Solutions to prevent tax loss in real estate sales

In the past week, Ho Chi Minh City Law has published a series of articles “Anti-tax loss in real estate trading” reflecting on the status of thousands of real estate sales records returned to be close to market prices, which have received many comments from readers.

Many readers believe that the tax industry tightens the calculation of real estate transfer tax (real estate), the increased tax revenue to ensure tax evasion is very necessary. At the same time, to avoid causing difficulties for tax authorities and people, it is necessary to redefine the real estate transfer price according to the market.

Articles in the series “Anti-tax loss in real estate sales” have been published on Ho Chi Minh City Law in the past week.

Real estate transactions must be listed on the exchange

“In my opinion, the authorities need to immediately build a taxable price list when delivering real estate to make it clear and transparent. It is very difficult to ask people to declare themselves and to ensure their honesty, because people just need to follow the regulations, that is, where the regulations are, they will be implemented. The state that the tax office returns the dossier because the adjacent land plot is sold at a higher price, sounds very unprofessional and wastes the parties’ time” – reader Dinh Quan.

“In order not to lose tax in real estate sales, I think nothing is too complicated. Specifically, it is necessary to have regulations that real estate transactions must be listed on the exchange. Only qualified companies will be listed on the exchange. At that time, all owners of real estate, if they wanted to trade, had to go through the exchanges and sell at the listed price on the floor. At that time, how much the owner sells, the tax authorities know everything, it is impossible to evade tax.

Real estate listed on the floor must be checked by the exchange for legality, so it is safe for both buyers and sellers. In addition, exchanges are required to operate openly, transparently and professionally. At this time, the tax industry also collects additional personal income tax (PIT) from brokerage services” – reader Nguyen Ngoc Minh.

“In my opinion, there are many ways to determine the selling price of real estate for tax calculation. Firstly, the real estate transaction is required to be paid through the bank. When buying a property of great value, it is necessary to prove lawful income, ensure the transparency of the market and determine the real selling price of the owner. Secondly, it is necessary to build a data warehouse to store purchase and sale information, with a clear date, so that the selling price and tax calculation will be accurate. Third, it is necessary to coordinate between the notary offices, when notarizing real estate sales contracts, the notary office needs to provide transaction information to the tax authorities if the purchase and sale value is much lower than the market price “- reader Tuan Pham.

The State needs to review the land price in the market and the price applied for compensation when expropriating must be appropriate so that people do not suffer.

There must be a reasonable land price bracket for tax calculation

“Tax is a huge source of budget revenue for the country. But now there are people who are land storks, groups of land speculators raising land prices, avoiding PIT from land. There should be a regulation on housing prices in the market to avoid tax evasion. Paying taxes is also a way of investment because there will be new sources of revenue to decorate the city, improve infrastructure, increase the real value of real estate and high land tax, no one will say that a high land price is a virtual price” – reader Tran Manh.

“In fact, the price of houses and land sold on the market is very high compared to the frame price set by the State. This will cause many difficulties for people whose land is in the planning. For example, people have their houses and land confiscated and are compensated according to the prescribed framework. But holding the compensation money when the State recovers the land to go out to buy a house to live in, the price is sky high. Therefore, the State needs to review the price of land in the market and the price applied for compensation when recovering must be appropriate so that people do not suffer losses, “-reader Hai Au.

“There are cases where people are short of money, need to sell quickly or the land is not in a good location and difficult to sell, so they have to sell it at a low price. When tax calculation is applied according to the price of the surrounding land to calculate tax, it is very bad for the people. Therefore, the tax sector should consider specific cases and offer satisfactory solutions to avoid bottlenecks in real estate transactions” – reader Nguyen Hanh.•

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