Withdraw proposal to collect 20% tax on real estate transaction profits, keep the tax rate of 2% on transfer value

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said after a meeting on the draft revised Law on Personal Income Tax of the Government, chaired by Deputy Prime Minister Ho Duc Phoc on the afternoon of July 31.

The Ministry of Finance has not yet proposed to impose a 20% tax on real estate transfer profits in the draft revised Law on Personal Income Tax - Photo: NAM TRAN

According to Mr. Chau, this is the new direction of the Ministry of Finance on building the draft Law on Personal Income Tax (amended) after receiving opinions from relevant parties.

At the meeting, Deputy Minister of Finance Cao Anh Tuan said that the draft revised Law on Personal Income Tax will maintain the current method of collecting personal income tax on real estate transfers at 2% of the transaction value, and has not proposed imposing a personal income tax of 20% on the profit from each real estate transaction.

Besides, the Ministry of Finance has not proposed to apply personal income tax based on the real estate holding period as in the previous draft of the amended Personal Income Tax Law.

In addition, the representative of the Ministry of Finance also said that the ministry will continue to study the possibility of raising the family deduction to over 20 million VND/person, and the dependent deduction to over 7 million VND/person.

Previously, in the report on personal income tax policy for real estate transfers, the Ministry of Finance assessed that the proposal to collect personal income tax on real estate transfers at 20% of income as well as collect personal income tax on real estate based on holding period needs to have a suitable roadmap, ensuring synchronization with the process of perfecting other policies related to land and housing.

Besides, the level of readiness of the database as well as the information technology infrastructure on land and real estate registration and transfer.

Thereby creating conditions for tax authorities to have sufficient information and legal basis related to real estate transfer activities to collect the correct amount of money payable, avoiding arbitrariness and negativity.

Therefore, to ensure feasibility, in accordance with the current management practice and to implement the Party and State's policies, aiming for an 8% growth target and creating momentum for growth in the following years, in the immediate future, the current method of collecting 2% on transfer prices will be maintained, and a 5-year roadmap will be studied to switch to tax collection based on transaction profits and real estate holding time.

BAO NGOC

Source: https://tuoitre.vn/rut-de-xuat-thu-thue-20-lai-giao-dich-bat-dong-san-giu-nguyen-muc-thu-2-gia-tri-chuyen-nhuong-20250801142435827.htm