In a recent draft addressing feedback on the Personal Income Tax Law (Amendment) project, the Ministry of Finance has elaborated on various tax-related issues concerning income from real estate transfers.
The draft law stipulates that personal income tax (PIT) from real estate transfers is calculated by multiplying the transfer price by a 2% tax rate, essentially maintaining the current framework.
The review committee opined that the draft law falls short of addressing the need to refine real estate taxation policies to promote efficient land and property use while curbing speculation.
Some suggested increasing taxes on real estate transfers, while others proposed taxing based on profit (selling price minus purchase price and expenses) if supported by sufficient documentation. A tiered tax rate system based on holding duration (lower rates for longer holdings) was also recommended to encourage long-term investment and discourage speculation.
A phased implementation approach is advised to minimize market disruption, ensuring alignment with ongoing land and housing policy reforms.
 The Ministry of Finance emphasizes the need for a comprehensive review of real estate transfer taxation, ensuring alignment with broader land, construction, and housing policies. |
The Ministry of Finance clarified that the current tax calculation method for real estate transfers, as outlined in the draft law, has been consistently applied. This method is straightforward, easy to implement, and facilitates verification. Proposals for alternative tax calculation methods require further assessment and data collection.
Effective taxation of real estate transfer income necessitates a holistic approach, integrating land, construction, housing, and real estate business policies to devise comprehensive solutions (e.g., increasing supply, reducing costs).
A thorough impact assessment is essential, considering data readiness and IT infrastructure for land and property registration and transfers. Full implementation of income-based taxation will be feasible once land digitization and VNeID data integration are complete.
“A multifaceted policy approach is required to deter real estate speculation. Land management and recovery are governed by land laws, while real estate market regulation, including anti-speculation measures, is primarily addressed through real estate business and housing laws. Tax policy is not the primary tool for achieving these objectives. Therefore, we recommend retaining the draft law’s provisions,” stated the Ministry of Finance.
Nguyễn Lê
– 12:05 01/12/2025
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