This Decree is to further amend, supplement to the regulations pertaining to land price to be deducted upon calculation of tax on real estate transfer and VAT refund policy for investment projects.
Accordingly, for the case of receiving land-use right, then re-selling the land-use right, the land price permitted to be deducted for VAT calculation is the land price at time of receiving the transfer of land-use right, NOT including value of infrastructure. Under the earlier regulations at Decree No. 12/2015/ND-CP , it is allowable to deduct value of infrastructure.
If it is impossible to separate value of land-use right from value of infrastructure, the land price to be deducted for VAT calculation is land price set by the provincial People's Committee at the time of receiving the transfer.
However, business establishments are allowed to deduct input VAT on the infrastructure (if any).
For the case of transfer of houses, infrastructure and the sum of money is collected according to the project execution or payment schedule, this Decree specifies that the value-added taxable price is the sum of money collected according to the project execution or payment schedule (-) the land price permitted to be deducted corresponding to the rate % of the sum of money collected over total value of contract.
Regarding policy on tax refund for investment projects, according to the new regulations, with regard to investment projects of business establishments engaging in conditional business lines, they shall be considered for VAT refund if the VAT that has not yet fully credited reaches VND 300 million or more and they fall into the following cases:
(i) Investment projects, which are being invested, have been granted the document for engaging in conditional business lines according to any of these forms: License or certificate of written confirmation, approval.
(ii) Investment projects, which are being invested, under regulations of laws on investment, specialized laws, not yet have to apply for obtaining the document for engaging in conditional business lines;
(iii) Investment projects under regulations of laws on investment, specialized laws that are not required to apply for the document for engaging in conditional business lines.
This Decree takes effect from September 12th, 2022.
To abrogate Article 2 of Decree No. 10/2017/ND-CP dated February 9th, 2017.
|Published||Vietlaw's Newsletter No. 574|