Owners of multiple properties should pay higher taxes: parliament committee

By Minh Hue
Tue, January 16, 2024 | 9:30 am GMT+7

The government needs to urgently propose higher income tax rates for people who own multiple properties to avoid land speculation, Vietnam's National Assembly (NA) Standing Committee suggested on Monday.

In a report on the draft revised Land Law presented at the legislature’s fifth extraordinary session, Chairman of the NA’s Economic Committee Vu Hong Thanh said this policy was also stated by the Party Central Committee in its Resolution 18 issued in mid-2022. However, up to now it has not been institutionalized into specific laws.

Ocean Park urban area in Gia Lam district, Hanoi. Photo courtesy of Vinhomes.

Ocean Park urban area in Gia Lam district, Hanoi. Photo courtesy of Vinhomes.

Currently, the tax rate on income from real estate transfer is 2%. Incomes from real estate transfer include the transfer of land use rights and assets attached to land, the transfer of ownership or use right of housing, land lease and water surface rent rights, and other revenues, he elaborated.

He cited that in the past, many individuals declared false prices that were lower than the actual transaction prices to avoid paying higher taxes, leading to losses of revenue for the state budget. Therefore, some opinions suggest that higher taxes should be levied on cases involving three or four properties in a short period of time.

Previously, at a seminar collecting public feedback on the draft revised Law on Land in March 2023, experts said that there should be clear regulations on those who will be subject to higher tax rates, have taxes exempted or reduced, and enjoy tax incentives. In the long term, they recommended the application of a tax on a second home or more.

Currently, Singapore is one of the countries that apply this tax, with a rate of 7% on the purchase price of the second home and 10% on the third home. This country also applies stamp duty on residential and industrial real estate, with a rate of 16% of the selling cost or valuation if it is sold within the first year, 12% in the second year, and 8% in the third year.

The government in 2017 proposed a pilot property tax on second homes in Ho Chi Minh City, but it was not approved.

In 2022, when drafting a special mechanism for HCMC, the city also reiterated this proposal. However, ministries and agencies said that the tax on second properties should not be levied in the city because it "does not ensure fairness in many cases."

Comments (0)
  • Read More
Samsung Electro-Mechanics to build new factory in Vietnam

Samsung Electro-Mechanics to build new factory in Vietnam

Samsung Electro-Mechanics (SEM), the semiconductor and camera module arm of South Korea chaebol Samsung, is set to build a new factory in Vietnam.

Industries - Fri, May 3, 2024 | 10:19 am GMT+7

Stock market liquidity forecast to pick up at end-Q2

Stock market liquidity forecast to pick up at end-Q2

Real estate investment cash flow remains limited, but money flowing into stocks is likely to be positive at the end of the second quarter, said Dinh The Hien, director of the Institute of Informatics Research & Applied Economics.

Finance - Fri, May 3, 2024 | 10:14 am GMT+7

Ca Mau company director faces legal proceedings for illegal invoice trading

Ca Mau company director faces legal proceedings for illegal invoice trading

Police in the southernmost province of Ca Mau have launched legal proceedings against Dang Quoc Viet, who established three companies to illegally trade 350 invoices for VND130 billion ($5.12 million).

Society - Fri, May 3, 2024 | 9:00 am GMT+7

IMF makes new recommendations for Indonesia’s economy

IMF makes new recommendations for Indonesia’s economy

The International Monetary Fund (IMF) has given some comments on Indonesia’s economy as the country is undergoing a government transition from President Joko Widodo to President-elect Prabowo Subianto.

Southeast Asia - Fri, May 3, 2024 | 8:40 am GMT+7

Indonesia aims at three-fold increase in EV sales this year

Indonesia aims at three-fold increase in EV sales this year

The Indonesian government has set a target for the sales of battery-based electric cars to reach 50,000 units in 2024.

