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| The current Personal Income Tax Law stipulates that personal income tax on real estate transfers is 2% of the transfer price each time. (Photo: Linh Chi) |
According to the Ministry of Finance , for income from real estate transfer activities, the current Personal Income Tax Law stipulates that personal income tax on real estate transfer is 2% of the transfer price each time.
However, recently, there have been many opinions that it is necessary to study regulations on personal income tax collection for real estate transfer activities to ensure compliance with the nature of economic transactions.
Specifically, personal income tax is collected at a rate of 20% on taxable income; in which, taxable income is determined by the real estate transfer price for each transfer minus the real estate purchase price and related expenses.
In response to the above comments, in the draft Law on Personal Income Tax (replacement), the Ministry of Finance is proposing an additional plan to collect personal income tax on real estate transfers at a tax rate of 20% on income.
Through calculation, compared to the current 2% tax rate on transfer price, collecting 20% tax on taxable income will regulate the guaranteed tax at an equivalent level.
In some cases (the difference between the selling price and the purchase price is less, there is no income or loss), collecting 20% on income will be more beneficial for individuals, regulating tax collection according to the actual income of real estate transactions.
However, the collection of personal income tax according to the 20% method on income needs to have a suitable roadmap, ensuring synchronization with the process of perfecting other policies related to land, housing, or the readiness level of the database as well as the information technology infrastructure on registration and transfer of land, real estate, etc.
Thereby, it is possible to create conditions for tax authorities to have sufficient information and legal basis related to real estate transfer activities to collect the correct amount of tax payable.
Implementing the direction of the Party and the Government , the draft Law on Personal Income Tax (replacement) also proposed the rate of personal income tax on real estate based on the holding period to limit speculation.
Refer to the experience of some countries that have used tax tools, including personal income tax, to increase the cost of speculative behavior and reduce the attractiveness of real estate speculation in the economy.
Some countries have applied taxes on profits from real estate transactions in accordance with the frequency of transactions and the duration of holding the property. However, the Ministry of Finance will continue to consult the experiences of countries with similar conditions to make appropriate proposals for Vietnam.
Currently, the Ministry of Finance is seeking opinions from ministries, branches, localities, organizations and individuals on the draft Law on Personal Income Tax (replacement).
In the coming time, the Ministry of Finance will continue to research and synthesize opinions from ministries, branches, localities, organizations and individuals to propose appropriate policies and report to competent authorities for consideration and decision.
Source: https://baoquocte.vn/danh-thue-20-voi-giao-dich-bat-dong-san-bo-tai-chinh-lam-ro-mot-so-van-de-se-tiep-tuc-tham-khao-kinh-nghiem-cua-cac-nuoc-321948.html
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