Domestic and International Context Affecting the Completion of Housing and Land Tax Policy

However, with the development of the socio-economy, the demand for housing and residential land is also increasing, leading to the need for more reasonable housing and residential land management policies, including housing and residential land tax policies.

The thesis also analyzed clearly the current status of the policies of housing and land tax policy in Vietnam, such as: housing and land registration tax policy; housing and land use tax policy. This is the main content of this chapter, so for each policy of housing and land tax policy, the author analyzed clearly the policy objectives, the system of current legal regulations that are mainly affecting the policy, especially analyzing the basic elements of the policy, such as: taxpayers, taxable subjects, taxable prices, tax rates.

The thesis analyzes the housing and land tax policy process and points out that the current policy process is unreasonable, especially the policy planning stage, which is the content that needs to be improved.

Based on the analysis of tax management activities, the thesis concludes: decentralization is unclear, the information processing system is decentralized, many subjects do not clearly understand the policy, and human resources have low professional qualifications, so they cannot meet the requirements of tax management in the new period.

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To assess the general status of housing and land tax policies, the author also analyzed the current status of policy tools, such as: economic tools, administrative-organizational tools, psychological-educational tools, and technical tools. From there, the thesis evaluates housing and land tax policies according to the process presented in chapter 1 on 6 policy evaluation criteria. Through the assessment of housing and land tax policies, the thesis clearly shows that the effectiveness of the policy is still low (manifested by the fact that many policy goals have not been achieved), the policy efficiency is not high (still ignoring the ability to tax housing, a source of revenue with a low proportion in total revenue related to land - about 4%), and at the same time, clearly analyzes the successes and limitations of the current housing and land tax policy in Vietnam, as well as finding the causes of those successes and limitations, this is the important practical basis for the policy improvement contents presented in Chapter 3.

CHAPTER 3

SOLUTIONS TO IMPROVE HOUSING AND LAND TAX POLICY IN VIETNAM BY 2020

3.1. Domestic and international context affecting the completion of housing and land tax policies

3.1.1. Advantages in perfecting housing and land tax policies

- The scientific and technological revolution taking place globally is and will create great opportunities for applying high technology in economic sectors, including the tax sector, especially in the field of housing and land tax: such as applying technology in managing certificates of land use rights and house ownership rights; applying in declaring housing and land tax; applying in the management and calculation of excess area,...

- Vietnam is increasingly participating in international cooperation, especially since becoming the 150th member of the world's largest trade organization - WTO. Through this, Vietnam can promote its advantages, as well as repel potential risks that negatively impact development. Moreover, Vietnam is a latecomer in the international integration process, so we can draw many valuable lessons from the leading countries in innovating and perfecting tax policies in general and housing and land tax policies in particular. In developed countries, housing and land tax policy is one of the important property tax policies, which has existed for a long time and this is a policy with a wide range of influence, creating a regular and not small source of revenue for the state budget, so countries often have in-depth studies on this tax policy, this is a favorable condition for Vietnam to learn from the experiences of other countries on housing and land tax policies.

- Vietnam has a stable political system, the Party and the State are determined to innovate socio-economic policies, especially the financial and monetary policy system to promote sustainable economic development. All of that

Not only does it contribute to creating a stable economic environment and increasing per capita income, but it also contributes to strengthening people's trust in the leadership of the Party and State in the upcoming renovation process, including the renovation of housing and land tax policies.

- Along with the economic renovation, we are reforming and innovating tax policies and have initially achieved encouraging successes. One of the successes of tax policy reform in recent times is to expand and promptly concentrate revenue sources for the State budget. Tax revenue has continuously increased over the years and accounts for a significant proportion of the total State budget revenue, thereby contributing to bringing the State budget from a place where domestic revenue is not enough for regular expenditures, towards ensuring sufficient regular expenditures and having savings to create capital for development investment. These initial steps have provided us with valuable experiences in the field of tax policy reform, especially housing and land tax policies in the coming time.

