According to HoREA's report, over the past 30 years, the long-term rental housing business has developed on a very large scale, including concentrated boarding houses with many rental rooms or in individual and family houses and apartments with some rooms reserved for long-term rental.
According to HoREA, these landlords are the main force, contributing to solving the huge housing rental demand of society, whose tenants are very diverse, including workers, civil servants, students, low-income urban people, and immigrants.
The Ho Chi Minh City Real Estate Association has proposed recognizing long-term rental housing as a form of social housing. (Photo: ST)
Typically in Ho Chi Minh City, there are about 60,470 people running long-term rental businesses with a total of 560,000 rooms, providing accommodation for 1.4 million people.
Of which, there are 34,800 boarding houses with more than 357,000 rooms, providing accommodation for 943,341 people. For apartments, there are nearly 203,000 rooms for rent, providing accommodation for 486,726 people.
In which, the concentrated boarding house area is usually a single house with an entrance (common alley) with 2 rows of boarding rooms on both sides and the boarding house owner is usually at the beginning of the alley, selling groceries, coffee, and food.
There is a special area of concentrated boarding houses in apartment buildings, typically an individual invested in building 2 5-storey buildings with 310 rental rooms with an area of 19m2 for 2 tenants in An Lac ward, Binh Tan district, Ho Chi Minh City.
HoREA said: Currently, all long-term rental house owners with annual revenue of 100 million VND or more must pay a "fixed" tax of 7% of long-term accommodation service revenue.
This 7% includes: 5% value added tax and 2% personal income tax as prescribed in Circular 40/2021/TT-BTC of the Ministry of Finance, similar to mini hotel owners who also pay "fixed" tax equal to 7%/revenue from short-term accommodation services (by day, by hour...). HoREA believes that this regulation is unreasonable.
Mr. Le Hoang Chau, Chairman of HoREA, said: If long-term rental houses are recognized as a type of social housing, landlords will enjoy preferential policies on credit and taxes such as a 50% reduction in VAT and personal income tax for social housing.
“In this case, the owner of a long-term rental house only has to pay a lump-sum tax of 3.5% of revenue instead of the current 7% of revenue and can also borrow preferential credit to build, renovate or repair the house for rent,” said Mr. Chau.
But for many years, long-term rental housing has not been recognized as a type of social housing and these landlords have not enjoyed any support policies according to Resolution 43 of the National Assembly and Resolution 11 of the Government.
Mr. Chau emphasized: Landlords who meet the criteria for social housing are individual houses, where individuals use their land use rights to build or renovate and repair houses for rent to beneficiaries of social housing support policies and tenants are both "beneficiaries of social housing support policies".
“Therefore, it is necessary to supplement Decree No. 100/2024/ND-CP with regulations recognizing long-term rental houses as a form of social housing so that landlords are treated similarly to investors in social housing projects so that landlords can enjoy preferential policies on credit and taxes,” said Mr. Chau.
Source: https://www.congluan.vn/horea-kien-nghi-cong-nhan-nha-tro-cho-thue-dai-han-la-mot-hanh-thuc-nha-o-xa-hoi-post309070.html
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