Southeast Asia - Fri, May 3, 2024 | 8:36 am GMT+7

Thailand's economy grows 1% in first quarter

Thailand's economy grows 1% in first quarter

The Bank of Thailand estimates that the country grew by just 1% in the first quarter on both a quarterly and annualised basis, reported the Bangkok Post.

Southeast Asia - Fri, May 3, 2024 | 8:35 am GMT+7

Thailand aims for 5% growth in future food exports

Thailand aims for 5% growth in future food exports

Thailand is targeting future food export growth of 2-5% this year, driven by the global economic recovery and sustainability trends.

Southeast Asia - Fri, May 3, 2024 | 8:34 am GMT+7

Malaysia asserts pioneering role in halal industry

Malaysia asserts pioneering role in halal industry

Malaysia should harness the collective expertise and resources to drive sustainable growth and development of the halal industry, according to Minister of Investment, Trade and Industry Zafrul Abdul Aziz.

Southeast Asia - Fri, May 3, 2024 | 8:33 am GMT+7

Indonesia, Malaysia step up defence cooperation

Indonesia, Malaysia step up defence cooperation

Indonesian Defence Minister Prabowo Subianto and his Malaysian counterpart, Mohamed Khaled Nordin, discussed opportunities for stronger defence cooperation between the two countries at their meeting on Wednesday in Jakarta.

Southeast Asia - Fri, May 3, 2024 | 8:08 am GMT+7

HCMC needs 50,000 apartments per year to meet demand: Savills

HCMC needs 50,000 apartments per year to meet demand: Savills

Ho Chi Minh City will need about 50,000 new apartments each year to meet demand, with 60-70% in the affordable segment, but current supply is falling way short, according to Savills Vietnam.

Real Estate - Fri, May 3, 2024 | 8:00 am GMT+7

Vietnamese retail majors set for prosperous year after robust Q1

Vietnamese retail majors set for prosperous year after robust Q1

Vietnamese retail majors have reported Q1/2024 profits several times higher year-on-year or turned losses into profit after purchasing power recovered significantly during Tet (Lunar New Year) holiday, market observers say.

Companies - Thu, May 2, 2024 | 10:21 pm GMT+7

Vietnam assigns vice chairman to take charge of parliament

Vietnam assigns vice chairman to take charge of parliament

National Assembly standing Vice Chairman Tran Thanh Man has been tasked with running the national parliament after Chairman Vuong Dinh Hue was dismissed from his position.

Politics - Thu, May 2, 2024 | 7:37 pm GMT+7

Vietnam investment environment favorable for strategic M&A opportunities: KPMG

Vietnam investment environment favorable for strategic M&A opportunities: KPMG

With inflation under control, projected growth of 5.8% and public debt kept manageable this year, Vietnam’s investment environment offers strategic opportunities, especially in M&A, says audit and consulting firm KPMG.

Economy - Thu, May 2, 2024 | 4:59 pm GMT+7

PV Gas sees Q1 net profit go down 26% to $99 mln

PV Gas sees Q1 net profit go down 26% to $99 mln

PV Gas, Vietnam’s largest dry gas and LPG supplier, earned consolidated net profits of VND2,511.66 billion ($98.96 million) in Q1/2024, down 26.5% year-on-year.

Companies - Thu, May 2, 2024 | 3:38 pm GMT+7

Key infrastructure projects face site clearance issues, material shortages

Key infrastructure projects face site clearance issues, material shortages

Progress of the Long Thanh international airport project and component projects for the North-South Expressway’s eastern section in the 2021-2025 period is being held back by uneven site clearance and material shortages.

Infrastructure - Thu, May 2, 2024 | 3:35 pm GMT+7

Ba Ria-Vung Tau province health department head in trouble for bidding rules violations

Ba Ria-Vung Tau province health department head in trouble for bidding rules violations

Legal proceedings have been initiated against Pham Minh An, director of Ba Ria-Vung Tau province's Department of Health for alleged bidding regulation violations related to equipment supply for a hospital.

Society - Thu, May 2, 2024 | 3:21 pm GMT+7