The draft law, which maintains the current flat 2% tax on real estate transfer value, is under review by government members. While simple and easy to implement, the approach has drawn criticism for failing to deter speculative behavior or promote efficient land use.

Some stakeholders have proposed raising the tax rate on real estate transfers. Others have called for a shift to taxing net profit - sales price minus purchase cost and expenses - provided full documentation is available. A time-based tax system has also been suggested, where properties held longer incur lower tax rates, thus encouraging long-term investment and discouraging flipping.

The Finance Ministry acknowledges these ideas but emphasizes that changes must align with broader reforms in land, housing, and construction regulations. Any tax adjustments must consider market impact and synchronize with infrastructure development, legal frameworks, and digital systems like the national land database and VNeID.

Officials argue that effective solutions for speculation must come from a coordinated policy ecosystem. This includes land management laws, real estate business regulations, and housing policies. Taxation, while important, is not the priority tool to manage speculative behaviors.

Hence, the Ministry recommends retaining the current tax framework in the draft law while continuing long-term studies and digital readiness assessments before implementing more sophisticated models like profit-based or time-based taxation.

Nguyen Le