ANTD.VN - The Ministry of Finance has proposed expanding the types of inheritance and gifts subject to tax. However, there are also opinions that this regulation should be removed, or the tax rate should be reconsidered.
Add taxable inheritances and gifts
In the draft proposal to develop a project on personal income tax (replacement) that is being published by the Ministry of Finance for public consultation, a notable proposal is to expand the scope of tax on income from inheritance and gifts.
The Ministry of Finance said that in Clause 9, Clause 10, Article 3, Article 18 of the current Personal Income Tax Law only stipulates tax collection on inherited assets, gifts that are securities, capital in economic organizations, business establishments, real estate and other assets that must be registered for ownership or registered for use, without collecting personal income tax (PIT) on a type of inherited assets that many countries in the world have applied.
Through reviewing international experience, many countries tax inheritance and gifts based on value, including both assets and cash. In Thailand, assets subject to inheritance tax include real estate, securities as prescribed by law, bank deposit accounts or other similar types of money, registered vehicles and financial assets.
Korea, Japan... stipulate personal income tax on inheritance including all inherited assets.
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Ministry of Finance wants to expand taxable assets for inheritance and gifts |
Accordingly, to ensure comprehensiveness and fairness in implementing tax obligations for the same type of income, in accordance with current civil laws on inheritance and forms of inheritance, the Ministry of Finance believes that it is necessary to review, study, amend and supplement regulations on income from inheritance and gifts in the Personal Income Tax Law to suit reality.
Researching and amending regulations on income from inheritance and gifts will contribute to expanding the tax base in the direction determined in many documents of the Party and State.
Many mixed opinions
Regarding taxes on gifts and inheritance, there are different opinions.
Contributing to the draft, the People's Committee of Da Nang City proposed that the drafting agency add some cases of inheritance and gifts to tax-free income. Specifically, including: Income from receiving inheritance and gifts of movable property with registered ownership or other rights as prescribed by law between husband and wife; biological father, biological mother and biological child; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; paternal grandfather, paternal grandmother and grandson; maternal grandfather, maternal grandmother and granddaughter; siblings.
The reason, according to the People's Committee of Da Nang City, Article 105 of the 2015 Civil Code stipulates that assets include real estate and movable assets. In particular, for movable assets, according to current laws, only a few cases of movable assets must be registered, including: Seagoing vessels, inland waterway vehicles, fishing boats, road motor vehicles, aircraft, and railway vehicles. The rest, other movable assets do not have to be registered, according to the provisions of the 2015 Civil Code.
Therefore, the People's Committee of Da Nang City believes that it would be inappropriate according to the Law and in practice to distinguish between income exempted from personal income tax from inheritance and gifts of real estate between relatives (as mentioned above) but not to record income from inheritance and gifts of real estate between relatives.
However, the Ministry of Finance said that the draft proposed a solution to expand the scope of income from inheritance and gifts subject to personal income tax to expand the tax base. This content will be studied and specifically proposed by the Ministry of Finance when the draft Law is included in the National Assembly's Law and Ordinance Development Program.
The People's Committee of Ninh Thuan province proposed to consider and eliminate inheritance tax, because this provision is unreasonable and can easily cause difficulties for people, especially when inherited assets do not generate regular income.
Responding, the Ministry of Finance said that Personal Income Tax Law No. 04/2007/QH12 (effective from January 1, 2009) stipulates that income from inheritance of securities, capital in economic organizations, business establishments, real estate and other assets that must be registered for ownership or use is one of the 10 incomes subject to personal income tax.
According to the Ministry of Finance, no problems have arisen in the implementation of the above regulations. At the same time, in order to implement the policy and solutions for restructuring the state budget and managing public debt to ensure a safe and sustainable national financial system, the draft proposal for the development of the Personal Income Tax Law (replacement) proposes to continue to maintain the current regulations.
Regarding tax rates, the Ministry of Agriculture and Rural Development (now the Ministry of Agriculture and Environment) proposed that the drafting agency consider the tax rates from inheritance and gift income tax (10%), and income from real estate transfer at 2%.
“In the case of inherited real estate, the taxable income from real estate inheritance has not been determined. In addition, the beneficiary of the inherited property must pay a higher tax rate than the transferor. If the value of the real estate property is higher, the personal income tax will be higher and may put pressure on the inheritor. Therefore, it is recommended to consider this tax rate in the tax table to ensure fairness for taxpayers,” the Ministry stated.
However, the Ministry of Finance believes that inheritance and transfer activities are different. For transfer activities, individuals have capital costs. Therefore, it is inappropriate to unify tax rates between transfer activities and inheritance.
Source: https://www.anninhthudo.vn/y-kien-trai-chieu-xung-quanh-viec-danh-thue-tai-san-thua-ke-qua-tang-post605357.antd
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