On July 29, 2022, the Government issued Decree No. 49/2020/ND-CP amending and supplementing a number of articles of Decree No. 209/2013/ND-CP detailing and guiding the implementation of a Several articles of the Law on Value-Added Tax have been amended and supplemented according to Decree No. 12/2015/ND-CP, Decree No. 100/2016/ND-CP, and Decree No. 146/2017/ND-CP. In which, the most prominent content is the regulation of 06 cases where the land price is deducted to calculate value-added tax.
In which, Decree 49/2020/ND-CP amends and supplements Decree No. 209/2013/ND-CP on taxable prices. Specifically, this article stipulates that, for real estate transfer, the value-added tax calculation price is the real estate transfer price minus (-) the land price deducted for value-added tax calculation.
The land price to be deducted for value-added tax calculation is specified as follows:
Picture 1: 06 case of land price subtracted for value-added tax efficiency from 12/09/2022_Hotline: 0972118764
1. In case the State is allocated land to invest in infrastructure to build houses for sale, the land price deductible for calculating value-added tax includes land use levy payable to the state budget in accordance with the law on the collection of land rent, water surface rent and compensation and ground clearance (if any).
=> Compare: Thus, compared with the old regulation, this regulation has removed the regulation "not counting the land use fee which is exempted or reduced"
2. In the case of an auction of land use rights, the land price deducted for value-added tax calculation is the auction-winning land price.
3. In the case of renting land for infrastructure construction or building houses for sale, the land price deductible for calculating the value-added tax is the land rent payable to the state budget in accordance with the law on the collection of land rent, water surface rent and compensation and ground clearance (if any).
=> Compare: In the old law, the land rent payable to the state budget does not include the exempted or reduced land rent.
Note: The compensation and ground clearance money specified in cases 1 and 3 is the amount of compensation and ground clearance according to the plan approved by the competent state agency, which is deducted from the land use levy and rent land must be paid in accordance with the law on the collection of land use levy, land rent, and water surface rent.
4. In case a business establishment receives a land use right transfer from an organization or individual, the land price deductible for value-added tax calculation is the land price at the time of receiving the land use right transfer, excluding the value of the infrastructure.
=> Compare: In the old law, including the value of infrastructure (if any).
5. In case a business establishment receives a capital contribution with land use rights from an organization or individual, the land price to be deducted for value-added tax calculation is the price stated in the capital contribution contract. In case the transfer price of land use right is lower than the price of land received as a capital contribution, only the land price will be deducted according to the transfer price.
6. In case a real estate business establishment makes payment in the form of build-transfer (BT) payment by the value of land use rights, the land price deducted for value-added tax calculation is the price at the time of signing the BT contract in accordance with the law; if the BT contract cannot be determined at the time of signing the BT contract, the deductible land price is the land price decided by the People's Committee of the province or city under central authority to pay for the work.
=> Compare: The new regulation, in addition to the "Provincial People's Committee", has added the "City directly under the Central Government" which determines the land price for construction payment.
In addition, in the case of construction, infrastructure business, or construction of houses for sale, transfer, or lease, the value-added taxable price is the amount collected according to the project implementation progress or the collection schedule money stated in the contract minus (-) the land price is deducted corresponding to the percentage of the amount collected on the total contract value.
Decree No. 49/2022/ND-CP takes effect from September 12, 2022.
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