Regarding the land auction in Thu Thiem New Urban Area in Thu Duc City, on the afternoon of March 4, during the socio-economic meeting of the People's Committee of Ho Chi Minh City, Director of the Tax Department of HCMC Le Duy Minh informed that none of the winners of the land auction had made the payment according to regulations.
From the beginning of the year to now, revenue from land-use fees and land rents in the city has tripled compared to the same period last year. The land and real estate market tends to develop again at the beginning of the year, so personal income tax from real estate transfer is also relatively high.
However, for the four auctioned land plots in Thu Thiem, besides two enterprises that canceled the purchase, the remaining two enterprises, including Dream Republic JSC - the winner of land lot No.3-5, and Sheen Mega JSC – the winner of land lot No.3-8, won the land auction with a value of nearly VND8 trillion, but have not yet paid the money apart from the deposits.
Mr. Le Duy Minh suggested the city meet and dialogue with these two enterprises to find solutions to ensure the implementation of the auction results.
Currently, the Tax Department has been applying measures to consider the ability to pay of these two enterprises. The Tax Department continues to urge and remind them to fulfill their responsibilities; if after 90 days from the issuance date of the notice of payment (from January 6, 2022), the Tax Department of HCMC will conduct enforcement and, at the most, withdraw and cease the project.
From the beginning of the year to now, revenue from land-use fees and land rents in the city has tripled compared to the same period last year. The land and real estate market tends to develop again at the beginning of the year, so personal income tax from real estate transfer is also relatively high.
However, for the four auctioned land plots in Thu Thiem, besides two enterprises that canceled the purchase, the remaining two enterprises, including Dream Republic JSC - the winner of land lot No.3-5, and Sheen Mega JSC – the winner of land lot No.3-8, won the land auction with a value of nearly VND8 trillion, but have not yet paid the money apart from the deposits.
Mr. Le Duy Minh suggested the city meet and dialogue with these two enterprises to find solutions to ensure the implementation of the auction results.
Currently, the Tax Department has been applying measures to consider the ability to pay of these two enterprises. The Tax Department continues to urge and remind them to fulfill their responsibilities; if after 90 days from the issuance date of the notice of payment (from January 6, 2022), the Tax Department of HCMC will conduct enforcement and, at the most, withdraw and cease the project.
Golden land plots in Thu Thiem New Urban Area are put up at auction. (Photo: SGGP)
Previously, on December 10, 2021, the Property Auction Service Center under the HCMC Department of Justice conducted an auction of four land plots in Thu Thiem New Urban Area, with a total winning value of nearly VND37.35 trillion.
Specifically, Binh Minh Trade and Development Investment Ltd. won the 5,000-square-meter land lot No.3-9, whose starting price was VND729 billion, with nearly VND5.03 trillion, nearly seven times higher than the starting price. The land lot No.3-12 with an area of 10,059 square meters and an initial price of more than VND2.94 trillion was won by Viet Star Real Estate Investment Co., Ltd. with VND24.5 trillion, 8.3 times higher than the starting price. Dream Republic JSC won land lot No.3-5 of more than 6,400 square meters with VND3.8 trillion, 6.6 times higher than the initial price of VND728 billion. Sheen Mega JSC won the land lot No.3-8 of 8,500 square meters with VND4 trillion, four times higher than the initial price.
After that, Viet Star Real Estate Investment Co., Ltd., a member enterprise of Tan Hoang Minh Group, unilaterally terminated the purchase contract of land lot No.3-12, at the same time, accepting losing a deposit of VND600 billion (equivalent to 20 percent of the initial price) when participating in the auction.
Next, Binh Minh Trade and Development Investment Co., Ltd., also sent an official document to the city's authorities asking not to continue implementing the project at land lot No.3-9, accepting to give up VND140 billion of deposit.
On January 6, HCMC Tax Department issued a notice of payment of land-use and registration fees to winners of the land auction in Thu Thiem New Urban Area, clearly stating that the first payment period is 30 days, with the payment amount of 50 percent of the auction winning value and registration fee. According to regulations, within 90 days from the date of the notice, the auction winners must pay the remaining 50 percent of the land-use fees.
According to regulations, by the end of February 7, these companies must pay the first installment to the State Treasury. If the payment deadline is overdue, they must pay an additional late payment interest of 0.03 percent per day. After 180 days from the issuance date of the tax notice (from January 6), if the auction winner fails to pay enough money to buy the auctioned asset, it will violate the contract.
Specifically, Binh Minh Trade and Development Investment Ltd. won the 5,000-square-meter land lot No.3-9, whose starting price was VND729 billion, with nearly VND5.03 trillion, nearly seven times higher than the starting price. The land lot No.3-12 with an area of 10,059 square meters and an initial price of more than VND2.94 trillion was won by Viet Star Real Estate Investment Co., Ltd. with VND24.5 trillion, 8.3 times higher than the starting price. Dream Republic JSC won land lot No.3-5 of more than 6,400 square meters with VND3.8 trillion, 6.6 times higher than the initial price of VND728 billion. Sheen Mega JSC won the land lot No.3-8 of 8,500 square meters with VND4 trillion, four times higher than the initial price.
After that, Viet Star Real Estate Investment Co., Ltd., a member enterprise of Tan Hoang Minh Group, unilaterally terminated the purchase contract of land lot No.3-12, at the same time, accepting losing a deposit of VND600 billion (equivalent to 20 percent of the initial price) when participating in the auction.
Next, Binh Minh Trade and Development Investment Co., Ltd., also sent an official document to the city's authorities asking not to continue implementing the project at land lot No.3-9, accepting to give up VND140 billion of deposit.
On January 6, HCMC Tax Department issued a notice of payment of land-use and registration fees to winners of the land auction in Thu Thiem New Urban Area, clearly stating that the first payment period is 30 days, with the payment amount of 50 percent of the auction winning value and registration fee. According to regulations, within 90 days from the date of the notice, the auction winners must pay the remaining 50 percent of the land-use fees.
According to regulations, by the end of February 7, these companies must pay the first installment to the State Treasury. If the payment deadline is overdue, they must pay an additional late payment interest of 0.03 percent per day. After 180 days from the issuance date of the tax notice (from January 6), if the auction winner fails to pay enough money to buy the auctioned asset, it will violate the contract.
