Instruction on calculation of base price for houses and land in 2023 in Vietnam

Instruction on calculation of base price for houses and land in 2023 in Vietnam

Pursuant to Clause 1.a Article 7 of the Decree 10/2022/NĐ-CP stipulating calculation of base price for houses and land in 2023 in Vietnam as follows:

- The base price for land is the price on the Land Price List promulgated by the People's Committee of the province or central-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 central-affiliated city, the land price of the lease term for registration fee calculation is determined as follows:

- The base price for houses is the price imposed by the People's Committee of the province or central-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.

Shall houses and land inherited from parents in Vietnam be exempt from registration fees?

Pursuant to Clause 10 Article 10 of the Decree 10/2022/NĐ-CP stipulating exemption from registration fees as follows:

Exemption from registration fees

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

...

10. 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.

11. Residential housing that households or persons have acquired through individual housing development as prescribed in the Law on Housing.

12. Renters of financial property are exempted from registration fee upon the transfer of such property to such renters upon the expiration of the lease; financial lessors are exempted from registration fee when purchasing a property on which the proprietor has paid the registration fee then leasing it to such former proprietor.

As regulations above, houses and land inherited from parents in Vietnam shall be exempt from registration fees.

What types of houses and land are subject to registration fees in 2023 in Vietnam?

Pursuant to Article 2 of the Circular 13/2022/TT-BTC stipulatingtypes of houses and land are subject to registration fees in 2023 in Vietnam as follows:

Subjects subject to registration fees

Subjects subject to registration fees comply with Article 3 of Decree No. 10/2022/ND-CP. Some contents are specified in detail as follows:

1. Houses and land specified in Clause 1, Article 3 of Decree No. 10/2022/ND-CP

a) House, including: residential house; workhouse; house used for other purposes.

b) Land, including: agricultural land and non-agricultural land according to the provisions of the Land Law (regardless of whether land has built works or has not yet built works).

2. Boats, including yachts stipulated in Clause 4, Article 3 of Decree No. 10/2022/ND-CP is that all types of boats, including yachts, must register their ownership and use rights with a competent State agency.

3. Shell, frame, engine, body (block) of the asset stipulated in Clause 8, Article 3 of Decree No. 10/2022/ND-CP are replacement parts that change the chassis number and engine number of the asset, which has been issued a Certificate of ownership and use rights by a competent State agency.

Thus, types of houses and land subject to registration fees include:

- House, including: housing; workhouse; house used for other purposes.

- Land, including: agricultural land and non-agricultural land according to the provisions of the Land Law (regardless of whether land has built works or has not yet built works).

Best regards!