Budget condo buyers get 50% VAT cut

Those buying and renting low-cost homes from today enjoys a value-added tax (VAT) rate of 5%, down by a half from the old level.

A 50% VAT cut is also given to homebuyers at the commercial projects with flats covering less than 70 square meters each and quoted at below VND15 million per square meter, says a dispatch released by the Ministry of Finance last Friday. VAT reduction is effective from today to June 30, 2014.

In addition, from today, businesses are charged a corporate income tax rate of only 10% on their earnings from budget condo sale and lease. The preferential tax rate is also applied to the low-cost housing projects developed by the State and private organizations and individuals. - Source: The Saigon Times