Jan. 22 – Vietnam’s Ministry of Finance has proposed three options for levying tax on houses.
The first option will base taxes on the area of the house with a threshold of 200 square meters and above including the balcony. The second option will determine the tax based on the value of the house; levying a tax for property valued one billion dong and above. The house value will be calculated by multiplying total area multiplied with the unit price.
The ministry also suggests only taxing individuals with two houses or more with the taxable area calculated from the area of the second, third and following houses.
A tax on property could deter speculation in the country and prevent land hoarding. If the proposals are cleared for implementation during the next National Assembly, the new laws will probably be effective starting January 1, 2012.
Currently, expatriates living in Vietnam are allowed to own one apartment for a maximum of 50 years. After that time, owners must then either sell or transfer the house.
