Buying and selling houses with ‘two prices’, how does the real estate market affect?

In fact, real estate transactions on the market in many places have occurred with two prices, that is, the actual purchase price and the price stated in the sales contract have a difference, the price on the contract is lower than the actual purchase price. with the actual selling price to ‘dodge’ the tax.

Therefore, the fight against tax loss in business activities and real estate transfer is being strongly “tightened” by a number of ministries, branches and localities.

Experts said that the authorities’ move to tighten the sale of ‘two-price’ houses will have an impact on the real estate market, but not much.

According to Assoc. Prof. Dr. Dinh Trong Thinh, current regulations for business activities of buying, selling and transferring real estate, individuals must pay 2% tax on the transfer price, businesses pay 20% on income. There are two methods of tax calculation being applied, that is, based on the price stated in the contract and based on the land price bracket prescribed by the State if the contract does not specify or the price is lower than the prescribed frame.

Therefore, this regulation becomes a “hole” for tax evasion because the land price bracket table is much lower than reality, there are areas where the market price of land is 50-70% higher in the price bracket.

How will the ‘tightening’ of regulations on ‘two-price’ transactions in real estate affect the market?

Share with PV Infonet, Mr. Nguyen Van Hau, General Director of Asian Holding Real Estate Joint Stock Company, said that the move by authorities to tighten the purchase and sale of ‘two-price’ houses will have an impact on the real estate market but not much.

According to Mr. Hau, tightening this behavior will help make the real estate market more transparent, buy and sell at the right price and prevent loss of budget revenue.

“Only the cases of buying and selling on the secondary market, which are old apartments, townhouses, old townhouses or projects that already have books, can declare false prices. As for housing projects formed in the future, the selling prices are publicized by the investor on the market, so it is impossible to declare the price. Therefore, in the future projects of land plots, apartments, and urban areas, they will not be affected when buying, selling and transferring because they all declare the true value, “Mr. Hau said.

Giving his point of view, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn also said that the tightening of real estate buying and selling “two prices” will have a rather negative effect on the real estate market.

However, according to Mr. Quoc Anh, in any market, information related to prices must always be transparent, if there are two prices, it will cause investors to be confused about what is the real value and whether to invest in it. this period or not, especially real estate prices have increased dramatically from 2020 to now.

“Investor sentiment has become more cautious; surfing in this period is not easy because of liquidity problems. Therefore, for the market to be healthy, how to ensure the real value of real estate? in the transaction is very important,” Mr. Quoc Anh said.

Previously, the Ho Chi Minh City Real Estate Association (HoREA) said that it is necessary to strictly control the making of real estate sales and transfer contracts to prevent and prevent tax evasion and fraud.

Accordingly, HoREA has proposed to issue a tax against house and land speculation; tax income at a high tax rate for the sale and transfer of houses and land right after creation to suppress the speculative will of investors. HoREA proposes a very high tax rate if you sell or transfer houses and land in the first year and keep the high tax rate in the second and third years.

Cases of selling or transferring houses and land after being established for three years or proving that the need to sell or transfer houses and land is legitimate shall apply the normal tax rates. Thus, this tax will not affect people who buy houses to live in and have the need to create real houses.

ID