Is receiving a car as a gift from a boyfriend subject to PIT in Vietnam?

Is a car considered movable property in Vietnam?

Based on the provisions of Article 107 of the Civil Code 2015 regarding immovable and movable property as follows:

Immovable and Movable Property

1. Immovable property includes:

a) Land;

b) Houses and constructions attached to the land;

c) Other assets attached to land, houses, and constructions;

d) Other assets as prescribed by law.

2. Movable property refers to all assets that are not immovable property.

Pursuant to the provision that movable property consists of assets not falling under immovable property, a car is considered movable property.

Is receiving a car as a gift from a boyfriend subject to personal income tax in Vietnam?

Based on the provisions of Clause 10, Article 2 of Circular 111/2013/TT-BTC regarding income from gifts subject to personal income tax:

Taxable Income Items

Under the provisions of Article 3 of the Personal Income Tax Law and Article 3 of Decree No. 65/2013/ND-CP, taxable income includes:

...

9. Income from inheritance

Income from inheritance is the portion of wealth an individual receives by testament or by law of inheritance. Specifically:

a) For inheritance that is securities, including: shares, stock purchase rights, bonds, treasury bills, fund certificates, and other securities as prescribed by the Law on Securities; shares of individuals in a joint-stock company as prescribed by the Law on Enterprises.

b) For inheritance that is capital in economic organizations, business facilities, including: capital in limited liability companies, cooperatives, partnerships, business cooperation contracts; capital in private enterprises, individual business facilities; capital in associations, funds allowed to be established under the law, or entire business facilities if they are private enterprises, individual business facilities.

c) For inheritance that is immovable property, including: land use rights; land use rights with assets attached; ownership rights to houses, including future housing; infrastructure and constructions attached to the land, including future constructions; land lease rights; water surface lease rights; other income from inheritance that is immovable property in any form; except income from inheritance that is immovable property guided at point d, clause 1, Article 3 of this Circular.

d) For inheritance that is other assets required to register ownership or use rights with State agencies such as automobiles; motorcycles; ships, including barges, canoes, towboats, tugboats; boats, including yachts; airplanes; hunting guns, sports guns.

10. Income from gifts

Income from gifts is income an individual receives from organizations, individuals within and outside the country. Specifically:

a) For gifts that are securities, including: shares, stock purchase rights, bonds, treasury bills, fund certificates, and other securities as prescribed by the Law on Securities; shares of individuals in a joint-stock company as prescribed by the Law on Enterprises.

b) For gifts that are capital in economic organizations, business facilities, including: capital in limited liability companies, cooperatives, partnerships, business cooperation contracts, capital in private enterprises, individual business facilities, capital in associations, funds allowed to be established under the law, or entire business facilities if they are private enterprises, individual business facilities.

c) For gifts that are immovable property, including: land use rights; land use rights with assets attached; ownership rights to houses, including future housing; infrastructure and constructions attached to the land, including future constructions; land lease rights; water surface lease rights; other income from inheritance that is immovable property in any form; except income from gifts that are immovable property guided at point d, clause 1, Article 3 of this Circular.

d) For gifts that are other assets required to register ownership or use rights with State agencies such as automobiles; motorcycles; ships, including barges, canoes, towboats, tugboats; boats, including yachts; airplanes; hunting guns, sports guns.

Therefore, an individual receiving a car as a gift from their boyfriend is subject to personal income tax.

Is receiving a car as a gift from a boyfriend subject to PIT in Vietnam? (Image from the Internet)

When is the taxable income determined for the case of receiving a car as a gift from a boyfriend in Vietnam?

Based on the provisions of Clause 3, Article 16 of Circular 111/2013/TT-BTC regarding the time to identify taxable income from gifts for resident individuals:

=Tax Basis from Inheritance, Gifts

The tax basis for income from inheritance, gifts consists of taxable income and tax rate.

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3. Time of identification of taxable income

The time to determine taxable income from inheritance and gifts is when the individual completes the registration procedures for ownership or use rights of the inherited or gifted asset.

Based on the provisions of Clause 3, Article 23 of Circular 111/2013/TT-BTC regarding the time to identify taxable income from gifts for non-resident individuals:

Article 23. Regarding income from prizes, inheritance, gifts

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3. Time of identification of taxable income

a) For income from prizes: the time to determine taxable income is when the organization or individual in Vietnam pays the prize to a non-resident individual.

b) For income from inheritance: the time to determine taxable income is when the individual completes the procedures to register ownership or use rights of the property in Vietnam.

c) For income from gifts: the time to determine taxable income is when the individual completes the procedures to register ownership or use rights of the property in Vietnam.

Thus, the time to determine taxable income for receiving a car as a gift from a boyfriend is when the individual completes the procedures to register ownership of the asset.