In Vietnam, when conducting land use rights transfer transactions, in addition to cases exempted from fees under the law, the remaining cases must fulfill financial obligations to the state. Below are the fees that must be paid when transferring land use rights:
Article table of contents
DOWNLOAD Summary of 22 cases of houses and land eligible for exemption from registration fees
1. Personal income tax (PIT) on land use rights transfer
This is specified in Article 17 of Circular No. 92/2015/TT-BTC of the Ministry of Finance of Vietnam. According to this regulation, tax on real estate transfer is 2% of the transfer price or sublease price.
Notably, in the case where an individual owns only one residential property and one piece of land, he/she shall be exempt from PIT according to Clause 2 Article 4 of the Law on PIT 2007 of Vietnam.
Calculation (Article 17 of Circular No. 92/2015/TT-BTC)
2. Registration fee
According to Clause 1 Article 7 of Decree No. 140/2016/ND-CP of Vietnam’s Government, the rate of 0.5% applies to real property.
Besides, the base prices for calculation of the registration fee for land and houses are different. Specifically, calculation is defined in Clauses 1 and 2 of Article 3 of Circular No. 301/2016/TT-BTC of the Ministry of Finance of Vietnam as follows:
- The following formula defines the base price of a land plot:
- The following formula defines the base price of a building:
3. Fee for verification of application dossiers for the land use right certificate
According to Point i Clause 1 Article 5 of Circular No. 85/2019/TT-BTC of the Ministry of Finance of Vietnam, the fee for verification of application dossiers for the land use right certificate is a fee charged for the appraisal of documents to ensure the conditions necessary for granting land use right certificates, ownership of residential houses, and assets attached to land (including granting, changing, reissuing certificates, and certifying changes in the granted certificates) as regulated by law.
The fee amount for each case depends on the scale and size of the land plot, the complexity of each type of document, the land use purpose, and the specific conditions of the locality in order to determine the fee rate.
4. Charge for grant of the certificate for the right to use land
Charge for grant of the certificate for the right to use land is the amount of receipt from organizations, family households and persons to obtain the certificate of right to use land, own house and associated assets.
Depending on the specific conditions of the locality and the socio-economic development policies of the locality, the appropriate fee rates shall be determined, ensuring the following principles: The fees for households and individuals in districts under centrally-affiliated cities, inner-city wards of cities, or townships under provincial control are higher than the fees in other areas; the fees for organizations are higher than the fees for households and individuals. (Point dd Clause 2 Article 5 of Circular No. 85/2019/TT-BTC)
5. Fees for notarization of contracts for transfer of land use right
According to Clause 2 Article 4 of Circular No. 257/2016/TT-BTC of the Ministry of Finance of Vietnam, the fees for notarization of contracts for transfer, donation, division, merging, exchange or contribution of capital by land use right shall be calculated according to the value of the land use right. To be specific:
Thanh Lam
