On September 10, the Ho Chi Minh City Real Estate Association (HoREA) sent an urgent document to the Prime Minister, the National Assembly’s Economic and Legal Committees, relevant ministries, and the Ho Chi Minh City People’s Committee regarding coordination in addressing challenges faced by the Ho Chi Minh City People’s Committee in applying the land price framework according to the 2024 Land Law.
Ho Chi Minh City has 8,808 pending tax dossiers related to land issues, which have arisen from August 1 up until now. |
According to HoREA, the Ho Chi Minh City Tax Department reported 8,808 pending tax dossiers that have emerged since August 1. These include 5,448 personal income tax dossiers from real estate transfers, 2,737 dossiers of cases where there is no financial obligation to the state (personal income tax from real estate transfers, registration fees, etc.), 346 dossiers on land use fee collection when recognizing land use rights, and 277 dossiers on land use fee collection when changing land use purposes.
HoREA requested the tax authority to immediately address the 2,737 dossiers of cases with no financial obligations to the state. Specifically, the Ho Chi Minh City Tax Department should instruct the District Tax Departments to resolve these cases promptly as they do not involve personal income tax liabilities from real estate transfers or registration fees. All these dossiers are legally compliant.
Regarding the 5,448 personal income tax dossiers from real estate transfers, HoREA suggested categorizing them to find appropriate solutions. The association observed that the challenge with these dossiers lies in complying with Article 17 of Circular No. 92/2015/TT-BTC (amending and supplementing Article 12 of Circular No. 111/2013/TT-BTC) issued by the Ministry of Finance regarding “Basis for tax calculation for income from real estate transfer is the transfer price and tax rate.”
According to this regulation, the transfer price for land use right transfers without constructions on the land shall be the price stated in the transfer contract at the time of transfer. If the transfer contract does not state the price or the stated price is lower than the price prescribed by the Provincial People’s Committee at the time of transfer, the transfer price shall be determined based on the land price framework issued by the Provincial People’s Committee at the time of transfer.
The transfer price for transfers of land use rights attached to constructions on the land, including houses and future construction works, shall be the price stated in the transfer contract at the time of transfer. If the transfer contract does not state the land price or the stated land price is lower than the price prescribed by the Provincial People’s Committee, the transfer land price shall be the price prescribed by the Provincial People’s Committee at the time of transfer, in accordance with land law regulations.
HoREA noted that for many years, the Provincial People’s Committee has issued minimum house and land price frameworks as a basis for considering the transfer price for each transfer of land use rights without constructions or with constructions to calculate personal income tax.
In practice, when the tax authority detects signs of under-declared transfer prices, they have requested the involved parties to re-declare, effectively combating tax losses and raising awareness of tax obligations among taxpayers.
However, Article 17 of Circular No. 92/2015/TT-BTC also stipulates that if the transfer contract does not state the price or the stated price is lower than the price prescribed by the Provincial People’s Committee at the time of transfer, the transfer price shall be determined based on the land price framework issued by the Provincial People’s Committee. As the Ho Chi Minh City People’s Committee has not yet issued an adjusted land price framework, the tax authority is hesitant to handle the aforementioned cases. The Ho Chi Minh City Tax Department has reported this issue twice to the Ho Chi Minh City People’s Committee.
Therefore, HoREA requested the Ministry of Finance to issue professional guidance to handle the 5,448 pending personal income tax dossiers related to real estate transfers in Ho Chi Minh City from August 1 up until now.
For personal income tax dossiers from real estate transfers, where the transfer price stated in the contract is equal to or higher than the house and land price prescribed by the Provincial People’s Committee at the time of transfer, the tax authority should continue to process the personal income tax calculation for real estate transfers.
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HoREA urged authorized agencies in Ho Chi Minh City to promptly issue an adjusted land price framework. |
If the tax authority detects signs of under-declared transfer prices compared to the house and land prices prescribed by the Provincial People’s Committee at the time of transfer, they should request the involved parties to re-declare the transfer price and consider resolving the personal income tax calculation for real estate transfers as practiced in previous years.
Regarding the 346 dossiers on land use fee collection when recognizing land use rights and the 277 dossiers on land use fee collection when changing land use purposes, HoREA proposed that the competent authority allow the Provincial People’s Committee to adjust the land price adjustment coefficient in accordance with the 2013 Land Law, along with the continued application of the land price framework issued by the Provincial People’s Committee as per the 2013 Land Law until December 31, 2025, as stipulated in Clause 1, Article 257 of the 2024 Land Law. This would enable the resolution of these 346 and 277 dossiers according to this regulation.
In the event that the Provincial People’s Committee decides to adjust the land price framework according to Clause 1, Article 257 of the 2024 Land Law, which allows the Provincial People’s Committee to adjust the land price framework when necessary to align with the local land price situation, HoREA urged the authorized agencies in Ho Chi Minh City to promptly issue an adjusted land price framework within the next one to two weeks. This would not only resolve the 8,808 pending dossiers at the tax authority but also facilitate the application of the adjusted land price framework for the 11 cases mentioned in Clause 1, Article 159 of the 2024 Land Law.
Duy Quang
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