The Ministry of Finance (MoF) has recently approved the scheme for tax reform until 2030.
Under the scheme, the first draft law on property will be proposed before the National Assembly in 2023 and is expected to become law the next year. Afterward, MoF will issue additional legal documents to elaborate the law.
MoF said the draft will exempt agricultural land users from land use taxes until late 2025, a move that aligns with the Party and the State’s stance on agriculture and rural development.
Regarding non-agricultural land, the draft will increase the prescribed added-value applicable to land and raise taxes on housing to prevent land speculation and incentivise the efficient use of houses.
It is also worth noting that the Prime Minister approved the ‘Strategy for Tax Reform until 2030’ in April.
The tax reform is broad-based, covering various types of tax, including value-added tax, excise tax, corporate income tax and environmental tax.
Its objective is to move the Vietnamese tax system towards a ‘good tax system’ defined by international norms and improve tax revenues to support the ten-year Strategy for Socio-economic Development between 2021 and 2030.
The Prime Minister has assigned MoF the task of implementing the strategy and developing new tax policies that are clear, simple, well-targeted and compatible with relevant regulations on taxation.
Regarding taxes imposed on people who own a lot of land and housing, former Deputy Minister of Natural Resources and Environment Dang Hung Vo revealed that the Government had considered introducing the taxes for a long time but they did not see the light of day due to the absence of a tax reform scheme.
With the issuance of Resolution 18, Vo said it is time to levy higher taxes on the owners.
He also said taxes on land and housing in Viet Nam stand at just 0.03 per cent, far lower than those in other countries, at between 1.0 and 1.5 per cent. The rise in taxes is expected to add substantially to the State budget and bridge the tax gap.
In 2018, MoF considered drawing up a law on property that imposes taxes on land, houses, aircraft, yachts and cars worth at least VND1.5 billion. For residential houses, the tax rates go between 0.3 per cent and 0.4 per cent.
Unfortunately, the proposal was cancelled because of dissenting voices from the public. — VNS
- Tax land hoarders 'aggressively' to cut rents
- Will I escape tax on house bought during recession?
- Raise taxes and boost spending
- Gambling executive: Don’t raise taxes; raise bets
- Richard Curran: ''No housing bubble,' says Lane
- Departing Lane backs tax hikes to build surplus
- Biggest house price fall for a decade, official figures reveal
- House price growth slows as south east remains a drag
- Taxman set to raise millions from Billionaires' Row
- Illinois House sends graduated tax amendment to voters
- Property tax from our cities still props up rest of country
- Jaguar Land Rover announces £3.6bn loss
- House GOP: Unexpected revenue means no new taxes needed
- Senate Dems push for graduated income tax
- GOP: No new taxes needed with unexpected revenue
- Policy papers point to carbon tax increases
- Carbon and company tax proposed for ‘socially fair budget’
- New tax adds to steep rise in the cost of dying
- House Democrats ‘closing in’ on votes needed for tax overhaul
- Call for a timeout on tinkering with property related taxes
MoF to raise taxes on land and housing have 559 words, post on bizhub.vn at December 7, 2022. This is cached page on Talk Vietnam. If you want remove this page, please contact us.