- In line with the general development trend of the country, policies related to education and training have also had encouraging changes, and the result of this policy is to create a team of quality human resources for the stages of the policy process. Therefore, Vietnam has enough good human resources to plan a highly feasible housing and land tax policy, as well as to organize the implementation and control of housing and land tax policies effectively.

3.1.2. Difficulties in perfecting housing and land tax policies

- The current world economy, as well as the forecast in the coming time, still has many unpredictable fluctuations and negative impacts on the global economic-political-social environment, as well as each individual country, including Vietnam, such as: fluctuations in the real estate market, instability in income, changes in exchange rates,... These issues will have a direct impact on the reform of housing and land tax policies in Vietnam.

- International integration, on the one hand, brings us opportunities, but also brings many challenges, such as: trade barriers are dismantled, leading to increased international movement of goods and capital while tax management capacity is still limited. The biggest impact on the development of tax policies when Vietnam becomes an official member of the WTO is the domination of the regulations and general principles of the WTO, such as: the principle of non-discrimination, the principle of liberalization, the principle of publicity and transparency. These rules also have a significant impact on the planning and implementation of housing and land tax policies in Vietnam. [17]

- The tax management staff resources are still limited, with uneven qualifications, and most tax officers are not properly trained, especially in mountainous provinces. In addition, low salaries and unsafe living conditions also create many difficulties in establishing an effective housing and land tax management system.

- Weak information system and poor database limit the effectiveness of housing and land tax management. Moreover, due to financial constraints, tax and statistical agencies face many difficulties in synthesizing and providing detailed and reliable statistics on housing and land. Lack of reliable data and untimely provision make it difficult for those who make decisions on housing and land tax policies to assess the impact of fundamental changes to the current housing and land tax system.

- Vietnam is in the process of industrialization and modernization of the country. This process poses a strong transformation in economic structure for the Vietnamese economy. Therefore, economic policies in general and tax policies, including housing and land tax policies in particular, need to have appropriate and innovative approaches to ensure the goal of turning our country into an industrialized country and ensuring the sustainability of development...

3.2. Viewpoints, goals and requirements for perfecting housing and land tax policies in Vietnam by 2020

3.2.1. Perspectives on perfecting housing and land tax policies

The completion of housing and land tax policies in Vietnam by 2020 needs to thoroughly grasp the following viewpoints:

- Building a modern, effective and efficient Vietnamese tax industry. Tax management is unified, transparent, simple, easy to understand and easy to implement based on three basic foundations: transparent tax policy institutions, simple and scientific tax administrative procedures in line with international practices;

- Building a system of housing and land tax policies that is synchronous, unified, fair, effective, and consistent with the socialist-oriented market economy; contributing to proactively participating in international integration, protecting national interests; encouraging investment attraction from economic sectors and foreign investment in Vietnam;

- Expanding taxable subjects and tax bases to develop revenue sources, covering all revenue collection possibilities for housing and residential land. The mobilization level from housing and residential land tax to the State budget needs to be designed at a reasonable level, in order to create conditions to promote domestic production and be one of the effective and efficient macroeconomic management tools of the State;

- Building a professional, specialized, honest and integrity tax human resource, suitable for the requirements of tax authorities' tasks; promoting assignment, decentralization, and self-responsibility within the scope of work assigned;

- Modernize the office; equip with advanced and synchronous equipment; promote the application of information technology in tax management, ensure high connectivity, integration, automation, closely linked with the process of administrative procedure reform and application of electronic tax. [21, pp.1-5]

The above viewpoints on perfecting housing and land tax policies by 2020 are the basic orientations that comprehensively govern the consideration to perfect the contents of housing and land tax policies in the following sections.

3.2.2. Objectives of perfecting housing and land tax policies

The innovation and improvement of housing and land tax policies need to achieve the following goals:

- Objective 1, strengthen state management of housing and residential land

Housing and land tax policies must contribute to creating a legal corridor for the implementation of the State's management function in the real estate sector in general and housing and land in particular. This tax policy is an effective tool to serve the requirements of control and administrative management of housing and land. Through tax policies on housing and land, the State will grasp legal information about owners and users of housing and land, as well as information related to the economic and technical characteristics of housing and land, thereby helping to regulate and manage both economic and social aspects.

