Prevent many cases of "dodging" real estate transfer tax

VCN- Recently, tax authorities in provinces and cities have had many solutions to tighten the declaration of real estate transfer prices, preventing the loss of hundreds of billions of VND from the state budget.
Commercial banks tighten real estate lending Commercial banks tighten real estate lending
Overcoming backlog to promote M&A in the real estate market Overcoming backlog to promote M&A in the real estate market
False declaration of real estate transfer price still occurs False declaration of real estate transfer price still occurs
Prevent many cases of
People pay real estate transaction tax at Thu Duc City Tax Department on April 7, 2022. Photo: T.D

Tighten price declaration

Recently, the declaration of real estate transfer prices that are lower than the actual transaction price to evade tax happens in the real estate market. However, this situation is being prevented by tax authorities in coordination with relevant agencies. In many cases, the price was re-declared close to the market price, increasing dozens of times compared to the original price.

For example, in a recent case, an area of ​​more than 10,000 m2 of perennial crops in Tang Nhon Phu B ward, Thu Duc city (HCMC) was declared by both parties under a purchase and sale contract for only VND1 billion. After investigating the price, the tax authority of Thu Duc city has mobilized people to re-declare the price up to VND40 billion. This means that the initial tax receivable of about VND25 million has now increased to VND1 billion.

In another case, a transaction file for a house with an area of ​​nearly 70 m2 in Linh Dong ward, Thu Duc city was initially declared for tax purposes only for VND1.7 billion. However, the tax authority returned the dossier, requested the price to be re-declared, and the new declared price was nearly VND5 billion.

The above cases are just two of thousands of documents that the Tax Department of Thu Duc City has requested to re-declare since the beginning of 2022. Than Thiet Son, Deputy Director of Thu Duc City Tax Department, said that as of March 31, 2022, the unit has received 10,975 real estate transfer documents, of which 1,648 documents have been returned to the Branch Land Registry Office due to incorrect information, missing information, duplicate transfer documents, and transfer price not according to the normal transaction price in the market.

Thu Duc City Tax Department corrected 1,949 records that were not in line with actual transaction prices. After adjusting, the transfer price difference is VND3,701 billion. Accordingly, the amount of personal income tax and registration fee collected by the unit is VND92.5 billion.

In Ba Ria-Vung Tau province, in the first two weeks of March 2022, the tax authority returned more than 1,200 tax records for land transfer because of signs of inaccurate declaration, of which 155 additional declaration dossiers were submitted to tax authorities. The re-declared price increased from 2 to 5 times compared to the original, in particular, there were documents declaring the land transfer price increased from VND500 million to VND10 billion.

Similarly, since the beginning of 2022, the Long An tax sector has returned and requested an adjustment to the declaration according to the actual price of nearly 500 real estate purchase and sale transactions. Accordingly, after the taxpayers self-adjusted the transaction price to the market, the tax amount paid to the state budget increased by nearly VND2.2 billion compared to the initial declaration.

Synchronous solution

According to the tax authorities, through fighting the declaration of real estate transfer prices in recent years, there has been a positive change. The number of dossiers of declaration of prices close to transactions on the market tends to increase.

After completing the transaction documents for the sale of an 80m2 house for customers at the Branch of the Land Registration Office in District 12, Ho Chi Minh City, Truong Phuoc Tai, specializing in real estate brokerage services, said that declaration of real estate prices that are lower to evade tax is no longer the same as before.

“In the past, because the State had not tightened regulations on declaring selling prices, customers made documents with low prices to enjoy low tax rates. But now, if the lower price declaration dossiers are not accepted by the tax authorities, even though the price is about 70-80% of the market price,” said Tai.

In order to be able to assess whether the transaction declaration is really appropriate or not, the tax authority must refer to many data sources such as the basis of the selling price of the same property in the nearest time; based on the real estate records at the tax office of similar locations and the same area.

For properties that are real estate and apartment buildings, in the process of processing tax documents, the tax authorities can collect transaction prices at real estate exchanges, as well as the selling price of the investor to serve as a basis for comparison with declared prices. These are all reliable sources of information for tax authorities to fight acts of deliberately declaring the wrong amount of tax payable.

However, according to Than Thiet Son, Deputy Head of the Tax Department of Thu Duc City, it is extremely difficult to determine the right price of real estate transfer.

There are many documents that the tax authorities detect irregularities, and request the two parties to come to work, but the broker causes difficulties. This leads to a delay in the submission of results according to regulations.

Besides, the land price bracket issued by the People's Committees of the provinces and cities is often much lower than the actual transaction price. Therefore, the law needs to amend and supplement the land price and the annual land price adjustment coefficient to ensure that it is on time and in line with the actual market price. In particular, it is necessary to stipulate mandatory non-cash payments for real estate transactions to limit risks for sellers and buyers. Only then will we be able to monitor prices and prevent loss of revenue in real estate transfer activities.

By Thu Diu/ Kieu Oanh

Related News

Tax sector focuses on simplifying tax administrative procedures

Tax sector focuses on simplifying tax administrative procedures

VCN - The tax sector is focusing on researching and proposing amendments to legal documents to simplify processes and procedures; promoting the modernization of information technology applications to support the settlement of tax refund dossiers more conveniently and quickly.
Customs warns people trick of impersonating customs officer to sell liquidated products

Customs warns people trick of impersonating customs officer to sell liquidated products

VCN – According to regulations, liquidated goods will be auctioned publicly by the Customs, and will not be allowed to sell in the market. People need to be vigilant to avoid being defrauded and lost money.
Nghe An Customs encourages enterprises to improve law compliance level

Nghe An Customs encourages enterprises to improve law compliance level

VCN – After 2-year implementation of the pilot program to support and encourage businesses to voluntarily comply with customs laws (referred to as the Compliance Program), enterprises have developed plans to improve the compliance level. Nghe An Customs Department has assigned officers to receive information, and held meetings to resolve problems of enterprises, the department reported.
Maintain smooth operations of Customs, Tax and Treasury to support businesses and people affected by storm No. 3

Maintain smooth operations of Customs, Tax and Treasury to support businesses and people affected by storm No. 3

VCN – The Ministry of Finance has requested to maintain smooth operations of Customs, Tax, Treasury agencies and national reserve units to support production and business activities and people after the storm, Deputy Minister of Finance Vo Thanh Hung said.

