The reason for the ‘low price declaration’ of real estate sales records in Ho Chi Minh City was ‘soaked’

‘Weary’ waiting for real estate documents to be resolved

Recently, many people in Ho Chi Minh City reflected that it took a long time to complete the procedures for transferring real estate. Not only is the processing time of the application delayed, there are also many cases where the application is returned because the declaration of the transfer price is not close to the transaction price on the market.

Experienced in brokerage industry real estate For nearly ten years, Mr. NVN (living in Thu Duc City) said that he has never had the procedure buy and sell real estate as long as the past few months. In the past, when submitting documents to customers, Mr. V only took a maximum of about 1 month to wait. But now, there are records to wait 4 months still no results.

“Just last year, an apartment building costing 2 billion VND, the sales contract between the two parties showing only 1 billion VND was also accepted. But since the tax industry controls transaction prices, low-priced declarations are constantly being returned. There are documents returned up to 3 times because of incorrect price declaration”Mr. N. shared.

As the person who directly applied for the house in Cat Lai Ward, Thu Duc City, Mr. HST submitted the application at the end of December 2021, and is scheduled to return the results in mid-January 2022. However, it was not until mid-March 2022 that Mr. T. received the notice of tax payment.

According to Mr. T, the stage that takes the most time is determining the transfer tax. His profile was tax authorities request adjustment, supplement twice because of low price declaration.

“I see that many people have also had their documents returned due to the fact that the transfer price is lower than the market. But the tax authority needs to let people know that on what basis and what price bracket to determine the transaction price on the contract is lower than the market value?“, said Mr. T.

Similarly, Ms. Designer (living in Hiep Binh Chanh Ward, Thu Duc City) said that she submitted the application for transferring the land plot before February 2022. Also for the reason that the transfer price on the contract is lower than the market price, the tax authority asked Ms. K. to re-declare, the transaction price in the contract appendix has increased at this time.

Although the transfer price has been committed after adjusting in accordance with the guidance of the tax authorities, however, up to now, Ms. K.’s land plot transfer dossier has not been processed yet.

Statistics for the first quarter of 2022, Ho Chi Minh City Tax Department has proposed to adjust the transfer price of nearly 10,900 real estate documents. The additional tax collected is VND 147 billion, equivalent to 83% of the whole year of 2021. In Thu Duc City alone, 2,000 housing documents were returned for price adjustment, and an additional VND 92 billion was collected.

Inadequacies between the land registration agency and the tax department

Regarding the cause leading to the settlement of land transfer documents not ensuring the prescribed time, Mr. Nguyen Toan Thang – Director of the Department of Natural Resources and Environment (TN&MT) of Ho Chi Minh City said, due to an inadequacy when transfer cadastral information to determine financial obligations land between the system of the Land Registry Office and the tax authority.

According to Mr. Thang, from January 1, 2022 to April 15, 2022, branches of the Land Registry Office transferred to tax authorities a total of 44,722 documents. In which, 38,644 taxed dossiers (11,102 late) and 6,078 tax calculation dossiers (1,030 late).

Regarding the order and procedures, according to the Director of Ho Chi Minh City Department of Natural Resources and Environment, after the branches of the Land Registration Office have a slip to transfer cadastral information to determine financial obligations, the local tax departments will receive them. However, there is no consensus on how to handle it at tax departments, specifically:

The tax authority recorded on the file that the transfer price was not the same as the market transaction price, but did not respond in writing; self-invite people to return the dossier and request the adjustment of the transfer contract;

Invite people by themselves and return the documents to the branch of the Land Registration Office in case there is an adjustment to the transfer contract;

Or the tax office has an official dispatch to return the dossier and request the branch of the Land Registration Office to request those who taxpayer declare the transfer price not close to the transaction price on the market to supplement the transfer value.

Leaders of the Department of Natural Resources and Environment of Ho Chi Minh City said that the purchase, sale and transfer transaction between the buyer and the seller agreed on the transfer value by the contract. Notarized certification is in accordance with the provisions of the Law on Notary and Social legal.

Meanwhile, the settlement of financial obligations is carried out in accordance with regulations and functions of the tax authorities.

Therefore, the tax authority’s assessment of cases where the transfer price is not consistent with the actual price, is not close to the transaction price on the market, and proposes to the branch of the Land Registration Office to request additional taxpayers. The transfer price is not within the functions and duties of the agency land registration.

For the type of transfer dossier that is not at the actual price, not close to the transaction price on the market, the Department of Natural Resources and Environment proposes the People’s Committee of Ho Chi Minh City to direct the City Tax Department to guide the unification of tax branches in the basic direction. Tax authorities work directly with people using land to adjust accordingly, do not return the dossier to the land registration agency.

Simultaneously, the tax authority shall notify the land registration agency in writing to update the progress of dossier settlement and update the registration software system.

Mr. Phuong