Proposal not to increase personal income tax when transferring 2 or more real estate properties
According to HoREA, the current pilot of increasing taxes on residential land and increasing personal income tax when transferring a second or more real estate in Ho Chi Minh City is unreasonable.
The Ho Chi Minh City Real Estate Association (HoREA) has just sent a petition to the Ho Chi Minh City People's Committee and the Department of Finance requesting not to pilot an increase in non-agricultural land use tax on residential land and not to increase personal income tax when transferring a second or more house or land in Ho Chi Minh City at the present time.
This proposal was made by HoREA in the recent context that, in the Draft Resolution replacing Resolution No. 54/NQ-CP recently submitted to the Government, the drafting agency (HCMC People's Committee) no longer proposed a pilot mechanism for taxing second and higher-income houses and land in HCMC.
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It is proposed not to pilot an increase in non-agricultural land use tax on residential land, and not to increase personal income tax when transferring a second or more house or land in Ho Chi Minh City at this time. Photo: Hoang Ha |
Instead, the draft stipulates that the City People's Council decides to increase the tax rate on non-agricultural land use for residential land (the increase shall not exceed 5 times the current tax rate); increase the personal income tax rate from the transfer of the second or more real estate but not more than 2 times the current rate.
According to HoREA, currently, the income of households and individuals is generally decreasing; the whole country is in the process of making efforts to recover and develop the economy after the Covid-19 pandemic, but is facing huge challenges from external impacts.
The Association also believes that this proposal is not consistent with the expected roadmap by around 2025, the Ministry of Finance will submit to the Government for consideration a proposal to the National Assembly to amend and supplement tax laws, including the project on the Law on Property Tax (Real Estate Tax).
“Currently, the draft Land Law (amended) removes the land price framework and assigns the provincial level to issue annual land price lists based on the principle that land valuation must be consistent with common land prices on the market under normal conditions. That means that land prices in the land price list will be higher and there will no longer be a situation where land prices are too low, only about 30-50% of the current market price,” Mr. Le Hoang Chau - Chairman of HoREA analyzed.
The Association's leaders believe that if the non-agricultural land use tax on residential land is increased according to the pilot plan, it will increase the tax burden of people in Ho Chi Minh City. This is even more unreasonable because in just about 2 years, tax laws will be considered for amendment, including the addition of property tax and the Land Law (amended) is expected to be considered and promulgated by the National Assembly at the end of 2023.