Consider the timing of property taxes for those with multiple properties

The issue of imposing real estate taxes on those who own multiple properties is attracting great public attention. Many opinions say that the timing and method of applying this policy should be carefully considered to avoid shocking the market, leading to a massive sell-off, destabilizing the economy.

According to the Ministry of Finance, Vietnam's real estate tax system currently includes revenues arising in three stages: establishing ownership (land use fees, registration fees); use (non-agricultural land use tax, agricultural land use tax); transfer (corporate income tax, personal income tax, value added tax). However, direct taxation on the value of housing during use has not yet been applied.

According to Resolution No. 18-NQ/TW dated June 16, 2022 of the Party Central Committee, perfecting the real estate tax policy is necessary to improve the efficiency of land management and use and promote economic development.

The Ministry of Finance said it is studying and synthesizing international experience and assessing difficulties in implementing the current real estate tax policy. Taxation of housing in general and tax on multiple ownership of real estate in particular will be considered in the overall Strategy for reforming the tax system until 2030.

The Ministry is also studying amendments to the personal income tax policy on income from real estate transfers to suit the new context and international practices.

In addition, the Ministry of Finance is also seeking public opinions on the development of a new Personal Income Tax Law to replace the current law. This amendment includes research on tax policies for income from real estate transfers.

The goal of reforming real estate tax policy is to promote economical and efficient land use, limit speculation, and help the real estate market develop transparently, stably and sustainably.

However, the timing and method of application should be carefully considered to avoid causing negative impacts on the market.

The Ministry of Finance affirmed that it will synthesize comments, carefully evaluate and report to competent authorities before making a final decision.