Do Parents-in-law Have to Pay Personal Income Tax When Gifting a Frontage Land Lot as a Wedding Gift?
Do parents-in-law need to pay personal income tax when gifting a frontage land lot as a wedding gift?
Article 4 of the 2007 Personal Income Tax Law stipulates the types of income exempt from tax as follows:
Income from the transfer of real estate between spouses; biological parents and biological children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; grandparents and grandchildren; siblings with each other.
Income from the transfer of houses, homestead land use rights, and assets attached to homestead land by an individual in case the individual owns only one residential house and one homestead land.
Income from the value of land use rights granted by the State to the individual.
4. Income from inheritance, gifts of real estate between spouses; biological parents and biological children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; grandparents and grandchildren; siblings with each other.
Income of households and individuals directly engaged in agriculture, forestry, salt production, aquaculture, and fishery that have not been processed into other products or only undergone primary processing.
Income from the conversion of agricultural land allocated by the State to households and individuals for production.
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In the above case, it can be determined that the frontage land lot is a real estate gift between parents-in-law and son-in-law. Therefore, this case will not be subject to personal income tax.
Is it required to pay registration fees when parents-in-law gift a frontage land lot as a wedding gift?
Clause 10 Article 10 of Decree 10/2022/ND-CP stipulates the cases exempt from registration fees as follows:
- Houses and land received as inheritance or gifts between: spouses; biological parents and biological children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; grandparents and grandchildren; siblings with each other now granted land use right certificates, house ownership certificates, and other property attached to land by state authorities.
Thus, in the case where parents-in-law gift a frontage land lot as a wedding gift, registration fees do not need to be paid as per the regulations.
Sincerely!
