Land prices in the provinces are not close to the market

Real estate price list of provinces not close to the market

In the document on some contents related to the group of issues questioned at the 3rd Session of the 15th National Assembly of the Finance sector, Minister of Finance Ho Duc Phuc presented a series of realities related to real estate transactions. movables “two prices”, “tax evasion” took place recently.

Specifically, over the past time, the Ministry of Finance has directed the tax agency to review the declaration of tax calculation prices for real estate transactions and transfers, to clarify the price of the sale and purchase contract (based on income tax calculation). individual, VAT) is usually lower than the agreed upon price, the price directly transacted between buyers and sellers; this causes losses to the budget and loopholes for tax evasion and tax evasion criminals.

Recently, the Ministry of Finance has also proposed to competent State agencies to introduce regulations that payment for real estate transfer must go through banks. This is considered a mandatory criterion to control the cash flow of transactions related to real estate. However, there are many opinions surrounding this issue.

Reporting to the National Assembly, the Ministry of Finance stated that tax collection for business activities and real estate transfer still faces some difficulties.

For example, policies related to land have been prescribed, these documents are regulated by many state management agencies and departments, these regulations are not synchronized, so the determination of the market price of Real estate still faces many difficulties.

The Ministry of Finance said: “The most difficult thing right now is that the Land Law stipulates a stable land price list for 5 years, while in reality the real estate market price fluctuates continuously, so it leads to the fact that the land price is determined by the People’s Committee of Vietnam. Provincial level regulations are not close to the market price”.

Besides: “Coordination with relevant agencies, departments and sectors also faces many difficulties. Legal documents have not yet stipulated a mechanism to control cash flow for real estate transfer transactions. product”.

Proposal to transfer real estate to pay via bank

This is also the basis for the Ministry of Finance to propose the regulation that payment for real estate transfer must go through bank transactions.

The Ministry of Finance affirmed that it will continue to advise and propose to the Government to organize a review of legal documents related to business activities and real estate transfer in the field of state management of the Ministry of Finance. main to amend and supplement to ensure consistency and synchronization; Supplementing regulations on payment via bank for real estate transfer activities in Article 16 of the Law on Real Estate Business No. 66/2014/QH13 dated November 25, 2014.

Regarding the responsibility of taxpayers, according to the Ministry of Finance: People’s sense of self-discipline to fulfill tax obligations is not high. “Inadequate awareness of tax policy and related laws, not aware of the consequences when declaring tax at a price that is not true to the actual transfer price,” the Ministry of Finance stated.

Regarding the responsibilities of the Ministry of Natural Resources and Environment in controlling real estate transfer prices, the Ministry of Finance stated: “The land registration office sends the documents to the tax office usually close to the scheduled date for returning the results. or delay leads to pressure on time to return results of determination of financial obligations on land, causing delays in administrative procedures”.

According to the Ministry of Finance, after closely reviewing personal income tax revenue from real estate transfer, personal income tax revenue from real estate transfer in 2021 will reach 21,000 billion VND, an increase of more than 4,900 billion VND. (respectively increased by 30%) compared to 2020.

In the first 5 months of 2022, the revenue from personal income tax from real estate transfer activities, the Ministry of Finance is estimated at 16,000 billion VND; an increase of 68.6% over the same period in 2021, equivalent to an increase of VND 6,600 billion.