Vietnam: Enterprise income tax declaration form applying to real estate transfer (Form 02/TNDN)?
- Which businesses are subject to income tax from real estate transfer in Vietnam?
- The form of corporate income tax declaration applicable to real estate transfer according to each time it arises in Vietnam?
- How to determine the amount of corporate income tax payable according to Vietnamese regulations?
Which businesses are subject to income tax from real estate transfer in Vietnam?
According to Article 16 of Circular No. 78/2014/TT-BTC stipulating taxable objects:
“Article 16. Taxpayers
1. Liable to pay CIT on incomes from real estate transfer are enterprises of all economic sectors and business lines having incomes from real estate transfer; and real estate enterprises having incomes from land sublease.
2. Incomes from real estate transfer include income from the transfer of land use rights, or land lease right (including also the transfer of projects associated with the transfer of land use rights or land lease right in accordance with law); income from the sublease of land of real estate enterprises in accordance with the land law regardless of whether there is an infrastructure facility or architectural work attached to land; income from the transfer of houses or construction works attached to land, including their appurtenances, in case the value of such appurtenances is inseparable upon the transfer, regardless of whether land use rights or land lease right are/is transferred; and income from the transfer of house ownership or use right.
Real estate enterprises that have income from the sublease of land do not include those that only lease houses, infrastructure facilities or architectural works on land.”
Vietnam: Enterprise income tax declaration form applying to real estate transfer (Form 02/TNDN)?
The form of corporate income tax declaration applicable to real estate transfer according to each time it arises in Vietnam?
According to Appendix II issued together with Circular 80/2021/TT-BTC stipulating the form of corporate income tax declaration applicable to real estate transfer upon each arising time:
Download the form: Here.
How to determine the amount of corporate income tax payable according to Vietnamese regulations?
According to Clause 3, Article 17 of Circular No. 78/2014/TT-BTC (amended by Article 9 of Circular 96/2015/TT-BTC) regulations on determining payable corporate income tax amount are:
“Article 17. Tax bases
…
3. Determination of CIT payable:
CIT on real estate transfer in the period equals (=) assessable income from real estate transfer multiplied by (x) 22%.
Income from real estate transfer must be declared separately and is not eligible for CIT incentives.
Tax declaration and receipts of payment of CIT from real estate transfer in the administrative division where the transferred real estate is located are the basis for settling tax in the headquarter’s administrative division where”.
Thus, in case an enterprise must pay corporate income tax when transferring real estate, the payable tax amount is equal to the taxable income from real estate transfer multiplied (x) by the tax rate of 22%.
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