Taxes on real estate based on time property is held not feasible: Justice Ministry
In their latest draft of a proposal to establish a new Law on Personal Income, to replace the current one, the MoF has proposed the Government impose taxes on income from real estate transactions based on the period of ownership – or holding period – which is the time between when an investor buys and sells a land or property.
An apartment and villa complex in Ha Dong district, Hanoi. (Photo: VNA)
Hanoi (VNS/VNA) 𒀰- The Ministry of Finance (MoF) has recently proposed imposing property taxes on real estate transfers based on the length of time properties have been owned, but the Ministry of Justice (MoJ) said the idea is not feasible.
In their latest draft of a proposal to establish a new Law on Personal Income, to replace the current one, the MoF has proposed the Government impose taxes on income from real estate transactions based on the period of ownership – or holding period – which is the time between when an investor buys and sells a land or property.
According to the MoF, this kind of tax instrument has been applied by several countries to limit speculation and so-called 'flipping' or properties, in order to reduce the attractiveness of real estate speculation.
Some countries even impose taxes on profits made from real estate transactions in proportion with the frequency of transactions, and the period between buying a selling the property. The shorter the time – the higher the tax rate, the longer the time – the lower the tax rate.
For example, in Singapore, any real estate that is sold within the first year after it has been bought is taxed at 100% on the difference between the buying and selling prices. After two years, the rate is reduced to 50%, and after three years it is 25%.
In Taiwan (China), transactions made within 2 years after buying property are taxed at 45%. Those made between 2-5 years following purchase are taxed at 35%, between 5-10 years at 20 % and after 10 years only 15%.
Vietnam can learn from other countries and use personal income tax to reduce real estate speculation, according to the finance ministry. The tax rates should be studied carefully and reflect the market’s real situation.
However, according to the MoJ, this tax instrument is not yet feasible for Vietnam, since it is closely linked with land and property policies and databases – which have not been fully developed.
Also, the State management of taxes and land policies have not been in synch, making it difficult to apply the instrument.
The MoF should conduct further study and propose other options for the new personal income tax law, the Ministry of Justice said./.
In a significant move to support businesses during challenging times, the Vietnamese government has extended and enhanced various tax relief programmes for 2025, with reductions and deferral measures aimed at stimulating economic growth.
Measures to alleviate difficulties for enterprises and citizens in 2024 proposed by the Ministry of Finance including tax and fee reduction and exemption represented an estimated value of 191 trillion VND (7.49 billion USD), the ministry reported on December 31.
The rapid growth of e-commerce has contributed significantly to Vietnam's economic development, but it also brought challenges, particularly in tax management.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Outcomes of ABAC III will shape ABAC’s final policy recommendations to be submitted to the ABAC-APEC leaders’ dialogue, scheduled to take place in the Republic of Korea this November.
This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
According to NordCham Vietnam Chairman Thue Quist Thomasen, the Vietnamese Government’s commitment to achieving net-zero emissions by 2050 is both a challenge and an opportunity for businesses to contribute to green and sustainable growth.
