Tax authorities strengthen management of real estate transfer land prices.

The price for calculating personal income tax (PIT) and registration fees from real estate transfer activities is currently not close to the market, taxpayers do not declare the actual transfer price correctly. Specifically, taxpayers declare the land use right transfer price stated in the contract much lower than the land price regulated by the provincial People's Committee; there is a large difference in the transfer price of the same real estate of different transactions in a short period of time. Or the case where the tax price of real estate formed in the future is many times higher than the tax price of completed real estate, with a land use right certificate issued.

Therefore, the General Department of Taxation requests the provincial and municipal Tax Departments to coordinate with relevant state management agencies, advise and report to the City People's Committee to develop a land price list for the period 2020 - 2024 close to the market price to issue a price list applicable from January 1, 2020. In case the land price framework prescribed by the Government is not suitable, leading to the inability to adjust the land price framework, the Provincial and Municipal People's Committees are requested to report to the Government to adjust the land price framework according to the provisions of the Land Law.

For land locations, road sections, and roads in new urban area, residential area, and resettlement area projects after organizations and enterprises invest in building infrastructure, the Tax Department proactively coordinates with relevant agencies to report and recommend the Provincial and Municipal People's Committees to promptly issue decisions to adjust and supplement the land price list as a basis for collecting personal income tax and registration fees.

When receiving and processing real estate transfer dossiers from the dossier receiving agency under the one-stop mechanism or from taxpayers, the dossier processing unit determines financial obligations to conduct an inspection of the transaction history of the transferred real estate. In case the information on land and assets attached to land of the same real estate between transfers is not the same, it is recommended to send an official dispatch requesting the land registration office to re-determine or supplement the information. In case the information determining financial obligations is complete and without errors, compare the transfer price and time between transfers, compare the transfer price of real estates with similar characteristics to determine the honesty and accuracy of the taxpayer's tax declaration dossier.

Through inspection and review, if there is a phenomenon of taxpayers declaring transfer prices dishonestly or inaccurately, the taxpayers will be required to make additional declarations and implement tax management measures to correct and handle them promptly. In case the taxpayer shows signs of violating the law, the tax authority will collect complete records and specific evidence and coordinate with competent agencies to investigate according to the law.