On the afternoon of 4-5, the Ministry of Finance responded to the Ho Chi Minh City Real Estate Association (HoREA) proposing to consider special treatment solutions. land fever and stabilizing house prices, in which the State plays a key role, with a series of tax instruments.
Previously, HoREA said that in order to reduce house prices, the State needed to change the way of collecting land use fees for commercial housing projects, converting into a tax on the act of changing the purpose of using land from agricultural land, non-agricultural land. to become residential land, with a tax rate of about 15-20% of the land price in the land price list. At the same time, to offset the state budget revenue deficit and create a stable and sustainable source of revenue for the State budget, it is necessary to tax real estate.
Recently, many localities have had land fever. – Photo: Labor force
Responding to comments from HoREA, the Ministry of Finance said that the current system of tax, fees and charges for real estate is quite fully promulgated, including: Agricultural land use tax; Tax on non-agricultural land; Income tax on real estate transfer; Registration fee and other related fees and charges (such as fees for issuing certificates of land use rights, ownership of houses and other land-attached assets …).
These collection policies fully cover the process of real estate formation, ownership, use and transfer, gradually being completed, contributing to encouraging organizations and individuals to use real estate economically. effectively, gradually limit real estate speculation, wasteful use of land.
The Ministry of Finance said that in order to contribute to improving the state management efficiency of real estate, the study and completion of related tax policies is necessary. However, this is a high-impact field, many technical contents require the participation of many ministries and local branches, so it needs to be studied and evaluated thoroughly before submitting to the authorities. Authority issued at the appropriate time to ensure feasibility, high consensus, contribute to limiting real estate speculation.
Following the Prime Minister’s direction, the Ministry of Finance is continuing to study and synthesize international experiences, identify problems and shortcomings in the implementation of tax laws related to real estate. to report to the Government and submit to the National Assembly at an appropriate time associated with the development and implementation of the Strategy for tax system reform for the period 2021-2030.
In addition, HoREA also commented that, in addition to contributing to the budget, real estate tax policies must achieve the goal of regulating, orienting consumption and combating speculation, but with the current revenue method, transfer tax Real estate has not yet reached this target. According to HoREA, the tax agency’s current way of collecting tax is “presumptive tax”. For every 2% of the transfer price, any profit or loss must pay tax. This method of collection is easy for tax authorities but it distorts policies.
Before this opinion, the Ministry of Finance emphasized that in the past, the Law on Personal Income Tax No. 04/2007 / QH12 provided that individuals with income from real estate transfer pay tax at the rate of 25% on income ( transfer price minus purchase price and related expenses). If the purchase price and related expenses cannot be determined, tax shall be paid at the rate of 2% on the transfer price.
In fact, the implementation has encountered many problems such as having no basis to determine the purchase price and related costs of real estate transfer, especially for long-standing real estate without lake. preliminary and grounds to prove cost, real estate given, gifted or inherited; transfers between individuals in cash are difficult to control; there are cases where the tax is paid at the rate of 2% and then re-declare the tax adjustment at the rate of 25% for tax refund or the tax agency requests the individual to re-declare at the 25% tax rate to retrospect the tax, causing a complaint, …
According to the representative of the Ministry of Finance, from January 1, 2015, Law No. 71/2014 / QH13 amending and supplementing a number of articles in the tax laws stipulates that individuals transferring real estate to pay tax of 2% on the price. real estate transfer. The provision of a tax calculation method ensures transparency in policy, avoids problems in implementation and administrative procedure reform.
Particularly for enterprises engaged in real estate transfer, the cost price of real estate shall be determined according to the enterprise’s accounting books. Tax Law Corporate income tax stipulates that enterprises earning income from real estate transfer pay tax at the rate of 20% on their incomes.
“Taxable income from real estate transfer is determined by the revenue from real estate transfer minus the cost of real estate and deductible expenses related to the real estate transfer” – Representative of the Ministry of Finance said.