Fake Income Declarations: The Hidden Risk Undermining Real Estate Transactions

Recently, Vietnam’s General Department of Taxation (now the Tax Department) issued specific guidelines on how to handle cases where taxpayers discover false or inflated income declarations made under their name. With the expansion of the eTax Mobile platform, more individuals are uncovering that they’ve been wrongly listed as receiving income from entities where they’ve never worked.

Amid a cautious real estate market, tightening credit, and increasing regulatory oversight, these “phantom incomes” are not only a tax compliance issue — they could also pose significant risks to personal finances, credit evaluations, and real estate transactions.

eTax Mobile Exposes “Phantom Incomes”: Transparency Reveals Tax Discrepancies

According to a representative from the Tax Department, the growing adoption of eTax Mobile has enabled taxpayers to view their personal income and tax data in real time. As a result, many individuals have discovered that their name and tax ID were used by businesses to report salaries or taxable income, despite never having received such income in reality.

This is often a tactic used by some companies to inflate salary expenses, thereby reducing their corporate income tax obligations. However, such actions — aside from being illegal — directly affect the individuals involved, even if they’re unaware.

For individuals, these fake declarations can:

• Distort tax liability or refund status;

• Jeopardize bank loan applications;

• Complicate real estate transactions and property title registrations;

• Harm credit scores and financial transparency.

Real Estate Impacts: Fake Income Can Derail Mortgage Approvals and Property Transfers

In Vietnam, many banks and property-related institutions now require personal income tax declarations (TNCN) as part of mortgage or property financing documentation. If a taxpayer is falsely reported as receiving income, it may lead to:

• Discrepancies that invalidate mortgage qualifications;

• Risk of retroactive tax claims or blacklisting as a high-risk profile;

• Disputes or delays in property ownership registration;

• Disqualification from government housing support or social housing programs.

How to Report: eTax Mobile Enables Online Correction

Under the latest policy, individuals who find that their personal information (name, tax code, ID number) was used by a company to falsely declare income can now submit a digital report to the tax authorities via:

1. eTax Mobile or ICanhan platforms;

2. Search for all entities that have declared income under their name;

3. Use the "report" function and submit an explanation;

4. The system will automatically send the report to:

   • The email address of the business being reported;

   • The business’s managing tax authority;

   • And the tax office currently handling the individual’s case.

The tax department will then investigate and, if the business is found at fault, enforce strict penalties.

Advice for Property Owners and Investors

As financial scrutiny becomes more data-driven, individuals are advised to:

• Regularly check their tax declarations for any suspicious or incorrect entries;

• Keep clear records of all contracts and financial flows related to real estate;

• Ensure consistency between personal financial documents and tax filings during property sales, transfers, or mortgage applications;

• Promptly report any irregularities to minimize future legal or financial complications.

Small Tax Errors, Big Real Estate Consequences

In an increasingly digital economy where tax and real estate systems are interlinked, personal income tax records have become a critical determinant of one’s financial credibility and asset liquidity.

For property owners and investors alike, ensuring accurate and clean tax data is no longer optional — it is a fundamental safeguard for financial security and successful real estate transactions.