In the process of amending the Personal Income Tax Law, the Ministry of Finance proposed two methods of calculating tax on income from real estate transfers. One is to apply a tax rate of 20% on taxable income (selling price minus total costs related to the real estate). The other is to collect 2% of the transfer price if the purchase price and costs cannot be determined.
The method of calculating tax based on profit is proposed based on a number of bases. Firstly, the 2024 Land Law stipulates that when transferring land use rights, taxable income will be calculated based on the land price in the land price list, with the expectation of encouraging people to record the actual transaction price on the contract. Thereby, it is possible to clearly determine the purchase price and the selling price, thereby effectively applying the method of calculating tax based on profit. However, this provision only applies to the transfer of land use rights, but for transactions of both houses and land, the seller can still declare the incorrect price to reduce tax.
Second, calculating tax based on profits is considered fairer, because it helps reduce tax pressure in cases where people are forced to "sell at a loss". At the same time, this is also the foundation for applying progressive tax rates according to the time of holding real estate, thereby contributing to limiting speculation and promoting sustainable market development.
However, public opinion has expressed concerns about the feasibility of this option. In fact, Circular 84/2008/TT-BTC previously applied a tax rate of 25% on profits from real estate transfers, but it was ineffective in practice, leading to its abolition in Circular 92/2015/TT-BTC and its replacement by the current unified method of collecting 2% on the transfer price. Tax calculation based on profits has been opposed because it is difficult to accurately determine costs, prone to fraud, and difficult to manage.
Therefore, to successfully apply this method, it is necessary to overcome the limitations that caused the old model to fail. The prerequisite is to build a data system on actual land transaction prices in the locality, which is fully updated, accurate and operates transparently. In addition, it is necessary to synchronize with regulations on transaction procedures and payment methods to force the parties to record the correct price in the contract.
If these basic conditions are not ensured, calculating taxes based on profits will not only be ineffective but can also be exploited, causing losses to the state budget and creating negative impacts on the real estate market.
Source: https://nld.com.vn/he-thong-du-lieu-ve-gia-dat-dieu-kien-tien-quyet-196250602212010847.htm
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