Hundreds of businesses have not yet accessed the land rent reduction policy.
On December 13, at the discussion session of the 15th session of the 10th term of the Da Nang City People's Council, 2021-2026 term, Mr. Vu Quang Hung, Head of the Management Board of the Da Nang High-Tech Park and Industrial Parks, said that in order to contribute to removing difficulties and creating stability in the operations of enterprises, the Prime Minister issued Decision No. 25 dated October 3 to reduce land rent by 30% for 2023.
But up to now, enterprises in Hoa Khanh Industrial Park and Da Nang Aquatic Services have not yet had access to these policies. This is a huge disadvantage for enterprises in the Industrial Park.
Mr. Vu Quang Hung, Head of Management Board of Da Nang High-Tech Park and Industrial Parks.
Danang Industrial Park Infrastructure Development and Exploitation Company (Dazico) is a state representative unit.
This company collects money and pays it all to the state budget, so businesses in Hoa Khanh Industrial Park rent land from Dazico. In essence, it is completely similar to businesses that rent land directly from the state.
If the above enterprises are eligible for this policy, Mr. Hung requested the City People's Committee to direct relevant agencies to guide procedures for enterprises to benefit as soon as possible.
According to provisional figures, 133 enterprises in Hoa Khanh Industrial Park will receive a reduction of 16.7 billion VND per year and 26 enterprises in Da Nang Aquatic Service Area will receive a reduction of 1.6 billion VND per year. According to Mr. Hung's estimate, the total reduction of enterprises is about more than 18 billion VND.
It is not possible that the management style or management process causes the business to suffer losses.
Mr. Nguyen Van Phung, Director of the Department of Finance of Da Nang City, said that regarding Decision 25, enterprises in industrial parks are eligible for a 30% reduction in land rent in 2023, effective from November 20, 2023.
Mr. Nguyen Van Phung, Director of the Department of Finance of Da Nang city.
Therefore, all revenue arising from land rent in 2023, excluding the amount of debt carried over from the previous year, including fines for late payment, that enterprise will be exempted from 30% of land rent.
Enterprises in industrial zones are secondary units. Dazico Company under the Management Board of Industrial Zones and High-Tech Parks of Da Nang City is a state authorized collection unit.
Dazico is the primary unit, and the secondary units are the enterprises leasing land from Dazico, so the tax authority will issue a notice based on Dazico's request.
The tax authority will notify Dazico of the exemption. Dazico is responsible for exempting land use fees when collecting fees from secondary enterprises.
According to Mr. Phung, Decision 25 takes effect from November 20, but if businesses submit applications after March 31, 2024, they will not be processed.
From now until March 31, 2024, businesses need to make proposals and applications so that the tax authority will exempt or reduce land rent.
However, the leader of the Da Nang City Tax Department said that, previously, the Tax Department had sent an official dispatch asking the General Department of Taxation regarding this case. In Da Nang City, there is not only Dazico but also Saigon Da Nang Investment Joint Stock Company.
The leaders of the Da Nang City Tax Department said that enterprises subleasing land from Dazico and Saigon Da Nang Investment Joint Stock Company are not entitled to the 30% reduction in land rent.
Whether or not a land-leasing enterprise can get a reduction in rent depends on the policies of Dazico and Saigon Danang Investment Joint Stock Company.
According to the Government's decisions from 2021-2023, the subjects eligible for land rent reduction are organizations, units, individuals, and households that are directly leased land by the State in the form of annual payments.
Meanwhile, Dazico and Saigon Da Nang Investment Joint Stock Company are entities that directly lease land from the State to invest in industrial park infrastructure and then lease it to other enterprises. Therefore, the entities that are entitled to a reduction in land rent in this case are Dazico and Saigon Da Nang Investment Joint Stock Company.
Enterprises subleasing land from Dazico and Saigon Danang Investment Joint Stock Company, known as secondary enterprises, are not entitled to the 30% land rent reduction policy.
Mr. Nguyen Van Phung disagrees with this view. Mr. Phung believes that Dazico must reduce land rent for businesses after the State reduces the rent.
Regarding this issue, Mr. Luong Nguyen Minh Triet, Chairman of the People's Council of Da Nang City, said that this issue is still controversial. Therefore, he suggested that the City People's Committee organize a working session with relevant units to clarify the issue and resolve the petitions of the enterprises. After that, the City People's Committee will make a report and send it to the City People's Council.
Mr. Luong Nguyen Minh Triet emphasized that in general, businesses enjoy a 30% reduction in land rent.
“Enterprises do not know whether they are secondary or primary tenants, but so far they have not enjoyed the land rent reduction policy. The general spirit is that businesses enjoy the benefits, but it is not fair that businesses suffer losses due to our management or management methods,” Mr. Triet emphasized.
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