Which Property Taxes Will Be Applied?
The Ministry of Justice is finalizing the draft Law and Ordinance Development Program in 2024, adjusted in 2023 to submit to the Government. In which, taxing speculators, surfers and taxing houses and land separately are important points that investors and real estate brokers are concerning about.
So what types of real estate are being proposed to apply the new property tax law and how is it applied?
This new tax law is causing controversy between two groups: those who urge, those who say it’s not the right time!
The new property taxes are being discussed as options to reduce the fever of real estate prices in big cities such as Hanoi and Ho Chi Minh City, adjust the increase in housing prices at a stable level, and limit speculation, surfing in real estate.
According to Resource Management expert, Prof. Dang Hung Vo, said that this is a very appropriate time to propose a property tax, in the context that the total tax revenue related to real estate in Vietnam is still too low. But this is a very complex tax that needs to be studied carefully to minimize the negative impact on the real estate market and the economy.
Some concerns include the fact that the new tax does not help real estate cool down, but also pushes up real estate prices when tax over taxes.
On the other hand, imposition of property tax will be an effective tool to limit real estate speculation in case the market data is really accurate and transparent – something that state agencies need to consider.
In general, the taxing of houses and land is being considered according to the model of developed countries, which is a remarkable advancement. However, this tax is related to many complicated issues that are still entangled in the Vietnamese market. Therefore, it takes a lot of time to consider, consult, research and discuss thoroughly before proceeding.
All that real estate investors can do now is calmly observe, always take the initiative in capital and maintain a long-term, sustainable investment stance.
Certainly, the upcoming changes will be more positive than unnecessary anxiety.
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