An FDI enterprise may overpay land rent for various reasons: a unit price applied higher than the correct level, an exemption or reduction approved after payment, or a remeasured chargeable area. Overpaid amounts do not simply “disappear” — the law allows a refund or an offset against other financial obligations.
Current legal basis
Overpayments are handled under the Law on Tax Administration 108/2025/QH15 (effective 1 July 2026, replacing Law 38/2019): a taxpayer who has paid more than due is entitled to a refund of the difference or an offset against outstanding amounts and late-payment interest on other obligations. The correct unit price and calculation follow Decree 103/2024/ND-CP (effective 1 August 2024).
Refund or offset — which to choose?
Offset is the fastest and most practical option where the enterprise still has other financial obligations (next period land rent, taxes): the overpayment is deducted directly, with no wait for cash to return. A cash refund suits cases with no remaining obligations to offset, or where the amount is large and cash flow matters. As a rule, the tax authority prioritises offset before cash refund.
Dossier and practical notes
The dossier comprises the refund/offset request, payment vouchers, and documents evidencing the overpayment (unit-price adjustment decision, exemption/reduction decision, remeasurement minutes). A lawyer note: reconcile the figures carefully before filing — a wrongly calculated claim will be returned and waste time; also review any outstanding obligations to propose the most favourable offset plan. Processing time depends on dossier completeness and whether the figures match the tax authority data.
Frequently asked questions
1. Is overpaid land rent refunded automatically?
No. The enterprise must file a written refund or offset request with the tax authority, enclosing payment vouchers and documents evidencing the overpayment. There is no automatic mechanism.
2. What is the difference between offset and refund?
Offset deducts the overpayment against outstanding amounts (next period land rent, taxes, late-payment interest) — fast, no wait for cash. Refund returns cash to the account — suitable where no obligations remain to offset.
3. What documents evidence the overpayment?
Budget payment vouchers plus the basis establishing the excess: the land-rent unit-price adjustment decision, the exemption/reduction decision, area remeasurement minutes, or inspection results redetermining the amount due.
4. What if an exemption is approved after payment?
The paid amount corresponding to the exempted/reduced level becomes an overpayment — the enterprise claims a refund or offset under Law 108/2025 on Tax Administration, enclosing the exemption/reduction decision as the basis.
Key takeaways for investors
- Overpaid land rent is not lost — it is refunded or offset under Law 108/2025 on Tax Administration.
- Offsetting against other obligations is usually faster than a cash refund.
- Prepare full payment vouchers and the basis establishing the excess before filing.
- Reconcile figures carefully — a wrong claim means a returned dossier and lost time.
This article has been quality-reviewed by the FLAW AI Legal Council. Content is for legal reference only and does not replace lawyer advice for specific cases.