VAT tax on land use rights to make the real estate market dark and be in danger
Kiều Mai
September 17, 2017 | 07:39 AM GMT+7
Nguyen Manh Ha, vice chairman of the Vietnam National Real Estate Asociation (VnREA) said that the proposal of imposing VAT on land use rights of the Ministry of Finance will make the real estate market in danger.
Nguyen Manh Ha, vice chairman of the Vietnam National Real Estate Asociation (VnREA) - Source: TheLEADER
According to his oppinion, the reason for the tax adjustment of the Ministry of Finance is not satisfactory.
Increasing taxes will make housing prices rise sharply. In Vietnam, 70% of the real estate market is housing, which is one of four essential needs of the population so
higher taxes will cause the housing market to suffer terrible and increasingly dark.
Nguyen Manh Ha stressed that in the past, people were only subjected to registration tax (0.5%) and personal income tax (2%). If VAT is applied to land use rights, taxes will increase by 12% so total tax will increase to 15%.
Bui Ngoc Tuan, Deputy General Director of Deloitte Vietnam Tax Consultancy Services also shared the same view at the issue.
He stated that the application of VAT on land use rights will affect other aspects of socio-economic because real estate transactions creating a flow of money and finance account for a large proportion of credit and consumption for the banking system and credit in Vietnam.
In fact, VAT taxation on land use rights is the direct hit on the end consumers and ignores the real estate business in the commercial form. This will affect the decision of the buyer's trading and then cause the market to pause as well as lead to a series of implications for the relevant sectors.
As Vietnam sets its sights on becoming a high-income country by 2045, Resolution 68 lays a crucial foundation. But turning vision into reality requires not only good policy - but also unwavering execution, mutual trust and national unity.
Vietnam plans to upgrade Gia Binh Airport in Bac Ninh province into a dual-use international airport to support both military and civilian operations, the government said on Friday.
Under unforgiving conditions, the outdoor workers - the backbone of urban economies - endure the harshest impacts of climate change while remaining overlooked by social safety nets. Their resilience and struggles highlight the urgent need for better protection in the face of rising temperatures and precarious livelihoods.
Doan Van Binh, Chairman of CEO Group and Vice President of the Vietnam National Real Estate Association, introduced his latest book, “Vietnam Real Estate for Foreigners,” at a launch event in Hanoi on Friday.
Acting for increased women’s participation and leadership in climate action, Vietnam can accelerate a transition that is more inclusive, just, and impactful.
The "Steam for girls 2024" competition provides a creative platform for Steam and an opportunity for students to connect with peers from various regions within Vietnam and internationally.
