Lawmakers advocates for higher taxes on multiple property ownership

By Viet Tuan   January 16, 2024 | 08:58 pm PT
Lawmakers advocates for higher taxes on multiple property ownership
A real estate project in Hanoi, July 2023. Photo by VnExpress/ Ngoc Thanh
The National Assembly Standing Committee has urged the government to consider higher tax rates for individuals owning multiple properties, aiming to address the issue of property speculation.

On January 15, during a discussion on the progress of the Land Law, Vu Hong Thanh, chairman of the NA Economic Committee, emphasized the need to increase these rates to control the escalating land prices.

The government had previously suggested in 2022 to tax second properties owned by individuals, but this proposal did not materialize into law.

At present, a 2% tax is levied on property sales. However, underreporting of the sale value is common, leading to significant tax evasion and consequent revenue losses for the government. The new proposal aims to impose taxes on individuals transferring multiple properties within a short timeframe.

Experts note that this proposal mirrors Singapore's approach, where a 7% tax is imposed on second property transactions and 10% on the third.

Additionally, a steep 16% tax is charged if a property is sold within the first year of purchase, reducing to 12% in the second year, 8% in the third, and becoming null from the fourth year onwards.

Seven years earlier, a similar proposal to tax second homes in Ho Chi Minh City was rejected by the National Assembly.

In 2022, the city also had the same proposal, but later withdrew the proposal amid criticisms from lawmakers and industry experts who labeled it as "unfair in many situations".

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