When is an individual not allowed to receive land use rights as a donation in Vietnam? What are taxes and fees that must be paid when donated land in Vietnam?

When is an individual not allowed to receive land use rights as a donation in Vietnam?

According to the Land Law 2013, in which cases is an individual not allowed to receive land use rights as a donation? Based on what law?

Reply:

Article 191 of the Land Law 2013 stipulates that cases in which acquisition or donation of land use rights is not allowed:

1. Organizations, households, individuals, communities, religious institutions, overseas Vietnamese and foreign-invested enterprises may not receive transfer or donation of land use rights in case the transfer or donation of land use rights is prohibited by law.

2. Economic organizations may not acquừe the rights to use paddy land, protection forest land or special-use forest land from households or individuals, except the case of change in land use purpose in accordance with the land use master plan and plans approved by competent state agencies.

3. Households and individuals not directly engaged in agricultural production may not receive the transfer or donation of paddy land use rights.

4. Households and individuals may not receive the transfer or donation of residential land use rights and agricultural land use rights with regard to the land located in the areas of protection forests, strictly protected zones and ecological rehabilitation zones in special-use forests if they do not live in such protection forests or special-use forests.

Thus, cases in which land use rights cannot be donated include:

- Individuals are not allowed to receive land use rights as gifts in cases where the law does not allow the donation of land use rights.

- Individuals who do not directly engage in agricultural production are not allowed to receive gifts of rice land use rights.

- Individuals are not allowed to receive gifts to use residential land or agricultural land in protective forest areas, in strictly protected zones, or in ecological restoration zones of special-use forests, if they do not live in protection forests or special-use forests.

When is an individual not allowed to receive land use rights as a donation in Vietnam? What are taxes and fees that must be paid when donated land in Vietnam? (Image from the Internet)

What are taxes and fees that must be paid when donated land in Vietnam? 

My aunt and uncle are not married and have their own household registration. Now my uncle wants to give my younger brother a piece of land he bought jointly with another person, without separating the certificate of land use rights. So does my younger brother have to pay any taxes? Please advise.

Reply:

Legal grounds: Personal Income Tax Law 2007, Land Law 2013

According to the provisions of tax law, when donating land use rights, taxpayers must pay the following taxes and fees:

1. Personal income tax

Tax exemption cases are based on Clause 4, Article 4 of the 2007 Personal Income Tax Law:

4. 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.

Therefore, in case you receive a gift from your uncle, you still have to pay normal tax. Personal income tax rates for inheritance and gifts are applied according to the Full Tax Schedule with a tax rate of 10%.

2. Registration fee

The registration fee rate (%) for real estate is 0.5%.

Thus, if your uncle's land is to be given as a donation to you, it must meet the conditions according to the 2013 Land Law and must fulfill the obligation to pay personal income tax and registration fee when carrying out the donation procedure for land use rights.

Can people who do not directly produce agricultural land receive land use rights transferred or donated in Vietnam? 

Hello. My name is The Cuong, I am currently working as an office worker in Ho Chi Minh City, my father is currently living in Long An, my father wants to transfer 2 plots of rice land to me in his name, is that possible? Thank you very much brother

Reply:

Answer: According to the provisions of Clause 3, Article 191 of the Land Law 2013:

Article 191. Cases in which acquisition or donation of land use rights is not allowed

1. Organizations, households, individuals, communities, religious institutions, overseas Vietnamese and foreign-invested enterprises may not receive transfer or donation of land use rights in case the transfer or donation of land use rights is prohibited by law.

2. Economic organizations may not acquừe the rights to use paddy land, protection forest land or special-use forest land from households or individuals, except the case of change in land use purpose in accordance with the land use master plan and plans approved by competent state agencies.

3. Households and individuals not directly engaged in agricultural production may not receive the transfer or donation of paddy land use rights.

4. Households and individuals may not receive the transfer or donation of residential land use rights and agricultural land use rights with regard to the land located in the areas of protection forests, strictly protected zones and ecological rehabilitation zones in special-use forests if they do not live in such protection forests or special-use forests.

According to your description, you are working as an office worker in Ho Chi Minh City. Thus, you are an individual who does not directly engage in agricultural production, so you will not be able to receive the transfer or donation of land use rights of your family's 2 plots of rice land.

Best regards!