The stock market, real estate is vibrant, the tax industry also benefits

In the first 5 months of the year, personal income tax revenue from securities increased by 320%, real estate transfer tax increased by 183%. Hot money is pouring into stocks and real estate.
Personal income tax skyrocketed

General Director of Taxation Cao Anh Tuan said that in May 2021, state budget revenue managed by tax authorities was estimated at VND 86,317 billion, equaling 7.7% of the estimate. Accumulated state budget revenue in 5 months reached 51.6% of the estimate, equal to 114.5% over the same period in 2020. Currently, the whole industry has 52/63 localities with budget revenue reaching over 45% of the estimate. In which, personal income tax (PIT) had a high rate of collection, reaching 60.2% of the estimate and increasing by 12.7% over the same period. In which, the income from personal income tax still increased and focusing on income from securities increased by 320% over the same period, from individual capital investment increased by 169% over the same period, from real estate transfer ( Real estate) increased by 183% over the same period. It can be seen that the hot growth of the stock and real estate markets in the first months of the year also contributed to the increase in income from real estate registration fees, personal income tax from capital transfers, securities transfers and real estate transfers. . Specifically, many real estate projects were transferred, leading to a sudden increase in CIT revenue from real estate transfer of about VND 6,000 billion in some localities. Economic expert Can Van Luc analyzed that there are some investors who have idle money while bank deposit interest rates are relatively low compared to their expectations, so they switch investment channels to real estate. Also in recent times, some investors in the stock market have made profits. At that time, they started selling securities and started using that money to find a medium and long-term investment channel, which is land. Therefore, the activities of buying and selling – exchanging, reselling – transferring take place quite a lot when stocks break to the top and real estate makes waves. All activities are subject to taxes and fees. This is the main reason for the sudden increase in PIT revenue from real estate – securities in recent years. According to Professor Dang Hung Vo, developed countries use a high progressive rate transfer tax tool in cases of “surfing” quick buying and selling. They also have their own tax on the extra value of land brought in by other people’s investments. Currently, Vietnam’s property tax system has not been renewed, so it is not possible to use tax tools to cut land fever. The transfer of land use rights by people still has to confirm transaction registration. Tax collection for apartment and house rental activities Recently, Ho Chi Minh City’s Steering Committee against loss of state budget revenue has issued a plan to strengthen revenue management, urge collection and combat state budget revenue loss in 2021, including a theme on tax management for activities of renting apartments and houses in apartments and buildings. In the immediate future, this topic will be piloted in a number of apartment buildings in District 11. With this problem, financial experts say that it is normal to collect taxes on apartments and houses for rent. However, the problem is how to do it in accordance with the law, for the convenience of the people (household heads), to ensure transparency and fairness. Responding to this issue, the Ministry of Finance said that according to the provisions of the Law on Value Added Tax and the Law on Personal Income Tax, business individuals with a turnover of 100 million or less are not subject to tax. Individuals who have rental properties with a turnover of over 100 million VND/year (over 8.3 million VND/month) are determined to be subject to tax declaration and payment. Accordingly, the tax collection for apartment and house rental activities is to comply with the provisions of current laws as well as the laws of many countries around the world. In the coming time, in order for tax-paying apartment and house renters to fulfill their obligations to the state and society most conveniently, the tax sector will also promote widespread propaganda so that people can understand. paying tax when renting a house is a responsibility and obligation and must be strictly observed.