Mr. Hoa's opinion is similar to that of many other real estate businesses when Decree No. 181/2025/ND-CP of the Government detailing the implementation of a number of articles of the Law on Value Added Tax takes effect from July 1, 2025; including specific provisions on how to determine the price for calculating value added tax (VAT) for real estate business activities.
According to experts, this is an important step in perfecting the legal framework, enhancing transparency and supporting businesses to be more proactive in financial forecasting, while improving the effectiveness of the State's tax management, especially in the real estate sector. Transparency in determining taxable prices needs to be closely aligned with reality to limit legal risks.
One of the highlights noted in Decree 181 is the clear regulation of VAT calculation prices in real estate business activities. Accordingly, the tax calculation price is the selling price excluding VAT and is deducted from the land price paid to the state budget according to regulations. Specifically, for projects allocated land by the State, leased land or through auction, the deductible land price is the land use fee or land rent paid in one go. However, costs such as compensation, support, and site clearance paid by the enterprise itself will not be included in the deductible land price.
Dr. Nguyen Quang Tuyen ( Hanoi Law University) said that this new point has a very high practical significance. Clarifying the land price deducted from the tax calculation price helps businesses forecast costs more transparently, thereby building appropriate financial and sales strategies. At the same time, this also limits the situation of being charged additional taxes due to the tax authority incorrectly determining the land price - Mr. Tuyen analyzed.
In particular, specific regulations for each type of transaction will help reduce disputes and increase consistency. In the long term, transparency in the tax calculation mechanism will make real estate prices closer to real values, limiting the situation of "virtual prices" due to businesses having to bear the cost of tax risks.
The Decree also specifically classifies cases of land price deduction such as: receiving land use rights transfer, contributing capital in land, paying with land fund in BT or PPP projects... For each form, the Decree clearly stipulates the principles for determining the deductible land price.
Sharing the same view, Lawyer Bui Quang Nghiem (Ho Chi Minh City Bar Association) highly appreciated the clarity and ability to minimize legal risks of this Decree. The criteria for determining deductible land prices are now very specific, thereby limiting different interpretations between tax authorities and enterprises. In particular, the Decree contributes to protecting enterprises from the risk of unexpected tax collection.
Not only that, Mr. Nghiem also emphasized that a noteworthy point is the principle of no retroactivity that is disadvantageous to businesses. If implemented correctly according to current legal regulations, this will be an important tool to ensure a stable and transparent business environment.
In fact, many real estate businesses have encountered difficulties due to having to temporarily pay taxes when the land price has not been approved, and then being charged back when the tax authority re-determines the land price. This new regulation will help businesses avoid unexpected expenses, thereby being more proactive in planning cash flow according to project progress.
From the perspective of the management agency, Ms. Nguyen Thi Cuc - President of the Vietnam Tax Consulting Association commented that Decree 181 helps avoid the situation of "temporary payment and then adjustment" because this is the factor that puts great pressure on businesses with long-term projects. This is also the legal basis for tax authorities to conduct inspections in a more unified and transparent manner.
On the other hand, the Decree also supports tax authorities in increasing the effectiveness of supervision and reducing revenue losses. With detailed guidance for each specific case, Decree 181 helps tax management to be implemented uniformly across the country, minimizing different understandings and applications between localities. This not only improves the effectiveness of state budget collection but also helps tax authorities to be more proactive in supervision and inspection - Ms. Cuc analyzed.
In addition, applying specific regulations to BT projects, capital contribution in the form of land or transfer of technical infrastructure, which are complex transactions, also helps limit revenue loss due to incorrect determination or lack of deductible land price.
By clearly defining the deductible land price, businesses no longer have to “prepare” for tax risks in the selling price, thereby contributing to stabilizing the real estate price level. Experts say that this mechanism is clearly not only beneficial to businesses but also creates conditions to protect consumer rights and promote transparent market development.
Decree 181 is one of the documents specifying the tax reform goals for the 2021 - 2030 period, aiming to modernize tax administration, ensure fairness, transparency and consistency in law enforcement. Detailed regulations on VAT calculation prices not only remove practical obstacles, but also align with the Government's long-term orientation on tax system reform. Making the tax calculation mechanism transparent will contribute to the formation of a healthy, sustainable and responsible real estate market.
From July 1, 2025, when Decree 181 officially takes effect, the business community, tax authorities and the market expect a new legal corridor that is transparent, synchronous and close to reality. If implemented in accordance with the spirit of the document, the Decree will not only contribute to minimizing risks for businesses but also help increase budget revenue, improve the investment environment and develop a more stable and healthy real estate market in the coming time.
Source: https://doanhnghiepvn.vn/doanh-nhan/minh-bach-thue-doanh-nghiep-chu-dong-dong-tien/20250717084201660
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