The General Department of Taxation has issued document 484 responding to the Tax Department of Kien Giang province regarding the identification of land use tax debts when reassessing the land use change price for the case of Phu Cuong Kien Giang Company.
The General Department of Taxation cites Article 83 of the Tax Administration Law, which stipulates the 5 cases in which tax debts can be identified, but the case of Phu Cuong Kien Giang Company does not fall under any of these cases.
The Kien Giang Tax Department has issued Notification 1340 on July 3, 2023, regarding land rental payment. However, as the company has not made the payment within the prescribed deadline (over 90 days), Phu Cuong Kien Giang Company is required to pay the late payment according to regulations.
A corner of Phu Cuong Kien Giang urban area.
Based on the inspection, the Kien Giang Inspectorate has also concluded that Phu Cuong Kien Giang Company has made partial adjustments to the land use planning in the BT31 designated land area in the New Phu Cuong Urban Area, Rạch Giá City, resulting in a change in land use.
The company has completed the procedures for changing the land use and has been notified by the Provincial Tax Department to pay the land use fee, with an amount of over 46.4 billion VND, which has not been paid up to now.
After the media reported on the inspection conclusions, Phu Cuong Kien Giang Company issued a press release in response to the incident.
According to Phu Cuong Kien Giang Company, the amount of tax payment for land use change is “excessively high and the price calculation is not appropriate,” so the company has submitted a request to the Kien Giang Provincial People’s Committee to reconsider the pricing.
On December 19, 2023, the Party Committee of the Provincial People’s Committee of Kien Giang issued its opinion: Assign the Department of Finance to lead, hire an independent unit to survey, and re-evaluate the land price; propose that the Provincial Tax Department consider temporarily suspending the above financial obligations.
Phu Cuong Kien Giang Company states that they are waiting for the results from the relevant authorities regarding the implementation of the financial obligations for the above amount and will proceed when there is a new tax notification.
