3, Article 124 of the Land Law 2024 who are working in border communes, islands or island districts without commune-level administrative units in areas with difficult socio-economic conditions, areas with extremely difficult socio-economic conditions.
• Land used by ethnic minorities is exempted or reduced in land rent according to Government regulations;
• Land used by public service units according to the provisions of Point c, Clause 3, Article 120 of the Land Law 2024;
• Land for construction of airport and airport infrastructure; land for construction of aviation service providers; land for parking to serve public passenger transport;
• Land for construction of specialized railway infrastructure and railway industrial works;
• Land for implementing investment projects according to the public-private partnership method;
• Land for building headquarters, drying yards, warehouses, and production workshops; Build service facilities directly serving agricultural production, forestry, aquaculture, and salt making of cooperatives and unions of cooperatives;
• Using land to build clean water supply, drainage and wastewater treatment projects in urban and rural areas;
• Using land other than national defense or security land for defense and security purposes of military and police enterprises.

Regulations on land rent exemption and reduction not only demonstrate policies to encourage investment, social security and protect national security and defense, but also create favorable conditions for organizations and individuals to access and use land effectively, actively contributing to the country’s socio-economic development.

How much is the reduced land rent?

According to the provisions of Clause 1, Article 3, Decree 87/2025/ND-CP effective from April 11, 2025, land rent is reduced by 30% for:

• Land users are subject to land users as prescribed in Article 4, Land Law 2024, who are directly leasing land from the State according to the Land Lease Decision or Land Lease Contract or Certificate of land use rights and ownership of assets attached to land from a competent state agency that is effective in 2024 in the form of annual land rental payments.
• 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 Decree 75/2025/ND-CP, has completed the legal procedures on land (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).

In case the land user has paid the land rent for 2024 before the decision to reduce, if there is excess land rent after the reduction, the excess amount will be deducted from the land rent of the following period or the following year. If there is no longer the next period to pay land rent, the land user will have the overpayment amount compensated or refunded according to the provisions of law on tax administration.

>>> See more: Can businesses that rent land annually be able to sublease it?

Latest regulations on procedures for applying for land rent reduction

To carry out the procedures for applying for land rent reduction according to current regulations, land users need to clearly understand the order and implementation procedures prescribed as follows:

Document components need to be prepared

According to the provisions of Article 4, Decree 87/2025/ND-CP, the application for land rent reduction includes the land user’s 2024 land rent reduction request according to the Form in the Appendix issued with Decree 87/2025/ND-CP (original).

The land user is responsible before the law for the truthfulness and accuracy of the information in the land rent reduction request. They must ensure they are eligible for land rent reduction according to the provisions of Decree 87/2025/ND-CP.

The request for land rent reduction needs to include basic information such as:

• Information about land users.
• Information about rented land plots.
• Land use purpose.
• Legal basis for land lease.
• Land rental amount payable in 2024.
• Reasons for requesting a reduction in land rent.

>>> CLICK DOWNLOAD NOW: PROPOSAL FOR REDUCTION OF LAND RENTAL IN 2024.

Customers need to ensure full and accurate declaration of information on the Land Rent Reduction Request Form to avoid being refused consideration or having to supplement and complete the dossier.

Execution order

The order of implementing procedures for applying for land rent reduction is clearly stipulated in Articles 4 and 5 of Decree 87/2025/ND-CP. The order and procedures for land rent reduction are as follows:

Step 1: Prepare documents and submit documents

The land user submits 01 written request for land rent reduction to the tax agency or other agency according to the provisions of land law and tax administration law from April 11, 2025 to July 31, 2025.

Applications can be submitted by the following methods:

• Send directly;
• Sent via postal service;
• Send electronically;
• Send via other forms according to the provisions of law on tax administration.

Step 2: Appraise documents and make a decision to reduce land rent

Pursuant to the land user’s request for land rent reduction and notice of land rent payment in 2024 (if any); No later than 30 days from the date of receipt of the Request for Land Rent Reduction, the competent authority shall determine the amount of land rent to be reduced and issue a Decision to reduce land rent in accordance with the provisions of law on land use fees, land rent and law on tax administration.

Step 3: Refund budget (if any)

In case the land user has been decided by a competent authority to reduce land rent but later the state management agency discovers through inspection and examination that the land user is not eligible for land rent reduction, the land user must repay the state budget the reduced land rent and late payment interest calculated on the reduced amount according to the provisions of law on tax administration.

