Vietnam: Issuance of base price of buildings for calculation of the registration charge applicable from June 01, 2019

Determination of the base price of buildings for calculation of the registration charge is specified in Clause 2 Article 3 Circular 301/2016/TT-BTC and the amendments and supplements stipulated in Clause 2 Article 1 Circular 20/2019/TT-BTC of the Ministry of Finance of Vietnam, specifically as follows:

Illustration (source: internet)

The basis for the determination of the registration fee value for houses is the price determined by the Provincial People's Committee in accordance with the law on construction at the time of declaration of the registration fee.

The Department of Finance will take the lead in cooperation with the Department of Construction and relevant local agencies based on regulations defined in Point b Clause 1 Article 6 Decree 140/2016/ND-CP on registration fees, amended and supplemented in Clause 1 Article 1 Decree 20/2019/ND-CP and the following guidance to determine the registration fee value for houses for submission to the Provincial People's Committee for issuance of the table of registration fee values applicable in the locality. To be specific:

The registration fee value for houses is determined as follows:

Where:

- The house area subject to the registration fee is the total floor area of the house (including auxiliary constructions) legally owned by organizations and individuals;

- The price per square meter (m^2) for the house is the actual "new" construction cost of one (1) square meter of the floor of each type and grade of house as determined by the Provincial People's Committee in accordance with the law on construction at the time of declaration of the registration fee;

- The remaining quality rate (%) of the house subject to the registration fee is determined by the Provincial People's Committee in accordance with the law.

Some specific cases applying the registration fee value for houses are as follows:

- The registration fee value for state-owned houses sold to tenants in accordance with the law on the sale of state-owned houses to tenants is the actual selling price as decided by the Provincial People's Committee;

- The registration fee value for houses purchased through auction in accordance with the law on bidding and auction is the actual successful auction price recorded on the sales invoice;

- In case the house price in the transfer contract or house sale contract is higher than the price determined by the Provincial People's Committee, the registration fee value for the house is the price in the transfer contract or house sale contract. In case the house price in the transfer contract or house sale contract is lower than the price determined by the Provincial People's Committee, the registration fee value for the house is the price determined by the Provincial People's Committee in accordance with the law on construction at the time of declaration of the registration fee;

- The registration fee value for apartment buildings includes the allocated land value. The land allocation coefficient for determining the registration fee value for apartment buildings is applied according to the allocation coefficient of the corresponding type of apartment building in accordance with the law on non-agricultural land use tax.

More details can be found in Circular 20/2019/TT-BTC of the Ministry of Finance of Vietnam, effective from June 1, 2019.

Thu Ba

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