This is one of the proposals suggested by the Ministry of Construction in the draft Decree detailing and guiding the implementation of some articles of the 2023 Real Estate Business Law, which is open for comments until April 27.
The provision in Clause 3, Article 9 of the Real Estate Business Law No. 29/2023/QH15 clearly states that individuals engaged in small-scale real estate business are not required to establish real estate business enterprises but must declare and pay taxes as prescribed by law.
To clearly determine the “small-scale” conditions, the Ministry of Construction proposes three options in Clause 1, Article 7 of the draft decree.
Option one: The Ministry of Construction proposes conditions for individuals engaged in small-scale real estate business, including: Individuals selling, transferring, leasing, and lease-purchasing existing houses, houses to be formed in the future, with 3-5 houses or 3-5 apartments in one year (12 months).
Individuals selling, transferring, leasing, and lease-purchasing existing construction works, construction works to be formed in the future, with 5-10 construction works or 5-10 floor areas in construction works in one year (12 months).
 Proposal: Individuals engaged in small-scale real estate business may only sell or lease 3-5 houses or apartments in one year. Photo by Hong Khanh. |
Option two: The Ministry of Construction proposes regulations on individuals selling, transferring, leasing, and lease-purchasing real estate belonging to ownership rights and use rights according to regulations, with an area of 1,000-2,000 m2 for urban areas; 3,000-5,000 m2 for rural areas; 1,000-2,000 m2 of floor space for houses, mixed-use structures with houses; 3,000m2 to 5,000m2 of floor space for construction works without houses.
Option three: Individuals investing in the construction of individual houses from 2 floors or more and with a scale of less than 20 apartments as prescribed in Clause 3, Article 57 of the 2023 Housing Law.
Individuals selling, leasing houses originating from inheritance or from acts of goodwill, charity, or solidarity in which individuals are gifted by parties.
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Currently, cases of real estate business not required to establish business enterprises are identified according to the provisions of Article 5 of Decree No. 02/2022/NĐ-CP dated January 6, 2022, including: 1. Agencies, organizations conducting the sale of houses, construction works, transferring land use rights due to bankruptcy, dissolution, division according to the provisions of law. 2. Agencies, organizations conducting the sale, transfer, lease, lease-purchase of real estate as state assets according to the provisions of law. 3. Credit institutions, branches of foreign banks, asset management companies (AMC), Vietnam Asset Management Company (VAMC) conducting the sale of houses, construction works, transferring land use rights, transferring real estate projects used as collateral to recover debts according to the provisions of law. 4. Organizations, households, individuals selling houses, construction works, transferring land use rights according to the decisions of courts or competent state agencies when resolving disputes, complaints, or denunciations. 5. Organizations, households, individuals selling, leasing, lease-purchasing houses, construction works under their legitimate ownership rights, transferring, leasing, re-leasing land use rights under their legitimate use rights. 6. Organizations, households, individuals selling, leasing, lease-purchasing, transferring real estate they have invested in construction that is not a real estate investment project for business purposes according to the provisions of law. |
The Ministry of Construction is soliciting public opinions on the draft Decree detailing and guiding the implementation of some articles of the 2023 Real Estate Business Law.
Hong Khanh
