What is the tax rate on incomes from real estate transfer in Vietnam?

What is the tax rate on incomes from real estate transfer in Vietnam?

Pursuant to Clause 2 of Article 12 of Circular 111/2013/TT-BTC, as amended by Article 17 of Circular 92/2015/TT-BTC, the following is stipulated:

Tax basis for incomes from real estate transfer

The tax basis for incomes from real estate transfer is the transfer price per transaction and the tax rate.

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2. Tax Rate

The tax rate for real estate transfers is 2% of the transfer price or sublease price.

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Hence, the tax rate on incomes from real estate transfer is 2% of the transfer price or sublease price.

What is the tax rate on incomes from real estate transfer in Vietnam? (Image from the Internet)

What types of income are subject to personal income tax from real estate transfers in Vietnam?

Pursuant to Clause 5 of Article 2 of Circular 111/2013/TT-BTC, personal income subject to tax from real estate transfers includes the following:

- Income from the transfer of land use rights.

- Income from the transfer of land use rights and assets attached to the land. Assets attached to the land include:

+ Housing, including future-formed houses.

+ Infrastructure and construction works attached to land, including future-formed construction works.

+ Other assets attached to land, including agricultural, forestry, and fisheries products (such as plants and animals).

- Income from the transfer of ownership rights of houses, including future-formed houses.

- Income from the transfer of land lease rights or water surface lease rights.

- Income from contributing capital with real estate to establish an enterprise or increase the enterprise's production and business capital according to the law.

- Income from authorizing the management of real estate where the authorized person has rights to transfer the real estate or possesses rights similar to the real estate owner as stipulated by law.

- Other incomes received from transferring real estate in any form.

What are regulations on transfer price of real estate for calculating personal income tax in Vietnam

Pursuant to Clause 1 of Article 12 of Circular 111/2013/TT-BTC, as amended by Article 17 of Circular 92/2015/TT-BTC, regulations on the transfer price of real estate for calculating personal income tax are as follows:

- The transfer price for transferring 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 contract is lower than the land price set by the Provincial People's Committee at the time of transfer, the transfer price will be determined according to the land price list set by the Provincial People's Committee at the time of transfer.

- The transfer price for transferring land use rights attached to construction works on the land, including future-formed construction works, is the price stated in the transfer contract at the time of transfer.

If the transfer contract does not state the land price or the land price stated in the contract is lower than the price set by the Provincial People's Committee, the transfer price of land is the price set by the Provincial People's Committee at the time of transfer according to the land law.

In case of transferring houses attached to land, the value of the house, infrastructure, and architectural works attached to the land is determined based on the registration fee price for houses set by the Provincial People's Committee.

If the Provincial People's Committee does not have a specified registration fee price for houses, rely on the regulations of the Ministry of Construction on housing classification, basic construction norm standards, and the actual remaining value of construction works on the land.

For construction works formed in the future, if the contract does not state the transfer price or the transfer price is lower than the capital contribution ratio on the total contract value multiplied (x) by the land price and the registration fee price for construction works set by the Provincial People's Committee, the transfer price will be determined by the price of the Provincial People's Committee multiplied (x) by the capital contribution ratio on the total contract value.

In cases where the Provincial People's Committee has not specified the unit price, apply the construction investment capital unit price announced by the Ministry of Construction, applicable at the time of transfer.

- The transfer price for transferring land lease rights or water surface lease rights is the price stated in the contract at the time of transferring land lease rights or water surface lease rights.

If the sublease price stated in the contract is lower than the price set by the Provincial People's Committee at the time of subleasing, the sublease price is determined based on the price list set by the Provincial People's Committee.