Land Lease Fee Reduction Request (New Land Law) in Vietnam

On April 11, 2025, the Government issued Decree 87/2025/ND-CP, which regulates the reduction of land lease for 2024. In the above Decree, the Government has introduced new points regarding limits, determining the subjects of application, application documents, and procedures for reducing land rent in 2024. In the article below, Viet An Law will provide customers with key legal issues regarding the land lease fee reduction request (new land Law) in Vietnam (specific regulations in Decree 87/2025/ND-CP – Decree detailing the reduction of land rent in 2024).

Overview of Decree 87/2025/ND-CP

Issuance date

11/4/2025

Effective date

11/4/2025

Issuing authority

The Government

Main content

The Government details the land lease fee reduction request (new land Law) in Vietnam.

Implementation responsibility

• The Ministry of Finance is responsible for directing, organizing the implementation, and handling problems arising during the implementation of this Decree.
• Ministers, Heads of ministerial-level agencies, Heads of Government agencies, Chairmen of People’s Committees of provinces and centrally-run cities shall organize inspections, checks, and promptly and strictly handle violations under the provisions of law (if any).
• The People’s Committees of provinces and centrally run cities are responsible for directing local authorities to promptly implement the reduction of land rents according to the provisions of this Decree.
• Ministers, Heads of ministerial-level agencies, Heads of Government agencies, Chairmen of People’s Committees of provinces and centrally run cities, land users, and other relevant entities are responsible for implementing this Decree.

Land lease fee reduction request (new Land Law) in Vietnam (Decree 87/2025/ND-CP)

The request for land rent reduction under the new Land Law is specifically regulated in the Appendix attached to Decree 87/2025/ND-CP – Decree detailing the reduction of land rent in 2024. The request for land rent reduction has the following contents:

• Taxpayer’s name;
• Tax identification number;
• Address;
• Phone number;
• Name of tax agent (if any);
• Address of the rented area or plot;
• Number and date of issuance of the Land lease decision;
• Number and date of issuance of the Land lease contract;
• Number and date of issuance of the Land use right certificate and ownership of assets attached to the land;
• Other relevant information (if any);
• Commitment of the taxpayer or the taxpayer’s legal representative;
• Full name and practice certificate number of tax agent staff.

Some new contents are stipulated in Decree 87/2025/ND-CP

Land lease reduction rate

• Reduce 30% of land lease payable in 2024 for land users who are allocated land, leased land, or have their land use rights recognized by the State; are using land stably, are eligible for a Land use right certificate and ownership of assets attached to land, but have not yet been granted a Certificate by the State.
• The prescribed land lease reduction is calculated on the land lease payable in 2024 according to the provisions of law. The reduction will not be applied to outstanding land leases from years before 2024 or late payment fees (if any). In case the land user is receiving a land rent reduction according to regulations and/or compensation and site clearance deductions according to the provisions of law on land rent, the land rent reduction will be calculated on the land rent payable (if any) after being reduced or/and deducted according to the provisions of law.

Land lease application object

• Land users, as prescribed in Article 4 of the Land Law 2024, are being directly leased land by the State according to the Land lease decision or Land lease contract, or Land use right certificate and Ownership of Assets Attached to Land of a competent State agency that is effective in 2024 in the form of annual land lease payment.
• In case in 2024, the land user has not completed the legal procedures on land but by the time of applying land rent reduction according to the provisions of Decree 87/2025/ND-CP has completed the legal procedures on land (has a Land lease decision or Land lease contract or Land use right certificate, Ownership of Assets Attached to Land in the form of annual land rent payment), then he/she is eligible for land rent reduction according to the provisions of Decree 87/2025/ND-CP.
• This provision applies to both cases where land users are not eligible for exemption or reduction of land rent or the exemption or reduction period has expired, and cases where land users are currently enjoying land rent reduction according to the provisions of the law on land and other relevant laws.
• Competent authority to handle land rent reduction applications; other relevant agencies, organizations, and individuals.

Application for land lease reduction

• The application for land lease reduction includes the land user’s 2024 land rent reduction request form according to the Form in the Appendix issued with the Decree (original).
• Land users are responsible before the law for the honesty and accuracy of their information and requests for land rent reduction, ensuring that the correct subjects are eligible for land rent reduction according to the provisions of this Decree.

Procedures for land lease reduction

• The Decree specifically stipulates that land users shall submit 01 set of dossiers requesting land lease reduction by the following methods: Directly, via postal service, electronically or by other forms as prescribed by the law on tax management to the tax authority or other agencies as prescribed by the land law and the law on tax management from April 11, 2025 to July 31, 2025. In particular, in cases where land users submit a Land rent reduction request after July 31, 2025, the land lease reduction as prescribed in Decree 87/2025/ND-CP shall not be applied.
• Based on the Land lease reduction request submitted by the land user as prescribed and the Land lease payment notice 2024 of the land user (if any); no later than 30 days from the date of receipt of the Land lease reduction request, the competent authority shall determine the amount of land lease to be reduced and issue a Decision on land rent reduction under the provisions of the law on land use fees, land rent and the law on tax management.
• In case the land user has been decided by the competent authority to reduce the land lease pursuant to the provisions of Decree 87/2025/ND-CP but then the state management agency discovers through inspection and examination that the land user is not eligible for land lease reduction according to the provisions of this Decree, the land user must return to the state budget the reduced land lease and late payment fees calculated on the reduced amount according to the provisions of the law on tax management.
• In case the land user has paid the land lease for 2024, but after the competent authority determines and decides to reduce the land lease, there is an excess of land lease, the excess amount paid shall be deducted from the land lease of the following period or the following year according to the provisions of the law on tax administration and other relevant laws; in case there is no further period for paying the land lease, the excess amount shall be offset or refunded according to the provisions of the law on tax administration and other relevant laws.

Above is an analysis of the Request for land lease fee reduction request (new Land Law) in Vietnam. If you have any related questions or need advice on legal regulations, please contact Viet An Law for the best support!