Tax authorities are strengthening their management of land prices for real estate transfers.

The taxable value for personal income tax (PIT) and registration fees from real estate transfers currently does not reflect market prices, with taxpayers declaring incorrect transfer prices. Specifically, taxpayers declare land use right transfer prices recorded in contracts that are significantly lower than the land prices stipulated by the provincial People's Committee; there are large discrepancies in the transfer prices of the same property in different transactions within a short period. Or, in some cases, the taxable value of future real estate is many times higher than the taxable value of completed real estate for which a land use right certificate has been issued.

Therefore, the General Department of Taxation requests provincial and city tax departments to coordinate with relevant state management agencies to advise and report to the People's Committees of cities on the development of land price tables for the period 2020-2024 that closely reflect market prices, to be issued and applied from January 1, 2020. If the land price framework stipulated by the Government is deemed unsuitable, leading to the inability to adjust the land price table, the People's Committees of provinces and cities are requested to report to the Government to adjust the land price framework in accordance with the provisions of the Land Law.

For land plots, road sections, and roads within new urban, residential, and resettlement projects after infrastructure development by organizations and businesses, the Tax Department will proactively coordinate with relevant agencies to report and propose to the Provincial/City People's Committee to promptly issue decisions adjusting and supplementing land price lists to serve as a basis for collecting personal income tax and registration fees.

When receiving and processing real estate transfer documents from the one-stop service agency or from taxpayers, the document processing department determines the financial obligations and checks the transaction history of the transferred real estate. If the information about the land and assets attached to the land of the same real estate differs between transfers, a request should be sent to the land registration office to verify or supplement the information. If the information determining the financial obligations is complete and accurate, the transfer price and time between transfers should be compared, and the transfer prices of similar properties should be compared to determine the truthfulness and accuracy of the taxpayer's tax declaration.

Upon inspection and review, if any instances of taxpayers declaring transfer prices that are untruthful or inaccurate are found, the taxpayer will be required to submit supplementary declarations, and appropriate tax management measures will be implemented to correct and address the issue promptly. In cases where taxpayers show signs of violating the law, the tax authorities will collect complete documentation and specific evidence and cooperate with relevant agencies to conduct investigations in accordance with the law.

Youth