We intend to ensure transparency, provide comprehensive information, and clearly state our legal position as an enterprise.

We believe that the accurate, objective, and responsible dissemination of information is a fundamental duty shared by businesses and the media in today’s communications landscape. Accordingly, we are issuing this statement for the following purposes:

• To clarify the regulations concerning invoice issuance for the collection and disbursement of building management fees at residential projects under Savills management,
• To reaffirm the legal position of Savills on the matter,
• To address those media outlets and journalists who have published—or intend to publish—information related to this issue without prior verification or official engagement with us.

Savills Viet Nam reaffirms our consistent and full compliance with applicable laws and regulations. At the same time, we are committed to protecting our corporate reputation, image, and legitimate interests against inaccurate reporting that may cause misunderstanding or damage to our operations, brand, or partners.

1. Context and Responsibilities of Savills’ Management Teams Regarding Invoice Issuance at Projects Managed Under the "Collection and Payment on Behalf" Financial Model.

Official Decree No. 650/CTTPHCM-TTHT issued by the Ho Chi Minh City Tax Department on 20 January 2025 regarding tax policies applicable to residential property management operations provides the following guidance:

“Depending on the contract signed between the Building Owners’ Committee (BOC) (which is elected at the Annual General Meeting (“AGM”) / the Developer (in cases where the initial Annual General Meeting (AGM) has not yet been held) and the building operation management unit, the management unit shall collect fees, issue invoices, declare and pay taxes for the services provided in accordance with regulations.”

At projects managed by Savills, we determine our invoicing and tax obligations based on the specific terms of the management contract. The respective rights, obligations, and revenues of all parties are strictly defined and complied with under the law. Currently, there are three financial-operational models:

a) Self-Management Model 

In cases where the AGM decides to adopt a self-management model as permitted under the Housing Law, the BOC (established by the residents) is authorised to collect fees from apartment owners and residents and provide building operation services independently.

In this scenario, when such service provision occurs, the BOC is responsible for declaring and paying Value Added Tax (VAT) and Corporate Income Tax (CIT) in accordance with applicable regulations. The use of invoices by the BOC must comply with the provisions of Decree No. 123/2020/NĐ-CP.

This model is operated entirely by the BOC, without the involvement or participation of any external professional management unit.

b) Lump-Sum Outsourcing Model 

In this model, the AGM appoints a qualified professional property management company to undertake the full operation and management of the property (The BOC acts only as a representative for the apartment owners and residents when signing the management service contract).

Under this arrangement, the Property Management Unit directly provides management services, collects service fees from apartment owners and residents, enters into contracts with service providers (such as security, sanitation, waste collection, landscaping, pest control, etc.), and is the entity to receive invoices from these third-party providers.

In such cases, the chosen property management team is responsible for issuing VAT invoices to apartment owners and residents and declaring and paying VAT and CIT per tax laws.

Savills Viet Nam, when operating under the lump-sum outsourcing model, consistently complies with all regulations on invoice issuance, documentation, and tax obligations stipulated by law.

c) "Collection and Payment on Behalf" Model 

In cases where the AGM appoints a qualified management company to provide only general building operation services, and the contract between the BOC / the Developer and the management unit specifies that the management company is authorised (or designated) to sign contracts—or be authorised to sign contracts—with third-party service providers for additional goods and services, the responsibilities regarding invoicing, revenue recognition, and tax declaration must be determined based on the specific terms of such contract and in accordance with prevailing laws.

Under the “collection and payment on behalf” model, Savills Property Management team complies with the applicable tax and invoicing regulations in effect at each point in time, specifically as follows: 

• Before 09 April 2024, Savills Property Management Units at various projects declared, withheld, and paid VAT on behalf of the BOC in accordance with Official Decree No. 2539/TCT-TTHT dated 25 June 2015 issued by the General Department of Taxation.

• After receiving Official Decree No. 3487/CTTPHCM-TTHT issued by the Ho Chi Minh City Tax Department on 09 April 2024, Savills has fully complied with the updated guidance therein. Accordingly, Savills now issues collection receipts (not VAT invoices) and does not declare output VAT for funds collected from residents. In other words, when collecting operation fees under this model, Savills does not issue VAT invoices or collect output VAT for these amounts.

The amount shown on the monthly receipt issued to residents only includes the portion of input VAT costs embedded in the expenses for goods and services consumed by residents at the apartment building.

This ensures that the Operation Fund has sufficient resources to fully settle supplier invoices, including the VAT payable to third-party providers of goods and services.

