Specialties Fisheries Joint Stock Company equitized since May 1, 2002. As a rule, the Company is given preferential land rent for equitized state-owned enterprises according to Decree No. 44/1998 / ND-CP, and is exempted from land rent for 6 years from the date of signing the land lease contract. In order to implement the above preferential policy, the Specialty Fisheries Joint Stock Company has made many proposals to enjoy preferential treatment since 2002. Most recently on October 3, 2016, the Company sent Official Letter 500 / 16 / Real Estate comes to Ho Chi Minh City Tax Department to request consideration of land rental exemption for the period from 2002 to 2008. After studying the file, the Tax Department of Ho Chi Minh City sent Official Letter 6386 / CT-KTTD to the Ministry of Finance and the General Department of Taxation for guidance. However, while waiting for the official letter for guidance, the Company received Decision No. 13033 / QD-CCT dated October 24, 2018 on the enforcement of tax administrative decisions of the Director of the Tax Department of Tan Phu District, the reason that the Company owes tax and penalty for late payment of land rent.
At the same time, on the register of the Tax Department of Tan Phu District, the land rental is still shown, and the Company still owes it from 2002 to 2008. Through the receiving and responding system to businesses’recommendations, Thuy Joint Stock Specialties Company proposes to consider solving difficulties and problems for businesses.
Regarding this issue, the General Department of Taxation responds as follows:
Clause 8 Article 3 of Decree No. 135/2016 / ND-CP dated September 9, 2016 of the Government amending and supplementing a number of articles of the Decrees on the collection of land use levies, collection of land rents and rent water surface regulation:
“Article 3. Amendments and supplements to a number of articles of the Government’s Decree No. 46/2014/ND-CP dated May 15, 2014 stipulating land and water surface rents
8. Amending and supplementing Clause 11 and adding Clause 13, Clause 14, Clause 15, Clause 16, and Clause 17 Article 31 as follows:
17. In case of land lease granted by the state before July 01, 2014, if the certificate of investment incentives or investment license issued by competent state agencies has specified level of exemption, reduction of land rents which have been confirmed compliant with the law on investment; or if such certificate of investment incentives or investment license has not specified level of exemption, reduction of land rents or the economic organization is not eligible for the issuance of aforesaid papers but meets requirements for exemption and reduction of land rents according to laws at the date of state permission for land lease, the economic organization shall remain entitled to exemption and reduction of land rents according to laws even though fulfillment of procedures for such exemption and reduction is delayed. Applications for exemption and reduction of land rents shall be submitted to competent state agencies before January 01, 2017 for fulfillment of procedures. Any application submitted after this date shall be eligible for exemption and reduction for the remaining term (if any) from the date of application submission according to laws.…”.
Clauses 1 and 2, Article 15 and Clause 1, Article 18 of the Government's Decree No. 51/1999 / ND-CP of July 8, 1999 detailing the implementation of the Law on Domestic Investment Promotion (amended) No. 03 / 1998 / QH10 stipulates:
“Article 15. Conditions for investment incentives
Investment projects that satisfy one of the following conditions are eligible for investment incentives:
1. Investment in branches and trades defined in List A of the Appendix issued together with this Decree.
2. Investment projects in any production and business domains, branches and trades, which are not banned by law and which employ an average number of laborers in a year at least as follows:
a/ In urban areas of categories 1 and 2: 100 laborers;
Article 18.- Land rent exemption or reduction
1. Investors having investment projects defined in Article 15 of this Decree shall enjoy the land-rent exemption from the time of signing the land-renting contracts as follows:
a/ 3-year exemption, for projects that meet one of the conditions prescribed in Article 15 of this Decree;
b/ 6-year exemption, for projects that fully meet two conditions prescribed in Article 15 of this Decree.
In Section III, List A of Appendix issued together with the Government's Decree No. 51/1999 / ND-CP of July 8, 1999 detailing the implementation of the Law on Domestic Investment Promotion (amended):
“Projects investing in the following industries and trades are eligible for incentives:
III - Manufacturing and trading in export goods
Production and trading of goods and services for export reaching a value of over 30% of the value of the enterprise's production and business goods and services in finance. ”
Official Letter No. 345 / TC / TCDN dated 9/1/2004 of the Ministry of Finance on preferential land rent for equitized state-owned enterprises under Decree No. 44/1998 / ND-CP guiding:
“For joint-stock companies established from the equitization of state-owned enterprises according to the Government's Decree No. 44/1998 / ND-CP of June 29, 1998 on converting state enterprises into joint stock companies, if the conditions specified in Article 15 of the Government's Decree No. 51/1999 / ND-CP of July 8, 1999 are satisfied, detailing the implementation of the Law on Domestic Investment Promotion (Amendment) No. 03 / 1998 / QH10, it continued to enjoy investment incentives according to the level specified in Decree No. 51/1999 / ND-CP (for enterprises that did not apply for the investment incentive certificate) and the level of identified in the certificate of investment incentives issued by the competent authority (for enterprises that have been granted the investment incentive certificate) for the remaining time ".
According to the Ho Chi Minh City Tax Department in Official Dispatch No. 6386 / CT-KTTD dated July 2, 2018 and enclosed documents, the Government’s Prime Minister issued Decision No. 53 / QD-TTg dated January 11 / 2002 on the transformation of the State enterprise of the seafood import-export company into a joint stock company, the company leased land by the People's Committee of Ho Chi Minh City under Decision No. 2104 / QD-UB dated June 4, 2003 on hired by JSC Aquatic Products in Ward 19, Tan Binh District to build factories and to process seafood; Decision No. 1586 / QD-UB dated April 11, 2005 on leasing land to the Company at 213 Hoa Binh Street, Hoa Tham Ward, Tan Phu District (after the Company equitized).
Based on the above provisions, the Tax Department of Ho Chi Minh City is requested to review the Unit's specific dossiers to:
- For a parcel of land leased by the People's Committee of Ho Chi Minh City in accordance with the law on SOE equitization, if the Unit meets the conditions specified in Article 15 of Decree No. 51/1999 / ND-CP dated July 8, 1999 of the Government and submitted a dossier of application for land rent exemption or reduction to a competent state agency. At the same time, the unit that carries out the procedures for land rent exemption or reduction before January 1, 2017 is eligible to be considered for land rental exemption under the guidance in Official Letter No. 345 / TC / TCDN dated January 9, 2004. of the Ministry of Finance and Clause 8 Article 3 of Decree No. 135/2016 / ND-CP.
- For the land parcel leased by the People's Committee of Ho Chi Minh City (after the company has been equitized), the land rent exemption or reduction shall be considered in accordance with Clause 8 Article 3 of Decree No. 135/2016 / ND-CP.