The importance of real estate valuation in tax calculation 2020

Not only serving businesses in business activities that are convenient and bring high profits. Real estate valuation also helps state tax agencies to avoid personal income tax revenue in real estate transactions is rampant today.

FORMS OF PERSONAL INCOME TAX

The General Department of Taxation has sent a dispatch to provincial / municipal Tax Departments for strengthening the tax administration of real estate transfer activities. Because the problem of fraud in calculating personal income tax is becoming more sophisticated and public.

This is reflected in:

- The price for calculating personal income tax and registration fee from real estate transfer activities is not close to the market.

- Taxpayers and taxpayers often declare personal income tax rates lower than actual transactions.

- The estimated real estate tax calculation price in the future is many times higher than the taxed price of the real estate which has been completed or granted the land use right certificate.

This is considered a common form of evading personal income tax, which agencies are very headache today. Those who want to avoid tax and avoid paying high taxes will agree to use the State price as a standard to record the price in the notarized contract. Therefore, the purchase and sale price at the Notary Public room is a virtual price and is only revealed when there is a conflict between the two sides, resulting in cancellation of the transaction.

NEW DECREE ON THE LAND PRICE BRACKET

Currently businesses and individuals hardly comply with the regulations on valuation, trying to "wriggle" to avoid paying personal income tax as well as other taxes. Therefore, the new Decree has just been signed by Prime Minister Nguyen Xuan Phuc and promulgated the regulation on the land price bracket applied for the next 5 years to 2020 with an increase of about 20%, which is considered a remarkable new point today. .

Detail:

- The Northern Midland and Mountainous Provinces: the new land price bracket stipulates that the price of residential land from urban areas of grade 1 to grade 5 shall be at least VND 50,000 / m2 and maximum of VND 65 million / m2.

- Provinces of the Red River Delta: Land prices in this area are prescribed for urban areas from grade 1 to grade 5 with a minimum of VND 120,000 / m2 and a maximum of VND 162 million / m2.

- North Central provinces: The minimum price frame is VND 40,000 / m2, maximum VND 65 million / m2.

- Coastal provinces of South Central Coast: Price bracket for urban areas from grade 1 to grade 5, minimum land price of VND 50,000 / m2, maximum of VND 76 million / m2.

- The provinces in the Central Highlands: The minimum land price bracket is VND 50,000 / m2, maximum of VND 48 million / m2.

- The provinces in the Southeast region: The land price bracket per square meter in this region with urban areas from grade 1 to grade 5, a minimum of VND 120,000 / m2 and a maximum of VND 162 million / m2.

- The provinces in the Mekong river delta: The land price bracket is classified into urban centers of grade 1 - grade 5, with a minimum price of VND 50,000 / m2 and a maximum of VND 65 million / m2.

WHERE TO TAKE PREFERENTIAL REAL ESTATE PRICE?

Valuing real estate for tax calculation is particularly important. Help state agencies to limit the loss of personal income tax on real estate transactions, as the parties deliberately shake hands to do wrong.

Indochina International Investment & Appraisal Joint Stock Company (INA) is the leading valuation unit in Vietnam, gaining the trust of many customers today. With many years of experience, possessing a professional staff and abundant real estate data. We are committed to bringing real values ​​in real estate valuation.

Help state agencies to make accurate decisions in real estate tax calculation. Contact us today for assistance with matters of valuation, settlement investment advice, real estate advice ...

Indochina International Investment & Appraisal Joint Stock Company (INA)

• Address: 121 Nguyen Van Troi, Ward 12, Phu Nhuan District, Ho Chi Minh City
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