How to calculate registration fees when buying and selling an apartment in Vietnam?

How to calculate registration fees when buying and selling an apartment in Vietnam?

Pursuant to Article 6, point c clause 1 Article 7 of Decree 10/2022/ND-CP and point b clause 1 Article 3 of Circular 13/2022/TT-BTC, the registration fees when buying and selling an apartment is calculated as follows:

(1) In case the apartment price in the apartment sale contract is higher than the price issued by the provincial People's Committee (province, centrally-run city)

registration fees payable = 0.5% x Transfer price in the contract

Example: Mr. A sells an apartment of 70m2 to Mr. B for 2 billion VND, the registration fees Mr. B has to pay in this case is 10 million VND (0.5% x 2 billion VND).

(2) In case the apartment price in the apartment sale contract is lower than or equal to the price issued by the provincial People's Committee

registration fees payable = 0.5% x Taxable value according to state price

Where the taxable value according to the state price includes:

- Taxable value for the apartment:

Taxable value (VND) = Area x Price per m2 x % remaining quality (if it is an old apartment)

- Taxable value for the allocated land area for apartment construction:

Taxable value = Land price from the land price list issued by the provincial People's Committee x Allocation coefficient

According to clause 2 Article 4 of Decree 53/2011/ND-CP, the allocation coefficient is determined as follows:

Allocation coefficient for cases without basement = Apartment building area / Total area of houses used by organizations, households, and individuals.

Allocation coefficient for cases with basements = Apartment building area / (Total area of houses used by organizations, households, and individuals (above ground part) + 50% of the basement area used by organizations, households, and individuals)

Allocation coefficient for cases with only underground construction = (0.5 x surface land area corresponding to the underground construction) / Total area of the underground constructions used by organizations, households, and individuals

Note: The house (construction) area used by each organization, household, or individual is the actual usable floor area of the organization, household, or individual as per the sale contract or the Certificate of Land Use Rights, House Ownership and Other Assets Attached to Land (referred to as the Certificate).

How to calculate registration fees when buying and selling an apartment in Vietnam? (Image from the Internet)

What documents are required to feclare registration fees for apartment transactions in Vietnam?

According to Appendix 1 issued with Decree 126/2020/ND-CP, the registration fees declaration dossier for apartment transactions includes the following documents:

- registration fees declaration form No. 01/LPTB.

- Copy of documents proving the asset (or asset owner) is exempt from registration fees (if any), except in cases of submitting the original.

- Copy of documents proving the apartment according to regulations (Pink Book, apartment sale contract for contract transfer cases).

- Notarized or certified apartment sale contract.

What are cases of registration fee exemption in Vietnam?

Cases eligible for registration fees exemption as stipulated in Article 10 of Decree 10/2022/ND-CP include:

- Houses and land that are the headquarters of diplomatic missions, consular offices, representative offices of international organizations belonging to the United Nations system, and houses of the heads of diplomatic missions, consular offices, representative offices of international organizations belonging to the United Nations system in Vietnam.

- Assets (excluding houses and land) of foreign organizations and individuals as follows:

+ Diplomatic missions, consular offices, representative offices of international organizations under the United Nations system.

+ Diplomatic officers, consular officers, administrative and technical staff of diplomatic missions, consular offices, members of representative offices of international organizations under the United Nations system, and their family members who are not Vietnamese citizens or do not reside in Vietnam, are granted diplomatic identification cards or service identification cards by the Ministry of Foreign Affairs of Vietnam.

+ Foreign organizations and individuals not covered by points a and b of this clause, but exempt or not required to pay registration fees under international commitments to which the Socialist Republic of Vietnam is a member.

- Land allocated or leased by the State with a one-time payment of land rent for the entire lease period used for the following purposes:

+ For public purposes as stipulated by land law.

+ For mineral exploration, exploitation; scientific research under permits or confirmations from competent state authorities.

+ Investment in building infrastructure (regardless of whether the land is within or outside industrial parks, export processing zones), investment in house construction for transfer, including cases where organizations or individuals receive transfers to continue investment in building infrastructure, investment in house construction for transfer. In these cases, if registering ownership, usage rights for leasing, or personal use, registration fees must be paid.

- Land allocated, leased, or recognized by the State for agricultural, forestry, aquaculture, or salt production.

- Agricultural land transferred for use between households, individuals in the same commune, ward, or commune-level town to facilitate agricultural production under land law.

- Agricultural land reclaimed by households and individuals in accordance with approved land use planning, not disputed, and granted a land use right certificate by competent state authorities.

