On November 9, Khanh Hoa Department of Information and Communications received a response from the Provincial Tax Department regarding the proposal on land rental price of Nha Trang Tropical Company Limited regarding the project of Tropicana Nha Trang Trade - Tourism - Serviced Apartment Complex (Tropicana Nha Trang project) at 40 Tran Phu, Nha Trang.
Previously, Nha Trang Tropical Company Limited and a group of 6 other enterprises in Khanh Hoa province signed a document requesting to remove difficulties in land rent.
This enterprise cited that in 2020, Khanh Hoa Provincial Tax Department calculated land rent for Tropical Company for the period 2020 - 2024.
Accordingly, the tax sector has applied the adjustment coefficient K=4 according to Decision No. 41 of Khanh Hoa Provincial People's Committee in 2018 (expired).
This enterprise believes that the tax authority did not apply the adjustment coefficient K = 2.4 as stated in the effective document, causing the land rent to increase dramatically, 520% to 26.1 billion VND.
In response to the enterprise's request, the Khanh Hoa Provincial Tax Department said that in 2015, the Khanh Hoa Provincial People's Committee leased 10,940 square meters of land to Nha Trang Tropical Company Limited to implement the Tropicana Nha Trang project in the form of annual payments.
This year, Khanh Hoa Provincial Tax Department announced that the land rental price applied from January 1, 2015 to December 31, 2019 is 459,116 VND/m2/year.
By 2020, the land rental price will be re-determined and stabilized for the next 5-year cycle from January 1, 2020 to December 31, 2024 at VND 2,419,200/m2/year (commercial service land 10,424 m2) and VND 1,814,400/m2/year (land used for public purposes - construction of works with business purposes 516 m2).
The Tax Department's application of regulations on land prices and land price adjustment coefficients to determine land rental prices as of January 1, 2020 is carried out under the direction of the People's Committee of Khanh Hoa province.
In response to the enterprise's proposal on land rental prices, on May 15, 2023, Khanh Hoa Provincial People's Committee sent an official dispatch to the Ministry of Finance requesting guidance on determining specific land prices according to the land price adjustment coefficient method when calculating land rental unit prices to pay annual land rental fees.
In the above document, Khanh Hoa province proposed to apply the provisions of Decree No. 46/2014, amended and supplemented by Decree No. 123/2017 of the Government to determine the land rental price for the next stable cycle for land lease cases with land rental price adjustment time arising from January 1, 2020 to January 9, 2021.
Then the Ministry of Finance requested Khanh Hoa province to issue and apply the land price adjustment coefficient in determining land rent in accordance with regulations and take responsibility for its decisions; in which the law does not have regulations on applying policies for implementation.
Khanh Hoa Provincial Tax Department affirmed that the application of land prices and land price adjustment coefficients to determine land rental prices and land rent payable for the 2020-2024 period is in accordance with the provisions of law and land policies at the time of adjusting land rental prices.
