Subsystems of Housing and Land Tax Policy

- Second, control the legal registration of housing and land. When a subject registers his/her legal land use rights and home ownership, he/she must present documents proving his/her rights to the house and land to the competent state agency and the application will be considered and approved if it meets all legal requirements, and the subject must pay a tax, which is the housing and land registration tax. Therefore, through the housing and land registration tax payment dossier, the State can grasp the situation of legal housing and land use of different social classes, which is an important basis for the State to implement management policies for housing and land.

- Third, an equally important goal is to encourage the economical and effective use of housing and land. Housing and land tax policies will affect those who own many houses and land, who will be subject to high tax rates; or abandoned houses and land will be subject to high taxes... At the same time, through the implementation of tax policies on housing and land, it will contribute to the inspection and control of the use of housing and land, ensuring their proper use.

c). Output targets of housing and land tax policy

The output target is the product or service created from policy actions. Thus, the output of housing and land tax policy is the policy compliance of policy-related subjects, including both the subject and the tax policy object. A housing and land tax policy that is drafted, then promulgated and put into implementation, always needs to aim at policy compliance: policy implementers need to properly exercise their powers and responsibilities, policy subjects must comply with tax declaration, tax rates and payment time. This target can be measured through indicators such as: the number of taxpayers, as well as willingness to pay taxes; people's understanding of tax policy; the number of people paying the correct and full amount of tax payable...

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1.2.3.2. Subsystems of housing and land tax policy

As analyzed in section 1.2.1.3. The possibilities of taxing houses and residential land

and combined with the scope of tax policies on housing and residential land, when referring to

The subsystems of housing and land tax policies usually include two groups: tax policies on housing and land registration activities and tax policies on housing and land use.

a). Tax policy on housing and land registration

(1). Policy objectives: in addition to the general objectives of tax policies, the specific objective of the tax policy on housing and land registration is to control the situation of land use and legal housing ownership.

(2). Taxpayers and non-taxpayers: Taxpayers of the tax policy on housing and land registration are organizations, households, and individuals when legally registering housing and land.

(3). Taxable object: the taxable object specifies where and what the tax is levied on. Therefore, the taxable object of the tax policy on housing and land registration is the housing and land that the taxpayer brings to register. This taxable object is generally easy to determine due to the fixed location of housing and land; of course, in tax policies, it is also necessary to clearly define which types of housing and land are subject to tax and which types of housing and land are not subject to tax.

(4). Tax basis:

- Determining the value of housing and land: in reality in countries, the value of housing and land to calculate housing and land registration tax can be determined as the following types of prices:

 Market price at the time of tax calculation: is the value of houses and land when bought, sold, exchanged, or transferred on the market in accordance with the law of supply and demand for houses and land. This is the basis of value that is prioritized in determining taxable prices. However, determining taxable prices based on market values often encounters some difficulties: not all taxable houses and land are bought, sold, or exchanged on the market to determine market value; market values often fluctuate, so taxable prices also change frequently, so taxable prices can be determined based on fixed prices.

 Fixed value: the value of houses and land for tax purposes can be fixed based on the tax price list applicable to each type of house and land. Currently, in most countries, the fixed value of houses and land for tax purposes set by state management agencies is used as the tax price.

Regardless of the method, it is necessary to conduct housing and land valuation; housing and land valuation can currently be done through the following 5 methods:

 The comparison method is a valuation method based on the analysis of the prices of houses and land similar to the house and land to be valued that have been successfully transacted or are being bought and sold on the market under normal commercial conditions at the time of valuation or close to the time of valuation to estimate and determine the market value of the house and land to be valued. This is the main method in determining taxable prices. The most important point to note in using the method is the selection of criteria for comparison, especially for residential land. In this content, the author has developed a set of comparison criteria, including: (1). Legal characteristics; (2). Shape of the plot of land; (3). Size, scale; (4). Traffic advantages; (5) Business advantages; (6). Social infrastructure; (7). Technical infrastructure; (8). Environmental landscape; (9). Feng shui; (10). Time of transaction; (11). Conditions and nature of transactions in the market; (12). Planning; this is the important basis for analyzing and adjusting the prices of comparative residential land to find the price of residential land that needs to be valued. The specific content of the method and application of the above criteria have been presented in detail in Appendix No. 5.

