Trungnam Land account frozen due to $18.8M tax debt

By Nguyen Dong   March 2, 2023 | 12:51 am PT
Trungnam Land account frozen due to $18.8M tax debt
A bird-eye's view of a location in Da Nang City where Trungnam Land plans to develop its Golden Hills City urban project. Photo courtesy of Trungnam Group
The Da Nang Tax Department has blocked all transactions for a bank account of property developer Trungnam Land as the company owes more than VND445 bilion ($18.8 million) in land use fees and taxes.

The company has delayed paying taxes and fees since October last year, said Do Chi Cong, head of the tax debt management office under the department.

Cong said that bank’s tightened credit on the property sector is the reason why Trungnam Land was unable to pay the tax.

Trungnam Land is a Da Nang-headquartered subsidiary of the Trungnam Group, a diversified company with interests in energy, property and construction.

A representative of Trungnam Land told reporters that of the VND445 billion tax debt for its Golden Hills City project in Da Nang, the company has actually paid VND199 billion, or nearly 45%, but this figure has yet to be recorded in tax department’s system.

The remaining tax will be paid this month, the representative added.

The company, however, is facing difficulties in acquiring licenses for its project in Da Nang. It had submitted VND419 billion in land use tax to the city but still has not received the title deed for the property.

This has had a major impact on the operation and tax obligations of the company, the representative said, adding that the lack of a title deed makes it difficult for the company to demonstrate its financial health to investors and banks and to cover expenses.

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