Tax (3.3% Buyer & Seller)

[whatchamacallit]

Is it true that this 3.3% tax (from the total value of the property) which usually is devided 50/50 between the buyer and the seller is now has been totally abolished or reduced drastically? When did this happen?

We made the final payments for a unit we purchased at VT5D a couple of weeks ago, but they charged us the half of the 3.3 tax (1.65%). As of yet, the deed/title is not done - Do you think I can get a refund?

Edited April 17, 2008 by whatchamacallit

[Chopper]

My understanding is (though open to correction by more knowledgeable posters' here) now that the land department has reduced the tax effective on March 31, 2008 the tax rate should be as follows:

Transfer Fee from 2 % to 0.01 % of the valuation price by Land Office.

Special Business Tax from 3.3 % to 0.1 % of the valuation price by Land Office.

Mortgage fee from 2% to 0.1% of the loan amount.

You say you 'a couple of weeks ago'. What date did you do the transaction exactly? Was it post March 31st?

[whatchamacallit]

My understanding is (though open to correction by more knowledgeable posters' here) now that the land department has reduced the tax effective on March 31, 2008 the tax rate should be as follows:

Transfer Fee from 2 % to 0.01 % of the valuation price by Land Office.

Special Business Tax from 3.3 % to 0.1 % of the valuation price by Land Office.

Mortgage fee from 2% to 0.1% of the loan amount.

You say you 'a couple of weeks ago'. What date did you do the transaction exactly? Was it post March 31st?

Thank you for your reply. Yes I gave them the closing fee monies a couple of weeks ago... BUT the fact that the papers have not been signed by the owner (me) - means the process has not yet been started at the Land Office - so therefore should I be entitled to the refund?

[tangoll]

The Specific Business Tax has been reduced from 3.3% to 0.1% of the value of the transaction as assessed by the Land Office. This reduction is effective for transactions over the next 12 months. The SBT is assessed on the seller, but in a sales agreement, the seller can negotiate to have the buyer pay part or all of the tax. The normal practice for the transfer fee is split 50/50 between seller/buyer.

So, if your agreement with the seller is to split the SBT 50/50 and your transaction date falls within the effective date of this new ruling, you will benefit from the reduction in the SBT tax rate. The seller should not bill you for 1.65% under the old rate when in fact what he paid was only 0.1% being the actual tax paid. Ask to see the actual payment document for the SBT and go from there.

[MrPaddy]

They charged you half of the 3.3% ?

Wow, a truly reputable firm to know to deal with in the future.....not.

[quiksilva]

I presume that you were the buyer in the transaction? (You will not be the owner until transfer has been completed).

But yes, I think its a reasonable request, the transfer fees have already been reduced to the quoted rates.

But the fact that they make the buyers pay for transfer costs indicates that they might be less than reasonable...

[Tammi]

I presume that you were the buyer in the transaction? (You will not be the owner until transfer has been completed).

But yes, I think its a reasonable request, the transfer fees have already been reduced to the quoted rates.

But the fact that they make the buyers pay for transfer costs indicates that they might be less than reasonable...

Welcome to VT.

[whatchamacallit]

I presume that you were the buyer in the transaction? (You will not be the owner until transfer has been completed).

But yes, I think its a reasonable request, the transfer fees have already been reduced to the quoted rates.

But the fact that they make the buyers pay for transfer costs indicates that they might be less than reasonable...

Welcome to VT.

Well.. I went back to VT office today and got my refund :-) Thanks guys!!!!!!!!!

[johnnyk]

I wasn't as lucky.

Did my transfer in January and paid 20K more than if I had done it in November

Then they reduced it as posted, opening the window again after it had slammed shut on my fingers.

[alive555]

I wasn't as lucky.

Did my transfer in January and paid 20K more than if I had done it in November

Then they reduced it as posted, opening the window again after it had slammed shut on my fingers.

the SBT is levied against and paid by the seller if he asks u to pay for it tell him NO.

[johnnyk]

I wasn't as lucky.

Did my transfer in January and paid 20K more than if I had done it in November

Then they reduced it as posted, opening the window again after it had slammed shut on my fingers.

the SBT is levied against and paid by the seller if he asks u to pay for it tell him NO.

too late, i had already contracted to pay it and he would have sold to someone else if i had told him NO.

mai bin lai, i'm happy with my property as its appreciated nicely (on paper, at least).