 The income method is a valuation method based on converting future net income streams that can be received from exploiting housing and residential land into present value to estimate the market value of the housing and residential land to be valued (see Appendix 5 for the contents of the methods).

 The profit calculation method is a valuation method based on the conversion of future net profit streams that can be received from the exploitation of assets.

Converting housing and land into current value to estimate the market value of housing and land to be appraised (content of the methods see Appendix No. 5).

 The cost method is a valuation method based on the cost of creating a house similar to the house to be valued to determine the value of the house to be valued. As for residential land, it is determined by the opposite process to determining the value of the house (including land and construction works), with this work, it is often called the deduction method (the content of the methods see Appendix No. 5).

 The surplus method is a valuation method in which the market value of the house or land to be valued is determined based on the existing capital value by taking the estimated value of the assumed development of the house or land (total revenue) minus all costs incurred to create that development (see Appendix 5 for the contents of the methods).

- Determine tax schedule and tax rates

The tax rate represents the level of government mobilization compared to the taxable price and is expressed in the form of tax rates or tax rates. Tax rates are implemented in two forms and are usually divided into four types.

+ Two forms of expression of tax rates:

 Absolute tax rate or tax rate is the tax rate calculated in absolute numbers according to a physical unit of the taxable object. For example, each registration must pay 10 million VND.

 Relative tax rate or tax rate is the tax rate calculated as a percentage of a unit of value of the taxpayer. For example, the registration fee for residential land is 0.5% of the land use right value.

+ Four types of tax rates:

 Uniform tax rate means the same tax rate for all taxable entities;

 Stable tax rate means the tax payment rate is regulated at the same rate compared to the tax base;

 Progressive tax rate refers to the tax rate that must be paid that increases gradually according to the increase in the tax base. To implement this type of tax rate, countries often design specific tax schedules. Currently, there are usually three typical types of progressive tax rates:

 Simple progressive tax schedule is a type of tax schedule that divides the tax base into different taxable levels, and each taxable level specifies the absolute tax rate to be paid;

 A progressive tax schedule is a type of tax schedule that divides the tax base into different taxable levels and each taxable level has regulations on increasing tax rates;

 The fully progressive tax schedule is similar to the partially progressive tax schedule, except that each taxable level has regulations on increasing tax rates corresponding to the increase in the tax base.

 Regressive tax rate means the tax payable decreases gradually according to the increase in the tax base. The tax calculation method in this direction also builds a tax table similar to the calculation according to progressive tax rate.

(5). Determining tax exemption and reduction

Exemption and reduction of housing and land tax is a regulation issued by the State allowing taxpayers not to pay the entire amount (tax exemption) or only to pay a portion (tax reduction) of the tax amount that should have been paid. The purpose of tax exemption and reduction is to create conditions to help taxpayers overcome difficulties, as well as to implement the State's socio-economic policies. However, exemption and reduction of housing and land tax also has two sides: the positive side is to create conditions to implement the State's socio-economic policies; the negative side can distort the fairness of tax policies.

Similar to other common tax policies, housing and land tax policies often provide regulations on exemption and reduction of housing and land registration tax. Types of housing and land exempted and reduced from regular tax are housing and land for public purposes, housing and land for religious purposes, housing and land for

housing of the poor, the elderly, the disabled, assets serving essential needs for daily life, or in cases where taxable assets are damaged due to objective reasons such as natural disasters, wars, etc.

(b). Tax policy on the use of housing and residential land

(1). Policy objectives: in addition to the general objectives of tax policies, the specific objective of the tax policy on the use of housing and residential land is to combat speculation in housing and residential land; at the same time, contribute to ensuring the economical and effective use of housing and residential land.

(2). Taxpayers: Taxpayers of the tax policy on the use of housing and residential land are individuals, households, organizations, and those who are using residential land and housing, regardless of whether it is legal or illegal.

(3). Taxable subjects: Taxable subjects of the tax policy on the use of housing and residential land are legally and illegally formed housing and residential land.

