Real estate companies hope to offset two-way income from real estate business with income from other business activities.
On October 13, Le Hoang Chau, chairman of the HCM City Real Estate Association (HoREA), has sent a letter to the Government suggesting a change in the calculation of the offsetting of operating income for real estate companies.
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Accordingly, HoREA expects real estate businesses to offset two-way income from real estate business with income from other business activities. “This is to ensure a fair and equal business environment among all types of businesses,” Chau said.
At present, real estate enterprises can only profit from other activities to offset real estate business if they suffer losses. However, businesses are not allowed to take profits from real estate to offset other business losses.
“This regulation is inconsistent with international practices, unreasonable and unfair to real estate enterprises. Other industries are allowed by the State to make the clearing in the course of business in order to determine the profit and obligation to pay corporate income tax, “said Chau.
Earlier, at the conference “Vietnam Enterprises – the driving force for economic development of the country” was held in late April, HoREA has asked the Government to allow real estate businesses to offset income from real estate business activities with income from other business activities.
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On May 16, 2016, the Government issued Resolution 35 on supporting and developing enterprises by 2020. In particular, the Government assigned the Ministry of Finance to the chair and coordinate with ministries and agencies Studying and proposing to offset the income from the transfer of real estate with incomes from production and business activities.
However, this resolution has not yet been implemented in practice. Therefore, HoREA suggested that the Government and the Ministry of Finance should promptly allow the implementation of Resolution 35 to ensure a fair and equal business environment among enterprises.
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