Two businesses apply for installment payments to win the Thu Thiem land auction

On April 7, Dream Republic Joint Stock Company (winning the auction of lot 3-5) and Sheen Mega Joint Stock Company (winning the price of lot 3-8) sent an official letter to the People’s Committee of Ho Chi Minh City asking for an extension to pay the winning amount. land price and fees related to September 2022.

According to the official dispatch of Dream Republic Joint Stock Company signed by General Director Tran Thi Mong Linh, before and after winning the auction, the company met with potential partners to develop project development orientation on plot 3. 5, Thu Thiem New Urban Area and its partners fully support the direction of building brand positioning instead of just putting profit first.

However, after winning the auction, there were many domestic and foreign events that greatly affected the economic development situation, especially the information after the two businesses put down deposits, causing a negative impact, affecting the confidence of the people. information of strategic partners, the fact that the company has not fulfilled its financial obligations is beyond the control of the enterprise. Despite the difficulties, the company is making efforts to arrange financial sources to pay into the State budget the winning land auction money as well as related fees and charges.

Similarly, the official letter of Sheen Mega Joint Stock Company sent by General Director Nguyen Thi Huyen to the People’s Committee of Ho Chi Minh City and relevant departments and agencies also stated objective and subjective difficulties, leading to the delay in payment of winning bids. and related fees.

With the desire to continue implementing the project on the land plots after winning the auction, the two businesses have since proposed to the Ho Chi Minh City authorities a plan to pay late for the payment of the winning bid.

Accordingly, these two businesses would like to extend the time for paying the winning land auction and related fees, including fines for late payment until September 2022. Specifically, in April, 15% will be paid, in the months of May, June, July, and August, 17% will be paid, in September 2022, the remaining amount will be paid.

Also on April 7, confirming with Tien Phong, the Tax Department of Ho Chi Minh City said that by the morning of April 7, the deadline to pay 50% of the land use fee (phase 1), 2 businesses won the Thu land auction. Thiem is Dream Republic Joint Stock Company and Sheen Mega Joint Stock Company have not yet paid into the State budget.

Specifically, Dream Republic Joint Stock Company won the auction of land lot number 3-5 and paid 3,820 billion VND in land use fees and 500 million VND in registration fees; Sheen Mega Joint Stock Company won the auction of land lot 3-8, had to pay 4,000 billion VND in land use fee, which was exempt from registration fee, but as of April 7 morning, it had not yet paid.

Based on the contract signed between these two companies and the People’s Committee of Ho Chi Minh City, it must be 180 days after the business has not paid into the budget to be considered a deposit. Currently, the Tax Department of Ho Chi Minh City only charges late payment interest.

According to the regulations, within 30 days from the date of issuance of the above notice, enterprises must pay the registration fee and 50% of the land use fee (phase 1). Within the next 60 days, the auction winning units must pay the remaining 50% of the land use fee (phase 2). The deadline for paying the first installment is February 7, and April 6 is the deadline for the two winning companies to pay the remaining 50% of the land use fee (phase 2).

If after 90 days, but still have not paid the winning land use fee according to the notice of Ho Chi Minh City Tax Department, Dream Republic Joint Stock Company and Sheen Mega Joint Stock Company must pay 0.03% late payment interest per day on late payment amount.

Thus, the two winning businesses at the auction of land lots 3-5 and 3-8 in Thu Thiem new urban area have 90 days left to pay the land use fee and execute the contract to purchase and auction the two above-mentioned land lots.

After 180 days from the date of signing the tax notice, if the above two businesses do not pay enough money to buy the auctioned property, the HCMC Land Fund Development Center will report to the Department of Natural Resources and Environment to submit the HCMC People’s Committee to cancel the results. auction results. The deposit will belong to the budget, the land plots will be re-auctioned or allocated by the State according to regulations.

On December 10, 2021, Ho Chi Minh City Property Auction Center held an auction of 4 land lots in functional area 3 of Thu Thiem New Urban Area project. The towering auction winning results made many people in the business world real estate surprised.

However, after that, Tan Hoang Minh Group and Binh Minh Trading and Investment Development Company Limited asked for a deposit and did not carry out the project. The other two enterprises, Dream Republic Joint Stock Company and Sheen Mega Joint Stock Company, have not yet paid land use levy with the payable amount of VND 3,820 billion and VND 4,000 billion, respectively.