Citizens and real estate investors are expressing concerns over the implementation of Decree 96/2024/NĐ-CP, which takes effect on August 1, 2024, and stipulates that individuals engaging in small-scale real estate business will be subject to a maximum of 10 transactions per year, with each transaction not exceeding 300 billion VND.
Anh Võ Mạnh Hà, a real estate investor specializing in villas and adjacent properties in Hanoi, expressed concerns that the new regulation may require him to reassess his business operations.
According to Anh Hà, all investment, buying, and renting activities are subject to the regulations of the law, and taxes have been paid in full to the state. If the number of transactions is limited, will the right to free business operation be affected?
Regarding this issue, a representative of a real estate company stated that, according to the regulation, individuals engaging in small-scale real estate business must meet two conditions: they do not fall under the cases that require the establishment of an investment project according to the regulations of the law on construction and housing, and they do not fall under the cases with a transaction value exceeding 300 billion VND per contract, or more than 10 transactions per year.
In the opposite case, individuals must establish a company to ensure the conditions for real estate business.
The representative stated that, in the case of Anh Hà, if only one of the two criteria is exceeded, it will still be considered a small-scale business. Specifically, if the transaction value exceeds 300 billion VND but the total number of transactions per year does not exceed 10, or if the transaction value is below 300 billion VND but the total number of transactions per year exceeds 10.
Sharing his thoughts with Lao Động's reporter on this issue, real estate expert Nguyễn Văn Đỉnh stated that real estate business is a special field with high complexity, requiring deep knowledge in multiple areas: law, finance, market, construction, etc.
This field also creates risks for the business entities themselves and related parties, including customers and state management agencies. The law's tightening of business conditions for real estate entities is necessary.
Entities participating in real estate business relationships also need to be subject to strict state management, including regular reporting of transactions and public disclosure of information to help the state build data on the real estate market, enhance state management, and establish a stable and healthy market, preventing fraud and price manipulation.
In the "Nguyễn Thái Luyện and accomplices case" (commonly known as the "Alibaba case"), it was revealed that there were loopholes in the legal system that failed to clearly define which cases would require the establishment of an economic organization and the implementation of the Real Estate Business Law, and which scale of business would be allowed as an individual.
Therefore, Mr. Đỉnh believes that the law should clearly define what constitutes a small-scale real estate business, and if the business exceeds that scale, the entity must establish an economic organization and implement the Real Estate Business Law to protect social order and safety, and protect the rights and interests of entities involved in business activities.
