The Ministry of Finance has released an appraisal document for the draft decree amending and supplementing certain provisions of Decree 126/2020, which details specific articles of the Law on Tax Administration. The focus is on financial obligations related to land and personal income tax from real estate.
Maximum 7-Day Notice Period for Property Tax Payment
According to the draft, tax authorities must issue and send payment notices to taxpayers within the following timeframes after receiving tax declaration documents, information transfer slips for determining land-related financial obligations, and valid legal documents from competent state agencies:
Maximum 7 working days for land use fees and additional payments by organizations or individuals who are overseas Vietnamese; 5 working days for land use fees and additional payments by domestic households and individuals; 5 working days for land rental fees and additional payments; 3 working days for personal income tax from real estate transfers, inheritances, gifts, and property registration fees.
In cases where there are documents confirming deductions for land rental or land use fees, tax authorities must issue notices within 7 days of receiving such documents. Commune-level People’s Committees or provincial-level agencies are responsible for submitting deduction confirmation documents to tax authorities within 5 days of receiving the application.
The draft also stipulates that by April 30th annually, tax authorities must issue land rental payment notices for cases where payments are made annually.
These amendments primarily aim to align with the provisions of Decree No. 103/2024/NĐ-CP.
Regulations on Additional Land Use Fee and Land Rental Payment Deadlines
This draft introduces several provisions regarding payment deadlines for state budget revenues from land, water resource exploitation fees, mineral resources, and more.
Decree No. 103/2024/NĐ-CP outlines additional payments required from land users for periods where land use fees or rentals were not calculated.
However, Decree No. 126/2020/NĐ-CP lacks specific regulations on notice issuance deadlines by tax authorities and payment deadlines for these additional amounts by land users.
To address this legal gap, the Ministry of Finance proposes amendments to Article 18 of Decree No. 126/2020/NĐ-CP.
Under the draft decree, for annual land rental payments, the deadlines for land rental payments, additional payments for uncalculated periods, and adjustments due to changes in factors affecting rental amounts are as follows:
Within 30 days of the payment notice issuance, land renters must pay 50% of the total amount due.
Within 90 days of the payment notice issuance, land renters must pay the remaining 50% of the total amount due.
For one-time land rental payments covering the entire rental period, the deadlines for initial payments and additional payments for uncalculated periods are:
Within 30 days of the payment notice issuance, land renters must pay 50% of the total amount due.
Within 90 days of the payment notice issuance, land renters must pay the remaining 50% of the total amount due.
For adjusted tax declarations, the payment deadline is within 30 days of the tax payment notice issuance.
For land use fees and additional payments: within 30 days of the payment notice issuance, land users must pay 50% of the total amount due.
Within 90 days of the payment notice issuance, land users must pay the remaining 50% of the total amount due.
Within 30 days of the land use fee payment notice issuance, land users must pay 100% of the total amount due if the recalculated land use fee exceeds the 5-year limit from the resettlement land allocation decision date and the household or individual has not fully paid the outstanding amount.
Unlocking Land Use Challenges for Your Project
There are approximately 100 commercial real estate projects in Ho Chi Minh City currently awaiting financial obligation notifications.
Real Estate Firms Frozen by Land Use Fee Uncertainty
In addition to the developer of Empire City petitioning the Ho Chi Minh City People’s Committee to reconsider the additional land use fee of up to VND 8,819 billion, and Lotte Properties HCMC terminating its contract for the Thu Thiem Eco Smart City project, approximately 100 other projects in Ho Chi Minh City are awaiting financial obligation notices, which may include additional fees.
Real Estate Taxation Policy Remains Unchanged
The Ministry of Finance has confirmed that there are currently no changes to the real estate tax policy. The agency is actively conducting further research to develop a tax policy that aligns with the current market conditions.
Sky-High Ambitions: Ho Chi Minh City’s 88-Story Thu Thiem Tower Project Secures $370M Land Fee, Rejecting Developer’s Appeal
The situation surrounding the Empire City Observation Tower Complex project in Thu Thiem is intensifying as the developer has sent an urgent appeal to Ho Chi Minh City’s leadership. Meanwhile, authorities assert that the land valuation process has been conducted in full compliance with regulations.
Empire City Developer Follows Lotte in Petitioning for Additional Land Use Fees
The developer of Vietnam’s tallest 88-story tower has recently submitted a proposal to Ho Chi Minh City’s leadership, requesting a reassessment of additional financial obligations for the Thu Thiem Observation Tower Complex (Empire City) project.
