Insufficient basis for taxing real estate transfer profits

VTV.vn - Minister of Finance Nguyen Van Thang said that there is currently not enough basis to collect tax on real estate trading profits until there is an online real estate trading floor.

Insufficient basis for taxing real estate transfer profits

Minister of Finance Nguyen Van Thang said that the draft revised Personal Income Tax Law continues to inherit the current regulation of collecting 2% tax on real estate transfers on the value of each transfer, thanks to the advantage of being easy to implement and easy to check. The Ministry will gradually tax the profits of individuals investing and trading in real estate when there is enough digital land data linked to data on VNeID. According to him, when the real estate trading floor that the Government is piloting is established, with transparent real estate buying and selling prices, it will support the conversion of tax collection methods.

The online real estate transaction center is expected to be piloted in 2026-2027, where people can buy, sell, transfer, and evaluate real estate, according to the plan of the Ministry of Construction . Types of transactions at the center include available houses, future houses, land use rights with technical infrastructure in real estate projects... All transactions (buying, selling, transferring, leasing, hire-purchase) will have to be carried out through this center when the draft resolution is approved by competent authorities and takes effect.

In July, the Ministry of Finance proposed to tax real estate transfers by individuals by multiplying taxable income by a 20% tax rate for each transfer. This taxable income is determined by the selling price minus the purchase price and reasonable expenses related to generating income from real estate transfers.

In case the purchase price and related costs are not determined, personal income tax is calculated by multiplying the selling price by the tax rate. The tax rate in this case will depend on the ownership period, up to a maximum of 10%.

The National Assembly is expected to vote to pass the amended Law on Personal Income Tax on the morning of December 10.

Source: https://vtv.vn/chua-du-co-so-danh-thue-tren-lai-chuyen-nhuong-bat-dong-san-100251120110138325.htm