How to determine taxable personal income from real estate transfer in Vietnam? Which income is exempted from personal income tax in Vietnam?
How to determine taxable personal income from real estate transfer in Vietnam?
Based on Clause 1, Article 14 of the Personal Income Tax Law 2007, amended by Clause 6, Article 2 of the Amended Tax Laws 2014, and Article 247 of the Land Law 2024, the regulations on taxable income from real estate transfer are as follows:
Taxable Income from Real Estate Transfer
- Taxable income from real estate transfers is determined as the transfer price for each instance; in the case of transferring land use rights, taxable income is calculated based on land prices in the land price list.
- The Government of Vietnam stipulates principles and methods for determining real estate transfer prices.
- The point in time to determine taxable income from real estate transfers is when the transfer contract takes effect according to legal regulations.
Therefore, according to the above regulations, taxable personal income from real estate transfer is determined as the transfer price for each instance; in the case of transferring land use rights, taxable income is calculated based on land prices in the land price list.
How to determine taxable personal income from real estate transfer in Vietnam? Which income is exempted from personal income tax in Vietnam? (Image from Internet)
Which income is exempted from personal income tax in Vietnam?
Based on Article 4 of the Personal Income Tax Law 2007 as supplemented by Clause 3, Article 2 of the Amended Tax Laws 2014 and amended by Clause 2, Article 1 of the Amended Personal Income Tax Law 2012, the following personal income is exempted from personal income tax:
- Income from real estate transfers between husband and wife; natural parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; siblings.
- Income from the transfer of residential houses, land use rights of individuals in the case where individuals have only one residential house, land use right.
- Income from the value of land use rights of individuals granted land by the State.
- Income from inheritance, gifts as real estate between husband and wife; natural parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; siblings.
- Income of households, individuals directly producing agriculture, forestry, salt production, aquaculture, and fishing, which have not been processed into other products or just through preliminary processing.
- Income from the conversion of agricultural land of households, individuals allocated by the State for production.
- Income from interest on deposits at credit institutions, interest from life insurance contracts.
- Income from remittances.
- The amount of salary paid for night work, overtime, which is higher than the salary paid for daytime work according to legal regulations.
- Pensions paid by the Social Insurance Fund; pensions paid monthly by the voluntary pension fund.
- Income from scholarships, including:
+ Scholarships received from the state budget;
+ Scholarships received from domestic and foreign organizations under that organization’s scholarship support programs.
- Income from compensation for life, non-life insurance contracts, labor accident compensation, State compensation and other compensations in accordance with the law.
- Income received from charitable funds permitted or recognized by competent state agencies, operating for charitable, humanitarian, non-profit purposes.
- Income received from foreign aid for charitable, humanitarian purposes in governmental and non-governmental forms approved by competent state agencies.
- Income from salaries and wages of Vietnamese crew members working for foreign shipping lines or Vietnamese shipping lines with international transportation.
- Income of individuals who are ship owners, individuals who have the right to use the ship and individuals working on the ship from activities providing goods and services directly serving offshore fishing.
What are regulations on personal income tax period in Vietnam?
Based on Article 7 of the Personal Income Tax Law 2007, amended by Clause 3, Article 1 of the Amended Personal Income Tax Law 2012, the personal income tax period is determined as follows:
- Tax period for resident individuals:
+ The annual tax period applies to income from business; income from salaries and wages;
+ The tax period for each time income arises applies to income from capital investment; income from capital transfer, except for income from securities transfer; income from real estate transfer; income from winning prizes; income from copyright; income from franchise; income from inheritance; income from gifts;
+ The tax period for each securities transfer or annual basis applies to income from securities transfer.
- The tax period for non-resident individuals is calculated for each time income arises, applicable to all taxable income.
