Selling an Apartment but Incurring a Loss: Is Personal Income Tax Required?
According to Article 3 of the Law on Personal Income Tax 2007, income from the transfer of real estate (including the transfer of ownership or use of residential property) is subject to personal income tax.
The income exempted from tax according to Article 4 of this Law includes:
Income from the transfer of real estate between spouses; biological parents and biological children; adoptive parents and adopted children; parents-in-law and daughter-in-law; parents-in-law and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; siblings with one another.
Income from the transfer of residential property, rights to use homestead land, and assets attached to homestead land of individuals in cases where the individual owns only one residential property and homestead land.
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According to Article 12 of Circular 111/2013/TT-BTC, personal income tax on income from real estate transfers is calculated as the transfer price of the real estate multiplied by the tax rate of 2%.
Thus, in this case, selling your house at a loss does not affect your tax obligation; you are still required to pay the tax as usual. If you sell the house to relatives within the aforementioned groups or if this house is your sole property, you are exempt from paying taxes.
Respectfully!
