Land Use Fee Reduction Cases under Decree 103/2024/ND-CP

On July 30, 2024, the Government issued Decree No. 103/2024/ND-CP detailing land use fees and land rental fees, specifying the cases eligible for land use fee reduction effective from August 1, 2024. This Decree introduces numerous strategic preferential policies aimed at supporting specific groups, encouraging infrastructure investment, and improving social equity. Below are the specific cases eligible for land use fee reduction under Article 19 of the Decree:

1. 50% Reduction in Land Use Fees for the Poor and Ethnic Minorities
Households classified as poor or individuals belonging to ethnic minorities who are allocated land, change land use purposes, or are granted land use rights in areas not specified under Point b, Clause 1, Article 18 of this Decree, will enjoy a 50% reduction in land use fees. This policy aims to bridge the development gap between regions, especially those with socio-economic difficulties. Additionally, it demonstrates the State's role in protecting and promoting vulnerable groups, fostering equitable and sustainable development.

2. 50% Reduction in Land Use Fees for Individuals Working in Border and Island Areas
Individuals working in border communes, islands, or districts without commune-level administrative units, which are classified as areas with particularly difficult socio-economic conditions, will receive a 50% reduction in land use fees for residential land. This applies to subjects specified in Point a and Point b, Clause 3, Article 124 of the Land Law. These areas are of strategic importance for national defense and security but often face challenges in attracting human resources and economic development. This preferential policy serves as an incentive for human resources to maintain long-term commitments to these strategically important areas, while also improving the quality of life for officials and civil servants working there.

3. 30% Reduction in Land Use Fees for Individuals Working in Difficult Areas
Individuals working in border communes, islands, or districts without commune-level administrative units in areas with difficult socio-economic conditions will be eligible for a 30% reduction in land use fees. This policy aims to alleviate financial pressure on those working in challenging areas and encourage their long-term commitment. Ensuring stable living conditions and motivation for the workforce in underdeveloped economic regions is part of a comprehensive development strategy aimed at reducing disparities in living standards between regions.

4. Land Use Fee Reduction for Individuals with Meritorious Service to the Revolution
Individuals with meritorious service to the revolution, who are eligible under regulations on land use fee reduction for people with meritorious service, will receive reductions in land use fees within the residential land allocation limit. This policy is intended to honor those who have contributed and sacrificed for national independence and freedom, while also improving their and their families' living conditions. Beneficiaries include war invalids, martyr families, and those who have made significant contributions to the revolutionary cause. This support is not only of material significance but also a recognition and gratitude from the State for their contributions and sacrifices, thereby contributing to the enhancement of living standards and social stability.

5. Land Use Fee Reduction for Cemetery Infrastructure Investment Projects
Investment projects in cemetery infrastructure and facilities for the storage of cremated remains will be eligible for a reduction in land use fees, depending on the investment location:

• 50% reduction for projects in areas with particularly difficult socio-economic conditions.

• 30% reduction for projects in areas with difficult socio-economic conditions.

• 20% reduction for projects in areas not belonging to the above two groups.

This policy encourages investment in essential infrastructure to meet community needs for cremation and burial services. The reduction in land use fees for cemetery projects not only helps reduce financial burdens on investors but also reflects the humane aspect of social management, particularly in difficult areas. Additionally, it ensures that public services are implemented equitably and effectively, serving the interests of the community.

6. Process for Calculating and Deciding the Land Use Fee Reduction
According to Decree No. 103/2024/ND-CP, the calculation and decision-making regarding land use fee reduction will be carried out by tax authorities based on land documents provided by state land management agencies. Decisions on land use fee reductions will be made by the Director of the Tax Department for economic organizations, foreign-invested enterprises, and overseas Vietnamese; or by the Head of the Tax Sub-Department for households and individuals. This process ensures transparency, clarity, and fairness in accessing incentives for individuals and businesses. Specific regulations on authority and responsibility also help prevent misuse, ensuring consistency and accuracy in the approval process.

7. Other Cases
In addition to the cases specified in Article 19, other cases of land use fee reduction may be considered according to Clause 2, Article 157 of the Land Law. Accordingly, ministries, branches, or provincial People's Committees may propose and submit to the Ministry of Finance for consolidation, reporting to the Government after being approved by the Standing Committee of the National Assembly. This allows flexibility in addressing special cases not covered by the general regulations but requiring support, ensuring that sustainable development policies are implemented in line with the actual conditions of each locality. Local agencies and ministries play an important role in proposing measures to reduce land use fees to attract investment and promote economic development.

These new regulations not only provide practical incentives for vulnerable groups but also encourage investment in social infrastructure, contributing to the development of economically disadvantaged areas. The preferential land use fee policy is one of the Government's key measures to ensure social equity and establish a foundation for comprehensive economic development. Reducing land use fees is also a driving force to encourage investment in socially beneficial projects, thereby enhancing the quality of life for citizens and creating a better living environment.

Through these preferential policies, the State not only facilitates access to land for individuals and households but also promotes the development of projects that serve the public interest, such as social housing and cemetery infrastructure. This policy contributes to creating sustainable value for society and building a fair living environment where everyone has the right to access essential resources for a stable and prosperous development.