Personal income tax needs to comply with the 2024 Land Law

Người Lao ĐộngNgười Lao Động11/02/2025

(NLDO) - According to tax experts, some provisions of the Personal Income Tax Law are no longer suitable for a developing economy and the 2024 Land Law.


Chuyên gia đề xuất đánh thuế thu nhập cá nhân cần phù hợp Luật Đất đai 2024- Ảnh 1.

Calculating personal income tax related to real estate transactions must be based on the provisions of the 2024 Land Law.

According to the summary of comments on the draft Law on Personal Income Tax (PIT) recently announced by the Ministry of Finance, the People's Committee of Bac Giang province proposed to amend a number of regulations that are no longer suitable for the developing economy and the 2024 Land Law, effective from August 2024.

According to the reporter's records, for many years, the calculation of personal income tax related to real estate transactions has often caused taxpayers to disagree. For example, when people sell their second home and declare a certain purchase price, tax officials do not accept it because they think these prices are not real.

The reason is that tax officials often base on some internal data, including the prices of the most recent real estate transactions, located near the seller's area to determine the taxable price. As a result, the seller must accept to declare and pay 2% personal income tax on the purchase and sale value as required by the tax authority in order to complete the procedure soon.

Regarding this issue, Mr. Nguyen Van Duoc, General Director of Trong Tin Accounting and Tax Consulting Company, said that personal income tax when transferring real estate calculated on revenue is equal and unreasonable. Because, home buyers and sellers, whether they make a profit or a loss, are taxed at 2% on the total transfer amount. This makes the seller at a disadvantage, while the state loses tax revenue from those with high profits.

According to Mr. Duoc, previously, there was a regulation on calculating 20% ​​tax on income (profit) from real estate transfer but then stopped. Therefore, this amendment to the Personal Income Tax Law should return to the method of calculating tax on actual income. That is, people only pay tax when they have income.

Lawyer Nguyen Duc Nghia - member of the Ho Chi Minh City Tax Consultants and Agents Association - said that currently, many countries in the world only collect taxes from home sellers when they make a profit. In Vietnam, because the authorities do not have the tools to determine the real purchase and sale value, calculating taxes for sellers of second homes is not really reasonable.

Mr. Nghia stated that the calculation of personal income tax related to real estate transactions should be based on the provisions of the 2024 Land Law. Accordingly, land prices will be determined according to the market price issued by the provincial and municipal authorities. At the same time, the assets on the land plot (the part used to build the house) need to be appraised. From there, the tax authority has a solid basis to calculate a reasonable transfer value, multiplied by the 2% tax rate to convince taxpayers.



Source: https://nld.com.vn/chuyen-gia-de-xuat-danh-thue-thu-nhap-ca-nhan-can-phu-hop-luat-dat-dai-2024-196250211112946656.htm

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