There is a current public opinion that imposing real estate tax on cases of owning and using many houses and lands at the present time is not appropriate, and it is necessary to carefully study the time and method of taxing to avoid causing shock leading to massive sell-offs in the market.

Informing the press on December 6 about this issue, the Ministry of Finance said that current law stipulates that real estate includes: land; houses, construction works attached to land; other assets attached to land, houses, construction works; other assets as prescribed by law.

The State has issued revenues related to real estate arising in all three stages: establishing ownership and use rights of real estate (land use fees, land rent, registration fees); real estate use (non- agricultural land use tax, agricultural land use tax have been collected; but not yet collected for houses in use); and real estate transfer (corporate income tax, personal income tax, value added tax).

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Many people are concerned that imposing real estate tax on those who own and use many properties at this time could cause shock and lead to massive sell-offs in the market. Photo: Binh Minh

The Ministry of Finance emphasized that in order to institutionalize the policies and orientations stated in Resolution No. 18-NQ/TW dated June 16, 2022 of the 13th Party Central Committee on continuing to innovate and perfect institutions and policies, improving the effectiveness and efficiency of land management and use, creating momentum to turn our country into a high-income developed country, it is necessary to have appropriate solutions that are consistent with the conditions and context of our country.

This includes researching solutions to tax houses in general or tax on ownership of multiple houses and land in particular. At the same time, researching and amending personal income tax policies on income from real estate transfers to suit new requirements and contexts as well as practices in some countries.

Thereby, contributing to promoting the economical and effective use of houses and land; contributing to limiting speculation on houses and land, promoting the transparent, stable and sustainable development of the real estate market.

“The Ministry of Finance is researching and synthesizing international experience, identifying difficulties and shortcomings in the process of implementing tax policies related to real estate (including cases of using large areas of land, many houses, abandoned land, land that has been allocated or leased but is slow to be put into use) to report to competent authorities at the appropriate time, ensuring consistency with Vietnam's socio -economic conditions, international practices as well as the consistency of the tax policy system related to real estate”, the Ministry of Finance added.

The implementation of reform of real estate-related tax policies will be placed within the overall implementation of the Strategy for reforming Vietnam's tax system to 2030, which has been approved by the Prime Minister.

The Ministry of Finance has also proposed to develop a new Personal Income Tax Law project, including research and amendments to personal income tax policies on income from real estate transfers.