Step 4: Reimbursement of land rent (if any)

In case the land user has paid the land rent for 2024 and after the competent authority determines and decides to reduce the land rent, there is an excess of land rent, the overpaid amount will be deducted from the land rent of the next period or the following year according to the provisions of law on tax administration and other relevant laws;

In case there is no longer the next period for paying land rent, the excess payment shall be offset or refunded in accordance with the provisions of law on tax administration and other relevant laws.

Important note: Land users who submit a land rent reduction request after July 31, 2025 will not be eligible for land rent reduction as prescribed in Decree 87/2025/ND-CP.

Consulting services on procedures for applying for land rent reduction at Long Phan Consulting Company

Procedures for applying for land rent reduction are an important step to help land users optimize operating and business costs. Long Phan Consulting Company provides professional support services for land rent reduction procedures. Our team of experts masters the latest regulations on land rent reduction.

Long Phan Consulting Company provides the following services related to procedures for land rent reduction:

• In-depth consultation on conditions for land rent reduction according to current regulations;
• Support in drafting a request for land rent reduction according to the prescribed form;
• Authorized representative to carry out procedures for applying for land rent reduction;
• Monitor application processing progress and update information for customers;
• Support in resolving problems that arise during the process of applying for land rent reduction;
• Consulting on procedures related to clearing or refunding overpaid land rent.

With support from Long Phan Consulting Company, customers will save time, effort and avoid legal risks during the process of applying for land rent reduction.

Frequently asked questions

Below are frequently asked questions about procedures for applying for land rent reduction according to current regulations.

Who is eligible to lower land rental costs according to the latest regulations?

Eligible subjects include:

• Land used for production and business purposes in fields or areas with investment incentives (except land for construction of commercial and service housing);
• Land to implement housing policy;
• Residential land for people with meritorious services, the poor, land to build social housing, worker accommodation, housing for the armed forces, residential land for people displaced by natural disasters, land used by ethnic minorities (according to Government regulations);
• Land of public service units, land for construction of airport infrastructure, specialized railways, land for implementing PPP projects, and land for agricultural cooperatives.

What is the current decline in land rental costs?

The current reduction in land rental costs is 30% of land rent payable in 2024 for eligible subjects.

If I have paid the 2024 land rental fee before the decision to lower the level, how will I handle the excess amount?

If you have paid and there is an excess amount after the reduction, this amount will be deducted from the next payment period or the following year. If there is no next payment period, you will be compensated or refunded according to the provisions of law on tax administration.

What documents do I need to prepare to carry out the procedure to request a reduction in land rental costs?

You need to prepare a request to lower land rental costs in 2024 according to the form specified in the Appendix issued with Decree 87/2025/ND-CP (original).

In what ways can I apply for a lower land rental fee?

You can submit your application directly, via postal service, electronically or in other forms according to the law on tax administration.

When is the final deadline to submit an application to lower land rental costs?

The final deadline to submit applications to lower land rental costs is July 31, 2025.

Which agency has the authority to review and issue decisions on lowering land rental costs?

Tax authorities or other agencies in accordance with the law on land and tax administration have the authority to review and issue decisions to lower land rental costs.

What is the maximum time for a competent authority to issue a decision to lower land rental costs?

The maximum time for the competent authority to issue a decision to lower land rental costs is 30 days from the date of receipt of the Request.

What happens if I am not eligible for a lower land rental fee after the decision has been made?

If you discover that you are not eligible for a reduction after the decision has been made, you must repay the state budget the reduced amount and the late payment interest calculated on that amount.

Who can I contact to get detailed advice on procedures for applying for a reduction in land rental costs?

You can contact Long Phan Consulting Company via the hotline 1900.63.63.89 for detailed support and advice.

Which decree provides detailed regulations on land rent reduction in 2024?

Decree 87/2025/ND-CP provides detailed regulations on the 30% reduction in land rent payable in 2024.

The Land Law 2024 regulates which cases are eligible for land rent exemption or reduction?

Clause 1, Article 157 of the Land Law 2024 provides detailed regulations on cases of exemption or reduction of land rent.

Conclude

Procedures for applying for land rent reduction require understanding and strict compliance with documents and deadlines for implementation. Customers need to be careful to prepare all documents and master the regulations to take advantage of the opportunity to reduce land rent by 30% in 2024. For professional support on procedures for applying for land rent reduction, please contact Long Phan Consulting Company immediately via the hotline: 1900636389 to receive the most dedicated and in-depth support.