Ministry of Finance responds to information on proposal to tax real estate

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Deputy Minister of Finance Nguyen Duc Chi speaks at the press conference

Responding to a reporter's question for the Ministry of Finance's opinion on the Ministry of Construction's document sent to the Government proposing a tax policy for cases of owning and using many houses and lands to limit speculation and trade in a short period of time to make a profit, Deputy Minister of Finance Nguyen Duc Chi said that, according to the direction of the Party and the Government, it is necessary to develop a transparent and sustainable real estate market and to achieve the above goal, it is necessary to build a comprehensive policy system, including financial policies.

Theo các chuyên gia của VARS, để điều tiết thị trường phát triển theo hướng an toàn, lành mạnh, bền vững để giá đất tăng giảm theo đúng thị trường, việc ban hành chính sách thuế bất động sản là việc cấp bách.

Emphasizing the recognition of opinions and proposals, the Deputy Minister said that the Ministry of Finance will study general financial policies on land and real estate, with the ultimate goal being financial policies that contribute to stabilizing and developing the real estate market.

Regarding this issue, the Vietnam Association of Real Estate Brokers (VARS) said that housing prices have been continuously increasing and there are no signs of a decrease. VARS data shows that the apartment price index in the second quarter of 2024 in Hanoi and Ho Chi Minh City increased by 58%; 27% respectively compared to the second quarter of 2019. Many provinces and cities have recorded the phenomenon of clean legal land plots having a fever due to the return of investment activities.

According to VARS experts, in order to regulate the market to develop in a safe, healthy, and sustainable direction so that land prices increase and decrease in accordance with the market, the issuance of real estate tax policies is urgent.

Taxing real estate effectively and transparently, targeting those who accumulate and speculate instead of those who buy real estate for living purposes or organizing production and business, will both help increase budget revenue and help regulate the real estate market. This is also a common trend in the world.

Previously, in August 2023, proposing to the Ministry of Finance, voters in Ho Chi Minh City said that in order to create fairness for the people and thoroughly handle the exploitation of policies for profiteering and land speculation over the past many years, voters proposed to tax organizations and individuals who have the right to use second real estate and impose high taxes on vacant real estate that cannot gain value from land to avoid waste, speculation, and land price increases that cause social injustice.

Responding to voters' petitions, the Ministry of Finance said that currently, the system of tax, fee and charge policies for real estate has basically covered quite fully all revenues related to real estate arising in all three stages: establishing ownership and right to use real estate; using and exploiting real estate; transferring real estate.

Pursuant to Plan No. 81/KH-UBTVQH15 dated November 5, 2021 of the National Assembly Standing Committee on implementing Conclusion No. 19-KL/TW of the Politburo and the Project on orientations for the Law-making Program for the 15th National Assembly term, the Government has issued Report No. 71/BC-CP dated March 16, 2023 to the National Assembly Standing Committee on the results of implementing Plan No. 81/KH-UBTVQH15, including a report on the results of research and review of the law on non-agricultural land use tax, the law on agricultural land use tax and a proposal to develop a draft Law on real estate tax.

To carry out the above tasks, the Ministry of Finance is currently researching and developing a draft Law on real estate tax, including research on taxes on second houses, taxes on vacant houses and land, ensuring consistency with Vietnam's socio-economic conditions, international practices, the tax policy system related to real estate and under the overall Strategy for reforming the tax policy system until 2030.