New Suite of Real Estate Laws Passed: Law on Real Estate Business, Law on Housing and Law on Land

In the 15^th National Assembly meeting (6^th session) held on 27 November 2023, the Law on Real Estate Business and the Law on Housing were passed. Following a short postponement due to the complexity of the proposed reforms, on 18 January 2024, the Law on Land was also approved. These three laws introduce significant reforms to Vietnam's real estate sector, and (with the exception of some limited provisions) will take effect from 1 January 2025. It has been around 10 years since the laws on the same subject were enacted, and the new laws have been developed to resolve pending issues and adapt with the development of the current market and social practices. 

• The Law on Housing No. 27/2023/QH15 ("Law on Housing 2023") will replace the existing Law on Housing No. 65/2014/QH13 that was enacted in 2014.
• The Law on Real Estate Business ("Law on Real Estate Business 2023") will replace the existing Law on Real Estate Business No. 66/2014/QH13 that was enacted in 2014.
• The Law on Land ("Law on Land 2024") will replace the existing Law on Land No. 45/2013/QH13 that was enacted in 2013 (amended and supplemented by Law No. 35/2018/QH14).

Given the interplay among the Law on Housing 2023, Law on Real Estate Business 2023 and the Law on Land 2024, we highlight the key changes introduced by the three laws in this Update.

Tax & Custom Alert – February 2024

This Update highlights recent tax and customs developments in Vietnam.

Global Minimum Tax (“GMT”) Introduction & Potential Tax Reforms – Update

Following Vietnam’s National Assembly’s passed Resolution 107/2023/QH15 dated 29 November 2023 on GMT ("Resolution"), the Vietnam Prime Minister issued Decision 19/QD-TTG dated 8 January 2024  directing the Ministry of Finance to collaborate with competent authorities to draft a decree guiding the implementation of GMT in relation to some provisions of the Resolution. These provisions include article 2.2 on taxpayers, article 4.10 on Qualified Domestic Minimum Top-up Tax (QDMTT), and article 5.13 on the Income Inclusion Rule (IIR). This decree would be granted by the Government before 31 October 2024. 

Value-added Tax ("VAT") Reduction Policy in 2024

On 28 December 2023, to implement Resolution No. 110/2023/QH15 passed by Vietnam's National Assembly, the Government issued Decree 94/2023/ND-CP ("Decree 94") together with Appendices guiding VAT reduction policy from 1 January 2024 to 30 June 2024. Decree 94 took effect from 1 January 2024.

VAT Reforms – Proposed Changes in a New Law on VAT

The Vietnam Government recently issued a draft of a new law on VAT which will introduce significant changes to the VAT policy on VAT exemption, rates and refund. These may potentially impact several business sectors including agriculture, maritime, banking, stock exchange, and telecommunication. The new law will replace the current VAT law issued in 2008 and its amendments.