Latest News

Supporting industry enterprises: Learning standards, understanding opportunities

Supporting industry enterprises: Learning standards, understanding opportunities

VCN - Currently, many potential industries have "opened" opportunities for Vietnamese enterprises to enter, such as the semiconductor industry, supporting industries for the aviation sector. However, the higher the added value of the sector, the more it requires enterprises to meet international standards.
100 most valuable Vietnamese brands on the limelight

100 most valuable Vietnamese brands on the limelight

This year’s Brand Finance Vietnam 100 Report was also released to provide a comprehensive picture of the valuations.
Need to quickly act to catch up with the "green" trend

Need to quickly act to catch up with the "green" trend

VCN - With the movement from the global level to Vietnam's main markets, as well as the strong commitment of the Vietnamese Government, the trend of "compulsory green/sustainable transformation" has become clear to Vietnamese businesses instead of voluntary as before. However, the level of readiness of businesses is not high.
Businesses cooperate to develop advanced technology

Businesses cooperate to develop advanced technology

VCN- In order to foster development of the high-tech sector, one of factors is close cooperation between businesses to improve competitiveness and promote innovation.

More News

Export target for 2024 set at US$400 billion

Export target for 2024 set at US$400 billion

VCN - Since the beginning of the year, Vietnam's export activities have continued to recover. It is forecasted that the total export turnover for the entire year may reach a historic milestone of US$400 billion.
Thai Binh intensifies cooperation with Russian localities

Thai Binh intensifies cooperation with Russian localities

A delegation from the northern province of Thai Binh, led by Chairman of the provincial People’s Council Nguyen Tien Thanh, on October 10 met with representatives of the Moscow Chamber of Commerce and Industry, along with several Russian businesses.
Ho Chi Minh City partners with nine provinces to boost import and export activities

Ho Chi Minh City partners with nine provinces to boost import and export activities

VCN - Ho Chi Minh City (HCMC) and nine provinces in the northern and north-central regions are cooperating in socio-economic development, leveraging each region's advantages and potential to boost import and export activities.
Vietnam

Vietnam's second rice brand enters picky Japanese market

Japonica - AAN has become the second Vietnamese rice brand to have entered Japan, with a ceremony held on October 9 to debut the produce.
Enterprises need to be ready to respond to trade defense

Enterprises need to be ready to respond to trade defense

VCN - According to the Department of Trade Defense, through the process of protecting the rights of Vietnamese manufacturing and exporting enterprises in each trade defense case, the outcome of the appeal depends largely on the quality of coordination between the parties involved.
Foreign investors interested in green development, semiconductor industry in Vietnam

Foreign investors interested in green development, semiconductor industry in Vietnam

Green, clean development and semiconductor chip production are among the sectors in Vietnam that foreign investors are interested in, according to VinaCapital CEO and Founding Partner Don Lam.
Vietnam’s stainless steel exports under dual investigation

Vietnam’s stainless steel exports under dual investigation

The US Department of Commerce (DOC) has initiated an anti-dumping and countervailing duty investigation into corrosion-resistant steel (CORE) imported from Vietnam, alongside nine other countries and territories.
F&B industry to reach 30 billion USD in 2024

F&B industry to reach 30 billion USD in 2024

The Ministry of Industry and Trade (MoIT) forecasts that the revenue of the food and beverage (F&B) industry will grow by 10.92% this year, reaching more than 720 trillion VND (29.8 billion USD).
Self-sufficiency in raw materials critical for garment, footwear

Self-sufficiency in raw materials critical for garment, footwear

Vietnam needs breakthrough solutions to upgrade the value chains of the garment and footwear industries with the focus on achieving self-sufficiency in raw materials to increase added value and develop sustainably.
Read More

Your care

Latest Most read
Supporting industry enterprises: Learning standards, understanding opportunities

Supporting industry enterprises: Learning standards, understanding opportunities

VCN - Currently, many potential industries have "opened" opportunities for Vietnamese enterprises to enter, such as the semiconductor industry, supporting industries for the aviation sector. However, the higher the added value of the sector, the more it r
100 most valuable Vietnamese brands on the limelight

100 most valuable Vietnamese brands on the limelight

This year’s Brand Finance Vietnam 100 Report was also released to provide a comprehensive picture of the valuations.
Need to quickly act to catch up with the "green" trend

Need to quickly act to catch up with the "green" trend

VCN - With the movement from the global level to Vietnam's main markets, as well as the strong commitment of the Vietnamese Government, the trend of "compulsory green/sustainable transformation" has become clear to Vietnamese businesses instead of volunta
Businesses cooperate to develop advanced technology

Businesses cooperate to develop advanced technology

VCN - According to experts and enterprises, the cooperation among enterprises helps optimize production processes through sharing technology and knowledge.
Export target for 2024 set at US$400 billion

Export target for 2024 set at US$400 billion

Since the beginning of the year, Vietnam's export activities have continued to recover. It is forecasted that the total export turnover for the entire year may reach a historic milestone of US$400 billion.
Mobile Version