The Hanoi Department of Taxation has just announced that hundreds of real estate companies owe a total of VND1.126 trillion ($48.9 million) in tax, administrative fees, and other land-related sums.

The Ao Sao urban area of Lung Lo 5 Investment and Development JSC in
Hoang Mai district, Hanoi is one of the biggest projects owing land rental fees
(Photo: VIR)

According to the announcement, 96 companies were informed of having tax arrears for the first time with a total of nearly VND100 billion ($4.35 million). Lung Lo 5 Investment and Development JSC (LIC5) and its debt of VND4.5 billion ($195,650) as of the end of March 2019 was at the top of the list, followed by KIMECO VINA Co., Ltd. with VND3 billion ($130,435) and Tayho Technology Development JSC with VND1.8 billion ($78,260).

They are followed by four companies owing VND31.5 billion ($1.37 million) in land rent, including Sy Ngan JSC with VND15 billion ($652,174), Dai Duong Construction and Development JSC with VND8.5 billion ($369,565), Khu Bac Construction JSC with VND6.5 billion ($282,600), and Dong Son Construction and Trading JSC with VND1.5 billion ($65,220).

Additionally, Quang Trung Mechanical Engineering Co., Ltd. held the largest arrears in land use fees as of April 30, 2019 with nearly VND47 billion ($2 million).

In addition to the list declared for the first time, the Hanoi Department of Taxation once again published the list of 106 companies which had yet to pay a total of VND1.026 trillion ($44.6 million) tax arrears and land-related fees despite being on the list for years.

Accordingly, 94 companies owed VND588.2 billion ($25.57 million). Shipbuilding Industry Corporation (SBIC) ranks first with the debt of VND168.4 billion ($7.3 million), followed by Constrexim-Meco JSC, SIC JSC, and Vinadecor E&C JSC in the range of VND24-26 billion ($1.04-1.13 million).

Among the five companies owing VND13 billion ($565,200) in land rent, Thang Long 12 Construction JSC has the largest debt, exceeding VND8 billion ($347,820), followed by Thang Long 8 Construction Company with VND2.736 billion ($119 million) and Minh Nguyet Co., Ltd. with VND1.416 billion ($64.56 million).

Among the seven companies owing VND424.8 billion ($18.5 million) of land use fees on the re-announced list, Hoang Ha Construction Co., Ltd. ranks first with the debt of VND164.3 billion ($7.14 million), Lilama JSC, World Gems Co., Ltd. with VND69.36 billion ($3 million) each, Kim Anh Co., Ltd. with VND42.4 billion ($1.84 million), 379 Construction and Trading JSC with VND37.6 billion ($1.63 million), Transport Trading and Construction JSC (TRACO) with VND29.8 billion ($1.3 million), and Phu My Thanh JSC with VND11.97 billion ($0.5 million).

According to the Hanoi Department of Taxation, between last January and April, the authority informed 258 companies of their debts in tax, fees, and land-related sums with a total of VND1.099 trillion ($47.8 million), as well as re-announced 115 companies owing VND2.568 trillion ($111.65 million).

As a result, a total of 373 companies owe VND3.667 trillion ($159.4 million), and 104 of them have paid VND36 billion ($1.56 million) so far.