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 more than 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.
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 VND96,400 billion, reaching 29.6% of the estimate and increasing by 3.5% over the same period. However, revenue from real estate decreased seriously, reaching only VND4,300 billion, accounting for 4% of the total revenue of the area.
The reduction in revenue is very deep for each type of tax. 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 down 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" figures, 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 enterprises have led to a huge debt for land rent and land use fees. Statistics up to December 31, 2022 show that 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. To date, more than 2,000 dossiers have been received with a 30% reduction, about 600 billion VND. Second, implementing the extension of VAT and land rent payment according to Decree 34/2022.
Next, according to Decree 12/2023 on extending the collection of value-added tax and corporate income tax, personal income tax and business household value-added tax, extending 3-6 months 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 applying for 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 and said that the City Tax Department has advised to reduce 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 some contents related to anti-fraud in the transfer of personal real estate, declaring 2 prices to evade taxes, this also caused congestion of records. According to the direction, switching to the form of "pre-prevention, post-inspection", propaganda is the main, suspicion is checked later 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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