On August 1st, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), shared that during two meetings with ministries and agencies on July 31st, suggestions for the draft Law on Land (amended) and Law on Personal Income Tax (replaced) were positively received.
According to Mr. Chau, the draft Law on Land (amended) has been almost entirely accepted by the Ministry of Agriculture and Environment, incorporating previous proposals from associations, experts, organizations, individuals, and the business community. If passed by the National Assembly at the 10th session in late 2025, this law will facilitate land as a driving force for socio-economic development. HoREA also contributed additional insights to refine the Law on Land (amended) during the meeting.
The draft Law on Personal Income Tax (replaced) also introduces several new aspects, including the absence of a proposed 20% tax rate on taxable real estate income.
No proposal to apply a 20% tax rate on taxable real estate income
Additionally, at the meeting on the draft Law on Personal Income Tax (replaced) chaired by Deputy Prime Minister Ho Duc Phoc, Vice Minister of Finance Cao Anh Tuan presented the following key points:
- Maintain the current 2% tax rate on personal income tax from real estate transfers based on transaction values. No proposal to apply a 20% tax rate on taxable income from real estate transfers.
- No suggestion to impose personal income tax based on the holding period of real estate upon transfer. Further research and a 5-year roadmap are needed before considering any proposals in this regard.
- Consider increasing the personal deduction amount to above VND 20 million per person and the dependent deduction to above VND 7 million per person.
Meanwhile, the expected draft Decree amending and supplementing a number of articles of Decree 103/2024 will also undergo changes. HoREA proposes reducing the additional land use fee to 0.5% (instead of the current 5.4%). The association also recommends collecting only 20% (instead of the Ministry of Finance’s proposed 30%) of the land price according to the land price frame for the area of land within the limit; collecting only 30% (instead of 50%) of the land price frame for the area of land exceeding the limit when households and individuals apply for a red book.
At the upcoming 10th session, the National Assembly is expected to consider amendments to the Law on Land. The Ministry of Agriculture and Environment has proposed eliminating the additional land use fee, as stipulated in point d, clause 2, Article 257 of the 2024 Law on Land.
If these proposals are approved by the National Assembly, HoREA will continue to suggest adding a provision for the transition regarding the refund of excess land use fees collected from households and individuals and the deduction of excess additional land use fees collected from businesses from their financial obligations to the state.
The New Corporate Income Tax Rates: Unveiling the Changes Effective from October 1st
The average corporate tax rate is 20%, but there’s a reduced rate for smaller businesses. If your annual turnover is less than VND 3 billion, you’ll benefit from a lower tax rate.
“An Unfair Tax: The 20% Levy on Property Gains from 20 Years Ago”
The properties purchased 20 years ago at very low original prices have now increased in value by up to tenfold due to inflation. Thus, imposing a 20% tax on the difference between the buying and selling prices is unreasonable and detrimental to the taxpayers.
Taxing Property Gains: A Tale of Support and Concern
The Finance Ministry’s proposal to impose a 20% tax on property transfer profits has received support from the Ministry of Construction as a measure to curb property speculation. However, experts argue that without a clear roadmap for the taxation process, the market could face adverse effects.
“What’s Next for the Stock Market in August After Hitting a New Peak?”
The Vietnamese stock market, after a robust rally and hitting new highs in late July, is expected to remain promising in August, according to experts. However, investors should brace for more frequent bouts of volatility and turbulence.
Do Bonuses for the Vietnamese National Football Team Have to Pay Personal Income Tax?
At a press conference held by the Ministry of Finance on January 7, Deputy Director of the General Department of Taxation, Mai Son, announced that the monetary bonuses and commemorative medals awarded to the Vietnamese football players following their victory in the 2024 ASEAN Cup will be exempt from personal income tax.
