Real estate transfer tax recovery

Data from the Ministry of Finance showed that the cumulative personal income tax collection in the first seven months of this year is expected to be about VND 114,687 billion, reaching 72% of expectations and an increase of 15% over the same period last year.

The Ministry of Finance said the main contributors to the increase in personal income tax were property tax and securities transfer tax, which increased by 65% ​​and 32% respectively.

Last year, due to the difficult market environment, the real estate transfer tax fell sharply for the first time in many years, down 46% to 18.6 trillion VND. Compared with the low base last year, the personal income tax source from transfer transactions has recovered.

Personal income tax is one of the 14 tax revenues, and the tax progress has completed more than 65% of the annual plan. Data from the General Department of Taxation showed that some revenues have made good progress, such as lottery revenue reaching 32.7 trillion VND; and economic organizations’ investment budget funds revenue of about 17.7 trillion VND.

In addition, land use revenue reached VND106.3 trillion, up more than 90% year-on-year, but only equal to 45% of the estimate. The Ministry of Finance assesses that some localities have well organized the auction and land allocation for projects starting at the end of 2023, which will generate payments this year. For example, the Ecological Park project (Nghe An) is about VND1 trillion, the Pho Moi (Hung Yen) project is about VND700 billion; the Mai Ba Huong residential area project (Long An) is VND970 billion or the Bach Dang Investment Company Limited (Haiphong) project is VND120 billion…

In the first seven months of this year, the total domestic revenue is expected to exceed 985.3 trillion VND, equivalent to 68% of the forecast, an increase of 16%. Crude oil revenue is expected to be close to 34.4 trillion VND, equivalent to 75% of the forecast, a slight decrease year-on-year. The average oil payment price for the seven months reached US$88 per barrel, an increase of US$18 over the forecast. The paid crude oil production was about 4.7 million tons, more than half of the plan.

In addition, the import and export balance income was about 158.5 trillion VND, equivalent to nearly 78% of the estimate, an increase of nearly 12% year-on-year. Due to the sharp increase in imports and exports in the first seven months, this income may be higher. However, according to the Ministry of Finance’s Order No. 94, the 2% VAT reduction policy for some products also reduced this income by 10.5 trillion VND.

In the first seven months of this year, the total budget revenue managed by the tax industry exceeded 10 billion VND, an increase of nearly 15% year-on-year.

As of July 15, 2024, the tax industry has conducted more than 28,000 inspections and tests, reaching 42% of the annual plan. By the end of July, the collection of tax debts exceeded VND50.5 trillion, an increase of 26% year-on-year.

Qiongzhuang