The Ministry of Finance Issues a Circular on Deferment of Land Rent

The Ministry of Finance, on 28 June 2020, issued a Circular with details in implementing the deferment of land lease announced by the President during his public address on 20 May 2020.

As per the Circular, resort land rent payments for the third and fourth quarter of 2020 has been deferred until 1 June 2021. Land rent payments other than resort land rent, that fall within the period 1 June 2020 to 31 December 2020 has also been deferred until 1 June 2021.

The deferred land rent payments are to be paid from 1 June 2021 onwards, and have to be settled within a period of 1 year from 1 June 2021, meaning that land rent payments payable for the last two quarters of 2020 will be divided into quarterly payments commencing from 1 June 2021. As such, tourism businesses will be required to make the payments in June 2021, September 2021, December 2021 and March 2022.

Businesses that are unable to meet the new deadlines will be subject to late payment fines and interest from the due date of the deferred payments. The Ministry of Finance has also instructed the relevant government ministries to amend lease agreements, where necessary, to comply with the deferment provisions given in the circular.