The Real Estate Tax Law is expected to be passed in 2025
The Ministry of Finance plans to present the Real Estate Tax Law to the National Assembly for consideration in the 8th session (October 2024) and to be passed in the 9th session (May 2025).
On the evening of September 6, speaking at the first national conference on the implementation of laws and resolutions of the 15th National Assembly, Deputy Minister of Finance Vo Thanh Hung stated that in December 2022, the Ministry of Finance submitted a report on the results of the review of the Real Estate Tax Law to the Ministry of Justice.
Based on the Ministry of Finance’s report, in March 2023, the Government reported to the National Assembly Standing Committee on the proposal to replace the Land Use Tax Law for non-agricultural land and the Land Use Tax Law for agricultural land with the Real Estate Tax Law.
Regarding progress, the Ministry of Finance plans to present the Real Estate Tax Law to the National Assembly for consideration in the 8th session (October 2024) and to be passed in the 9th session (May 2025).
Following the same procedure, the Ministry of Finance plans to present the amended Personal Income Tax Law to the National Assembly for consideration in the October 2025 session and to be passed in the May 2026 session.
The amended Environmental Protection Tax Law is expected to be presented to the National Assembly for consideration in the 11th session (May 2026). The amended Export and Import Tax Law is expected to be presented to the National Assembly for consideration and passage in the May 2027 session, following a one-session procedure.
Meanwhile, the Ministry of Finance has stated that it has initiated the development of two draft laws: the Special Consumption Tax Law (amended) and the Value Added Tax Law (amended), to be submitted to the Government for approval in the Government’s special meeting on legal development in July 2023.
It is expected that these two draft laws will be presented to the National Assembly for consideration in the 7th session (May 2024) and passed in the 8th session (October 2024).
Regarding the highly anticipated Real Estate Tax Law, the Ministry of Finance recently received a proposal from voters in Ho Chi Minh City through the People’s Council.
According to the proposal, in order to create fairness for the people and to effectively address the abuse of policies for personal gain and land speculation over the years, voters propose imposing taxes on organizations and individuals with the right to use second properties and imposing high taxes on vacant properties that do not generate value from land to prevent waste and land price speculation, thereby undermining social justice.
Voters in Ho Chi Minh City believe that if taxation of second properties is to be regulated, it must be based on specific criteria such as area, particular value of the property, the origin of the property, and even the source of funding for the property, rather than vague regulations like the amended Land Law, which can affect the legal rights and interests of citizens and the state and undermine the rigor of the law.
In response to the opinions of voters, the Ministry of Finance stated that currently, the tax, fee, and levy system related to real estate essentially comprehensively covers various types of revenue generated by real estate throughout all three phases: Establishing ownership rights, property usage rights; Utilizing and exploiting real estate; Transferring real estate.
According to the Ministry of Finance, the existing Non-Agricultural Land Use Tax Law has provisions for progressive taxation in cases where individuals have the right to use multiple land plots (cumulative land area for tax calculation is 0.03% for land within the prescribed limit; 0.07% for land area exceeding but not more than 3 times the limit; 0.15% for land area exceeding 3 times the limit); and a tax rate of 0.15% applies to land used for purposes other than what is prescribed or land that is not used in accordance with regulations.
The Ministry of Finance has stated that it is currently studying the development of the Real Estate Tax Law, including research on taxes for second homes and vacant land, ensuring compatibility with Vietnam’s economic and social conditions, international norms, and the overall framework of tax policy reform by 2030.
Sources: vtv.vn
