Official Letter No. 746/TCT-QLN 2025 Regarding Tax Debt Enforcement

To: Tax Department of Ba Ria - Vung Tau Province

The General Department of Taxation has received Official Letter No. 24191/CTBRVT-QLN dated December 18, 2024, from the Tax Department of Ba Ria - Vung Tau Province regarding the enforcement of the tax decision against Ba Ria - Vung Tau Vocational School of Transport. In this regard, the General Department of Taxation has the following comments:

• Under Clause 4, Article 118 of the 2024 Land Law, it is stipulated that land is allocated without the payment of land use fees in the case of: “4. Public service units using land to build public service works.”

• Clause 3, Article 51 of Decree No. 103/2024/ND-CP dated July 30, 2024, issued by the Government on transitional provisions regarding land lease fees stipulates:

"For land belonging to public service units that are subject to land lease but exempt from lease fees under the 2013 Land Law but have not yet transitioned to land lease, or have transitioned but have not yet completed the procedures to be exempt from land lease fees, and where the tax agency has not issued a land lease fee payment notice, they shall not be required to pay land lease fees for the period before or during the delay in completing procedures for exemption from land lease fees according to the regulations before the 2024 Land Law came into effect. In cases where the tax agency has issued a payment notice for land lease fees and late payment fees (if any), but the public service unit has not paid or has not paid fully according to the notice, the public service unit should report to the relevant Ministries, agencies, and localities for consolidation, proposing solutions to be sent to the Ministry of Finance for further processing by the competent authority. In cases where the land lease fees and late payment fees (if any) have been paid before the enforcement of this Decree, the State will not refund the paid amount."

In accordance with the above regulations, the Ministry of Finance has issued Official Letters No. 5450/BTC-QLCS on May 28, 2024, No. 9720/BTC-QLCS on September 13, 2024, and No. 11492/BTC-QLCS on October 24, 2024, requesting Ministries, agencies, and localities to report and consolidate cases of outstanding land lease fees by public service units for the Ministry of Finance to report to the competent authority for resolution.

The Ba Ria - Vung Tau Vocational School of Transport is a public service unit that has received Official Letters No. 13216/UBND-VP dated September 17, 2024, No. 13670/UBND-VP dated September 25, 2024, and No. 16523/UBND-VP dated November 11, 2024, from the People's Committee of Ba Ria - Vung Tau Province, reporting to the Ministry of Finance regarding the cases of outstanding land lease fees by public service units in the province. The Tax Department of Ba Ria - Vung Tau Province is requested to classify the outstanding land lease debt of the Ba Ria - Vung Tau Vocational School of Transport in accordance with the Debt Management Procedures issued with Decision No. 1129/QD-TCT dated July 20, 2022, of the General Director of the General Department of Taxation. In cases where the land lease debt arises from the school's use of land for business, leasing, joint ventures, or partnerships, the Tax Department of Ba Ria - Vung Tau Province should implement enforcement measures as per the regulations.

The General Department of Taxation responds for the Tax Department of Ba Ria - Vung Tau Province to acknowledge and implement accordingly.

See details here.