Tax on real estate transfers

28 Jan
Tax on real estate transfers

Ministry of Finance Circular No 02/2010/TT-BTC, issued on January 11 and taking effect on February 25, subjects capital gains from real estate transfers to a tax rate of 25 per cent.

It also provides that the price stated in the transfer contract and in the tax declaration shall not be less than the value of the property as determined by the provincial People’s Committee or the value used for determining the registration fee set by the provincial People’s Committee at the effective date of the transfer contract.

The taxpayer must submit documentation proving the purchase price and related deductible expenses. In absence of such documentation, a tax rate of 2 per cent of the transfer price will be applied. If the declared transfer price is less than the price regulated by provincial People’s Committee, a rate of 2 per cent of regulated price will be applied.

Securities market disclosure requirements

The Ministry of Finance issued Circular No. 09/2010/TT-BTC on January 15, on securities market disclosure requirements.

Under the circular, public companies and other organisations making a public offer of securities, as well as listing organisations, transaction registration organisations, brokerages, fund management companies, and the stock exchanges and their affiliates are subjects to disclosure requirements.

In addition to requirements on reporting to the State Securities Commission, these entities are required to set up their own websites to upload information on shareholder relations which contain company charter, internal management regulations, annual reports, periodic financial reports, and information related to shareholders meetings.

The circular also requires an explanation whenever a listing organisation’s shares reach their ceiling or floor price for 10 consecutive trading sessions (up from five sessions, under previous regulations), or for five consecutive trading sessions contrary to the overall market trend.

The new regulation replaces Circular No 38/2007/TT-BTC of April 2007 and takes effect on March 2, 2010.

by Lawyers of Bizconsult Law Firm

Source: Viet Nam News

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