In a report sent to the Office of the Government on the reasons for the increase in real estate prices, the Ministry of Construction said it would study and propose a tax policy for those who own and use many houses and lands to limit speculation and buying and selling in a short period of time to make a profit.
Not only Vietnam, many countries in the world use taxes as a tool to prevent speculation.
The Singapore government has taken drastic measures to curb the rising property prices. Accordingly, any Singaporean buying a house must pay a fee of 20% of the property value for a second home, 30% for a third home. For foreigners buying personal property, regardless of the house, the tax rate will double to 60% from the previous 30%.
If a person buys a property and then sells it in the first year, he/she will have to pay 6% tax on the property value. If he/she sells it in the second year, he/she will have to pay 8% tax, and in the third year, it will be 4%. Only in the fourth year will the seller not have to pay tax.
Or if the real estate owner does not put the real estate into business activities, does not start construction after receiving the land like in Korea, the land is abandoned or in the process of land improvement for more than 2 years, it will be taxed at 5%, 5 years is taxed at 8%, 7 years is taxed at 9%, abandoned for more than 10 years is taxed at 10%. In the US, abandoned land is taxed at 3%.
Professor Dr. Dang Hung Vo - Former Deputy Minister of Natural Resources and Environment said that for a long time, many people wanted to learn Singapore's tax method, which is that people who buy a second home are taxed higher.
But the characteristics of Vietnam are different from Singapore, in the case where the first house is very valuable, but the second house is very small. So it is possible to only tax the second house but ignore the first house.
Some countries collect taxes from 1 - 1.5% of the value for all cases of house and land ownership. But in Vietnam, people's income is still low, if this level is collected, people cannot bear it. It is necessary to study a tax suitable for Vietnam, which can be collected based on the value of the house, land or area of ownership, ensuring the goal of both preventing real estate speculation and ensuring social security.
MSc. Nguyen Van Dinh - Real estate legal expert said that an important factor is the need for a database to tax, to ensure that the right subjects are taxed, and to promote the effectiveness of tax policies. At this time, the exact determination of who owns this real estate has not been resolved due to the lack of a complete database and the phenomenon of having someone else take the name of the property.
The new Land Law, Housing Law, and Real Estate Business Law also mention the construction of a national database on land, housing, and real estate information; if implemented effectively, in the near future a reliable database system can be built, which is an important database to enforce the real estate tax law after it is passed.
