Many risks when transferring investment projects
In a report to the National Assembly Standing Committee on the implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023, the Ministry of Finance pointed out many loopholes. , exist and limit activities in mobilizing investment capital to build commercial housing projects, transferring investment projects as well as transferring real estate.
Regarding mobilizing investment capital to build commercial housing projects, the Ministry of Finance said that previously, according to the provisions of housing law, investors were allowed to sign contracts, capital contribution documents or contracts, documents. investment cooperation agreement with organizations and individuals to invest in housing construction and the party contributing capital or the party participating in investment cooperation is divided into housing products based on the capital contribution ratio as agreed. .
Many shortcomings and limitations in mobilizing investment capital to build commercial housing projects. Illustration.
However, according to current regulations, investors are not allowed to apply capital mobilization to divide housing products or to prioritize registration, deposit, enjoy housing purchase rights or to divide use rights. land in the project to the party receiving capital, except in the case of contributing capital to establish a new legal entity to be assigned by the State as an investor in a housing construction project.
After completing the construction of the foundation of the house according to the provisions of Decree 71/2010/ND-CP dated June 23, 2010, the investor can sign a contract to buy and sell houses and works to be formed in the future. to replace previously signed capital contribution contracts. After signing the contract to buy and sell houses and works to be formed in the future, the capital contributor is allowed to transfer the contract to buy and sell houses and works to be formed in the future.
However, according to the Ministry of Finance, in reality, state agencies still cannot control the fact that investors still sign contracts (in many forms) with individuals, only until the individual has a need to transfer. transferred and submitted documents to the tax authority to discover the incident.
There are also cases where the investor accepts payment of personal income tax on behalf of the buyer and collects personal income tax from the buyer when transferring the capital contribution contract but does not pay tax to the state budget.
Regarding the transfer of investment projects, the Ministry of Finance said that taxpayers are legal entities that transfer investment rights and exploit part or all of investment projects to other organizations and individuals in the form of investment projects. Forms of division, merger, business conversion or capital transfer are governed by laws on land, investment, housing and real estate business.
In case the transferring organization is a State-owned enterprise, it must also comply with the provisions of law on management and use of state capital invested in production and business at the enterprise and the law on public asset management.
According to the Ministry of Finance, the above activity is subject to many risks such as declaring transfer prices that do not match the actual price, causing loss of revenue to the State budget; Transferring the project when the transfer conditions are not met according to the provisions of law; Selling assets without auction causes loss of public assets of the State; improper use of land.
