Siblings Selling Land to Each Other: Is PIT Required?

Based on Article 4 of the 2007 Personal Income Tax Law, income exempted from personal income tax is stipulated as follows:

- Income from real estate transfers 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; paternal grandparents and grandchildren; maternal grandparents and grandchildren; and siblings.

- Income from the transfer of residential houses, rights to use homestead land, and assets attached to homestead land of individuals in cases where individuals possess only one residential house and homestead land.

- Income from the value of land use rights given to individuals by the State.

- Income from inheritance and gifts as 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; paternal grandparents and grandchildren; maternal grandparents and grandchildren; and siblings.

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Therefore, according to the aforementioned regulations, income from real estate transfers between siblings is exempt from personal income tax. Thus, when you sell land to your sibling, you will be exempt from paying personal income tax.

Respectfully!