A proposed capital gains tax on property sales has sparked mixed views, with experts calling for clear rules and reliable data to protect market liquidity and support affordable housing. Clear policies needed for targeted taxation Experts say the proposed capital gains tax on property transactions serves three main purposes: boosting state revenue, more accurately reflecting actual profits compared to the current flat 2% transfer tax, and improving fairness by taxing higher earners at higher rates. The tax could help regulate the market by discouraging speculation and promoting transparency, said Giang Huynh, research director at Savills Vietnam. Dinh Minh Tuan, director of Batdongsan.com.vn, told The Saigon Times that while the tax might encourage long-term ownership in a market short on affordable housing, introducing it too soon could deter small investors and delay transactions. Over time, however, it could foster a more stable and sustainable real estate environment. The timing and implementation of the proposed 20% tax are critical, particularly given the market’s fragile recovery. Hoang Thi Minh Ngoc, director of property platform Nha Tot, warned that determining taxable profits remains challenging, especially for long-held assets where original purchase prices are unclear or undocumented. From a digital platform perspective, Ngoc emphasized the […]
To read more, please click here.
