What is the first level of heirs in Vietnam? Who does the first level of heirs include?What types of inheritance income are subject to personal income tax in Vietnam?
What is the first level of heirs in Vietnam? Who does the first level of heirs include?
Inheritance is understood as the transfer of assets from the deceased to the living, and the assets left behind are referred to as the estate. Inheritance is divided into two forms:
(1) Inheritance by will (Specifically regulated in Chapter 22 of the Civil Code 2015)
Inheritance by will is the transfer of assets from the deceased to the living in accordance with the wishes expressed by the deceased while alive.
(2) Intestate succession: (Specifically regulated in Chapter 23 of the Civil Code 2015)
Intestate succession is inheritance based on the order of successors, conditions, and procedures as prescribed by law:
Additionally, pursuant to Article 651 of the Civil Code 2015 regarding legal succession:
Legal Heirs
- Legal heirs are defined in the following order:
a) The first level of heirs includes: spouse, biological father, biological mother, adoptive father, adoptive mother, biological children, adoptive children of the deceased;
b) The second level of heirs includes: paternal grandparents, maternal grandparents, siblings of the deceased; the children of siblings of the deceased where the deceased is the paternal or maternal grandparent;
c) The third level of heirs includes: great-grandparents of the deceased; paternal uncles, paternal aunts, maternal uncles, maternal aunts of the deceased; grandchildren of the deceased where the deceased is an uncle, aunt; great-grandchildren of the deceased where the deceased is a great-grandparent.
- Individuals in the same level of heirs receive equal shares of the estate.
- Individuals in subsequent levels only inherit if there are no surviving members in the prior level due to death, disqualification, disinheritance, or refusal to accept the inheritance.
Thus, the first level of heirs (referred to as the primary legal heirs) includes those prioritized to inherit the deceased's assets under the laws of intestate succession.
The first level of heirs includes: spouse, biological father, biological mother, adoptive father, adoptive mother, biological children, adoptive children of the deceased.
Note: Heirs in the same level receive equal shares of the estate.
Individuals in subsequent levels only inherit if no one remains in the preceding level due to death, disqualification, or refusal to accept the inheritance.
What is the first level of heirs in Vietnam? Who does the first level of heirs include? (Image from the Internet)
What types of inheritance income are subject to personal income tax in Vietnam?
According to Clause 9, Article 2 of Circular 111/2013/TT-BTC, certain types of inheritance income are subject to PIT, specifically:
(1) For inherited securities
- Shares, options, bonds, treasury bills, investment fund certificates
- Other types of securities as stipulated by the Securities Law 2019;
- Individual shares in joint-stock companies as prescribed by the Enterprise Law 2020.
(2) For inherited capital in economic organizations and business establishments
- Capital contributions in limited liability companies, cooperatives, partnerships, business cooperation contracts;
- Capital in private enterprises, individual business establishments;
- Capital in associations, funds authorized to be established as per legal provisions or the entire business if it is a private enterprise or individual business establishment.
(3) For inherited real estate
- Land use rights;
- Land use rights with assets attached to the land;
- Ownership of houses, including future housing;
- Infrastructure and construction works attached to land, including future constructions;
- Land lease rights;
- Water surface lease rights;
- Other types of income from inherited real estate, except for income from property inheritance as guided in Point d, Clause 1, Article 3 of Circular 111/2013/TT-BTC.
(4) For inherited assets that require registration of ownership or use rights with a State management agency
Including: automobiles; motorcycles, motorbikes; ships, including barges, canoes, tugboats, pushers; boats, including yachts; aircraft; hunting guns, sports guns.
Which income from inheritance is exempt from PIT in Vietnam?
According to Point d, Clause 1, Article 3 of Circular 111/2013/TT-BTC, income from inheritance exempt from PIT includes real estate inheritance (including houses, construction projects that will form in the future according to the law on real estate business) between:
- Husband and wife;
- Biological parents and biological children;
- Adoptive parents and adoptive children;
- Father-in-law, mother-in-law and daughter-in-law;
- Father-in-law, mother-in-law and son-in-law;
- Paternal grandparents and grandchild;
- Maternal grandparents and grandchild;
- Siblings with each other.
