THE MINISTRY OF FINANCE CONSULTS ON TAXING HOUSES AND DEVELOPING A LAW ON PROPERTY TAX

The Ministry of Finance is consulting on real estate tax collection policies, including taxation on homes and properties.

Tax policy related to real estate is one of the contents that the Ministry of Finance is developing an outline of a report to review, evaluate and propose amendments to, under the direction of the Government.

Current real estate revenues include: revenue when establishing and registering ownership and right to use property; revenues in the process of using property, including tax on agricultural land use and non-agricultural land use; collected when transferring the right to own and use the property.

One of the amendments (if any) mentioned by the Ministry of Finance is the amendment of the Law on Agricultural Land Use Tax and Non-agricultural Land Use Tax, as well as the addition of new contents that need to be regulated. at Law.

These comments, according to the Ministry of Finance, may include a proposal to combine the Law on Agricultural Land Use Tax and the Law on Non-agricultural Land Use Tax, supplementing taxes on houses, studying and developing a property tax law or real estate (if any).

Accordingly, the comments need to assess the impact of the revised content on the socio-economic, businesses, people and the state budget.

Taxation on houses and real estate is an issue that has been mentioned many times by policy circles and experts.

National Assembly Chairwoman Vuong Dinh Hue in September 2021 also suggested Thanh Hoa to pilot a property tax (housing tax) policy in urban areas. The application of house tax according to Mr. Hue should be piloted for large urban governments. If Thanh Hoa successfully piloted the housing tax, it could later be applied to Hanoi and Ho Chi Minh City.

According to experts, imposition of a property tax will be an effective tool to limit real estate speculation, but requires accurate market data. This is a tax that is levied directly on real estate owners, not real estate transfer tax, so it will limit speculation in this market; and concerns about increasing property prices when adding this tax are unlikely.

In 2017, the Government proposed a pilot property tax (housing) in Ho Chi Minh City when applying for a specific mechanism for this locality, but encountered many mixed opinions. Therefore, this policy to date has not been implemented.

In 2018, the Ministry of Finance also issued a draft Law on Property Tax to submit to the Government with the goal of regulating high-income groups, improving the efficiency of house and land use, and preventing waste and loss in public asset management. , public housing.

However, this policy was later not approved by the competent authority and at the same time received many objections from the public. Many people think that, if enacted, this tax law will hardly achieve the goal of regulating the income of people with many houses, but it will affect the poor, who have only one house.