Many strong solutions, creating changes in debt collection of land use fees and land rents

Decisive and specific

On September 11, the Provincial Tax Department coordinated with Hai Duong Newspaper to publish details of 20 residential and urban area projects and investors who still owe land use fees and land rents.

“Immediately after Hai Duong Newspaper published this list, Hung Thinh Corporation, the investor of the Luoc Vac craft village residential area project in Thai Hoc commune (Binh Giang), completed procedures to pay all 34 billion VND in debt to the budget in September, 1 month earlier than the previous commitment,” informed Mr. Le Thanh Thuy, Head of the Cam Binh Tax Department.

Mr. Le Thanh Thuy added that Hudland Real Estate Investment and Development Joint Stock Company, the investor of the new residential area project in Thai Hoc - Binh Minh communes (Binh Giang) also committed to maintaining monthly debt payments (from September 2024) with monthly payments of over VND 100 billion to complete the entire payment of more than VND 1,248 billion in land use fees and land rents within 12 months".

The Cam Binh Tax Department also closely monitored the implementation of the commitment of Hoang Kim Construction-Real Estate Joint Stock Company, the investor of the Cam Phuc residential area project (Cam Giang). This enterprise committed to repay the principal debt of VND 482.9 billion in land use fees and land rent in November 2024.

Nam Thanh Tax Department is a unit that has achieved good results in collecting land use fees and land rent. In the first 8 months of 2024, the department collected more than 1,347 billion VND in land use fees in Thanh Ha district and nearly 1,060 billion VND in Nam Sach district (the province's estimate for the whole year is 600 billion VND for each district). "Not only strictly implementing the management process, we also actively coordinate with relevant levels and sectors to support investors in removing difficulties. Land use fees collected in the region are mainly from 7 projects with debts in 2023," said Mr. Hoang Phuong, Head of Nam Thanh Tax Department.

As of September 12, 2024, out of a total of over 500 legal representatives of enterprises, taxpayers are being temporarily suspended from leaving the country due to debt to the budget, there are more than 100 cases due to debt of land use fees and land rent. In addition to urging project investors, Hai Duong tax authorities have also strengthened measures to resolutely handle cases of delay in paying land rent. A typical case is Minh Duc Trading and Transport Company Limited, in the total debt to the budget of over 120 billion VND, including land rent. Before suspending the exit of the legal representative, this enterprise was forced to stop using invoices twice. Another typical case is the Urban Infrastructure Investment - Business One Member Co., Ltd., which has been delaying payment of land rent for a long time, as of August 31, 2024, the total debt was nearly 32.13 billion VND...

"In the past, we have applied propaganda measures, urging individuals and units in the area to complete their tax payment obligations correctly, fully and early. However, there are still cases of procrastination. For those cases, as a last resort, we have had to apply many coercive measures according to the process such as deducting accounts, requesting to stop using invoices, requesting to temporarily suspend exit from the country...", said Mr. Nguyen Dang Tuan, Head of the Ninh Thanh Tax Department.

Close coordination and synchronization

Strengthening tax management and preventing revenue loss from land and real estate is a complex task, but has a great impact on the province's budget collection results. For that reason, this work is often directed by the leaders of Hai Duong province. Mr. Nguyen Van Khich, Deputy Director of Hai Duong Provincial Tax Department said: "To strengthen tax management and prevent revenue loss from land and real estate in general, the Provincial Tax Department has consulted and updated the instructions of the General Department of Taxation; coordinated and exchanged information with sectors and authorities at all levels; implemented strict tax management procedures...".

According to the Provincial Tax Department, with many synchronous and drastic measures, in August 2024 alone, the whole province collected nearly 2,000 billion VND in land use and land rent fees. In the first 8 months, Hai Duong collected over 6,182 billion VND, exceeding the annual estimate by 34% and 3.26 times higher than the same period last year.

Since the beginning of the year, along with strengthening the implementation of the 2024 land use and land rent estimates, tax authorities have actively recovered outstanding budget debts from land. By August 31, 2024, the total land tax debt transferred from 2023 had decreased by more than VND 1,150 billion. Land tax debt is currently concentrated in 20 residential and urban area investment projects with more than VND 5,000 billion in land use fees and over VND 250 billion in land rent fees, of which 17 projects transferred debt from the previous year.

In the coming time, along with applying strong enforcement measures, the Provincial Tax Department will strengthen inspection, supervision, urging and guiding enterprises to implement specific contents to fulfill financial obligations of projects as committed. In addition, tax agencies will strengthen coordination with all levels and sectors to support enterprises in removing difficulties and obstacles in the process of project implementation.