Increasing transfer tax to avoid real estate speculation, what does the Ministry of Finance say?

In this Draft Law, the Ministry of Finance proposes to stipulate that personal income tax is determined by multiplying the transfer price by the tax rate of 2%, basically keeping the same as current regulations.

According to the review opinion of the National Assembly's Economic and Financial Committee, such regulations have not resolved the requirements for perfecting tax policies related to real estate to encourage effective use of houses and land, and limit speculation affecting the market, as stated in the Resolutions of the Central Committee and the National Assembly in recent times.

Some recommendations suggest increasing transfer tax to avoid real estate speculation. (Photo: ST)

Some opinions suggest studying and supplementing regulations in the direction of increasing taxes on real estate transfers to limit speculation. Other opinions suggest calculating based on profits (selling price minus purchase price and costs) if there are full documents; different tax rates can be applied according to holding time (the longer the holding, the lower the tax rate) to encourage long-term investment and limit speculation.

Some opinions say that there needs to be a roadmap for application to avoid strong impacts on the real estate market and the application of personal income tax policy on real estate transfers based on holding time also needs to be synchronized with the process of perfecting policies related to land, housing as well as the level of readiness of information technology infrastructure for land and real estate registration.

Explaining this content, the Ministry of Finance said: The draft law inherits the current regulations on the method of calculating tax on real estate transfers that have been applied stably. Collection by this method also has the advantage of being simple, easy to implement, and easy to check.

With the proposal to add a method of calculating tax from the difference, the Ministry of Finance believes that there needs to be enough time to summarize, evaluate, and survey as input data to propose policies.

Recent reality shows that tax collection on income from real estate transfers needs to be comprehensively studied, ensuring consistency with the process of perfecting a series of other policies related to land, construction, housing, and real estate business.

From there, there will be a comprehensive solution (such as increasing supply, reducing costs...) and a thorough assessment of the impact is needed, ensuring compatibility with the readiness level of the database as well as the information technology infrastructure for registration and transfer of land and real estate.

"When there is enough data on land digitization associated with VNeID data, it is possible to gradually implement the tax in accordance with the true nature of income tax," informed the Ministry of Finance.

Currently, the Government is promoting many measures to encourage effective use of houses and land, limit speculation, and stabilize the real estate market, such as implementing the construction of many social housing projects and establishing a national housing fund, following the experience of some countries in the world ...

Accordingly, to avoid real estate speculation, the Ministry of Finance proposes a comprehensive solution with many policies; in which land management and land recovery are carried out in accordance with the provisions of the law on land. The management of the real estate market, including avoiding speculation, is carried out mainly through the law on real estate business and housing.

The drafting agency affirms that tax policy is not the most optimal and priority tool to achieve the above goal; therefore, it is proposed to keep it as stipulated in the draft law.

Comment (0)