Squeezing real estate transfer tax, people and tax officials are confused “right price”, the Ministry of Finance speaks out
Regarding the opinions of people and tax officials in many localities, saying that they are confused with “determining the correct price”, the Ministry of Finance said that the General Department of Taxation has issued Official Letter No. 1381/TCT-DNNCN dated April 28/ 2022 on implementing solutions to prevent loss of revenue in real estate transfer activities and Official Dispatch No. 1488/TCT-KTNB dated May 10, 2022 on supplementing guidelines for developing internal inspection plans and work anti-corruption in 2022.
Accordingly, the Tax Departments of the provinces and centrally-run cities are requested to actively advise the People’s Committees of the provinces and centrally-run cities to direct the Departments of Natural Resources and Environment and relevant agencies to implement the contents mentioned in the official dispatch. 3849/BTC-TCT dated April 28, 2022 of the Ministry of Finance; directing and thoroughly directing the departments and teams involved in the handling of real estate transfer documents to strictly comply with the regulations on the order and procedures for handling documents to determine financial obligations;
Develop a plan for thematic inspection on the integrity of tax officials in the fight against tax loss for real estate transfer; take measures to handle or propose competent state agencies to take handling measures for acts of tax evasion in real estate transfer and business activities in accordance with law.
Regarding the proposal to issue a process to specifically guide the order of handling and responsibilities of tax authorities, the Ministry of Finance said that in the current legal documents on tax administration and the current tax management process, the Ministry of Finance There are relevant guidelines on the order of handling and responsibilities of tax authorities. Therefore, there is no need to issue a separate process to provide specific guidance in case the taxpayer declares the real estate transfer price lower than the actual transfer price.
In the coming time, the Ministry of Finance (General Department of Taxation) will direct tax authorities at all levels to continue strengthening propaganda so that people fully and accurately understand their obligations and benefits in tax payment. real estate transfer; risks and responsibilities when declaring incorrect prices, and at the same time focusing on building a database of transaction prices and tax declarations to serve as a basis for tax calculation according to the provisions of the Law on Tax Administration.
In the long term, the Ministry of Finance proposes to competent authorities in the near future to implement a number of solutions to organize the review of legal documents related to business activities and real estate transfer to amend. , additionally ensure consistency and synchronization.
At the same time, the competent authority needs to supplement the regulation that real estate transfer transactions must be paid through banks to be transparent in controlling transactions across industries, serving the management of property and real estate transactions. of social actors of State management agencies in general and tax administration in particular.
Previously, at the National Assembly discussion, the issue of tightening real estate transfer tax was discussed, delegate Phan Thai Binh (Quang Nam delegation) said that, according to voters’ feedback, some tax authorities in The district level has shown discretion in applying taxable property prices.
“Many places require people to accept the taxable price 1.2 to 1.5 times higher, and even in some places up to twice the land price prescribed by the State, the application will be processed. If the contract is lower than the above level, the tax authority will soak the dossier, invite it to work many times or return the dossier because it thinks the price in the contract is not close to the real estate market price according to the survey.
However, the basis for determining the contract price close to the market price and applying a taxable price higher than the price prescribed by the State, the tax authority does not point it out,” said Mr. Binh.
Responding to the question raised by delegates, Minister Ho Duc Phuc said that according to regulations, taxpayers must declare tax on the contract in accordance with the price agreed by the two parties, if it is lower, it shall be calculated according to the table below. land price at the time of tax payment.
Mr. Phuc admitted that recently, there was tax evasion and tax profiteering in the real estate sector. Therefore, the Minister has issued a document directing the tax authorities to tighten tax collection at the right value of purchase and sale, which also affects speculation in real estate business.
Accordingly, in 5 months, the total revenue is 16,200 billion VND, 6,600 billion VND higher than the same period last year. Notably, the Minister said that there were cases where the initial declaration was only 500 million VND, then it was explained that he declared again 10 billion VND, which means 20 times more. In some cases, it is even 40 times higher, and on average, the declared price is 6 times lower than the actual transfer price.
According to Mr. Phuc, the Ministry of Finance has also sent a public cable to prohibit tax authorities and tax officials from “interfering” and causing trouble to people. Minister Ho Duc Phuc affirmed that doing a good job of “front-office, post-inspection” will not let criminal cases happen. For example, a home seller evades taxes by declaring two contracts, if found guilty of tax evasion. Therefore, tightening with this approach is completely legal.
The Minister affirmed: “When agencies at all levels and branches supervise, if there is a situation that the tax authorities have bribes, profiteering, or bribes, they will be strictly handled.”
“In the near future, we suggest localities to build adjustment coefficients, real estate purchase and sale data to be more transparent, to ensure the collection of real estate transfer tax,” Phuc said.
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