Further Clarification: 

1. Before 09 April 2024 (prior to the receipt of Official Letter No. 3487/CTTPHCM-TTHT, attached). 

During this period, local tax authorities and property management units operated in accordance with the guidance provided in Official Decree No. 2539/TCT-TTHT dated 25 June 2015 issued by the General Department of Taxation.
Under this guidance, the Property Management Unit (PMU) (Savills Viet Nam) – received and made payments on behalf of residents for service invoices (including cleaning, landscaping, security services, etc.) used by the residents and properly issued VAT invoices to residents for building management fees collected.
The PMU was responsible for declaring, deducting, and paying VAT on behalf of the residents in accordance with applicable tax regulations.

According to official tax audit reports conducted at Savills Viet Nam from its establishment up to the fiscal year 2023, tax inspectors concluded that Savills Vietnam Co., Ltd. had fully complied with the requirements for using e-invoices as stipulated in Circular No. 153/2010/TT-BTC dated 29 September 2010 and Circular No. 78/2021/TT-BTC dated 17 September 2021 issued by the Ministry of Finance regarding the creation, issuance, and use of invoices. The company also fully declared and paid taxes in compliance with regulations.

2. After 09 April 2024 (upon receipt of Official Decree No. 3487/CTTPHCM-TTHT).

Official Decree No. 3487/CTTPHCM-TTHT (“Decree 3487”) issued by the Ho Chi Minh City Tax Department on 09 April 2024 (attached) provides clear guidance as follows: “When collecting building management fees or other collection and payment items on behalf of the BOC or the Developer under the AGM and Usage Regulation or other agreements with apartment owners or users, the BOC / Developer or Savills Vietnam Co., Ltd. – Ho Chi Minh City Branch (when collecting on behalf of the BOC / Developer) shall issue a collection receipt (not an invoice) and shall not declare or pay VAT or corporate income tax on such collected amounts.”

Immediately upon receiving Decree 3487, Savills promptly informed the relevant BOCs/Developers at projects operating under the “collection and payment on behalf” model. With their official consent, beginning with the May 2024 fee cycle, Savills PMUs followed the guidance set out in Decree 3487 when collecting building operation and related service fees under the terms of the Regulation or agreed arrangements with residents. Accordingly, Savills only issued collection receipts (not VAT invoices) and did not declare or pay output VAT for the collected amounts. In other words, Savills does not issue VAT invoices or charge or remit output VAT for these collections when collecting building operation fees.

Meanwhile, the Operation Fund remains responsible for covering input VAT amounts listed on supplier invoices for goods and services used in the management of the buildings. However, under the new guidance, these VAT amounts can no longer be declared for deduction as previously allowed. In response, Savills engaged with the Department of Construction to clarify that the operation fee unit price must be calculated to include input VAT. This ensures that the Operation Fund retains sufficient resources to pay supplier invoices, including VAT, for property management services and supplies.

Subsequently, the Ministry of Construction issued Decree No. 95/2024/ND-CP dated 24 July 2024 and Circular No. 05/2024/TT-BXD dated 31 July 2024, detailing the implementation of several articles under the 2023 Housing Law, which took effect on 01 August 2024. Appendix 7 of Decree 95/2024/ND-CP provides a clear method for determining the building operation service fee and explicitly states that the service fee must include input VAT associated with operational costs.

After reviewing the unit price calculations in line with these new regulations, Savills issued formal notices to the relevant BOCs/Developers, and residents at projects operated under the “collection and payment on behalf” model. These notices clarified that while output VAT is not collected (as no VAT invoice is issued and no tax is declared or paid on the collected amounts), the input VAT costs incurred for building management services will be included in the collected fees, ensuring the Operation Fund has sufficient resources to settle full supplier invoice values, including input VAT, for goods and services used in building operations.

Furthermore, with the consensus of the BOC/Developers, Savills PMU have simultaneously issued notifications to the BOC/residents at apartment projects operating under the “collection and payment on behalf” model in Ho Chi Minh City managed by Savills regarding the Change of invoice recipient. The notifications clearly state that input invoices will now be issued to the end users of services at the residential projects, rather than to Savills as previously (i.e. prior to the issuance of Decree 3487), to comply with the Ho Chi Minh City Tax Department guidelines.

Based on the above information, we would like to emphasise Savills’ role and responsibilities as well as the use of supporting documents in compliance with legal regulations as of 09 April 2024, as follows:

a. For fees collected on behalf of residents:

As previously mentioned, for projects where Savills is the property management unit operating under the “collection and payment on behalf” model, Savills issues only a receipt (not a tax invoice) when collecting monthly fees from residents.

b. For payments made on behalf of residents: 

The BOC/residents are the purchasers of goods and services used at the residential project, the sellers are external suppliers (e.g. cleaning service providers, building security contractors, etc.), and Savills PMU acts as the supervisory unit overseeing the delivery of such goods/services and making payments on behalf of the residents to these suppliers. Accordingly, the suppliers are responsible for issuing VAT invoices directly to the BOC/residents.

c. For management services provided under the Property Management Agreement signed between Savills and the BOC (representing the residents):

On a monthly basis, Savills issues VAT invoices to the BOC per the signed Property Management Agreement.

