The new land price list in Ho Chi Minh City will take effect from October 31, 2024 to December 31, 2025, with an increase of 4-38 times compared to the old land price list. However, the coefficient for calculating land use fees and State land rental prices for enterprises is being proposed to be reduced to balance costs for enterprises.
This is the content informed by delegates at the Seminar on how the new land price list in Ho Chi Minh City affects businesses, organized by the Ho Chi Minh City Business Association (Huba), on November 9.
Mr. To Ngoc Ngoi, General Director of Saigon Forest Products Production and Import-Export Joint Stock Company, said that the application of the new land price list in Ho Chi Minh City will significantly increase the land rental costs of enterprises. Especially for commercial service land, land used for warehouse rental activities and land with low construction density, limited height or land located in the core area of the city center.
“The company is renting a plot of land with an area of over 1,000 m2 in District 3 as an office. According to the old land price list, the annual land rent that the company has to pay is over 4.2 billion VND/year. When applying the new land price list, the land rent that the company has to pay is over 6 billion VND/year, an increase of more than 30% compared to before. This is really a burden for the company. Therefore, the company recommends that the competent authorities of Ho Chi Minh City consider calculating the coefficient according to the new land price list so as not to put financial pressure on the company,” Mr. To Ngoc Ngoi shared.
Regarding enterprises in industrial zones, Ms. Bui Thi Nu, Head of the General Planning Department of the Ho Chi Minh City Export Processing Zones and Industrial Zones Management Board (Hepza), said that Ho Chi Minh City currently has 17 export processing zones and industrial zones; of which, 6 zones have completed their financial obligations to rent land and pay land use fees at one time and are not affected by the newly issued land price list. The remaining 11 zones are leasing land and paying land use fees annually. Enterprises that rent land and pay fees annually will be affected by the new land price list.
According to Ms. Bui Thi Nu, at the time when enterprises sign land lease contracts in industrial zones, the law stipulates that land lease prices are applied stably for 5 years, with each subsequent adjustment increasing by no more than 15%. During the process of giving opinions on the city's new land price list, Hepza also proposed to build a separate land price list for industrial zones. Currently, the coefficient for calculating land use fees in industrial zones is being developed and issued by the Department of Finance.
However, businesses are worried that the new land price list is higher than the old price list, which will increase the annual land rental fee. Many businesses are eager to sign land lease contracts early to determine land costs and complete related procedures to implement production plans.
Emphasizing that the issuance of the new Land Price List has been carefully researched and considered by the city in order to ensure the requirements of economic recovery and development, Mr. Dao Quang Duong, Deputy Head of the Land Economics Department, Department of Natural Resources and Environment of Ho Chi Minh City, said that there are two subjects directly affected by the new land price list in Ho Chi Minh City: non-agricultural land users and land renters paying annual rent.
For non-agricultural land, according to the Law on Tax Administration 2012, the tax rate for non-agricultural land use is 0.03% within the limit and 0.15% outside the limit. However, this tax calculation is applied stably in a 5-year cycle, currently in the 3rd cycle and will be kept fixed until the end of 2027.
For the group of land renters who pay land use fees annually, the formula for calculating land use tax will be based on the land price multiplied by the coefficient. Currently, the new land price list has been adjusted to increase, but the coefficient is being proposed to decrease so that the land use fee of enterprises does not increase dramatically compared to the old land price list.
Accordingly, the previous coefficient for calculating land use fees in Ho Chi Minh City was 1-2%, but the new coefficient proposed is only 0.25-1%. Thus, depending on the land price of each area, the annual land use fee that businesses must pay will change but not be too high compared to when applying the old land price list, creating conditions for stable production activities.
Mr. Giang Van Hien, Deputy Director of the Ho Chi Minh City Tax Department, informed that before the time Ho Chi Minh City issued the new land price list, the City Tax Department received a large number of tax procedure dossiers. The Tax Department proposed to the City People's Committee to allow the application of the tax schedule according to the old land price list and resolved over 16,000 dossiers in just 10 days.
As soon as Ho Chi Minh City issued the new land price list, the Tax Department also promptly issued a document guiding tax branches and people to carry out tax procedures according to the new land price list. Accordingly, all land tax payment dossiers sent to the tax authority, determined to be valid before October 31, will still be subject to the tax rate according to the old land price list. Tax dossiers submitted after October 31 or submitted before October 31 but not yet completed will be subject to the new land price list.
According to VNA
Source: https://doanhnghiepvn.vn/doanh-nhan/tp-ho-chi-minh-can-doi-chi-phi-dat-dai-cho-doanh-nghiep-theo-bang-gia-dat-moi/20241110071853771
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