Vietnam strengthens tax management in the land sector

The Tax Department will continue to strengthen the management of land revenues such as closely coordinating with departments, branches and sectors to review cases of improper land use, slow land use, arbitrary leasing of assets attached to land, etc.

1. Official Dispatch No. 05/CD-TCT

On July 31, 2024, the General Department of Taxation issued Official Dispatch No. 05/CD-TCT, requesting Tax Departments nationwide to implement the Land Law No. 31/2024/QH15 and Decree No. 103/2024/ND-CP of the Government on land use fees and land rents. The dispatch emphasized:

Land Law No. 31/2024/QH15 was passed by the 15th National Assembly on January 18, 2024, and Decree No. 103/2024/ND-CP on land use fees and land rent was issued by the Government on July 30, 2024. To ensure timely implementation of these regulations, the General Department of Taxation requests the Directors of the Tax Departments of provinces and centrally run cities to direct units under their authority to perform the following tasks:

Effective implementation of tax management in Vietnamese real estate market

1.1. Policy dissemination: Tax authorities at all levels need to organize extensive and complete dissemination of land use fees and land rent policies according to the Land Law and the new Decree. Specifically:

  • Coordinate with press agencies, radio and television stations and representative offices of VCCI to disseminate and popularize new regulations.
  • Draft guidance documents and post them on the Tax Department’s website.
  • Ensure that information dissemination is maintained regularly, continuously and in many forms, so that taxpayers clearly understand the regulations, subjects, deadlines, procedures and benefits when implementing the new policy.

1.2. Carry out management tasks: The head of the tax authority is responsible for assigning relevant departments to update, look up, review and check records, ensuring compliance with legal regulations.

1.3. Resolve problems: In case of difficulties and problems arising, the Tax Departments need to summarize and report to the General Department of Taxation for timely guidance.

The General Department of Taxation requests the Directors of the Tax Departments of provinces and centrally-run cities to focus on directing and seriously implementing the above tasks.

2. Limitations of tax management for budget revenues related to land

In reality, tax management for budget revenues related to land still has many limitations. The cause was determined to be due to many factors such as the policy of determining land prices has changed a lot, so the legal information of land lease records is not enough to determine the land lease price. In many cases, the tax authority has not received enough cadastral information from the Department of Natural Resources and Environment, so it has not been able to issue a notice of land lease price according to the stable cycle.

Next, a large number of land lease records have not been approved by competent authorities, so the land lease price must be determined annually instead of the 5-year cycle, causing the number of records determining land lease price to increase rapidly. Some leased land plots have a value of over 30 billion VND, and for many years the tax authority has not received specific land prices, causing difficulties in the work of establishing a land lease collection system. Due to the nature of this complex field, with many management agencies and many legal documents regulating it, the settlement of related administrative procedures often takes a long time…

Strengthening tax management in real estate transfers

From the above difficulties and based on the actual situation, the tax department said it will continue to strengthen the management of land revenues such as closely coordinating with departments, branches and sectors to review cases of improper land use, slow land use, and arbitrary leasing of assets attached to land to advise the City People’s Committee to recover and cancel land allocation and land lease decisions for violations.

3. Effectively implementing tax management in real estate transfer

In 2022, the Ho Chi Minh City Tax Department issued 1,708 notices to resolve the determination of land rental prices for land plots due for adjustment according to regulations as a basis for the tax department to establish a set of land rental fees for 2022 and the following years; through determining land rental prices; providing information of organizations using land but have not yet completed the rental procedures, extending the rental period to the Department of Natural Resources and Environment to carry out land management according to regulations; coordinating with the Department of Natural Resources and Environment, the Department of Finance to advise the City People’s Committee to develop a coefficient to adjust the land price list in 2023 to calculate land use fees and land rental fees for organizations and individuals.

Hopefully, this article has provided very detailed information about tax management in the land sector. If you have any further questions or need more information on any other
topic, do not hesitate to ask. S4B Vietnam will try to support you!

S4B Vietnam

  • Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

——————————————–
We Will Show You The Way To Success!