What are regulations on the assessable personal income from real estate transfer in Vietnam?
I work in real estate. I have the following question: What are regulations on the assessable personal income from real estate transfer in Vietnam? Please get back to me
Nguyen Linh (linh***@gmail.com)
What are regulations on the assessable personal income from real estate transfer in Vietnam? (Image from the Internet)
According to the provisions of Clause 11, Article 2 of Decree 12/2015/ND-CP on elaboration of the Law on Amendments to tax laws and amendments to some Articles of Decrees on taxations:
1. Assessable income is the price of each transfer.
2. The price of real estate transfer is the price written on the transfer contract at the time of transfer.
a) If the land price is not written on the transfer contract or it is lower than the price imposed by the People’s Committee of the province, the price imposed by the People’s Committee of the province at the time of transfer shall apply in accordance with regulations of law on land.
b) In case of transferring a house on land, the value of the house, infrastructure and architecture on the piece of land shall be determined according to the price according to which registration fee is calculated as decided by the People’s Committee of the province. If the price according to registration fee is calculated is not decided by the People’s Committee of the province, regulations of the Ministry of Construction on classification of houses, civil construction standards and norms, and remaining value of constructions on land.
Transfer price of off-plan constructions shall be determined according to the ratio of capital contribution to total contract value multiplied by (x) the price according to which registration fee is calculated decided by the People’s Committee of the province. In case the People’s Committee of the province does not decide such price, the construction investment rates announced by the Ministry of Construction which is applicable at the time of transfer shall apply.
c) In case of sublet in which the sublet price on the contract is lower than the price imposed by the People’s Committee of the province at that time, the sublet price shall comply with the price imposed by the People’s Committee of the province.
3. Time for calculating tax on real estate transfer:
a) If the transfer contract does not state that the buyer shall pay tax on behalf of the seller, the time for calculating tax is the effective date of the transfer contract as prescribed by law.
a) If the transfer contract states that the buyer shall pay tax on behalf of the seller, the time for calculating tax is time of commencement of procedures for registration of right to ownership and right to enjoyment of real estate.
Above is the content of regulations on the assessable personal income from real estate transfer. For more information, you can refer to Decree 12/2015/ND-CP.
Best regards!
