"Surfing" with high profits in a short period of time will have to pay higher taxes
'Surfing' makes a lot of money and will have to pay higher taxes
According to the Ministry of Finance , the current Personal Income Tax Law applies a tax rate of 2% on the transfer price for real estate transactions. However, many opinions say that it is necessary to study a tax mechanism that reflects the true economic nature of the transaction, instead of relying solely on the transfer price.
In the draft document, the Ministry of Finance has proposed a plan for comments: applying a tax rate of 20% on taxable income, in which taxable income is determined by the transfer price minus the purchase price and related costs.
Through analysis, this option can bring about a regulation level equivalent to the current 2% tax rate. In particular, in cases where the difference between buying and selling prices is not large, or individuals suffer losses, the 20% option will reduce the tax burden, ensuring more fairness because taxes are levied according to actual income.
Accordingly, real estate with high profit when sold will be taxed higher than low profit, different from the current tax rate of 2% on the real estate sale price regardless of profit or loss.
However, the Ministry of Finance emphasized that this is only the option being consulted.
"The collection of personal income tax according to the 20% method on income needs to have a suitable roadmap, ensuring synchronization with the process of perfecting other policies related to land, housing, or the readiness level of the database as well as the information technology infrastructure on registration and transfer of land, real estate... Thereby, it can create conditions for tax authorities to have enough information and legal basis related to real estate transfer activities to collect the correct amount of tax payable," the Ministry of Finance emphasized.
Pressure tax on holding period , limit speculation
Implementing the directions of the Party and the Government under Resolution No. 18/NQ-TW dated June 16, 2022, Official Dispatch No. 03/CD-TTg dated January 15, 2025 and Notice No. 294/TB-VPCP dated June 9, 2025, the draft Law on Personal Income Tax also proposes to study tax rates based on the duration of real estate holding. The goal is to limit speculative behavior, market manipulation and increase costs for short-term transactions.
The Ministry of Finance said: The drafting agency has consulted the experience of a number of countries that have used tax tools, including personal income tax, to increase the cost of speculative behavior and reduce the attractiveness of real estate speculation in the economy . In particular, a number of countries have applied taxes on profits earned from real estate transactions in accordance with the frequency of transactions and the duration of real estate holding. They often impose higher taxes on profits from transactions with a short holding period, gradually reducing taxes if the property is held for a longer period.
The draft Law will continue to refer to the experience of countries with similar conditions to design appropriate tax rates, avoiding market disruption while still achieving management goals.
On July 4, 2025, the Government submitted to the National Assembly Standing Committee Submission No. 622/TTr-CP, proposing to adjust the 2025 Legislative Program to consider the draft Law on Personal Income Tax (replacement). The draft was developed based on Plan No. 81/KH-UBTVQH15 dated November 5, 2021 and Conclusion No. 19-KL/TW of the Politburo, aiming to comprehensively amend the current tax policy.
The draft focuses on 6 major policy groups including: Completing regulations on taxable income and calculation methods for each type of income; Amending regulations on tax exemption and reduction to promote science, technology, innovation, digital transformation, private economic development, agriculture and rural areas; Completing policies for individual businesses; Adjusting family deductions according to economic fluctuations, prices and living standards, and adding specific, charitable and humanitarian deductions; Adjusting the progressive tax schedule for resident individuals with income from salaries, wages and full tax rates for some types of income; Reviewing and amending regulations on tax calculation periods, deductions, time of determining taxable income, responsibilities of payers and paying organizations.
The Ministry of Finance is currently soliciting comments from ministries, sectors, localities, organizations and individuals. After synthesizing, the Ministry will finalize the plan and report to competent authorities for consideration and decision.
Mr. Minh
Source: https://baochinhphu.vn/thue-tncn-voi-bat-dong-san-bo-tai-chinh-gioi-thieu-cac-phuong-an-102250722201910633.htm
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