Personal Income Tax
Cases that are required to pay personal income tax when transferring red books include:
– In cases where the parties agree on the taxpayer, it shall be implemented according to that agreement.
– If the parties do not agree on who will pay the transferred income tax, the person who has the obligation to pay personal income tax is the transferor (seller), according to point c clause 5 of Article 2 of Circular 111/2013/TT-BTC.
– With regards to donated contracts for real estate, if there is no agreement, the recipient of the gift will be responsible for paying the tax (as the recipient has income).
However, according to Article 3 of Circular 111/2013/TT-BTC, the following cases are exempt from personal income tax when transferring the right to use land and houses:
Case 1: Transfer, gift, inheritance of real estate (including future residential buildings, construction projects formed in the future according to the regulations on real estate business) between: Husband and wife; biological parents with biological children; foster parents with foster children; fathers-in-law and mothers-in-law with daughters-in-law; paternal side with grandchildren; maternal side with grandchildren; siblings with each other.
Case 2: Individuals transferring only one residential house and land use right in Vietnam
Article 17 of Circular 92/2015/TT-BTC stipulates how to calculate personal income tax when transferring real estate as follows:
Personal income tax to be paid = Transfer price x 2%
Where:
– The transfer price for the transfer of land use rights without construction on the land is the price stated in the transfer contract at the time of transfer.
If the transfer contract does not state the price or the price in the transfer contract is lower than the price of the land determined by the provincial People’s Committee (provinces, centrally run cities) at the time of transfer, the transfer price shall be determined according to the land price table determined by the provincial People’s Committee at the time of transfer.
– The transfer price for the transfer of land use rights attached to construction works on the land, including houses and future construction works, is the price stated in the transfer contract at the time of transfer.
If the transfer contract does not state the price of the land or the price of the land in the transfer contract is lower than the price determined by the provincial People’s Committee, the transfer price of the land shall be the price determined by the provincial People’s Committee at the time of transfer according to the regulations on land.
Fees to be paid when transferring Red Book Ownership
Registration fee
According to Article 5 of Decree 140/2016/ND-CP, Clause 1 of Article 1 of Decree 20/2019/ND-CP, the registration fee is calculated as follows:
– Case 1: When the transfer price is higher than the price of a house, land determined by the provincial People’s Committee
Clause 1 of Article 1 of Decree 20/2019/ND-CP stipulates, in cases where the price of a house, land in the land use right transfer contract, house purchase contract is higher than the price determined by the provincial People’s Committee, the fee for a house, land is the price stated in the land use right transfer contract, house purchase contract (usually applied in the case of transfer – sale).
Registration fee = 0.5% x Transfer price
– Case 2: When the transfer price is lower than or equal to the price of a house, land determined by the provincial People’s Committee, when receiving a gift, inheriting a house and land.
+ Fee amount for land: Registration fee = 0.5% x Area x Price per m2 in the land price list determined by the provincial People’s Committee
+ Fee amount for houses: Registration fee = 0.5% x ( Area x Price per m2 x (Remaining quality percentage %))
Document appraisal fee
Circular 85/2019/TT-BTC stipulates the fee for document appraisal when changing the name of a house, land under the jurisdiction of the Provincial People’s Committee (provinces, centrally run cities), so the fee level will vary between provinces and cities. The fee ranges from 500,000 VND – 5 million VND.
The document appraisal fee for granting a certificate of land use rights is the fee for the work of document appraisal, the necessary conditions to ensure the issuance of a certificate of land use rights, ownership of houses, assets attached to the land (including first-time granting, new issuance, change issuance, re-issuance of certificates and registration of changes in the issued certificates) according to the provisions of land laws.
Based on the scale of the land area, the complexity of each type of dossier, the land use purpose, and the specific conditions of the locality to determine the fee for each case.
Certificate issuance fee (fee for new cover)
When changing the name of a house and land, if the transferee, recipient requests and is issued a new certificate, this fee must be paid.
The fee for issuing a certificate of land use rights, ownership of houses, and assets attached to the land is the fee that organizations, households, and individuals must pay when authorized by the competent state agency to grant a certificate of land use rights, ownership of houses, and assets attached to the land.
The fee for granting a certificate of land use rights, ownership of houses, and assets attached to the land includes: Granting a certificate of land use rights, ownership of houses, and assets attached to the land; certifying changes in land; extracting a map from the land register; documents; land register data.
Based on the specific conditions of the locality, the socio-economic development policies of the locality to determine the appropriate fee level, ensuring the principle: The fee for households, individuals in districts of centrally run cities, inner-city wards in cities, or towns is higher than the fee for other areas; the fee for organizations is higher than the fee for households, individuals.
