What types of taxes are applicable when buying or selling a house?

What types of taxes are applicable when buying or selling a house in Vietnam?

The tax payable when buying or selling a house is the personal income tax upon transaction.

According to Clause 5 Article 3 of the Law on Personal Income Tax 2007 as amended by Clause 1 Article 1 of the Amended Personal Income Tax Law 2012, it is stipulated as follows:

- Income from real estate transfers, including:

+ Income from the transfer of land use rights and assets attached to the land;

+ Income from the transfer of ownership or use rights of houses;

+ Income from the transfer of land lease rights, water surface lease rights;

+ Other income from real estate transfers in any form

What types of taxes are applicable when buying or selling a house in Vietnam? (Image from the Internet)

What is the tax rate applicable when buying or selling a house in Vietnam?

According to Clause 5 Article 2 of Circular 111/2013/TT-BTC, the specific tax rate is stipulated as follows:

Tax Rate: The tax rate for buying, selling houses, land is 2% of the purchasing, selling, or leaseback price.

Tax Calculation:

- Personal income tax for income from buying, selling houses, and land is determined as follows:

- In cases where the purchase and sale of houses, land are co-owned, the tax obligation is determined separately for each taxpayer based on the property ownership ratio. The basis for determining ownership ratio includes lawful documents such as an initial capital contribution agreement, will, or court allocation decision, etc. In the absence of lawful documents, the tax obligation of each taxpayer is determined by the average ratio.

What types of fees are applicable when buying or selling a house in Vietnam?

(1) Registration Fee When Buying or Selling a House, Land

According to Clause 1 Article 3 of Decree 10/2022/ND-CP guided by Clause 1 Article 2 of Circular 13/2022/TT-BTC on registration fees for buying houses, land as follows:

The subjects liable for registration fees are detailed as follows:

- Houses, land stipulated in Clause 1 Article 3 of Decree 10/2022/ND-CP

+ Houses, including: residential houses; working houses; houses for other purposes.

+ Land, including: various types of agricultural land and non-agricultural land as prescribed by the Land Law (regardless of whether the land has been constructed or not).

(2) Notarization Fee When Preparing House Sale Documentation

According to Point a7 Clause 2 Article 4 of Circular 257/2016/TT-BTC, specific provisions about notarization fees when preparing house sale documentation are as follows:

Notarization of economic, commercial, investment, and business contracts: Calculated based on the asset value or contract value, transaction.

(3) Fee for Issuing Certificates of Land Use Rights, Ownership of Houses, and Assets Attached to Land

According to Point đ Clause 2 Article 5 of Circular 85/2019/TT-BTC, it is stipulated about the fee for issuing certificates of land use rights, ownership of houses, and assets attached to land as follows:

The fee for issuing certificates of land use rights, ownership of houses, and assets attached to land is a charge payable by organizations, households, and individuals when issued by the competent state authority.

The fee for issuing certificates of land use rights, ownership of houses, and assets attached to land includes: issuance of certificates of land use rights, ownership of houses, and assets attached to land; certification of land, property fluctuations; cadastral map extract; documents; cadastral record data.

Based on the specific conditions of the locality, local socio-economic development policies to stipulate the appropriate fee level, ensuring the principle: the fee level for households, individuals in districts of centrally-run cities, inner-city wards of provincially-run cities, or district-level towns is higher than that in other areas; the fee level for organizations is higher than that for households, individuals.