In Vietnam: Is it necessary to make a notarized contract when the husband gifts land use rights to the wife?

In Vietnam: Is it necessary to make a notarized contract when the husband gifts land use rights to the wife?

Pursaunt to Article 457 of the Civil Code in 2015 stipulating contracts for gifts of property as follows:

Contract for a gift of property means an agreement between parties whereby the giver delivers its property and transfers its ownership rights to the recipient without requiring compensation and the recipient agrees to accept the gift.

Pursaunt to Article 459 of the Civil Code in 2015 stipulating gifts of immoveable property as follows:

1. A gift of immoveable property must be recorded in writing and notarized or certified, and must be registered if the law on immoveable property requires registration of ownership.

2. A contract for a gift of immoveable property shall take effect from the time of registration. In the case of immoveable property for which no registration of ownership rights is required, the gift contract shall take effect from the time when the property is delivered.

Pursaunt to Clause 1 Article 107 of the Civil Code in 2015 stipulating immovable property and movable property as follows:

1. Immovable property includes:

a) Land;

b) Houses and constructions attached to land;

c) Other property attached to land, houses and constructions;

d) Other property as prescribed by law.

As regulations above, when you gift land use right to your wife, that gift of immoveable property must be recorded in writing and notarized or certified. The contract shall take effect from the time of registration.

In Vietnam: Does the wife have to pay personal income tax when her husband gifts land use rights to her?

Pursuant to Article 4 of the Law on Personal Income Tax in 2007 stipulating tax-exempt incomes 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.

2. Incomes from transfer of residential houses, rights to use residential land and assets attached to residential land received by individuals who have only one residential house or land plot each.

3. Incomes from the value of land use rights of individuals who are allocated land by the State.

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.

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As regulations above, the wife don't have to pay personal income tax when her husband gifts land use rights to her.

In Vietnam: Is it necessary to pay registration fees when the husband gifts land use rights to the wife?

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

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

2. Property (excluding houses, land) of the following foreign entities:

a) Diplomatic missions, consular offices and representative agencies of United Nations’ international organizations.

b) Diplomatic officials, consular officials, administrative and technical coordinators of diplomatic missions and consular offices, members of representative agencies of United Nations’ international organizations, and their family members who do not hold Vietnamese citizenship or permanent residency but have a diplomatic or official identity card issued by Vietnam Ministry of Foreign Affairs.

c) Foreign entities not prescribed in Points a, b of this Clause but exempted from or uncharged with registration fee according to international agreements to which the Socialist Republic of Vietnam is a signatory.

3. Land allocated or leased out by the state with land rent paid in lump sum for the entire lease term is used for the following purposes:

a) Public purposes as prescribed by the law on land.

b) Mineral exploration and mining; or scientific research pursuant to a license or certificate granted by the competent agency;

c) Investment in construction of infrastructure (regardless of whether the land is within or outside an industrial zone or export processing zone), investment in construction of housing for transfer, including the case in which the transferee continues construction of the infrastructure or the housing for transfer. If in these cases the transferee registers ownership or right to use to lease out or itself uses the infrastructure or housing, registration fees must be paid.

4. Land allotted, leased or endorsed by the government for production activities in the fields of agriculture, forestry, aquaculture and salt making.

5. Agricultural land transferred between households or individuals in the same commune, ward or town for facilitating agricultural production in accordance with the Law on Land.

6. Undisputed agricultural land on which the right of use has been certified in writing by competent state agencies for households or individuals who have themselves reclaimed such land according to the land use plans approved by competent state agencies.

7. Land leased by the state on annual fee basis or rented from the holder of legitimate right to use the land.

8. Houses and land for public use by religious organizations accepted by the state or licensed for operation.

9. Cemetery land.

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.

As regulations above, it is not necessary to pay registration fees when the husband gifts land use rights to the wife.

Best regards!