- Objective 2 : Increase revenue for the state budget, while ensuring social equity.

Housing and land tax policies in the reform process must enhance the contribution obligations of relevant parties to increase revenue for the State budget, while gradually implementing social equity in enjoying public benefits. Promoting the regulatory role of taxes for those who own and use houses and land is necessary. Those who have many houses and land must pay progressive taxes at higher rates than those who have few houses and land. At the same time, tax policies must take into account cases where a person owns many houses and land for speculative purposes, causing negative impacts on the real estate market. Thereby, reasonably mobilizing the State budget, using a part of tax revenue to compensate and implement social security issues, contributing to ensuring social equity.

- Target3 , contributing to encouraging the healthy development of the real estate market

Through the real estate tax policy, the state proactively orients, regulates, controls and stabilizes the real estate market, overcomes spontaneous and speculative real estate, ensures that this market operates openly and transparently, limits and gradually eliminates the unofficial real estate market, and ensures fairness in holding and transferring real estate.

- Objective 4, encourage organizations and individuals to use housing and residential land effectively.

Determining taxes on housing and land, as well as the subjects of each tax and tax rates, plays an extremely important role in orienting the effective use of housing and land. Housing and land are special and scarce commodities. The total natural land fund cannot increase, and the number of houses cannot increase suddenly and continuously. Therefore, it is necessary to have a plan for the effective and economical use of housing and land.

3.2.2. Request to improve housing and land tax policy

To achieve the above main objectives, the housing and land tax policy in the process of completion needs to ensure the following requirements:

Firstly, housing and land tax policies must ensure compliance with international practices in the context of integration. Currently, Vietnam is an official member of the WTO, which requires Vietnam to make great efforts in its policy commitments, including tax policies. What we need to do is to approach international practices on tax policies, comply with regulations, standards, and principles of the WTO in the process of perfecting tax policies in general and housing and land tax policies in particular, moving towards international integration in tax.

Second, housing and land tax policies must be consistent with other economic policies related to housing and land of the State, such as: land policy, housing policy, policies on real estate market development, traffic policy... In particular, housing and land tax policies must be placed in relation and synchronized with other tax policies in the tax policy system.

between these policies is an important condition to ensure successful implementation of tax policies, as well as to avoid overlaps, duplications, and difficulties in the stages of the policy process.

Third, the incentive level of housing and land tax must be built reasonably, in accordance with the contribution capacity of owners and users of housing and land. The study and completion of housing and land tax policy must aim to establish a fair and effective tax system capable of financing necessary public spending needs. Especially in the current context of international integration, tax policy plays a particularly sensitive role and needs to ensure: First, increasing revenue to finance necessary spending needs; second, increasing revenue in a way that ensures fairness and minimizes negative impacts on economic activities; third, increasing revenue in a way that does not significantly deviate from international practices and standards.

Fourth, tax policy needs to both ensure revenue for the budget, improve the efficiency of tax collection management, and encourage the process of creating and using housing and land economically and effectively.

Fifth, the housing and land tax policy must be developed and implemented in a simple, easy-to-understand, easy-to-do, and easy-to-check manner. The provisions in the tax policy must be clear, transparent, and convenient for both taxpayers and tax collectors. To ensure this, the tax policy must be clear and transparent in determining taxable and non-taxable housing and land, the provisions on tax bases must not be too complicated and easy to determine in specific cases, there must not be too many cases of tax exemption or reduction, the determination of tax exemption or reduction cases and the amount of tax to be reduced must not be too complicated...

Sixth, housing and land tax policies must cover all tax possibilities and tax payment possibilities related to housing and land of residents.

3.3. Solutions to improve housing and land tax policies

Based on theoretical foundations and lessons learned from studying housing and land tax policies of countries and territories