Ho Chi Minh City Continues to Use the Current Land Price Table to Calculate Land Taxes

Recently, Ho Chi Minh City has decided to continue using the current land price table to calculate taxes for land-related transactions and documents. This important move aims to reduce waiting times and alleviate difficulties caused by the delay in issuing a new land price table. This decision not only brings clarity to the tax calculation process but also helps reduce the financial burden on citizens and businesses in fulfilling their tax obligations to the state.

The Current Land Price Table and Its Role in Tax Calculation

The land price table is a crucial tool used to determine land value for various purposes, including tax calculations, transfer fees, and land-use fees. In Ho Chi Minh City, the current land price table has been in use since it was issued in 2020. Although it is due for an update to align with actual market values, various factors have delayed the issuance of a new land price table.

In this context, continuing to apply the current land price table is a reasonable decision to ensure the tax calculation process is not disrupted. This is particularly important as Ho Chi Minh City has been dealing with a large volume of land-related documents since early 2024, and any delay in updating the land price table could result in a backlog in processing real estate transactions.

Impact of This Decision on Citizens and Businesses

Ho Chi Minh City’s decision to continue calculating taxes based on the current land price table has had positive effects on both citizens and businesses. For citizens, maintaining the existing price table helps them easily predict the amount of tax they will need to pay, allowing them to plan their finances more effectively and proceed with real estate transactions. In many cases, the current land price table may be lower than market values, which helps ease the tax burden on citizens.

For real estate businesses, the continued use of the current land price table brings stability in investment planning and project execution. The real estate sector is highly sensitive to policy changes, especially concerning land prices and taxes. If the new land price table were issued without sufficient preparation, businesses could face financial difficulties and increased costs, affecting profits and development plans.

Challenges in Issuing a New Land Price Table

While the continued use of the current land price table is a temporary solution, it cannot be denied that the delay in issuing a new table presents challenges for state management. By law, the land price table must be updated periodically to reflect the actual market value. However, due to various factors such as market fluctuations, legal requirements, and urban planning, updating the land price table is not an easy process.

In central areas of Ho Chi Minh City, where land prices frequently change and rise, the use of the current price table may lead to discrepancies between actual land values and the values used for tax calculations. This could result in lower-than-expected tax revenues for the state and lead to inequality between high-value and low-value areas.

Prospects for a New Land Price Table

While the new land price table has not yet been issued, the Ho Chi Minh City government is working to finalize and update it for implementation as soon as possible. Once the new table is issued, it will more accurately reflect the actual market value of land, ensuring fairness in tax calculations and other land-related financial obligations.

Furthermore, the issuance of the new land price table presents an opportunity to adjust urban planning and development policies to ensure sustainable growth for Ho Chi Minh City. This is especially important as the city faces challenges related to limited land resources and rapid population growth.

Conclusion

Ho Chi Minh City’s decision to continue applying the current land price table for tax calculation is a reasonable temporary solution given the current situation. This decision helps reduce difficulties for both citizens and businesses, ensuring that land transactions and real estate markets continue to operate smoothly. However, to ensure fairness and accurately reflect the actual value of land, the city must work quickly to complete and issue a new land price table, helping to stabilize the market and secure sustainable state revenues.