Real estate tax collection has decreased seriously, affecting Ho Chi Minh City's budget revenue.

In 2022, budget revenue in the real estate sector in Ho Chi Minh City will reach more than 35,000 billion VND, accounting for about 10.6% of the city's total revenue. Every year, according to statistics from the Ho Chi Minh City Tax Department, revenue from real estate always accounts for over 10% of the city's total domestic revenue. 2021 is also the first year that Ho Chi Minh City has achieved revenue of over 300,000 billion VND, of which real estate revenue also increased higher than the same period and higher than the estimate.

Thu thuế bất động sản quý đầu năm giảm nghiêm trọng - Ảnh 1. — Mr. Nguyen Tien Dung - Deputy Director of Ho Chi Minh City Tax Department spoke at the workshop

In the first quarter of 2023, Ho Chi Minh City's budget revenue in the first 3 months of the year reached 96,400 billion VND, reaching 29.6% of the estimate and increasing 3.5% over the same period. However, revenue from real estate decreased seriously, only 4,300 billion VND, accounting for 4% of the total revenue of the area.

The reduction in revenue for each type of tax is very deep. For example, income tax on real estate transfer and inheritance in 3 months was only 800 billion VND, down 59% compared to the same period last year, down 30% compared to the same period in 2021; registration fee collection reached 287 billion VND, down 50% compared to the same period in 2022 and down 19% compared to the same period in 2021; non- agricultural land use tax reached 53 billion VND, down 38% compared to the same period in 2022. In addition, accumulated land use fee collection in the first 3 months of the year reached 1,300 billion VND, down 79% compared to the same period last year and down 52% compared to the same period in 2021; land rent collection reached 294 billion VND, down 81% compared to the same period in 2022 and 39% compared to 2021...

Thus, all revenues, including personal income tax and corporate tax from real estate in the first quarter of the year, decreased sharply. Personal income in 3 months reached 6,000 billion VND, down 91% over the same period and down 58% over the same period in 2021.

With the above "telling" numbers, Mr. Dung said that the sharp decrease in budget revenue from the real estate market has affected the city's overall budget revenue. In addition, the difficulties of businesses have led to a huge debt situation for land rent and land use fees. Statistics up to December 31, 2022, the debt for the above two types of taxes is more than 13,000 billion VND, accounting for about 30% of the total debt. If calculated up to March 31, the debt for land use tax is even higher.

To support businesses in overcoming difficulties, implementing the Government 's direction from Decision 123/2023, the Ho Chi Minh City Tax Department has reduced 30% of land rent in 2022 for businesses. The City Tax Department has actively implemented, guided, and propagated to people and businesses. Up to now, it has received more than 2,000 dossiers with a 30% reduction, about 600 billion VND. Second, implementing the extension of payment of value added tax and land rent according to Decree 34/2022.

Next, according to Decree 12/2023 on extension of collection of value added tax and corporate income tax, personal income tax and value added tax for business households, extension of 3-6 months of 50% of land rent... Ho Chi Minh City Tax Department estimates that the amount of land rent tax extension in the area is about 15,700 billion VND; value added tax is about 8,000 billion VND, corporate income tax is about 7,000 billion VND, land rent is about 500 billion VND and tax extension for business households is about 200 billion VND.

"The deadline for procedures to request an extension of the above taxes is from now until September 31, 2023, and we are actively directing departments to disseminate information to people and businesses on many mass media channels," Mr. Dung informed, adding that the City Tax Department has advised on reducing value-added tax by 2% for all businesses.

In addition, Mr. Dung shared that in 2022, implementing the direction of the Government and the Ministry of Finance on a number of contents related to anti-fraud in personal real estate transfers, declaring two prices to evade taxes, this also causes congestion in records. According to the direction, switching to the form of "pre-prevention, post-inspection", propaganda is the main, suspicion is post-inspection to support individuals and businesses. Regarding the problems related to tax law enforcement of enterprises, we have noted that any details beyond our authority will be reported. Our point of view is to respond to instructions to do it, not to beat around the bush...

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