Can a land with a certificate of land use rights but in dispute be put into business in Vietnam?

Can a land with a certificate of land use rights but in dispute be put into business in Vietnam?

Article 9 of the Law on Real Estate Business 2014 stipulates requirements in terms of real estate to be put on the market as follows:

1. A building to be put on the market shall satisfy the following requirements:

a) The ownership of the building on land is registered in the Certificate of land use right (hereinafter referred to as Certificate of land). Regarding an off-the-plan building in the real estate project, it is only required to have the Certificate of land as prescribed in regulations of law on land.

b) There is no dispute about the land and ownership of the building on land.

c) The building is not distrained.

2. Types of land permitted to be put on the market shall satisfy the following requirements:

a) There are Certificates of land as prescribed in regulations of law on land.

 b) There is no dispute about the land.

c) The land is not distrained;

d) The land use term is still unexpired.

According to current regulations in Vietnam, in cases where land has a certificate of land use rights but is in dispute, it is not eligible to buy and sell according to the provisions of law.

Do individuals doing real estate business have to pay personal income tax in Vietnam?

Article 10 of the Law on Real Estate Business 2014 stipulates requirements in terms of organizations or individuals conducting real estate trading as follows:

1. Any organizations or individuals wish to conduct real estate trading shall set up enterprises or cooperatives (hereinafter referred to as enterprises) and have legal capital not smaller than VND 20 billion, excluding cases prescribed in Clause 2 of this Article.

2. Any organizations, households and individuals who conduct small-scale or irregular transactions of real estate sale, transfer, lease-out, and lease purchase shall not be required to set up enterprises, but they shall make tax declaration as prescribed.

3. The Government shall provide guidance on this Article.

In Clause 5, Article 3 of the 2007 Personal Income Tax Law, as amended by Clause 1, Article 1 of the 2012 Amended Personal Income Tax Law, it is stipulated:

5. Incomes from transfer of real estate, including:

a) Incomes from transfer of rights to use land and assets attached to land;

b) Incomes from transfer of right to own or use residential houses;

c) Incomes from transfer of right to lease land or water surface;

d) Other incomes earned from transfer of real estate under any form.

According to this Article, in the case of individuals doing real estate business, they still have to pay personal income tax to the state in Vietnam.

What are regulations on scope of real estate trading conducted by Vietnamese organizations, individuals, overseas Vietnamese or foreign-invested enterprises in Vietnam?

In Article 11 of the Law on Real Estate Business 2014, scope of real estate trading conducted by Vietnamese organizations, individuals, overseas Vietnamese or foreign-invested enterprises is as follows:

1. Any Vietnamese organizations and individuals may conduct real estate trading under following forms:

a) Purchase buildings for sale, for lease, or for lease purchase;

b) Rent buildings for sublease;

c) Build houses on land which is allocated by the State for sale, for lease, or for lease purchase; transfer the land which is divided into smaller lots for sale as prescribed in law on land; build technical infrastructures of cemetery on that land for transfer of both the land and the technical infrastructures;

d) Build houses on the land which is leased by the State for lease; build houses or constructions other than houses on such land for sale, for lease, or for lease purchase;

dd) Build houses on land which is recognized by the State for sale, for lease, or for lease purchase;

e) Build buildings on land which is transferred from organizations, households or individuals for sale, for lease, or for lease purchase;

g) Build buildings on land which is leased from organizations, households or individuals for lease according to proper land use.

h) Receive total or a part of real estate project from investors to build buildings on it for sale, for lease, or for lease purchase;

i) Receive or rent land from organizations, households or individuals to build technical infrastructures on it for transfer or lease of both the land and the infrastructure.

2. Overseas Vietnamese may conduct real estate trading in the following forms:

a) Forms prescribed in Point b, d, g and h Clause 1 of this Article;

b) Build houses on land which is allocated by the State for sale, for lease, or for lease purchase;

c) Build buildings on land which is leased out or transferred in industrial parks, industrial complexes, export-processing zones, hi-tech zones, or economic zone for trading for the proper land use.

3. Foreign-invested enterprises may conduct real estate trading in the following forms:

a) Forms prescribed in Point b, d, h Clause 1 and Point b Clause 2 of this Article;

b) Build buildings on land which is leased out or transferred in industrial parks, industrial complexes, export-processing zones, hi-tech zones, or economic zone for trading for the proper land use.

Therefore, the scope of real estate trading conducted by Vietnamese organizations, individuals, overseas Vietnamese or foreign-invested enterprises in Vietnam shall comply with the above provisions.

Best Regards!