HCM City’s Tax Department: Dialogue, advise tax for real estate enterprises.

Leaders of the HCM City’s Tax Department guide enterprises. Picture: Thu Hoa.

Shared with enterprises about the support from the HCM City’s Tax Department on the start-up programs, Mr. Nguyen Nam Binh, Deputy Director of the HCM City’s Tax Department said that, participating in the start-up programs of HCMC, over time, the HCM City’s Tax Department has had many programs to support newly-established enterprise and support individual business households to convert into enterprises… In particular, since April 2017, the HCM City’s Tax Department has launched a program to support start-ups.

Accordingly, the HCM City’s Tax Department support in various forms such as: launching website (www.hcmtax.gov.vn); propaganda materials such as leaflets, tutorial videos; collaborating with related agencies, media agencies; direct support at the location of the tax agencies. Start-ups can go to any convenient location to access, find information, solve a problem that is regardless of their geographical area or tax office management and the information and consultation are all free.

Besides, the HCM City’s Tax Department has trained, dialogued with enterprises established by individual business households at the district tax branches in combination with surveying information and communication need to help tax agencies to perfect this program.

At the conference, the HCM City’s Tax Department has noted newly-established enterprises on the procedures for registration and use of invoices; some notes on VAT, such as: land prices allowed to be subtracted, making invoices and tax declaration when collecting money according to the schedule, notes on land use tax obligations.

Answering enterprises' questions about the basis of VAT calculation, a representative of the HCM City’s Tax Department said that the basis of VAT calculation is the taxable price and tax rate. The taxable price is the transfer price of the real estate minus the deductible land price. The land price to be deducted for VAT is specified in Clause 10, Article 7, Circular No. 219/2013/TT-BTC and Clause 4, Article 1 of Circular No. 26/2015/TT-BTC of the Ministry of Finance. The VAT rate is 10%. For example, the case of leasing land for construction of infrastructure, houses for sale, leasing, the land prices subtracted for calculation of VAT is the land rent payable to the State budget (excluding land rent exemption or reduction) and the cost of compensation, clearance in accordance with law.

For cases what the land is allocated by the State to invest in infrastructure for construction of houses for sale, the land prices to be subtracted for VAT calculation include the land use fees which must be paid into the state budget (excluding land rent exemption, reduction) and cost of compensation and site clearance as prescribed.

Regarding the field of invoice, according to the leader of the Ho Chi Minh City’s Tax Department, the fact that many newly-established enterprises do not pay attention to the use of invoices. Thus, when having generate revenue using invoice, they will face problems or will be easy to make mistakes. For 4 types of invoices (from printing, printing electronic invoice order, and invoices sold by the tax agencies for businesses), the type of invoice sold by the tax agencies to enterprises accounted a small part.

Highly appreciating the form of a thematic dialogue of the HCM City’s Tax Department, Mr. Le Hoang Chau, Chairman of the HCM City Real Estate Association said that, over past years, the HCM City’s Tax Department has maintained dialogues with enterprises, including enterprises in the field of real estate. The support and empathy of the agency have helped enterprises to understand clearly tax regulations policies to fulfill their tax obligation with the State.

“I highly appreciate the first meeting of the HCM City’s Tax Department for the first real estate start-ups. This is the number of leading enterprises among newly established enterprises. Among newly established enterprises in Ho Chi Minh City, it is up to 50% of businesses operating in the field of real estate”- Mr. Le Hoang Chau shared.

Ms. Vu Thi Thu from Hung Thinh Investment Co., Ltd. said, due to being one of the newly-established businesses in the field of real estate, it needs the tax agencies’ advise and guide on the tax policy that helps businesses to know clearly about the rules, comply with tax policies, avoid the mistakes that lead to fines...

Sharing with the reporter on the sidelines of the conference, Mr. Tran Ngoc Tam, Director of HCM City’s Tax Department said that, to support information for businesses, especially newly-established enterprises, the HCM City’s Tax Department would hold a dialogue, supporting enterprises by sector topics. Accordingly, each month the Department will organize a thematic conference in each field. At the same time, the district branch offices will focus on supporting, for the individual business households ... listening week was held once a year, now it is held monthly for each subject. In addition, for the support program for newly-established enterprises, the HCM City’s Tax Department will carry out dialogue and support based on the group of enterprises, then post all the information, answer problems on the website of the HCM City’s Tax Department and send them to the enterprises via their email addresses registered with the Tax office.