What are cases of exemption from registration fees for houses and lands in Vietnam?

Hello, Lawnet would like to answer the following:

1. Cases of exemption from registration fees in Vietnam

Previously, real estate was a type of property subject to registration fees. However, from March 1, 2022, when Decree 10/2022/ND-CP takes effect, the following cases  will be exempted from registration fees as prescribed in Article 10 of Decree 10, specifically:

- Houses and land at which diplomatic missions, consular offices, representative agencies of United Nations’ international organizations, or residence of heads thereof is located.

According to the guidance in Clause 1, Article 5 of Circular 13/2022/TT-BTC, the headquarters of diplomatic missions, consular offices, which are buildings or parts of buildings and the land attached to them that are used for the official purposes of a diplomatic mission (including the house and the land attached to the residence of the head of the agency).

- Land allocated or leased out by the state with land rent paid in lump sum for the entire lease term is used for the following purposes:

+ Public purposes as prescribed by the law on land.

+ Mineral exploration and mining; or scientific research pursuant to a license or certificate granted by the competent agency;

+ Investment in construction of infrastructure (regardless of whether the land is within or outside an industrial zone or export processing zone), investment in construction of housing for transfer, including the case in which the transferee continues construction of the infrastructure or the housing for transfer. If in these cases the transferee registers ownership or right to use to lease out or itself uses the infrastructure or housing, registration fees must be paid.

- Land allotted, leased or endorsed by the government for production activities in the fields of agriculture, forestry, aquaculture and salt making.

- Agricultural land transferred between households or individuals in the same commune, ward or town for facilitating agricultural production in accordance with the Law on Land.

- Undisputed agricultural land on which the right of use has been certified in writing by competent state agencies for households or individuals who have themselves reclaimed such land according to the land use plans approved by competent state agencies.

- Land leased by the state on annual fee basis or rented from the holder of legitimate right to use the land.

- Houses and land for public used by religious organizations accepted by the state or licensed for operation.

According to the guidance in Clause 2, Article 5 of Circular 13/2022/TT-BTC, housing and land used by religious organizationss recognized and permitted by the State to operate, include:

+ Land with works being pagodas, churches, chapels, holy houses, cathedrals, Buddhist recitation halls, monasteries, religious training schools, headquarters of religious organizations, and other religious establishments .

+ Land with constructions is communal house, temple, shrine, am.

- Cemetery land.

- Houses and land inherited or gifted between spouses; parents and biological children; parents and adopted children; parents and daughters-in-law; parents and sons-in-laws; paternal or maternal grandparents and grandchildren; biological siblings, and certified by competent state agencies with regard to land use right and ownership of housing and property on land.

- Residential housing that households or persons have acquired through individual housing development

- Houses, land, peculiar property, or specialized property for national defense and security., including:

+ Types of houses and land exclusively used for national defense and security as prescribed by law;

+ Ships, boats, cars, motorbikes on the list of special assets or special-use assets, properties in service of specialized management in service of national defense and security as prescribed by law approved by the Ministry of National Defense, the Ministry of Public Security or an authorized unit of the Ministry of National Defense or a competent agency of the Ministry of Public Security shall issue a vehicle registration certificate.

- State-owned houses, land used as the office of government agencies, people's armed forces, public service providers, political organizations, socio-political organizations, social - vocational organizations.

- Houses and land being compensation or serving relocation (including those purchased with compensation money or assistance) upon the expropriation by the State of houses or land in accordance with regulations of law.

- Donatories apply for registration of ownership of houses of gratitude, philanthropic housing, or humane subsidized houses and of land use right thereof.

- Factories; warehouses, dining halls and car parking facilities of businesses. The factories prescribed in this Clause are defined in accordance with regulations of law on classification of construction works.

- Housing, residential land of poor households; housing, residential land of minority ethnic people in communes, wards and towns in disadvantaged areas or Central Highlands; housing, residential land of households and individuals in communes covered by socio-economic development programs for harshly disadvantaged communes, mountainous and remote regions.

- Houses and land of establishments carrying out socialization in the fields of education - training and vocational training; medical; culture; sports; environment in accordance with the law on registration of land use rights and house ownership for these activities. However, these establishments must meet the regulations on scale and standards according to the Prime Minister's Decision and guiding documents.

- Houses, land registered under non-state entities for education - training; health care; cultural activities; sports and gymnastics; science and technology; environment; society; population, family, child care and protection as per the laws. However, these facilities must meet the regulations on scale and standards according to the Prime Minister's Decision and guiding documents.

- Houses, land registered under scientific and technological enterprises as per the laws.

2. House and land registration fee in Vietnam 2023

According to the provisions of Decree 10/2022/ND-CP, the calculation of land registration fee in 2023 is as follows:

Registration fee payable = Registration fee calculation price for real estate x Registration fee rate (%)

In there:

- Base price for houses and land:

+ The base price for land is the price on the Land Price List promulgated by the People's Committee of the province or centrally affiliated city in accordance with regulations of the law on land in effect upon the declaration of registration fees.

+ If land is leased out by the state and a lump sum land rent is payable for the entire lease term but the lease term is shorter than the term of the type of land prescribed in the Land Price List promulgated by the People's Committee of the province or centrally affiliated city, the land price of the lease term for registration fee calculation is determined as follows:

Land price of the lease term for registration fee calculation =  (Land price in the Land Price List/70 years) x Lease term

The base price for houses is the price imposed by the People's Committee of the province or centrally affiliated city in accordance with regulations of the law on construction in effect upon the declaration of registration fees.

(*) Base price for houses and land in special cases:

+ The base price for a state-owned house sold to its current lessee in accordance with regulations of law on sale of state-owned houses, including the land thereunder, is the actual selling price pursuant to a decision of the People's Committee of the province or centrally affiliated city.

+ The base price for a house or land purchased at an auction or bidding in accordance with regulations of laws on auctions and bidding is the actual hammer price or winning bid specified in the sales invoice or receipt in accordance with the law or the hammer price or winning bid according to the auction or bidding winning document, or the document approving the result of the auction, bidding (if any) of competent state agencies.

+ The base price for a tenement or an apartment building includes its allocated land value. The allocated land value is determined by the land price in the Land Price List issued by the People’s Committee of the province or centrally affiliated city multiplied by the allocation coefficient. The allocation coefficient is determined in accordance with regulations of Decree 53/2011/ND-CP dated July 1, 2011 of the Government on detailing and providing guidelines for the implementation of a number of articles of the Law on Non-agriculture Land Use Tax and amendment or replacement documents (if any).

- If the price of a house or land in the contract for transfer of the land use right or for purchase and sale of the house is higher than the price imposed by the People's Committee of the province or centrally affiliated city, the base price is the price specified in such contract.

- Registration fee rate (%):

The registration fee for real estate is 0.5%.

Best regard!

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