Is there any registration fee and personal income tax on property division according to agreement after divorce?
What are the regulations on common property of husband and wife?
In Clause 1, Article 33 of the 2014 Law on Marriage and Family of Vietnam, the common property of husband and wife is as follows:
“1. Common property of husband and wife includes property created by a spouse, incomes generated from labor, production and business activities, yields and profits arising from separate property and other lawful incomes in the marriage period; except the case prescribed in Clause 1, Article 40 of this Law; property jointly inherited by or given to both, and other property agreed upon by husband and wife as common property.
The land use rights obtained by a spouse after marriage shall be common property of husband and wife, unless they are separately inherited by, or given to a spouse or are obtained through transactions made with separate property.”
What are the regulations on common property division during the marriage period?
Article 38 of the 2014 Law on Marriage and Family of Vietnam stipulates common property division during the marriage period:
“1. During the marriage period, except the case prescribed in Article 42 of this Law, husband and wife have the right to reach agreement on division of part or whole of common property. If they fail to reach an agreement, they have the right to request a court to settle it.
2. An agreement on common property division shall be made in writing. This agreement shall be notarized at the request of husband and wife or as prescribed by law.
3. At the request of a spouse, a court shall settle the common property division according to Article 59 of this Law.”
Clause 3, Article 39 of the 2014 Law on Marriage and Family of Vietnam stipulates for the effective time of common property division during the marriage period:
“For common property divided by a court, the division takes effect on the legally effective date of the court’s judgment or decision.”
Property division according to agreement after divorce
Is there any registration fee and personal income tax on property division according to agreement after divorce?
At Point a, Clause 1, Article 3 of Circular 111/2013/TT-BTC of Vietnam stipulating tax-free incomes as follows:
“1. According to Article 4 of the Law on Personal income tax and Article 4 of the Decree No. 65/2013/ND-CP, tax-free incomes include:
a) Incomes from real estate transfer (including future houses and constructions according to regulations of law on real estate trading) between husband and wife, parents and children; adoptive parents and adopted children; parents-in-law and children-in-law; grandparents and grandchildren, and among siblings.
The real estate (including future houses and constructions according to regulations of law on real estate trading) that is established by either spouse during the marriage, considered marital property, divided under agreements or judgment of the court when they divorce shall be tax-free.”
At Point a, Clause 5, Article 5 of Circular 13/2022/TT-BTC of Vietnam providing for registration fee exemption:
"Registration fee exemption shall comply with Article 10 of Decree No. 10/2022/ND-CP. Some details are specified as follows:
5. Assets of organizations and individuals that have been granted ownership and use right certificates upon re-registration of ownership and use rights are exempt from paying registration fees as prescribed at Points c and d, Clause 16. Article 10 of Decree No. 10/2022/ND-CP, specifically as follows:
a) Property that has been granted a certificate of ownership or common use right of the household or family members upon division of such property in accordance with law for re-registration of family members; Consolidated property of husband and wife after marriage; Property to be distributed to husband and wife upon divorce according to legally effective judgments or decisions of the Court.
Households or family members are those who are related by marriage or by blood and nurture in accordance with the law on marriage and family."
Pursuant to the above provisions, in case real estate (including houses to be formed in the future, construction works to be formed in the future in accordance with the law on real estate business) created by a spouse established during the marriage is determined to be the common property of husband and wife, when the divorce is divided according to agreement or judgment by the court, the division of this property shall be exempt from personal income tax and registration fee.
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