Spending billions of dong to buy apartments, Ho Chi Minh City residents have not been able to complete the purchase procedures because the tax department has not been able to calculate the seller's income tax.

Selling apartment because need money urgently but stuck in paying taxes

Sharing with Tuoi Tre Online , Mr. V. said he had just bought an old apartment in Phu My Hung urban area (District 7) for 9 billion VND.

He transferred 8.5 billion VND, completed the notarization procedure to change the name, but when the seller went to the Tax Department of District 7 - Nha Be to prepare the personal income tax payment documents, he found out that this procedure was "stuck".

According to Mr. V., the tax department is still accepting documents, there is a notice of the time to return the results on August 14, 2024, but the tax officer informed that because Ho Chi Minh City has not issued a new land price list, the tax calculation is facing problems, if by August 14 there is still no new land price list, this tax payment procedure will not be completed.

“I bought and sold apartments at the correct market price and paid taxes according to the sales contract. Personal income tax when buying an apartment should be paid according to current legal regulations. If there is a bottleneck like this, it will cause a lot of trouble, consequences and risks for people,” said Mr. V.

Similarly, Ms. TH needed money urgently so she sold her apartment in Ho Chi Minh City for 4 billion VND. It is worth mentioning that on July 26, Ms. H. submitted the purchase and sale documents and documents related to paying transfer tax and was scheduled to receive the results on August 9.

However, on August 9, Ms. H. went to the tax office to complete the procedures but was told by the tax office that they were still waiting for the new land price list from the City People's Committee, which would be the basis for calculating taxes, while her application was submitted before August 1 when land procedures were still applied according to the old law.

Up to now, Ms. H.'s file has not been temporarily processed by the tax authority and it is not known when it will be completed, making Ms. H. restless because she really needs money to sell her house. She really hopes that this problem will be resolved soon.

According to Tuoi Tre Online 's investigation, currently all transfer tax calculation files submitted during the "interchange" period of the 2024 Land Law taking effect are stuck and the general answer of the tax industry is to wait for the new land price list of the Ho Chi Minh City People's Committee.

Need to remove obstacles soon, avoid stalling people's buying and selling

Speaking with Tuoi Tre Online , Mr. Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said that the transfer of apartments being "frozen" at the stage of calculating transfer tax is a chain reaction that those who promulgate and enforce the law have not fully anticipated.

According to Mr. Chau, the land price list and land use coefficient are the basis for calculating land use fees when people request a certificate for the first time or some other procedures.

Regarding the transfer of apartments, Mr. Chau said that the land price list is used as the basis for calculating income tax at a tax rate of 2% on the value of the real estate purchase and sale contract and not lower than the land floor price list to prevent declaring low purchase and sale prices and tax losses.

However, the new Land Law does not mention the issuance of a floor price list for real estate, so tax authorities are worried that there is no basis to determine prices, and have stopped calculating transfer taxes, causing people to be affected.

Mr. Chau proposed that Ho Chi Minh City have Resolution 98 on a special mechanism to issue separate regulations suitable to the city's characteristics, in which the transition period from now until the end of 2025 can continue to apply current regulations, including the floor price list to facilitate land procedures and land transfers for people.

“If anyone declares a price higher than the floor price, the tax will be calculated based on the contract, and if anyone declares a price lower, the tax will be calculated based on the floor price. In reality, the city has issued a floor price but the tax authority thinks it is incorrect, so they have returned the documents, requested a re-declaration, and there have been increased declarations.

It is important that the law is consistent, and the new Law on Real Estate Business also prohibits the declaration of incorrect transaction prices, so it needs to be implemented consistently," said Mr. Chau.

Mr. Chau proposed that central ministries and Ho Chi Minh City should promptly remove obstacles in law enforcement, helping real estate transactions take place normally, avoiding the situation where people's buying and selling activities are stagnant due to passivity in law enforcement.