HoREA disagrees tax under VND1 billion housing

In its document to the Ministry of Finance, the Ho Chi Minh City Real Estate Association (HoREA) has proposed not taxing house owners of under VND700 million.

Slums alongside river in district 8 (Photo: SGGP)
Slums alongside river in district 8 (Photo: SGGP)
HoREA said that the Ministry should not tax house owners of below VND 1 billion to support low-income people because before the Ministry planned to tax VND700 million house owners.
According to HoREA, the Ministry should not tax house but non-agricultural land as per the law of using non-agricultural land taking effect in 2010
Generally, planned tax level is low; therefore, HoREA said it is necessary to have property tax regulations which include land, housing after 2020.
Different from other countries where land is considered as private ownership while Vietnamese people pay a sum as land use tax into the state budget. However, the land use amount is a bureaucracy that costs enterprises a lot of time to finish formalities.

Moreover, the amount accounts for 10 percent of a condo cost and 30 percent and 50 percent cost of other houses and villas
Accordingly, HoREA realized that proper law should go along with changes in land use tax which is equivalent of 10 - 15 percent of land price index issued by provincial people’s committee adjusted annually to parallel with market price to ensure transparency and reduce land use tax.
On that basis, the government will have land and housing property tax.
Moreover, HoREA said that proposed land and over VND1 billion condo construction land tax of 0.4 percent is acceptable compared to other countries’.

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