Using Tax policy to regulate real estate market

VCN – To promote the healthy and sustainable development of the real estate market, many solutions should be implemented, including tax policies. Mr. Nguyen Van Dinh, Chairman of Vietnam Real Estate Brokers Association spoke to Customs News about this matter.
Tax policy for re-imported goods of export processing enterprises Tax policy for re-imported goods of export processing enterprises
Improving law compliance of small and medium business community Improving law compliance of small and medium business community
Vietnamese goods entering Algeria: Far from achieving potential Vietnamese goods entering Algeria: Far from achieving potential
Using Tax policy to regulate real estate market
Mr. Nguyen Van Dinh, Chairman of Vietnam Real Estate Brokers Association.

The Ministry of Justice is proposing the Government develop a real estate tax law project to submit to the National Assembly Standing Committee and supplement the project to the National Assembly's 2024 Law and Ordinance Development Program. What do you think about this project?

In my opinion, the development of the Law on Real Estate Tax is consistent with international practices. Many countries in the world have built this law.

The use of tax tools to operate and regulate the market, especially controlling speculation and pushing real estate prices is necessary and attracts the attention of management agencies and enterprises. It can be affirmed that Vietnam needs to issue a complete tax law to supervise the operation of the real estate market and encourage the real estate market to develop effectively and minimize negative activities.

Are some contents proposed by the Ministry of Justice for the operation of the real market such as high taxation of luxury apartments, separation of residential land and houses to tax real estate; supplementation of tax regulations for individuals' incomes from real estate transfer appropriate?

I agree with the goal of taxing high-class apartments (valued at over VND50 million/m2), of the agencies drafting the Law on Real Estate Tax. The tax on the high-income group will further support the development of social housing and popular housing as well as contribute to the State market.

On the other hand, the high tax rate on luxury apartments will push up house prices and cause liquidity difficulties, so investors have to consider the investment in difficult-to-sell products or easy-to-sell products. Thereby encouraging the promotion of housing development with more affordable prices, resolving the urgent need for housing for people.

In addition, the supplementation of tax regulations for individuals' incomes from real estate transfer in the Law also attracts investors. Currently, the tax rate on transfer income is 2%. The income from real estate transfer includes income from the transfer of land use rights and land-attached assets, from the transfer of the right to own or use houses, the right to lease land, water surface and other income from real estate transfer.

Recently, individuals often declare transaction value much lower than the actual trading value to reduce the amount of tax payable. The easy real estate tax management has caused tax evasion and pushed up land prices by speculators. If strict regulations are issued and high tax rates are applied to speculation, it will prevent this situation.

However, the process of perfecting tax policies also needs to be assessed before submitting them to the competent authorities for promulgation at an appropriate time to ensure high efficiency. Especially in the current context, the real estate market has faced many difficulties, including the use of effective tools to support the development of a sustainable and transparent real estate market in accordance with the development planning and strategy.

What do you think about the real estate market trend in 2023?

The real estate market in 2023 is forecast to remain under pressure because Vietnam's economy will still be affected by external factors. However, there is still an opportunity for the market’s recovery. It is expected that transactions will resume and more supply to the market at the end of the second quarter of 2023.

Vietnam’s real estate market in this period does not repeat the crisis cycle of 2012. Currently, urban development and infrastructure investment and the demand for real estate investment and business have seen strong growth. These factors create a great motivation for the resilience of the market. Therefore, if we only remove the obstacles including legal, capital bottlenecks, and strengthen confidence, the market will surely return to balance.

Thank Sir!

By Thu Diu/ Hoang Loan

Related News

Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

VCN - Scrap is a sensitive item with many potential risks of environmental pollution, directly affecting human health and the ecosystem. Therefore, strict management measures are needed to avoid the risk that Vietnam become a scrap gathering country in the world.
Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

VCN - That was the direction of Deputy Minister of Finance Nguyen Duc Chi at a working session with leaders of the Provincial People's Committee and the Lang Son Departments of Finance, Tax, and Customs on March 19.
Why not reduce export tax on fertilizer products to 0%?

Why not reduce export tax on fertilizer products to 0%?

VCN - Clarifying a number of contents related to the draft Decree amending and supplementing a number of articles of Decree No. 26/2023/ND-CP on Preferential Export Tariffs, Import Tariffs, List of Goods and Rates Absolute tax, mixed tax, import tax outside the tariff quota regarding the export tax rate for some types of fertilizers, the Ministry of Finance has clarified the reason why it does not adjust the export tax rate for this product.
Tax Industry actively supports during the peak month of tax settlement

Tax Industry actively supports during the peak month of tax settlement

VCN – With the goal of facilitating taxpayers in complying with tax law polices, especially tax finalization procedures, the Tax industry actively supports enterprises and people in this work. Local tax departments have held online and offline meetings to promptly remove difficulties and obstacles in the tax finalization process.

Latest News

Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.

More News

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

VCN - The Ministry of Finance aims to continue to strongly improve the business environment, create a healthy competitive environment, rapidly increase the number of newly established businesses, and reduce the rate of businesses temporarily suspending operations; reduce input costs and legal compliance costs in investment and business activities, reduce policy risks, strengthen trust, create a fulcrum for recovery and improve business resilience.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.
Vietnamese securities companies race to boost capital amid high market demand

Vietnamese securities companies race to boost capital amid high market demand

These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Central bank required to take urgent measures to stabilise gold market

Central bank required to take urgent measures to stabilise gold market

The Government has directed the State Bank of Vietnam (SBV) to urgently inspect and supervise to stabilise the gold market.
Read More

Your care

Latest Most read
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - Sharing at the conference "Consumer goods and distribution industry: M&A trends and investment strategies to raise capital for Vietnamese enterprises", organized by the Business Association of High Quality Vietnamese Goods and the Leading Business C
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
Mobile Version