The Ministry of Finance is studying the taxation of people who own a lot of land.

(CLO) The Ministry of Finance is researching and synthesizing international experience, identifying difficulties and shortcomings in the implementation of tax policies related to real estate in recent times.

On December 6, the Ministry of Finance reported on a number of issues of public concern in November. One of the issues of most public concern is the imposition of real estate taxes on cases of ownership and use of multiple properties. Many opinions say that at present this regulation is not appropriate, and it is necessary to carefully study the timing and method of imposition of taxes to avoid causing shock leading to massive sell-offs in the market.

Regarding this issue, the Ministry of Finance stated that: Current law stipulates that real estate includes: Land; Houses and construction works attached to land; Other assets attached to land, houses and construction works and other assets as prescribed by law.

Performing the function of state management of real estate ownership and use, the State has issued revenues related to real estate arising in all 3 stages: establishing ownership and real estate use rights, including: land use fees, land rent, and registration fees.

The Ministry of Finance is researching and synthesizing international experience, identifying difficulties and shortcomings in the implementation of tax policies related to real estate in recent times. (Photo: ST)

There are also real estate use taxes, such as non-agricultural land use tax and agricultural land use tax. However, there are currently no taxes on houses during the process of real estate use and real estate transfer such as corporate income tax, personal income tax, and VAT.

In order to institutionalize the policies and orientations stated in Resolution No. 18-NQ/TW dated June 16, 2022 of the 13th Party Central Committee on continuing to innovate and perfect institutions and policies, improving the effectiveness and efficiency of land management and use, creating momentum to turn our country into a high-income developed country, it is necessary to have appropriate solutions, consistent with the conditions and context of our country, including researching solutions to collect taxes on houses in general or taxes on ownership of multiple houses and land in particular.

At the same time, research and amend the personal income tax policy on income from real estate transfers to suit the new requirements and context as well as practices in some countries. Thereby contributing to promoting the economical and effective use of houses and land; contributing to limiting speculation on houses and land, promoting the transparent, stable and sustainable development of the real estate market.

Currently, implementing Plan No. 81/KH-UBTVQH15 dated November 5, 2021 of the National Assembly Standing Committee and Decision No. 2114/QD-TTg dated December 16, 2021 of the Prime Minister promulgating the Plan to implement Conclusion No. 19-KL/TW dated October 14, 2021 of the Politburo and the Project to orient the Law-making Program for the 15th National Assembly term, the Ministry of Finance is researching and synthesizing international experience, identifying difficulties and inadequacies in the process of implementing tax policies related to real estate in the past time.

In particular, there are cases of using large areas of land, many houses, abandoned land, land that has been assigned or leased but is slow to be put into use, to report to competent authorities at the appropriate time, ensuring compliance with Vietnam's socio-economic conditions, international practices as well as the consistency of the tax policy system related to real estate.

"The reform of tax policies related to real estate will be placed within the overall implementation of the Strategy for reforming Vietnam's tax system to 2030 approved by the Prime Minister," the Ministry of Finance emphasized.

Regarding personal income tax (PIT) policy, the Ministry of Finance issued Official Dispatch No. 12738/BTC-CST dated November 22, 2024 to widely solicit opinions from relevant organizations and individuals on the proposal to develop a new PIT Law project to replace the current PIT Law, including researching and amending the PIT policy on income from real estate transfers.

In the coming time, the Ministry of Finance will synthesize and study the participating opinions as well as review and evaluate the Personal Income Tax Law to report to the Government, report to the National Assembly Standing Committee, and the National Assembly to consider amending and supplementing according to the National Assembly's Law-making Program, ensuring compliance with Vietnam's socio-economic conditions as well as international practices.

Source: https://www.congluan.vn/bo-tai-chinh-dang-nghien-cuu-viec-danh-thue-nguoi-so-huu-nhieu-dat-dai-post324454.html