No 20% tax rate proposed for current real estate taxable income

(NLDO) - It is not proposed to apply a tax rate of 20%/taxable income on real estate, keeping the current tax collection method of 2%/transaction value.

On August 1, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that in two meetings with ministries and branches on July 31, comments on the draft Land Law (amended) and the Law on Personal Income Tax (replaced) were positively received.

Accordingly, the draft Land Law (amended) has been adopted by the Ministry of Agriculture and Environment with almost all previous proposals and recommendations from associations, experts, organizations, individuals and the business community, which is beneficial to the economy , people and businesses. If considered and approved by the National Assembly at the 10th session at the end of 2025, this law will create conditions for land to become a resource for socio-economic development. At the meeting, HoREA also contributed many more ideas to complete the Land Law (amended).

The draft Law on Personal Income Tax (replacement) also has many new points, including not proposing to apply a tax rate of 20%/income subject to real estate tax.

Not proposed to apply tax rate of 20%/taxable income of real estate

In addition, at the meeting on the draft Law on Personal Income Tax (replacement) chaired by Deputy Prime Minister Ho Duc Phoc, Deputy Minister of Finance Cao Anh Tuan presented the main contents:

- Maintain the current method of collecting personal income tax on real estate transfers at a tax rate of 2%/transaction value, in case the transaction price is lower than the floor price of the real estate; do not propose to apply a tax rate of 20%/taxable income when transferring real estate.

- It is not proposed to apply personal income tax based on the time of holding real estate when transferring real estate; but it is necessary to continue research with a roadmap of about 5 years, and only when sufficient conditions are met will the proposal be considered.

- Continue research, it is possible to increase the personal family deduction to over 20 million VND/person and dependents to over 7 million VND/person.

Meanwhile, it is expected that the draft Decree amending and supplementing a number of articles of Decree 103/2024 will also be changed. In particular, HoREA proposed to collect only 0.5% additional land use fee (instead of the current 5.4%). The Association also proposed to collect only 20% (the Ministry of Finance proposed 30%) of the land price of the land price list for residential land area within the limit; collect only 30% (the Ministry of Finance proposed 50%) of the land price of the land price list for residential land area exceeding the limit when households and individuals apply for red books.

It is expected that at the upcoming 10th session, the National Assembly will consider amending the Land Law. In particular, the Ministry of Agriculture and Environment has proposed to remove the additional land use fee - stipulated in Point d, Clause 2, Article 257 of the 2024 Land Law.

If these proposals are approved by the National Assembly, HoREA will continue to propose to add transitional regulations regulating the refund of excess land use fees collected from households and individuals and the deduction of excess additional land use fees collected from enterprises from the enterprises' financial obligations to the State.

Source: https://nld.com.vn/chua-de-xuat-ap-dung-thue-suat-20-thu-nhap-chiu-thue-bat-dong-san-196250801170230281.htm