Large real estate enterprises reduce amount of payable tax by hundreds of billions of VND

Real estate businesses are facing many difficulties in business. Photo: T.H

According to Ho Chi Minh City Tax Department, the state revenue collected from non-state industrial and commercial enterprises in March was VND4,288 billion, accumulated in the first quarter was VND18,614 billion, reaching 24.22% of the current appropriation, decreasing by 2.3% over the same period in 2019.

This area accounted for the largest proportion of revenue in four economic sectors (accounting for 43.77%) and saw a decrease in total revenue over the same period last year due to the decrease in the amount of payable tax from real estate enterprises over the same period.

In particular, many large real estate enterprises reduced the amount of payable tax up to hundreds of billions of VND, such as: Hoa Binh Construction Group Joint Stock Company (down 36.67%, equivalent to VND111 billion); Gia Phu Real Estate Company Limited (down 51.97%, equivalent to VND63 billion); No Va Land Investment Group Corporation (down 91.37%, equivalent to VND224 billion); Binh Thien An Property Joint Stock Company (down 47.71%, equivalent to VND80 billion); Phat Dat Real Estate Development Joint Stock Company (down 63.93%, equivalent to VND78 billion).

According to Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Business Association, the impact of the pandemic was seriously reducing revenue and profits, even making many businesses lose liquidity on cash flow when inventories soared and debt grew.

Besides that, the effect of the pandemic caused an increase in investment cost, cost of capital and interest, leading to the risk of debts being converted into bad debts. Thus, the general and administration expense was also high compared to the revenue and profit in the period of the pandemic. The larger the real estate enterprises is, the more difficulties they have to cope with, leading to deep decrease in the amount of payable tax.