Redefining Land Lease Rates for the ‘Mega Project’ Saigon Dai Ninh

The People’s Committee of Lam Dong Province has instructed the Department of Finance to coordinate with relevant departments and the People’s Committee of Duc Trong District to review the proposal of the Provincial Tax Department regarding land use fees for the Dai Ninh Urban, Commercial, Tourism, and Ecological Resort Project.

Previously, on July 2, the Provincial Tax Department reported on the inspection of land use fees for the Dai Ninh Urban Area Project. This project belongs to the Saigon Dai Ninh Tourism Investment Joint Stock Company.

At the beginning of the project, the People’s Committee of Lam Dong Province approved the land use fee for an area of over 166 hectares, with the company paying over VND 158 billion to the state budget.

In 2018, following the conclusions of the inspection of the state budget management in Lam Dong Province by the Ministry of Finance, the People’s Committee instructed the Department of Finance to urge organizations with budget debts up to October 2017, including VND 158 billion in land use fees of Saigon Dai Ninh Company.

However, the company proposed to change the form of land allocation with a land use fee to land lease for 50 years with annual payments for the Dai Ninh Urban Area Project.

Based on the reports and proposals of many agencies and departments, in 2018, the People’s Committee of Lam Dong Province issued documents related to the adjustment of the form and purpose of land use for the investor, from land allocation with a land use fee (residential land) to land lease with annual payments (land for production and non-agricultural business) for an area of over 166 hectares in the project.

In 2020, the Tax Department issued a notice of land rent payment from February 7, 2012, to December 31, 2019, for an area of over 166 hectares according to Decision 2020 of the Provincial People’s Committee, with the amount payable reduced to over VND 3.2 billion, which the company has paid.

Recently, through a review of the files for the Inspection Team No. 1368 of the Central Inspection Committee, the Tax Department found that the adjustment of the reduction in land use fees as directed by the Provincial People’s Committee was not in accordance with the provisions of the Land Law, the Law on Tax Administration, and guiding documents.

Therefore, the Tax Department proposed that the Provincial People’s Committee consider and issue a document directing the Council for Land Price Appraisal to determine the financial obligations of the Saigon Dai Ninh Company so that the department can notify and collect financial obligations related to land in accordance with regulations.

As reported by Tien Phong Newspaper, the Dai Ninh Urban Super Project, covering an area of 3,959 hectares in Duc Trong District, has an expected investment of over VND 25,200 billion.

Regarding this super project, a series of officials of Lam Dong Province and the Central Government were prosecuted and arrested for investigation, including: Mr. Mai Tien Dung, former Minister and Chairman of the Government Office; Ms. Tran Bich Ngoc, Head of Division I, Government Office; Mr. Tran Duc Quan, Secretary of the Provincial Party Committee of Lam Dong; Mr. Tran Van Hiep, Chairman of the People’s Committee of Lam Dong Province; Mr. Nguyen Ngoc Anh, Chief Inspector of Lam Dong Province…