Why did the Ministry of Finance abandon the proposal to impose a 20% tax on real estate sales profits?

The Ministry of Finance has dropped the proposal to impose a 20% tax on real estate sales profits in the draft revised Law on Personal Income Tax. Instead, the personal income tax rate on real estate transactions will remain at the current 2% of the transaction value.

Imposing high taxes on real estate transactions to combat speculation has been proposed many times but has not been implemented yet - Photo: NAM TRAN

In the draft revised Law on Personal Income Tax recently sent to the Ministry of Justice for review, the Ministry of Finance has officially dropped the proposal to impose a 20% personal income tax on profits from real estate sales.

As planned, the draft revised Law on Personal Income Tax will be submitted by the Government to the National Assembly for comments at the 10th session, which will take place in October 2025.

Article 13 of the draft amended Law on Personal Income Tax clearly states: Personal income tax on income from real estate transfer of individuals is determined by 2% of the transfer price.

Thus, the proposal to impose a 20% personal income tax on real estate transaction profits and calculate personal income tax based on the real estate holding period has been withdrawn by the Ministry of Finance .

The time for determining taxable income from real estate transfer is the time when the transfer contract takes effect or the time of registration of the right to use or own the real estate.

Previously, at the Government meeting on the draft revised Law on Personal Income Tax, chaired by Deputy Prime Minister Ho Duc Phoc on July 31, the Ministry of Finance also stated the view that applying 20% ​​personal income tax on profits from selling real estate and collecting personal income tax based on holding time needs to have a suitable roadmap, ensuring synchronization with the process of perfecting other policies related to land, housing and the readiness of databases and information technology infrastructure on registration and transfer of land and real estate.

The Ministry of Finance also believes that tax imposition requires sufficient information and legal basis related to real estate transfer activities to collect the correct amount of money, avoiding arbitrariness and negativity.

According to the draft revised Law on Personal Income Tax, income from real estate transfer subject to personal income tax includes income from transfer of land use rights and assets attached to land, income from transfer of ownership or use rights of housing.

Income from transfer of land lease rights, water surface lease rights and other income received from transfer of real estate in any form.

BAO NGOC

Source: https://tuoitre.vn/vi-sao-bo-tai-chinh-bo-de-xuat-ap-thue-20-lai-ban-bat-dong-san-20250904224614141.htm