What Are the Costs for Transferring Red Book Ownership in 2023? Who Is Exempt from Taxes and Fees When Transferring Red Book Ownership?
Conditions to Transfer Red Book Ownership
Currently, the prevailing land law does not specifically define the term "Red Book." However, it can be understood that the Red Book is a Certificate issued by the Ministry of Natural Resources and Environment before December 10, 2009, legally known as the "Land Use Rights Certificate."
Pursuant to the provisions of Article 188 of the Land Law 2013, the specific conditions for transferring the Red Book ownership are as follows:
- Possession of a Red Book;
Except for the cases specified in Clause 3, Article 186 of the Land Law 2013 and inheritance cases stipulated in Clause 1, Article 168 of the Land Law 2013.
- The land is not in dispute;
- The land use right is not under litigation for judgment enforcement;
- Within the land-use term.
How much are the costs to transfer Red Book ownership in 2023? Who is exempt from taxes and fees when transferring Red Book ownership? (Image from the Internet)
How much are the costs to transfer Red Book ownership in 2023? What fees are included?
According to the provisions of Decree 10/2022/ND-CP, Circular 85/2019/TT-BTC, the Law on Fees and Charges 2015, Circular 257/2016/TT-BTC, and Circular 111/2013/TT-BTC, when transferring Red Book ownership, the following fees and charges must be paid:
(1) Registration Fee
The current registration fee rate for houses and land is 0.5%.
(2) Certificate Application Evaluation Fee
- The evaluation fee for Red Book certificate applications covers the work of evaluating the application, and the necessary conditions ensuring the issuance of Red Book certificates. This includes:
+ First-time issuance;
+ New issuance;
+ Reissuance;
+ Reissuance for lost certificates.
- The fee amount is based on the size of the parcel, the complexity of each type of file, the land use purpose, and specific local conditions to determine the fee for each case.
(3) Red Book Certificate Issuance Fee
- The Red Book certificate issuance fee is charged when organizations, households, or individuals are granted a Red Book certificate by a competent state agency.
- The Red Book certificate issuance fee includes: Certificate issuance; registration of land change certification; cadastral map extract; documentation; cadastral records data.
- The Red Book certificate issuance fee is determined by the provincial People's Council. Therefore, the fee amount varies from province to province.
(4) Notarization and Authentication Fee
The notarization fee for contracts is determined as follows:
| No. | Asset Value or Contract, Transaction Value | Fee Amount
(VND/case) || --- | --- | --- || 1 | Below 50 million VND | 50 thousand || 2 | From 50 million VND to 100 million VND | 100 thousand || 3 | From over 100 million VND to 1 billion VND | 0.1% of the asset value or contract, transaction value || 4 | From over 1 billion VND to 3 billion VND | 1 million VND + 0.06% of the value exceeding 1 billion VND || 5 | From over 3 billion VND to 5 billion VND | 2.2 million VND + 0.05% of the value exceeding 3 billion VND || 6 | From over 5 billion VND to 10 billion VND | 3.2 million VND + 0.04% of the value exceeding 5 billion VND || 7 | From over 10 billion VND to 100 billion VND | 5.2 million VND + 0.03% of the value exceeding 10 billion VND || 8 | Over 100 billion VND | 32.2 million VND + 0.02% of the value exceeding 100 billion VND (maximum fee is 70 million VND/case) |
(5) Personal Income Tax
- The tax rate for land transactions is 2% of the purchase, sale, or lease value.
- Tax calculation method:
+ Personal income tax for income from land transactions is calculated as follows:
Personal Income Tax Payable = Transfer Price x Tax Rate of 2%
+ If the land is co-owned, the tax obligation is determined separately for each taxpayer based on their ownership proportion.
Who is exempt from taxes and fees when transferring Red Book ownership?
The cases exempt from taxes and fees when transferring Red Book ownership are determined as follows:
(1) Exemption from Registration Fee
According to Clause 10, Article 10 of Decree 10/2022/ND-CP, the following entities are exempt from the registration fee when transferring Red Book ownership if the house or land is a gift or inheritance:
- Between husband and wife.
- Between biological parents and biological children.
- Between adoptive parents and adopted children.
- Between parents-in-law and daughters-in-law.
- Between parents-in-law and sons-in-law.
- Between paternal grandparents and grandchildren.
- Between maternal grandparents and grandchildren.
- Between siblings.
(2) Exemption from Personal Income Tax
Pursuant to Clause 1, Article 3 of Circular 111/2013/TT-BTC, the cases exempt from personal income tax include:
- Transfers between husband and wife; biological parents and biological 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.
- Property created by the husband or wife during their marriage, recognized as joint property, when divided upon divorce, either through an agreement or court decision, is exempt from tax.
- Income from transferring property for which the seller owns only one house or land-use right in Vietnam.
- Inheritance or gifts between: husband and wife; biological parents and biological 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.
(3) Exemption and Reduction of Evaluation Fees, Issuance Fees
According to Clause 1, Article 6 of Circular 85/2019/TT-BTC, the entities eligible for fee exemption or reduction include poor households, the elderly, people with disabilities, people who have contributed to the revolution, ethnic minorities in particularly disadvantaged socio-economic areas, and other special cases as prescribed by law.
The provincial People's Council decides specifically the eligible entities and the reduction levels for each type of fee and charge.
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