The Ministry of Finance is studying taxes on people with many abandoned houses and real estate.

In response to concerns that imposing real estate tax on those who own and use many properties could cause shock and lead to massive sell-offs in the market, the Ministry of Finance said it is studying the matter to report to competent authorities at the appropriate time.

There is a public opinion that the imposition of real estate tax on the ownership and use of many houses and lands at the present time is not appropriate, and it is necessary to carefully study the timing and method of imposition of tax to avoid causing shock leading to massive sell-offs in the market. In a press release recently issued on 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 3 stages: establishing ownership and right to use 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).

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, consistent with the conditions and context of our country. This includes researching solutions to collect taxes on houses in general or taxes on ownership of multiple houses and land in particular. At the same time, research and amend the personal income tax policy on income from real estate transfers to suit the new requirements and context 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 implementation of 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 compliance 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 reform of tax policies related to real estate will be placed in the overall implementation of the Strategy for reforming the tax system of Vietnam to 2030 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 the personal income tax policy on income from real estate transfers. Source: https://vietnamnet.vn/bo-tai-chinh-dang-nghien-cuu-chinh-sach-thue-voi-nha-dat-bo-hoang-2349570.html