Tax proposal by time owning houses and land
In the draft report to the Government on the formulation of the new personal income tax law, the Ministry of Finance proposes to study income tax from real estate transfer over time, similar to policies in some countries, territorial region.
Currently, personal income tax for real estate transfer in Vietnam does not distinguish the time of holding and applying a fixed tax rate of 2% of the total transaction value. Meanwhile, many countries and territories have used tax tools to limit speculation.
For example, in Singapore: Selling land in the first year is taxed 100% on the difference value; The second year is 50%; The third year is 25%. In Taiwan (China): transactions in the first 2 years were imposed on 45%tax; From 2 - 5 years is 35%; From 5 - 10 years is 20%; Over 10 years of decline to 15%.
The Ministry of Finance said that the application of progressive taxes over time can help regulate the market, limiting the "bubble" real estate. However, the specific tax rate needs to be carefully researched to suit the domestic market situation.
The ministry proposed to continue research and tax experts point out inadequacies
The Ministry of Justice assessed the proposal of the Ministry of Finance not feasible because the land management system and tax were not synchronized. This agency proposed to continue researching and perfecting the policy before implementation.
Tax expert Nguyen Ngoc Tu said that it is necessary to collect taxes of the nature of "personal income tax", which is only hit on the interest rather than contracting according to the total trading value as today.
"If there are sufficient invoices and documents, only tax collection should only be collected on the interest rate. The 2% of the total trading value is currently the collection, contributing to pushing the real estate price," Mr. Tu Tu, Mr. Tu Tu judgment.
Currently, according to the personal income tax law, the tax rate applied to real estate transfer is 2% of the contract value, excluding interest or loss. This is one of the controversial points and needs to be considered when amending the law.
