VIETNAM CHAMBER OF COMMERCE AND INDUSTRY
Liên Đoàn Thương Mại Và Công Nghiệp Việt Nam
The Van Xuan Joint Stock Company (hereinafter referred to as Van Xuan Company) which has been approved by the State to lease land for use as a head office, maintenance, overhaul and rehabilitation of motorcycles and traffic equipment. and processing mechanical products in accordance with Decision No. 5749 / QD-UBND dated 29 September 2003 and signed the land lease contract No. 156-2003 / DCC-HDTDTN dated November 27, 2003.
The Decision No 5749 and land lease contract No. 156 define the land rental unit prices according to the percentage prescribed in Decision No. 1357 / TC / QD / TCT of December 30, 1995 of the Ministry of Finance on the land rental bracket for Domestic organizations that are leased land by the State. The annual land rental of 14,750 m2 is VND 22,603,875 / year, the lease is 20 years from July 24, 2000.
From 2006 to 2010, The Van Xuan Company was assigned by Thanh Tri District Tax Department to announce annual fee collection with higher prices than that of previous year, while in accordance with Decree 142/2005 / ND-CP, the land prices stabilization cycle is once every five years after land prices are re-determined.. Thus, the Van Xuan Company had to pay the amount higher than the level of VND 92,182,000.
In 2011, after many times sending recommendations to authorities, Van Xuan Company was considered determining the land rental for the period of 05 years (2011-2015) in accordance with Decree 142 / 2005 / ND-CP by Decision No. 5758 / QD-STC dated December 12, 2011 of the Department of Finance, with the land rental payable for one year was VND 250,621,680/ year, the price stability period was 05 years since October 22, 2010.
By the end of 2015, Van Xuan Company has applied for a land rental policy in accordance with Clause 2, Article 8 of Circular 77/2014 / TT-BTC of the Ministry of Finance (the land rental has increased by 15% compared to the adjacent period) but has not been considered by inter-sectors of the City for the reason that the Ministry of Finance has issued the Circular amending and supplementing Circular 77 (at that time was in draft form).
On December 26, 2016, the Ministry of Finance issued a Circular No. 333/2016 / TT-BTC amending and supplementing a number of articles of Circular 77/2014 / TT-BTC, in which Clause 2 of Article 4 has stipulated:
"In cases where the land rents are paid by the State with annual land rents as prescribed by law before January 1, 2006, the land rent unit prices shall be determined according to the regulations in one of the following decisions: ... The Decision No. 1357 / TC / QD / TCT of December 30, 1995, but all three papers are investment certificates, land lease decisions and land lease contracts issued by competent state agencies, promulgation and signature without stipulating principles for adjustment of land rent rates and using land for the right purposes stated in the Decision ... shall be as follows:…
To compare with regulations, the Van Xuan Company is in the case of application of this regulation, because:
• The company was leased land by Hanoi People's Committee before 2006;
• The purpose of land use since the lease has not changed;
• Land rental prices determined in the lease contract are based on the provisions of the Finance Ministry's Decision No. 1357 / TC / QD / TCT of December 30, 1995 on the land rental bracket applicable to domestic organizations that the land is leased by the State;
• The company has been considered by the competent state agency to determine land prices as stipulated in Decree 142/2005 / ND-CP.
The Van Xuan Company proposed the Hanoi Tax Department and the Thanh Tri District Tax Department to re-determine the land rental for the Van Xuan Company as stipulated in Circular No. 333/2016 / TT-BTC dated December 26,2016 of the Ministry of Finance.
