How much personal income tax must be paid when selling land in Vietnam?

How much personal income tax must be paid when selling land in Vietnam?

Pursuant to Article 21 of Circular 111/2013/TT-BTC stipulating personal income tax on incomes from real estate transfer as follows:

1. The personal income tax on the income from real estate transfer earned by a non-resident equals the transfer price multiplied by (x) 2% tax.

The aforesaid transfer price is the total amount the non-resident receives from the real estate transfer without any deductions, including the cost price.

2. The real estate transfer price of a non-resident is similar to that of a resident guided in Points a.1, b.1, c.1, d.1 Clause 1 Article 12 of this Circular.

3. The income from real estate transfer shall be calculated when the non-resident initiates the procedure for real estate transfer as prescribed by law.

Thus, according to the above regulations, when selling land in Vietnam, you need to pay personal income tax at the transfer price multiplied by (x) 2% tax.

Do I have to pay personal income tax if I sell land to my uncle?

Pursuant to Clause 1, Article 4 of the Law on Personal Income Tax 2007 stipulates that tax-exempt incomes are as follows:

1. Incomes from transfer of 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.

According to this Article, the case of selling land to your uncle is not eligible for personal income tax exemption in Vietnam, so you still have to pay personal income tax in this case.

Best Regards!