Logo of Phnom Penh Post newspaper Phnom Penh Post - Tax policies for Vietnam’s property sector must be carefully studied: Finance ministry

Tax policies for Vietnam’s property sector must be carefully studied: Finance ministry

Content image - Phnom Penh Post
Vietnam's Ministry of Finance said that it was necessary to give careful consideration to any tax policies on the real estate sector. VNA/VNS

Tax policies for Vietnam’s property sector must be carefully studied: Finance ministry

Tax policies for Vietnam’s real estate sector must be carefully studied and introduced at the appropriate time to ensure feasibility and limit speculation, according to the Ministry of Finance.

This was the ministry’s response to a proposal from the Ho Chi Minh City Real Estate Association that the government should tax the conversion of agricultural and non-agricultural land to residential land at a rate of about 15-20 per cent.

The association said it was necessary to tax the conversion of land-use purposes, which would help increase state budget revenue.

The proposal was raised in the context of land price fever which has occurred in many localities recently and was attributed partly to speculation.

The ministry said the current tax policy system covering the real estate sector was quite adequate, including the taxes and agricultural land use, non-agricultural land use, income tax on transactions of property assets, registration fee and other fees.

The established tax collection policies fully covered the process of forming, owning, using and transferring real estate assets and encouraged organisations and individuals to use property assets with efficiency and contributed to limiting speculation and preventing wasteful use of land, it said.

Still, it was necessary to continue improving the tax policy system on the real estate sector, the ministry said, adding that the property sector was very huge and influential on the economy and required the participation and contribution of many ministries, agencies and localities in making policies.

The ministry stressed that careful consideration and evaluation must be given to making policies for the real estate sector before submission to authorities for issuance at appropriate times to ensure feasibility and high consensus as well as contributing to limiting speculation.

The ministry is studying international experiences in taxing the real estate sector and identifying problems in the tax policy enforcement for amendments as part of efforts to implement the tax policy system reform strategy in 2021-2030.



  • Restrictions re-imposed in capital as Covid cases surge

    Amid the ongoing community outbreak of Covid-19, which has shown no sign of subsiding with 750 infections and 10 deaths reported on June 2 alone, the Phnom Penh Municipal Administration has decided to re-impose the suspension of all occupations and business activities deemed as posing high risk of

  • Phnom Penh-Sihanoukville expressway 51% complete

    The construction of the nearly $2 billion Phnom Penh-Sihanoukville Expressway is 51.35 per cent complete and is expected to be finished in 2023, according to Ministry of Public Works and Transport secretary of state Vasim Sorya. Invested in by Cambodian PPSHV Expressway Co Ltd, the first expressway in

  • First 7-Eleven store to open mid-June, ambassador says

    Thai retail conglomerate CP All Pcl will open Cambodia’s first 7-Eleven convenience store in mid-June, Cambodian ambassador to Thailand Ouk Sorphorn told The Post on June 1. The Bangkok-listed 7-Eleven franchise operator, the retail arm of Charoen Pokphand Group Co Ltd, granted CP All (Cambodia)

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • US embassy guard gets Covid despite two doses of Pfizer jab

    The Covid-19 tracking commission on June 4 said a security guard at the US embassy in Phnom Penh had contracted the novel coronavirus, despite having received a second dose of the Pfizer-BioNTech shot two weeks ago. Embassy spokesperson Chad Roedemeier confirmed the SARS-CoV-2 infection to The

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy