An FDI enterprise leasing land from the State pays land rent based on the unit price determined by the competent authority. If the applied unit price is lower than the correct level — due to a calculation error, a wrong price table, or a wrong method — the tax authority will reassess and collect the difference retroactively. This is a material financial risk because the amount can span many years.
Current legal basis
Land rent unit prices are now governed by Decree 103/2024/ND-CP (effective 1 August 2024, replacing Decree 46/2014/ND-CP on land rent collection). Retroactive collection is carried out through the tax assessment mechanism of the Law on Tax Administration 108/2025/QH15 (effective 1 July 2026, replacing Law 38/2019): the tax authority may assess tax where the taxpayer misdeclares leading to an underpayment (Articles 24 and 25).
Time limits: the point businesses often miss
Under Law 108/2025, the statute of limitations for administrative tax penalties is 02 years for procedural violations and 05 years for misdeclaration causing underpayment. The point many businesses miss: expiry of the penalty limitation does not extinguish the payment obligation — the taxpayer must still pay the full underpaid amount plus late-payment interest for the 10 years preceding the date the violation is discovered. In other words, the missing land rent is still collected in full; only the additional penalty lapses after 05 years.
How to handle an assessment decision
First, verify the assessment basis: what is the correct unit price under Decree 103/2024, is the authority calculation accurate, and was the policy timing applied correctly. Second, if you disagree, the enterprise may complain against the administrative decision under the Law on Complaints or sue in the administrative court. Third, proactively, the enterprise should review its applied unit price and file supplementary declarations upon discovering errors — voluntary correction is always cheaper than being assessed. Note that late-payment interest accrues on the collected amount from the due date until full payment.
Frequently asked questions
1. When is a land rent unit price considered wrongly applied?
When the price actually paid is lower than the correct price under Decree 103/2024/ND-CP — for example a wrong land price table, a wrong adjustment coefficient, a wrong land-use purpose, or a wrong policy timing. The tax authority establishes this through inspection.
2. Can missing land rent still be collected after 5 years?
Yes. The penalty limitation for misdeclaration is 05 years, but beyond that the enterprise must still pay the full missing land rent plus late-payment interest for the 10 years preceding discovery, under Law 108/2025 on Tax Administration.
3. Can the enterprise challenge the collection decision?
Yes. A tax assessment decision is an individual administrative decision — the enterprise may complain under the Law on Complaints or bring an administrative lawsuit if it considers the reassessed price or calculation incorrect.
4. What should we do upon discovering the error ourselves?
File a supplementary declaration and pay the missing amount plus late-payment interest immediately. Voluntary correction helps avoid assessment and reduces administrative penalty exposure.
Key takeaways for investors
- The correct land rent unit price is determined under Decree 103/2024/ND-CP, not by feel or oral agreement.
- Retroactive collection runs through the tax assessment mechanism of Law 108/2025 on Tax Administration.
- The penalty limitation is 05 years, but the payment obligation reaches back 10 years.
- Self-review and supplementary filing are always cheaper than being assessed.
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.