(4). Tax basis:

- Determining the value of housing and land: the value of housing and land for calculating land use tax is also determined similarly to the above-mentioned housing and land registration tax policy, that is, there are usually two types of prices: market price at the time of tax calculation or fixed value, depending on each specific case which type of price is implemented.

- Determining the tax schedule and tax rates: the tax schedule and tax rates of this use tax policy are also often implemented in two forms and divided into four types as in the housing and land registration tax mentioned above. However, a point to note in this housing and land use tax policy is that countries often divide into different price ranges (areas) to apply different tax rates and mainly use relative tax rates, rarely using absolute tax rates.

(5). Determining tax exemption and reduction

Similar to the housing and land registration tax policy, the housing and land use tax policy also often provides regulations on exemption and reduction of housing and land use tax. The principles of this exemption and reduction are also implemented similarly to the housing and land registration tax policy.

1.2.3.3. Tools for implementing housing and land tax policies

To achieve the policy objectives, the state needs to build a system of implementation tools. The implementation tools of housing and land tax policies include: economic tools, administrative-organizational tools, psychological-educational tools and technical and professional tools.

a). Economic tools: Of course, tax policy in general and housing and land tax policy in particular have the goal of generating revenue for the state budget. However, to effectively implement this policy, there must be costs for the stages of the policy process (costs for policy planning, policy implementation and policy control). In addition, economic incentives (through rewards, rates, etc.) are always a great motivation for those participating in the policy process, helping this process operate smoothly and achieve high results.

b). Administrative-organizational tools: administrative-organizational tools include many tools, the following basic tools can be mentioned:

- How to organize the apparatus and staff: the organizational apparatus needs to be built on the basis of implementing the tasks of the housing and land tax policy. A good apparatus needs to clearly define the powers and obligations of each level and each person, and there needs to be a mechanism for monitoring and self-checking each other in the stages of the housing and land tax policy. A good apparatus, but without good staff, cannot operate, or even if it operates effectively, it will not be effective. Therefore, along with perfecting the contents of the policy, it is also necessary to build a team of staff implementing housing and land tax who are enthusiastic, knowledgeable, impartial and devoted to the people. In addition, there needs to be a strategy for continuous training and development, regularly updating and improving all aspects of the housing and land tax staff, helping them to be "both red and professional".

- System of legal documents: housing and land tax policies will be specified by a system of legal documents. Once specified by a system of legal documents, the enforcement of the policy is increased, therefore, the issuance of these documents must be within the right authority, must be unified, must not overlap, must be easy to understand and easy to apply. Depending on each area of housing tax policy

Housing and residential land will be institutionalized in appropriate documents: the National Assembly and the National Assembly Standing Committee promulgate codes, laws, and ordinances; the Government promulgates decrees and decisions; ministries, ministerial-level agencies, and government agencies promulgate circulars and decisions; in addition, there are regulations and decisions of local agencies. [60, pp.40-42]

c). Psychological and educational tools: psychological and educational tools include the mass media system (radio, television, press), specialized information system (specialized consulting, specialized documents), education system, system of political, social and professional organizations, unions. Housing and land tax policy has a widespread impact on everyone in society, so transparency and clarity in all policy stages are extremely necessary. This group of tools helps people raise awareness of housing and land tax policy; clearly see their rights and responsibilities in the policy process, thereby having responsibility in this process, especially responsibility in implementing housing and land tax policy, ensuring that the policy achieves its set goals. [61, p.43]

d). Technical tools: when mentioning technical tools in implementing housing and land tax policies, it is impossible not to mention the procedures for performing tasks (processes in tax collection and payment; declaration process; payment and settlement process...), in addition, it is necessary to mention the system of machines and equipment serving the implementation of these tax policies (computer systems, information network systems, printing systems...). In short, to operate a housing and land tax policy is extremely complicated, without these specific technical tools, it is very difficult to implement, or to implement incompletely, omitting tasks... greatly affecting the effectiveness of housing and land tax policies.

1.2.4. Evaluation of housing and land tax policies

1.2.4.1. Criteria for evaluating housing and land tax policies

Taxes are not only used to concentrate revenue for the state budget but also one of the important tools for macroeconomic adjustment of the economy. Therefore, building an effective tax system to satisfactorily solve both of the above requirements is always of interest to world scientists who want to do so.

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