- Land rented from the State on an annual land rent basis or rented from organizations, individuals with legitimate land use rights.

- Houses and land used for community purposes by recognized religious organizations, belief establishments, or authorized activities.

- Land for cemeteries and graveyards.

- Houses and land inherited or gifted between: Spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; grandparents and grandchildren; siblings; hence registered by competent state authorities for land use rights, house ownership, and other assets attached to land.

- Houses created by households and individuals through separate housing development as stipulated by the Housing Law 2023.

- Assets for financial lease that are transferred to the lessee upon lease term end through asset transfer or sale; in this case, the lessee is exempt from registration fees; if a financial leasing company purchases assets from units that have paid registration fees and later leases those assets back to the selling units, the financial leasing company is exempt from registration fees.

- Houses, land, special assets, and assets specifically used for serving national defense and security.

- Houses and land used as office space by state agencies, armed forces, public service providers, political organizations, political-social organizations, professional social organizations, social organizations, and professional social organizations.

- Houses and land compensated or resettled (including houses and land purchased with compensation or support money) when the state recovers houses, land according to legal provisions.

This registration fees exemption applies to individuals and entities whose houses or land are recovered.

- Assets of organizations or individuals already granted ownership or use certificates when re-registering ownership, usage rights, exempt from registration fees in the following cases:

+ Assets granted ownership, use certificates by authorities of the Democratic Republic of Vietnam, the Government of the Vietnam Revolutionary South, the State of the Socialist Republic of Vietnam, or authorities under former policies, now re-issued with new certificates without changing asset owners.

+ State-owned enterprises, public service providers converted into joint-stock companies or organized according to state enterprise or public service provider reorganization laws.

+ Family-shared assets granted joint ownership certificates; after legally partitioning, re-register assets for individuals; consolidated assets of spouses after marriage; assets divided for spouses upon divorce following a legally effective court decision.

+ Assets previously granted ownership or use certificates and re-issuance of certificates due to loss, wear, damage. Organizations, individuals do not need to declare, complete exemption procedures when being re-issued ownership, use certificates.

+ Cases of ownership re-registration due to state-approved land use change without changing land users and not subject to land levy when changing land use purpose under land levy laws.

- Assets of organizations or individuals already paid registration fees transferred to others for ownership, use registration, exempt from registration fees in the following cases:

+ Organizations, individuals, cooperative members using their assets as capital contribution to enterprises, credit institutions, cooperatives; enterprises, credit institutions, cooperatives dissolved, divided, or capital withdrawn.

+ Enterprises or administrative units transferring assets internally or reallocating assets per competent authority decisions.

- Assets already paid registration fees being shared, contributed, partitioned, merged, renamed per competent authority decisions.

- Assets transferred to other localities for use without changing ownership.

- Charity, unity houses, supported humanitarian houses, and corresponding land registered in the name of the beneficiary.

- Fire trucks, ambulances, X-ray vehicles, rescue vehicles (towing, carrying cars), garbage trucks, water spraying trucks, water tank trucks, street sweepers, vacuum trucks, waste suction trucks; specialized cars and motorcycles for war invalids, patients, and the disabled registered for invalids, patients, and disabled persons.

- Aircraft used for business transportation of goods, passengers.

- Fishing vessels (including fishing resource exploitation, fishing logistics vessels); hulls, engine blocks, main engine blocks of fishing vessels registered with competent state authorities.

- Hulls, main body, main engine stipulated in clause 8 Article 3 of Decree 10/2022/ND-CP replaced and re-registered within warranty period.

- Factories of production establishments; warehouses, canteens, parking lots of production, business establishments. Factories here are determined by construction classification law.

- Housing, homestead land of poor households; housing, homestead land of ethnic minorities in remote, mountainous areas; housing, homestead land of households, individuals in special economic - social development programs areas, remote areas.

- Small engine or non-motorized vessels with a full load capacity of up to 15 tons, or with main engine power up to 15hp, passenger-carrying capacity up to 12 persons; high-speed passenger ferries, garbage collection boats and container transport vessels.

Above vehicles determined according to inland waterway laws and corresponding replacement parts.

- Houses and land of facilities investing privately in education - training, vocational training, health care, culture, sports, environment activities as legally required, registering land use rights, house ownership for those purposes.

- Houses and land of non-public facilities registering land use, house ownership rights serving activities in education - training, health care, culture, sports, science and technology, environment, social, population, family, child protection legally; except cases under clause 28 Article 10 of Decree 10/2022/ND-CP.

- Houses and land of scientific and technological enterprises registering land use, house ownership rights.

- Public passenger transport buses using clean energy.