What taxes do parents need to pay when giving land to their children in Vietnam?

When parents donate or donate real estate, what taxes, fees and charges should be paid?

1. Fees for notarization and certification of contracts for land use right donation

- Notarial service fee

Notarization of contracts for transfer, donation, donation, division, separation, import, exchange, capital contribution with land use rights: Calculated on the value of land use rights.

(According to Clause 3, Article 4 of Circular 257/2016/TT-BTC)

- Certification fee

Fees for certification are as follows:

(According to Article 4 of Circular 226/2016/TT-BTC)

2. Fees for the issuance of land use right certificates (LURC)

- Fees for the issuance of certificates of land use rights and ownership of houses and land-attached assets are revenues that organizations, households, and individuals must pay when they are granted certificates by competent state agencies for issuing certificates of land use rights, ownership of houses, and assets attached to land.

- Fees for the issuance of certificates of land use rights and ownership of houses and land-attached assets include:

+ Issuance of certificates of land use rights; ownership of houses and properties attached to land;

+ Certificate of registration of changes in land;

+ Extracts of cadastral maps; documents; cadastral data.

- Based on specific local conditions and local socio-economic development policies to determine appropriate fee rates, ensuring the following principles:

+ Collection rates for households and individuals are higher in districts of centrally run cities, urban wards of cities, or provincial towns than in other areas.

The level of collection for organizations is higher than that for households and individuals.

(According to Point DD, Clause 2, Article 5 of Circular 85/2019/TT-BTC)

3. Fees for dossier appraisal for the issuance of land use right certificates

Fees for the appraisal of dossiers on the issuance of land use right certificates are collected for the examination of dossiers necessary and sufficient conditions to ensure the issuance of certificates of land use rights and house ownership. and properties attached to land as prescribed by law, including:

-Level for the first time;

-New level;

-Level change;

-Re-issuance of certificates;

-Certificate of volatility in the issued certificate.

Fee level: Based on the size of the area of the land plot, the complexity of each type of application, the purpose of land use, and the specific conditions of the locality, to determine the fee rate for each case.

Which taxes, fees are parents who give their children land exempt from?

1. Individual Income Tax

Incomes from receipt of inheritances or gifts that are real estate between spouses, parents and their children; adoptive parents and their adopted children; fathers-in-law or mothers-in-law and daughters-in-law or sons-in-law; grandparents and their grandchildren; or among blood siblings are cases in which income is exempt from personal income tax as prescribed in Clause 4, Article 4 of the Law on Personal Income Tax 2007.

2. Registration fee

According to the provisions of Article 10 of Decree 10/2022/ND-CP, "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." is one of the cases eligible for registration fee exemption.

When parents give their children land, they must provide tax, fee, and fee exemption dossiers.

1. Personal income tax exemption dossiers (Article 53 of Circular 80/2021/TT-BTC)

In case of transfer, inheritance, gifting of real estate (including off-the-plan housing, off-the-plan construction works, construction works and housing that have been transferred and put into operation by project owners but have not been granted certificates of LUR and ownership of property on land according to housing laws and real estate business laws) between spouses, biological parents and children, adoptive parents and adopted children, parents-in-law and children-in-law, grandparents and grandchildren, siblings. The tax exemption application shall include: the application form No. 03/BDS-TNCN in Appendix II hereof and documents proving eligibility for tax exemption on a case-by-case basis. To be specific:

- Regarding transfer, inheritance, gifting of real estate between a biological parent and biological child, one of the following documents is required: copy of the family register (if they share the same family register) or copy of the birth certificate. In case of an illegitimate child, it is required to have copies of the decision on parental recognition issued by a competent authority.

- Regarding transfer, inheritance, gifting of real estate between an adoptive parent and an adopted child, one of the following documents is required: copy of the family register (if they share the same family register) or copy of the decision on recognition of adoption issued by a competent authority.

- In case the transfer, inheritance, gifting of real estate is eligible for tax exemption mentioned in Clause 1 of this Article but the transferor or the transferee does not have a birth certificate of family register, it is mandatory to have confirmation of a competent authority of the relationship between the transferor and the transferee as the basis for determination of income eligible for tax exemption.

2. Application for registration fee exemption (Article 61 of Circular 80/2021/TT-BTC)

For proving family relationship, one of the following documents: family register, birth certificate, adoption certificate issued by a competent authority, or relationship confirmation issued by a competent authority.

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