2. On the Matter of Official Spokesperson and Representational Authority in Media Communications (taking The Sun Avenue as an example).

Following the publication of information regarding The Sun Avenue project by several media outlets, citing comments from one member of the BOC (Board of Control) of The Sun Avenue, acting on behalf of the BOC of The Sun Avenue. Savills Viet Nam has coordinated with the BOC of The Sun Avenue to clarify the representative nature of the information shared with the press.

As of the time of this statement, five out of nine members of The Sun Avenue BOC have confirmed (via email) that the BOC has never convened any internal meeting to agree on a collective response to the media and that they were completely unaware of and not involved in the engagement of any BOC member with the press on behalf of the BOC.

Recognising the urgent need to clarify matters related to authorised spokespersons when engaging with the media, Savills would like to provide you with information regarding the BOC’s authorised communication responsibilities as stipulated in the Condominium Regulations, which have been approved by the respective BOCs.

Rights and Responsibilities of the BOC Members:

1. For individual members: No member of the BOC should issue statements or express opinions on matters falling under the authority or duties of the BOC without prior collective agreement from the BOC.
2.  For the Chairperson of the BOC: The Chairperson is the only authorised representative of the Board to interact with government bodies, media agencies, and other social or economic organisations. This representation must be based on prior agreement from more than 50% of the BOC members.

Subsequently, any contact with the media made by an individual member or a group of members without such 50% consent of BOC members constitutes a violation of the approved BOC Operating Rules. Consequently, statements made under these circumstances cannot be recognised as official viewpoints of the BOC, as they do not reflect the collective consensus.

Therefore, any contact with the media made by an individual member or a group of members without such majority consent constitutes a violation of the approved Operating Rules. Consequently, statements made under these circumstances cannot be recognised as official viewpoints of the BOC, as they do not reflect the collective consensus; any instance in which a BOC member or a group of members engages with the media and shares information without securing agreement from more than 50% of the remaining BOC members is a violation of the operational regulations previously approved by the residents.

In the specific case of The Sun Avenue project, as mentioned earlier, five out of nine BOC members have confirmed (via email) that no internal meeting was ever held to reach a consensus on responding to the media, and that they were completely unaware of and not involved in the actions of the individual BOC member who independently contacted the press.

This further affirms that the statements made by one member of the BOC at The Sun Avenue do not represent the collective will of the project's BOC.

As a company committed to lawful operations, Savills is currently coordinating with the BOC at The Sun Avenue to verify and clarify the matter. We are fully prepared to take all necessary legal steps to protect the transparency and integrity of the building’s operations, both at The Sun Avenue and across all projects under Savills’ management.

3. Clarification on the Audit Report Process

With reference to recent media articles discussing the audit reports for the period 2019–2022 at The Sun Avenue, Savills would like to provide a clear explanation of the roles and responsibilities of the involved parties to avoid any misunderstanding regarding the audit process.

As per applicable regulations, a complete Audit Report must bear confirmation from all three stakeholders:

• The Developer: Responsible for confirming data related to the Maintenance Fund before its handover to the BOC.
• The Property Management: Responsible for collaborating with the audit firm and validating figures related to the Operational Fund, not responsible for Maintenance Fund data.
• The BOC: Confirms information for the Operational Fund and Maintenance Fund.

In practice, audit contracts typically cover both funds. As such, if either fund’s data has not been fully validated and signed off by all relevant parties, the audit firm cannot finalise and release the official Audit Report.

We share this clarification to ensure stakeholders and readers understand the actual mechanics of the audit process and to prevent any misinterpretation regarding the roles of involved parties.

Savills is in possession of all supporting documents to verify the above. However, in compliance with confidentiality clauses in the audit contracts, such documents can only be disclosed with the mutual consent of all parties involved.

We wish to reiterate that Savills Viet Nam, along with our Property Management teams and Site PMU, operates strictly within the boundaries of the law and is committed to upholding legal compliance and fulfilling all responsibilities in accordance with prevailing regulations.

Based on the information provided above, we trust this offers a more comprehensive and accurate perspective on the current matter. We sincerely appreciate your support in reporting information objectively and responsibly.

Finally, we fully respect and value the vital role of journalists and media outlets in delivering accurate and timely information to the public. Therefore, we kindly request that in the process of researching and reporting, journalists refer to official sources such as relevant government authorities and coordinate with Savills Viet Nam for access to verified, factual information. This ensures accurate reporting and contributes to a transparent, trustworthy public discourse.

Should you require further clarification, Savills Viet Nam’s Marketing and Communications Department remains available and willing to provide timely and comprehensive support.