Personal income tax revenue from real estate transfer increases sharply in 2022

, Personal income tax revenue from real estate transfer increases sharply in 2022

In recent years, the Ministry of Finance has implemented many solutions to prevent tax loss in business activities and real estate transfer.

That is the data updated by the Minister of Finance in the report sent to the National Assembly deputies ahead of the questioning activity starting tomorrow afternoon (June 7).

In this report, Minister Ho Duc Phuc only proposed two solutions to prevent tax loss in business activities and real estate transfer in the coming time – one of the issues the National Assembly decided to question him.

Minister Ho Duc Phuc said that in the past time, the Ministry of Finance has implemented many solutions to prevent tax loss in business activities and real estate transfer.

Specifically, the Ministry of Finance has sent a document to the People’s Committees of the provinces and centrally-run cities, requesting the People’s Committees of the provinces and cities directly under the Central Government to direct the Department of Natural Resources and Environment to coordinate with relevant agencies to review. , promptly issue a decision on additional adjustment of the specific land price list for each location, ensuring compliance with the actual transaction price on the market and the investor’s selling price.

Personal income tax on real estate transfer increased dramatically

Personal income tax on real estate transfer increased dramatically

The Ministry has directed the tax authorities not to cause difficulties and troubles for taxpayers in the process of processing real estate transfer documents. At the same time, tax officials and civil servants involved in the handling of real estate transfer documents have strictly complied with the regulations on the order and procedures for handling documents to determine financial and financial obligations. the process of working directly with taxpayers according to regulations and having a mechanism to supervise officials and civil servants in the process of propagating and guiding the declaration of real estate transfer prices for taxpayers.

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The Ministry also directed the Tax Departments to review real estate transfer documents and request timely settlement and handling for people and businesses in accordance with the law.

As a result, personal income tax revenue from real estate transfer in 2021 reached 21 trillion VND, an increase of more than 4.9 trillion VND (30% increase rate) compared to 2020. Accumulated in 5 months In early 2022, the personal income tax revenue from real estate transfer is expected to reach VND 16 trillion; increased by 68.6% compared to the first 5 months of 2021, equivalent to an increase of 6.6 trillion VND.

In the report, the Minister also pointed out limitations in the implementation process, that is, business activities, real estate transfer are governed by tax laws on value-added tax, corporate income tax, personal income tax and tax administration.

Tax collection for business activities, real estate transfer still faces some difficulties, such as policies related to land have been regulated, these documents are regulated by many agencies and departments. In the state management sector, these regulations are not synchronized, so determining the market price of real estate still faces many difficulties.

Currently, the most difficult thing is that the Land Law stipulates a stable land price list for 5 years, while in fact the real estate market price fluctuates continuously, thus leading to the fact that the land price set by the Provincial People’s Committee is not close to the real estate market price. 

The coordination with relevant agencies, departments and branches also faced many difficulties, the Minister acknowledged.

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The next difficulty is that the legal document has not yet provided for a mechanism to control cash flow for real estate transfer transactions. The people’s sense of self-discipline to fulfill their tax obligations is not high. Inadequate awareness of tax policies and related laws, not aware of the consequences when declaring tax at a price that is not true to the actual transfer price.

The land registration office sends the dossier to the tax office often close to the scheduled date of return of the results or the delay leads to pressure on the time to return the results of the determination of financial obligations on the land, causing delays in administrative procedures.

Regarding solutions to overcome in the coming time, the Minister said that he will continue to advise and propose to the Government to implement a number of solutions, such as organizing a review of legal documents related to activities of the Government. trading and transferring real estate in the field of state management of the Ministry of Finance to amend and supplement to ensure consistency and synchronization.

The second solution is to add regulations on payment via bank for real estate transfer in Article 16 of the Law on Real Estate Business No. 66/2014/QH13 dated November 25, 2014.

Source: CafeF

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