The Vietnam Young Entrepreneurs Association (VYEA) has expressed concern over certain provisions in the Government’s draft Decree amending and supplementing a number of articles of Decree No. 103/2024/ND-CP on land use fees and land rental.
Specifically, the draft continues to apply an additional tax rate of 5.4% per year on unpaid land use fees, creating not only an illogical situation but also potentially exposing businesses to legal and economic risks.
Mr. Dang Hong Anh, Chairman of VYEA, stated that although this is an interest or late payment penalty incurred during the period when enterprises have not completed their financial obligations related to land, the noteworthy point is that the reason for the delay is not on the enterprises’ side but due to the fact that the authorities have not completed the land valuation and calculation of land use fees.
“This goes against the principles of fairness and transparency in management,” emphasized Mr. Dang Hong Anh.
It’s not just the tax pressure that enterprises face; they also encounter difficulties when projects that have not completed their financial obligations are ineligible to proceed with subsequent legal procedures, from mortgage loans to product sales.
As a consequence, businesses incur significant losses and face the risk of cash flow deadlock. Projects cannot be implemented, capital cannot be raised, opportunity costs are lost, and financial costs continue to rise—all of which become a double burden that can push enterprises towards bankruptcy or force them to temporarily halt their projects.
Enterprises with incomplete real estate tax procedures for their projects will be concerned |
This regulation also inadvertently creates a sense of apprehension among investors, especially for projects requiring large land areas, as the prolonged time for determining financial obligations increases risks.
“The business community in general and the Vietnam Young Entrepreneurs Association strongly recommend that this additional collection be completely abolished and administrative responsibility be clearly assigned to the at-fault agency,” said Mr. Dang Hong Anh. “The collection of 5.4%/year should only be applied in cases where the authorities have completed the calculation of financial obligations and notified the enterprises, but the enterprises subsequently failed to fulfill their payment obligations on time.”
Previously, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, also sent a document to the Government and the Ministry of Finance, proposing urgent amendments to the provisions of Articles 50 and 51 of Decree 103 and Point d, Clause 2, Article 257 of the 2024 Land Law.
According to Mr. Chau, the regulations related to the retroactive collection of land use fees and land rental, while the delay in determining financial obligations is attributable to state agencies, are causing significant difficulties for enterprises.
“Even though they are not at fault, enterprises are still subject to late payment interest and penalties. This increases input costs and hinders the recovery of the real estate market,” emphasized Mr. Chau. “If this issue is not promptly addressed, housing supply will continue to be obstructed, negatively impacting the economy.”
He also affirmed that penalties should only be applied when the tax authority has completed the notification of financial obligations and the enterprise has failed to pay on time. “It is unreasonable to blame enterprises when the cause lies in the tardiness of the competent authorities,” said Mr. Le Hoang Chau.
News-photo: Son Nhung
– 1:29 PM, June 29, 2025
Transforming Land Usage: A Hefty 300% Rise in Fees
The new land pricing policy has resulted in a significant increase in taxes for those wishing to change their land usage. With a 250-300% surge in taxes for converting agricultural land to residential use, many individuals are now facing financial challenges due to the substantial rise in land use conversion costs.
The Deadline for Financial Obligations on Residential Land in Ho Chi Minh City
Within 60 working days from the date of the specific land price assessment, the competent land management agency shall prepare the dossier. If the legal dossier is found to be solid upon scrutiny, the land management agency shall select an organization to carry out the land price assessment.
The Deadline for Financial Obligations on Residential Land in Ho Chi Minh City
Within 60 working days from the date of the specific land price assessment, the competent land management agency shall prepare the dossier. If the legal dossier is found to be solid upon scrutiny, the land management agency shall select an organization to carry out the land price assessment.
Unlocking the Housing Market: A Proposal to Remove the Additional Land Payment Requirement
The HoREA has proposed the removal of the regulation that imposes an additional land tax of 5.4% on the land value during the period when the land value is not yet calculated. This removal aims to alleviate challenges faced by enterprises, reduce costs, and ultimately, unlock a new supply of housing.
Unlocking the Housing Market: A Proposal to Remove the Additional Land Payment Requirement
The HoREA has proposed the removal of the regulation that imposes an additional land tax of 5.4% on the land value during the period when the land value is not yet calculated. This removal is aimed at alleviating obstacles faced by enterprises, reducing costs, and ultimately, unlocking a supply of housing.
