Ownership Regulations A Full 183 Days: Many Home Sellers Suffer

Proposals should contain specific provisions to avoid the case of overfunding when the taxpayer assigns a single house.

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Many warm home sellers have to come to the tax office to pay personal income tax from real estate transfer to complete the procedure for the buyer because they only own the house. Tax experts also argue that forcing a landlord to own a full 183 days to be exempt from personal income tax when selling a home is a tax-deductible tax.

Home sellers appeal for tax “unfair”

Mr. Nguyen Hoang Viet from Go Vap district, HCM City said that since 1965, his family owned the land has three houses on Phan Dang Luu Street, Phu Nhuan District, Ho Chi Minh City

This is the property of grandparents trying to leave when the grandparents try to lose not leave the will so his family has to resort to the court division of inheritance. By December 12-2015, the family of Viet new papers, the land was issued by the People’s Committee of Phu Nhuan district to issue certificates of land use rights, ownership of houses and other assets attached to land for Mr. Viet owns with 15 other descendants in the family inherited.

By January 2016, his family transferred the property to another person, the tax authorities to pay income tax on the transfer of real estate owned less than 183 days in accordance with the provisions of Circular 111/2013 of the Ministry of Finance guiding the implementation of the Law on Personal Income Tax, the Law amending and supplementing a number of articles of the Law on Personal Income Tax and the Government’s Decree No. 65/2013 / ND-CP detailing Some articles of the Law on Personal Income Tax and the Law amending and supplementing a number of articles of the Law on Personal Income Tax.

However, according to Viet, this is the only house of his family has long owned, due to not intend to sell so do not do paperwork. When deciding to transfer, he should do paperwork and distribute to the descendants of the family who are entitled to inheritance from their grandparents’ property.

Mr. Viet said that his family has now paid income tax from a transfer of real estate about 500 million to the state budget. His family submitted the petition to the competent tax authorities but no response.

Tax experts say that should not be because there are several cases where the 183 days rule affects the legitimate interests of the majority of other subjects

Many readers have reflected more about their case that it is unreasonable to apply the rule “must own enough 183 days” to be exempt from personal income tax, especially in the case of inheritance.

In the case of Mrs. N, she has the only house that has been granted a certificate of ownership of the house and the right to use the land since 1999. By 2014, Ms. N’s husband dies. Then she went to the procedure of inheritance and updated the name of two children in the pink book. Then she signed a contract to sell the house.

The time from updating the name of two children in the book to the sale of fewer than 183 days so the tax authorities only agree to tax exemption with half of the house is her former. Half of the house is her inheritance and two children after her husband’s death, tax authorities still collect taxes.

According to Ms. N, if it is a sale transaction, a tax is acceptable, but here is the house she owned for a long time. Ms. N tax collectors are so unreasonable. According to Ms. N. tax authorities must base on the old house papers owned by her, but the tax authorities still under the regulations are not enough 183 days. Many people say that their whole life is only one time when they sell their houses. According to the Law on Personal Income Tax, individuals are responsible themselves.

In this case, because of troublesome solutions, the Tax Department has issued a report to the General Department of Taxation to give Mrs. N a tax exemption because it is the only house (inherited by law) without grounds. 183 days.

Should not be because some “worm cooker pot”

According to Lawyer Tran Xoa, Tax Consultant, in the case of the family of Viet, in terms of ownership, actually, to the time December 2015 when making the certificate of land use right owning houses and other assets attached to the land, he and 15 Vietnamese children have the right to own.

Although Mr. Viet and his 15 grandchildren are there for a long time, before December 2015, he has no ownership of the house. Therefore, if according to the provisions of Decree 65 and Circular 111, they have not owned 183 days, so his family has to pay personal income tax.

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“However, if according to the Law on Personal Income Tax, if prove that it is the only house of Mr. Viet and 15 of that descendant is exempt from personal income tax from the transfer of real estate. Therefore, his family has the right to sue the tax authorities to get back the tax paid if it proves to be the only house of his family. In recent times, there have been cases where people have been sued by the tax authorities for proving that their home is the only one, “Ls Delete shared.

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 Many homeowners are urged to pay personal income tax even if they qualify under the law as their only home. This is a case where the Decree is unlawful, while the Law on Personal Income Tax only regulates the condition of having only a house that is exempted from tax. Decree 65/2013 of the Government and Circular 111/2013 of the Ministry of Finance Proposes to own a full 183 days of tax-free.

According to the tax experts, the Law on Personal Income Tax only regulates that when transferring a single house, it is exempted from tax, taxpayers declare their own responsibility. However, in the process of applying some people own many houses, the land was spliced by turn to name each real estate for relatives does not own home.

Then these people stand for sale and are exempt from PIT due to the transfer of a single house, resulting in tax losses. Since then, the Ministry of Finance issued Circular 111, adding conditions requiring “ownership of houses and land use rights up to the time of transfer of at least 183 days” to be exempted from tax. This provision is designed to prevent tax evasion in the above manner.

However, tax experts say that should not be because there are some cases where the tax authorities try to avoid tax breaks that interfere with the legitimate interests of the majority of other objects… In case of issuance of a paper change or change of address as mentioned above, if there are sufficient documents proving the validity, the tax authorities should solve the rational situation rather than count the tax calculation date.

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