Home » After the “storm” of public opinion, the Ministry of Finance announced how to calculate apartment tax

After the “storm” of public opinion, the Ministry of Finance announced how to calculate apartment tax

The Ministry of Finance has just announced a draft of the Law on Property Taxes for comments. Accordingly, the calculation of property tax (paid annually) is expected with an apartment as follows:

Suppose a residential apartment has an area of ​​75m2 in an urban area in Hanoi (a 20-storey apartment building). Purchase price of apartments according to sale and purchase contract is 2.5 billion VND. The price of land in the land price list announced by the provincial People’s Committee for the land plot of the apartment building is VND 10,000,000 / m2. The investment capital for construction of condominiums announced by the Ministry of Construction (according to Decision No. 706 / QD-BXD on June 30, 2017) is about VND 9,710,000 / m2 (applicable to condominiums from 18 floors). to 20 floors.

According to the draft Law on Property Tax, the calculation of property tax will not be based on the purchase price of the house under the purchase contract of VND 2.5 billion, but the property tax calculation price is determined based on the agency’s price. regulatory authority.

Specifically: The tax calculation price for land is based on the price of 1m2 of land in the land price table announced by the provincial People’s Committee at the time of tax calculation; Tax calculation prices for houses are based on tax calculation prices set by provincial-level People’s Committees at the time of tax calculation based on the construction investment capital amount announced by the Ministry of Construction.

According to the Ministry of Finance, the calculation of tax based on prices issued by the competent authorities will ensure simplicity, feasibility and convenience for taxpayers in tax declaration. In addition, the property tax calculation price is stable for 5 years (calculated according to the calendar year) from the effective date of the Law on Property Tax (ie in a stable period of 5 years if there are changes to taxpayers or If the tax calculation price is changed, it is not necessary to redefine the tax payable for the remaining period of the cycle).

Total estimated annual property tax on houses and land is equal to the payable property tax on land plus the payable property tax on houses. Specifically, the amount of property tax payable on the above apartment building is calculated as follows:

The case of a new apartment building is built

The estimated amount of property tax to be paid for the above-said apartment building is as follows: In the draft regulation, the taxable price for construction land for condominiums is determined by the price of 1m2 of land in the land price list due to Provincial People’s Committee regulates to multiply (x) the house area used by organizations, households and individuals by (x) the coefficient of determining taxable land area (expected to be assigned by the Government to determine the coefficient of determination area of ​​land for tax calculation for land for construction of condominiums, of which the coefficient for determining the land area for the case of dwelling is expected to be 0.2%. Then:

Estimated tax calculation price for land determined for the above apartments: 75m2 x VND 10,000,000 / m2 x 0.2 = VND 150,000

Estimated property tax amount for land determined for the above apartments (with the expected property tax rate of 0.4%): VND 150,000,000 x 0.4% = VND 600,000 / year

The estimated property tax amount payable to the house for the apartment on:

In the draft Law on Property Tax, the taxable price for new builders is determined by the price of 1m2 of tax calculation by the provincial People’s Committee (based on the construction investment capital announced by the Ministry of Construction). ) multiply (x) the house area used by organizations, households and individuals. Then,

Taxable price for houses determined for above apartments: 75m2 x VND9,710,000 / m2 = VND 728,250,000

With a non-taxable threshold of VND 700 million, the apartment building must pay property tax as follows:

The payable property tax amount for houses determined on the above apartments (with the expected property tax rate of 0.4%): VND 28,250,000 x 0.4% = VND 113,000 / year

Thus, if the new common area is built and the tax-free threshold for the house is VND 700 million, the property tax payable for the land is VND 600,000; The tax payable for the house is VND 113,000. Total property tax payable for houses and land is 713,000 VND / year.

The case of the apartment has been put into use for 7 years

The estimated property tax amount to be paid on the land determined for the above apartment apartment is determined as the case of newly built apartment complexes. Specifically, the estimated amount of property tax payable on land determined for the above apartment building (with an estimated property tax rate of 0.4%) is VND 600,000 / year.

The estimated property tax amount payable to the house for the apartment on:

In the draft Law on Property Tax, the taxable price for used houses is determined by the price of 1m2 of tax calculation by the provincial People’s Committee (based on the construction investment capital of the Ministry of Construction). announcement) multiply (x) the house area used by organizations, households and individuals by (x) the remaining percentage of the house.

Currently, the provincial People’s Committee is prescribing the remaining quality ratio of the house to declare and pay registration fees. Therefore, it is expected that the residual quality ratio of the house to calculate the property tax will be assigned to the provincial People’s Committees (the Ministry of Finance will coordinate with the concerned ministries and branches to guide the principle of determining the rate of substances). the remaining amount of the house in the sub-law documents for the localities to implement uniformly.

Example: According to Decision No. 3203 / QD-UBND dated 24/5/2017 of the People’s Committee of Hanoi City

Determine the remaining quality table of the house as determined by the time of using the house (from the year of construction to complete handover or to bring the house into use for the year of registration fee registration) as follows:

Time for using villas at level I works, level II works, level III works, level IV works:

Less than 5 years 95% 90% 90% 80% 80%

From 5 to 10 years 85% 80% 80% 65% 65%

Over 10 years to 20 years 70% 60% 55% 35% 35%

Over 20 years to 50 years 50% 40% 35% 25% 25%

Over 50 years 30% 25% 25% 20% 20%

Assuming the residual quality ratio of the house to calculate the property tax is equal to the remaining quality rate of the house to declare and pay the registration fee, then the estimated property tax amount for the house has been used. Defined uses for the above apartments are as follows:

The estimated taxable price for used houses is determined for the above apartments

75m2 x VND9,710,000 / m2 x 80% = VND 582,600,000

Since the estimated taxable price for used houses determined for apartments above the threshold is not taxable, therefore, the property tax payable for the house (used 7 years) applies to The above apartment is 0 VND.

Thus, in case the common area has been used for 7 years, it only has to pay property tax for the land of VND 600,000 / year, without having to pay tax to the house because the value of the house is not taxable.

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