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Tuesday, May 24, 2022

Two Thu Thiem land auction winners propose paying land use fees by instalments

The Saigon Times

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HCMC – Dream Republic Corporation and Sheen Mega JSC, which are among four businesses that recently won the land auctions in the Thu Thiem New Urban Area in HCMC’s Thu Duc City, have proposed paying the land use fees via monthly instalments.

The two companies wrote to the HCMC government today, April 7, stating that after the land auctions, many domestic and foreign events had affected their operations, Tien Phong newspaper reported.

Therefore, they proposed paying 15% of the land use fees and other relevant fees, including fines for their late payment, this month, and 17% per month from May to August. The remainder will be paid in September.

Dream Republic Corporation wrote that it had worked with potential partners to draw up plans to develop a project on the 3-5 land lot. However, many events, especially the cancelation of the land purchase contracts by two other enterprises, had weakened the confidence of its partners and led to the corporation’s failure to fulfill its financial obligations on schedule.

Despite the difficulties, the corporation is trying to mobilize funds to pay the land use fee and other relevant fees.

Similarly, Sheen Mega JSC stated its difficulties leading to the late payment of the land use fee and other fees. It expected to execute a project on the land lot in the Thu Thiem New Urban Area, so it also suggested paying the fees in monthly instalments.

The HCMC Tax Department today started calculating fines for Dream Republic Corporation and Sheen Mega JSC as they have yet to pay the land use fees even though the payment deadline of April 6 has passed.

Dream Republic Corporation, which won the auction for the 6,400-square-meter land lot coded 3-5, must pay a land-use fee of VND3.82 trillion and a registration fee of VND500 million for the lot.

Meanwhile, Sheen Mega JSC, which won the auction for the 8,600-square-meter land lot coded 3-8, is subject to a land-use fee of VND4 trillion, but exempt from the registration fee.

They must pay the registration fee and half the land-use cost no more than 30 days from the department’s announcement. The remaining land use fee must be made within 90 days of the announcement.

The deadline for the first payment is February 7 and the second payment April 6.

Under the contracts between them and the HCMC government, the contracts will be deemed as null and void if enterprises fail to make payments after 180 days of the fee announcement.

Under such a circumstance, the HCMC Land Fund Development Center will propose the municipal Department of Natural Resources and Environment cancel the auction results. The deposits of the two enterprises will be seized and submitted to the State budget and the land lots will be put up for auction again or handed over to other units in line with the law.

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