Amid concerns that imposing taxes on property ownership or use of multiple houses and land could trigger market disruptions and a surge in distressed sales, the Ministry of Finance is carefully studying the issue to propose suitable policies at an appropriate time.

Public opinion has raised questions about the timing and methodology of imposing taxes on properties, particularly on those owning multiple houses and land plots. Critics argue that such measures could shock the market, potentially leading to widespread property sell-offs.

In a recent press release, the Ministry of Finance highlighted existing real estate regulations, which categorize real estate into land; houses and constructions attached to land; other assets linked to land, houses, and constructions; and other regulated property types.

Currently, taxation on real estate occurs across three stages:

Ownership and Use Rights: Includes land use fees, land rental fees, and registration fees.

Usage: Covers non-agricultural land use tax and agricultural land use tax (but excludes houses during their use).

Transfers: Includes corporate income tax, personal income tax, and value-added tax.

The Ministry emphasized that implementing policies outlined in Resolution 18-NQ/TW, issued on June 16, 2022, by the Central Executive Committee, requires a strategic and context-sensitive approach. The resolution calls for institutional reforms and improved land management policies to elevate Vietnam to high-income status.

Key considerations include:

Researching potential taxes on housing, particularly for ownership of multiple properties.

Revising personal income tax policies on real estate transfers to align with international practices.

Encouraging efficient and economical use of land and houses.

Deterring speculative behavior in the real estate market to promote transparency and stability.

The Ministry is currently analyzing international experiences and identifying domestic challenges in implementing property-related taxes. This includes addressing issues with: Ownership of multiple houses and land plots, Unused land and abandoned properties, Land allocated or leased but delayed in usage.

The findings will be presented to the government at a suitable time to ensure alignment with Vietnam’s socio-economic conditions and international norms.

The reform of property-related tax policies is part of a broader strategy under Vietnam’s Tax System Reform Strategy through 2030, approved by the Prime Minister. As part of this strategy, the Ministry of Finance has proposed a new Personal Income Tax Law, which includes revisions to taxes on real estate transfers to address evolving economic conditions.

The proposed reforms aim to foster more sustainable, transparent, and stable real estate market growth while balancing the goals of efficiency, fairness, and economic stability.

Binh Minh