The Ministry of Finance has just issued a document summarizing and answering issues of public concern in November, including real estate taxation.
Specifically, to limit real estate speculation, the Ministry of Construction recently proposed a solution to tax people who own two or more houses or land. The Ministry of Finance then agreed and said it would study the plan proposed by the Ministry of Construction .
However, public opinion believes that taxing the ownership and use of many houses and lands at this time is not appropriate. It is necessary to carefully study the timing and method of taxing to avoid causing shock, leading to massive sell-offs in the market.
The Ministry of Finance is studying taxing second and higher real estate properties. (Illustration: Minh Duc)
In response to public opinion, the Ministry of Finance said that the State has currently issued revenues related to real estate arising in the process of establishing ownership and use rights of real estate (land use fees, land rent, registration fees); real estate use (non-agricultural land use tax, agricultural land use tax).
However, currently, in Vietnam, there is no revenue from corporate income tax (CIT), personal income tax (PIT), and value added tax (VAT) on houses during the process of using and transferring real estate.
According to the Ministry, in order to institutionalize the policies and orientations stated in Resolution No. 18/2022 of the 13th Party Central Committee regarding land management and use, it is necessary to have appropriate solutions that are consistent with the conditions and context, including researching solutions to collect taxes on houses in general or taxes on ownership of multiple houses and land in particular.
In addition, according to the Ministry, it is necessary to study and amend the personal income tax policy on income from real estate transfers.
"These solutions contribute to promoting the economical and effective use of houses and land; contributing to limiting speculation on houses and land, promoting the transparent, stable and sustainable development of the real estate market," the Ministry of Finance stated.
The Ministry of Finance also said it is researching and synthesizing international experience, identifying difficulties and shortcomings in implementing tax policies related to real estate to report to competent authorities, ensuring compliance with domestic conditions, international practices as well as the consistency of the tax policy system related to real estate.
The implementation of reform of real estate-related tax policies will be placed within the overall implementation of the Strategy for reforming Vietnam's tax system to 2030 approved by the Prime Minister.
Regarding the personal income tax policy, the Ministry of Finance said that it has issued Official Letter No. 12738/BTC-CST to seek opinions from relevant organizations and individuals on the proposal to develop a new Personal Income Tax Law to replace the current Personal Income Tax Law, including studying and amending the personal income tax policy on income from real estate transfers.
In the coming time, the Ministry of Finance will synthesize and study comments as well as review and evaluate the Personal Income Tax Law to report to the Government, the National Assembly Standing Committee, and the National Assembly for consideration of amendments and supplements according to the National Assembly's Law-making Program, ensuring compliance with Vietnam's socio-economic conditions as well as international practices.
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