HCMC – The Ministry of Construction has thrown support behind a proposal by the Ministry of Finance to impose a capital gains tax on real estate transactions in a bid to curb speculation and stabilize the real estate market.
In its second-quarter report on housing and the real estate market, the ministry proposed a range of measures to improve market transparency and sustainability, including the imposition of the capital gains tax on real estate transactions.
Specifically, the ministry backed the Finance Ministry’s proposal to tax those who make profits from property deals. This is expected to help limit speculative activities and price manipulation.
Under the draft amendment to the Personal Income Tax Law, if the purchase price and costs are verifiable, a 20% tax would be levied on the profit; otherwise, a tax based on sale price and ownership period, ranging from 2% to 10%, would apply.
The ministry also proposed further studies on taxing the difference between land prices used to calculate land use fees and selling prices of property products, as well as imposing a tax on unused housing and land.
In addition to the tax issue, the ministry also called for reviewing stalled or delayed projects and enhancing coordination between ministries to accelerate digital transformation in real estate transactions, notarization, taxation, and land registration.
Local governments were urged to expedite urban planning efforts, particularly those aligned with transit-oriented development (TOD) models. They were also advised to ensure transparency and fairness in administrative procedures related to land and housing projects.
