The Finance Ministry is working with the Ministry of Natural Resources and Environment to issue a joint circular in a bid to reduce procedures and time required for citizens to conduct their financial obligations regarding land.
According to the Scheme for Exploiting Financial Resources from Land and State Assets for Socioeconomic Development in the 2013-2020 Phase, the State budget collection from land is expected to reach VND700 trillion (US$32.5 billion) in the 2011-2020 period; the State budget collection from State-owned housing and land restructuring, from relocated environment-polluting factories, and planned relocation is estimated at VND118 trillion (US$5.5 billion); and the collection from roadside land funds created from the construction of traffic works is projected at VND10 trillion (US$465 million) a year. As State budget revenue sources shrink, seeking all available sources of incomes to fulfil State budget plan is an open direction.
According to the General Department of Taxation, land taxes account for a modest proportion of total State budget revenue in Vietnam, estimated at VND47 trillion in 2013 and VND50 trillion in 2014. But, this source of income is regular and stable enough for administering and regulating macro policies and increasing expenses for land management. On that basis, the Ministry of Finance has focused on building guidance documents for the Land Law 2013 to collect taxes from land use, land lease and water surface lease, building land policies aimed at encouraging the socialisation of education, vocational training, health, culture, sports and environment fields, and issuing regulatory regimes to increase the added value from land which is not generated by investment. At first, the Ministry of Finance promulgated Circular 76/2014/TT-BTC on instructions to a number of articles of Decree 45/2014/ND-CP on collection of land-use money and Circular 77/2014/TT-BTC on instructions to the enforcement of Decree 46/2014/ND-CP on collection of land rent or water surface rent (effective from July 2014) to add a number of regulations to shorten the time for doing financial obligations concerning land. Specifically, land users need to submit land transfer or land purpose-changing documents for only one time. Authorities will define financial obligations of land users. Within three to five days after receiving full documents, tax authorities shall issue and send a notice on financial obligations to land users to inform them to go to the State Treasury for money payment.
At the same time, to shorten the time of determining financial obligations that land users must pay to the State and reduce overall social costs, the Ministry of Finance asked the Government for permission to expand the scope of applying land price-regulating coefficients to determine land-use money and land-rent tax. Accordingly, the land price-regulating coefficients developed for specific areas and roads will be based on market situation and local socioeconomic conditions. This will be made on annual basis.
Bui Van Nam, General Director of General Department of Taxation, said that, while cutting administrative procedures to encourage businesses, organisations and taxpayers to perform financial obligations relating to land, the Government also simplify procedures and reduce land-use money and land rents and introduce income source-maintaining policies. For example, households and individuals with financial difficulties will be indebted land-use money. If they settle their debts ahead of schedule, they will be granted financial incentives based on the time and value of tax paid beforehand.
Le Hien
Đăng ký: VietNam News