Is it required to pay personal income tax when inheriting house and land according to a will or legal regulations?
Is personal income tax required when inheriting houses or land per a will or legal regulations?
According to point c, clause 9, Article 2 of Circular 111/2013/TT-BTC detailing taxable income items as follows:
Taxable income items
According to Article 3 of the Law on Personal Income Tax and Article 3 of Decree No. 65/2013/ND-CP, taxable personal income includes:
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9. Income from inheritance
Inheritance income refers to income individuals receive under a will or in accordance with inheritance laws. Specifically:
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c) For inheritance as real estate including: land use rights; land use rights with attached assets; ownership rights of houses, including future-formed houses; infrastructure and construction works attached to the land, including future-formed construction works; land lease rights; water surface lease rights; other income from inheritance as real estate in any form; excluding income from inheritance as real estate as stipulated in point d, clause 1, Article 3 of this Circular.
Based on point d, clause 1, Article 3 of Circular 111/2013/TT-BTC, inheritance income between the following individuals is exempt from personal income tax:
- 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.
In 2024, if an individual receives inheritance income that does not fall within the exempted categories mentioned above, they must comply and pay personal income tax as stipulated by law for inheritance of: land use rights; ownership rights of houses; infrastructure and construction works attached to the land, including future-formed construction works.
Is personal income tax required when inheriting houses or land per a will or legal regulations? (Image from the Internet)
Does an individual need to pay registration fees when registering land use rights, house ownership rights inherited?
According to clause 10, Article 10 of Decree 10/2022/ND-CP, when registering land use rights, house ownership rights as inherited assets between the following individuals are exempt from registration fees:
- 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.
Therefore, outside of the aforementioned exceptions, individuals receiving inheritance when registering land use rights, house ownership rights must pay registration fees.
According to provisions in Article 8 of Decree 10/2022/ND-CP as follows:
Fee rates (% basis)
1. Houses, land: The fee rate is 0.5%.
Thus, registration fee = 0.5% x Value of inherited real estate
Does an individual need to pay dossier appraisal fees for issuing land use right certificates when inheriting land use rights?
According to point i, clause 1, Article 5 of Circular 85/2019/TT-BTC as amended by point b, clause 3, Article 1 of Circular 106/2021/TT-BTC effective from January 10, 2022, stipulates the basis for determining fee and charge rates as follows:
Basis for determining fee and charge rates
Based on the socio-economic conditions of the local area where the service activities occur, the provincial People's Council prescribes appropriate fee and charge rates.
1. For fees:
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i) The dossier appraisal fee for issuing land use right certificates is a fee for the appraisal of the dossier, the necessary and sufficient conditions ensuring the issuance of land use right certificates, house ownership rights and assets attached to the land (including initial issuance, re-issuance, modification, re-issuance of certificates, and registration of changes on issued certificates) according to legal regulations.
Based on the parcel size, complexity of each type of dossier, land use purpose, and specific local conditions to prescribe fee rates for each case.
The dossier appraisal fee for issuing land use right certificates is a fee for the appraisal of the dossier, ensuring the necessary and sufficient conditions for issuing land use right certificates, house ownership rights and assets attached to the land (including initial issuance, re-issuance, modification, re-issuance of certificates, and registration of changes on issued certificates) according to legal regulations.
The dossier appraisal fee upon registration of changes is determined by the provincial People's Council based on the parcel size, complexity of each type of dossier, land use purpose, and specific local conditions, so the fee rates may vary.
Therefore, individuals must pay dossier appraisal fees for issuing land use right certificates when inheriting land use rights as regulated.
Based on the parcel size, complexity of each type of dossier, land use purpose, and specific local conditions to prescribe fee rates for each case.
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