Tax collection from house rental needs inter-sectoral coordination

VCN- To combat tax loss from the rental of houses, apartments and business premises, there is a need for coordination of inter-agency and the taxpayers’ law compliance, Lawyer Ha Huy Phong, CEO of Inteco Law firm, told Customs News.
The tax management mechanism of e-commerce will be issued soon The tax management mechanism of e-commerce will be issued soon
Taxation sector fulfils 60 percent of tax collection estimate Taxation sector fulfils 60 percent of tax collection estimate
Ba Ria – Vung Tau Customs: Pressure from revenue collection in final months of 2020 Ba Ria – Vung Tau Customs: Pressure from revenue collection in final months of 2020
5752-5725-3-5823-luat-su-ha-huy-phonggiam-doc-cong-ty-luat-inteco-20170705
Lawyer Ha Huy Phong, CEO of Inteco Law firm

Recently, to control revenues from the rental of houses, Ha Noi Tax Department and HCM City Tax Department have taken measures to prevent tax loss from the rental of houses, apartments and business premises. How do you assess this?

Article 5 of the law on Tax Administration No.38/QH14/2019 stipulates that all organisations, households, household businesses, individuals shall pay their taxes in compliance with the law. This provision shows that all organisations, households, household businesses, individuals have arisen taxable incomes and subject to tax payable, must pay taxes. We must comply with this provision in a unified, equal and drastic manner. It is not only about anti-tax loss but also the State management and the fairness for all taxpayers.

The strict control of these revenues by some localities is necessary and must be widely performed across the country. In this context, this performance is essential, and inter-agency coordination should be strengthened to prevent the Covid-19 pandemic while ensuring interests of society and related entities.

Circular 92 of the Ministry of Finance provides that the revenue from apartment rentals is subject to revenue from rental property. However, according to a report from the taxman, many taxpayers have not yet complied with the regulation. What is the solution for the taxman to control the revenue?

Revenue from idle assets that is leased out by owners such as houses, cars, business premises, etc and those assets provide income for lessor, are subject to taxable income. However, many taxpayers have not yet paid taxes due to their lack of awareness. On one hand, many individuals and households do not know about this regulation because they think they only lease out these assets to earn more income and not for business purposes. On the other hand, some taxpayers know about their tax obligations but they avoid or evade taxes. The taxman does not have sufficient tools and effective solutions to manage these assets.

To promote efficiency of the operation, we need to take effective measures, including controlling of declaration of assets, incomes combined with document and invoice regime of individuals and households with business registration and without business registration.We should implement solutions for non-cash payments and databases of income and expenditure of those to control legal and illegal cash flows. Because, the income and expenditure of taxpayer are not declared, so the taxman cannot manage taxable income sources.

First of all, the Tax administration should work with other agencies in each area to manage these lessors to encourage them to implement tax obligations and force them to pay taxes if necessary.

To prevent tax loss for house rental, in addition to the performance of the taxmen, cooperation from local governments is necessary. Should the regulations on the responsibilities of relevant agencies in tax administration for this operation be issued or not?

Inter-sectoral coordination is essential, but each agency has different functions and tasks, so the performance of each agency should be specified. In the 4.0 era, the connection of data and information in the e-Government environment may be implemented. For example, ward police can list lessors, and the taxman can use this data to check their tax obligation. However, it is not necessary for police to check each lessor. Each field is managed by a focal point to avoid overlapping in the management scope, causing trouble and negative impacts for the people.

Cooperation and assignment of rights and obligations of each administrative agency in the same area is an effective method to implement public administration, rather than assignment to all management agencies.

By Thuy Linh/Ngoc Loan

Related News

Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

VCN - That was the direction of Deputy Minister of Finance Nguyen Duc Chi at a working session with leaders of the Provincial People's Committee and the Lang Son Departments of Finance, Tax, and Customs on March 19.
Why not reduce export tax on fertilizer products to 0%?

Why not reduce export tax on fertilizer products to 0%?

VCN - Clarifying a number of contents related to the draft Decree amending and supplementing a number of articles of Decree No. 26/2023/ND-CP on Preferential Export Tariffs, Import Tariffs, List of Goods and Rates Absolute tax, mixed tax, import tax outside the tariff quota regarding the export tax rate for some types of fertilizers, the Ministry of Finance has clarified the reason why it does not adjust the export tax rate for this product.
Tax Industry actively supports during the peak month of tax settlement

Tax Industry actively supports during the peak month of tax settlement

VCN – With the goal of facilitating taxpayers in complying with tax law polices, especially tax finalization procedures, the Tax industry actively supports enterprises and people in this work. Local tax departments have held online and offline meetings to promptly remove difficulties and obstacles in the tax finalization process.
C.D.M.A Mobile Phone Center enforced to suspend customs procedures for overdue tax debts

C.D.M.A Mobile Phone Center enforced to suspend customs procedures for overdue tax debts

VCN – C.D.M.A Mobile Phone Center has been enforced by the Customs to suspend its imports and exports for overdue tax debts worth about VND16 billion.

Latest News

Efficiency from inspection and supervision - a key factor for a transparent stock market

Efficiency from inspection and supervision - a key factor for a transparent stock market

VCN - Since the 2019 Securities Law officially took effect, the average annual number of penalty decisions has more than doubled compared to the period 2015-2020. This shows that the strictness of the law is being enforced effectively.
SBV approves designation of 14 important banks in 2024

SBV approves designation of 14 important banks in 2024

The State Bank of Vietnam (SBV) has issued Decision No. 538/QD-NHNN approving the group of credit institutions and foreign bank branches which play an important role in the country's banking system in 2024.
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.

More News

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

VCN - The Ministry of Finance aims to continue to strongly improve the business environment, create a healthy competitive environment, rapidly increase the number of newly established businesses, and reduce the rate of businesses temporarily suspending operations; reduce input costs and legal compliance costs in investment and business activities, reduce policy risks, strengthen trust, create a fulcrum for recovery and improve business resilience.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.
Read More

Your care

Latest Most read
Efficiency from inspection and supervision - a key factor for a transparent stock market

Efficiency from inspection and supervision - a key factor for a transparent stock market

VCN - Since the 2019 Securities Law officially took effect, the average annual number of penalty decisions has more than doubled compared to the period 2015-2020. This shows that the strictness of the law is being enforced effectively.
SBV approves designation of 14 important banks in 2024

SBV approves designation of 14 important banks in 2024

The State Bank of Vietnam (SBV) has issued Decision No. 538/QD-NHNN approving the group of credit institutions and foreign bank branches which play an important role in the country's banking system in 2024.
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Mobile Version