Ho Chi Minh City's tax collection from real estate transactions increased by 54% in 9 months

The Ho Chi Minh City Tax Department has just released a 9-month report on the state budget collection situation with revenues from land. Of which, personal income tax from real estate transfer activities reached 4,914 billion VND, an increase of nearly 54% over the same period.

The unit said the high growth was due to the high demand for transactions from people, mainly due to the desire to complete transactions before the new Land Law takes effect. The Tax Department recorded high tax collection in June and July with increases of 50% and 74% compared to the same period.

However, after the new Land Law took effect from August 1, the Ho Chi Minh City People's Committee has not yet issued a new land price list, causing the number of real estate transactions to decrease. The number of tax payments in August decreased by 32% and the amount decreased by 28%. By September 21, Ho Chi Minh City temporarily applied the current land price list, the number of tax payments increased by 9% compared to August, and the amount paid also increased by 19% compared to the same period.

In the first 9 months, Ho Chi Minh City's budget revenue from land revenue reached VND10,510 billion, up 58% over the same period and reaching nearly 27% of the estimate.

Of which, land use fee collection reached VND5,933 billion, up nearly 54% over the same period. This period saw some unusual payments, such as VND811 billion paid by Khang Phuc House Company Limited for a project in Binh Chanh district.

In addition, due to the expected application of the new Land Law issued on August 1, there will be a new land price list, thus creating many cases of people paying land use fees in arrears and increasing the need to change the purpose of land use fees, contributing to the cumulative increase compared to the same period.

Although land use fee revenue increased, it only reached a rate of more than 17%, lower than the estimate, because when the National Assembly and the Government assigned the land use fee revenue estimate for 2024, they calculated the expected land use fee revenue from auction activities and project implementation in the city.

In fact, the implementation of projects in the city is facing many difficulties due to legal reasons, auction procedures, market... so this revenue is still not guaranteed according to schedule.

In addition, land rent for 9 months reached 4,234 billion VND, up 72% over the same period. This amount increased because some real estate units paid land rent at once.