Summary Of Taxes, Charges And Fees To Be Paid When Buying And Selling House

Personal income tax when buying and selling houses and land

Taxable income from the sale and purchase of houses and land (real estate transfer) is the income received from the sale and purchase of real estate.

Tax rate: The tax rate for house and land purchase and sale is 2% of the purchase, sale or sublease price.

Tax calculation:

– Personal income tax on income from buying and selling real estate is determined as follows:

Personal income tax payable = Transfer price x Tax rate 2%

NOTE

In case of joint ownership of houses and land, the tax liability is determined separately for each taxpayer according to the percentage of real estate ownership. The basis for determining the ownership ratio is a legal document such as an initial capital contribution agreement, a will or a court division decision, etc. If there is no legal document, the tax liability of each Taxpayers are determined according to the average rate. (Clause 5, Article 2 of Circular 111/2013/TT-BTC)

Registration fee when buying and selling houses and land

House and land subject to registration fee when buying and selling houses and land according to Clause 1, Article 3 of Decree 10/2022/ND-CP:

– Houses, including: houses; working house; house used for other purposes.

– Land, including: agricultural land and non-agricultural land according to the provisions of the Land Law (regardless of whether the land has been built or not).

Price for calculating registration fee when buying and selling houses and land:

– The price to calculate the registration fee for land is the land price in the land price list promulgated by the People’s Committee of the province or centrally run city in accordance with the law on land at the time of registration fee declaration.

Case 1: When the transfer price is higher than the house and land price prescribed by the Provincial People’s Committee

In case the price of house and land in the land use right transfer contract or house sale and purchase contract is higher than the price issued by the People’s Committee of the province, the price for calculating the registration fee for the house and land is the price stated in the contract of transfer of use right. land, house purchase and sale contract (usually applied when transferring – buying and selling).

Registration fee = 0.5% x Transfer price

Case 2: When the transfer price is lower than or equal to the house and land price prescribed by the provincial People’s Committee, when donating or inheriting real estate.

With land:

          Registration fee = 0.5% x Area x Price 01m2 in the Land Price List

 With housing:

 Registration fee = 0.5% x (Area x Price 01 m2 x Percentage of remaining quality)

In there:

– The area of the house subject to the registration fee is the entire floor area (including the area of the attached ancillary works) under the lawful ownership of the organization or individual;

– The price of 01 m2 of house is the actual price of “new” construction of 01 m2 of the floor of each house level or class issued by the Provincial People’s Committee;

– The percentage (%) of the remaining quality is issued by the Provincial People’s Committee in accordance with the law.

Although the law stipulates quite complicated on how to calculate registration fee, people only need to pay according to the notice of the State agency.

Notarization fee when making house and land purchase and sale documents

Organizations and individuals, when requesting notarization of contracts, transactions, translations, preservation of wills, or issuance of copies of notarized documents, must pay notarization fees.

Notarization of economic, commercial, investment and business contracts: Calculated on the value of assets or the value of contracts and transactions.

No.

Value of property or value of contract, transaction

Rate of charge

(VND/case)

1Under 50 million VND50,000
2From 50 million VND to 100 million VND100,000
3From over 100 million VND to 01 billion VND0.1% of asset value or contract or transaction value
4From over 01 billion VND to 03 billion VND01 million VND + 0.06% of the asset value or the value of the contract or transaction exceeding 01 billion VND
5From over VND 03 billion to VND 05 billion VND2.2 million + 0.05% of the asset value or contract value, transaction exceeds VND 03 billion
6From over 05 billion VND to 10 billion VND3.2 million + 0.04% of the asset value or contract value, transaction exceeds 05 billion VND
7From over 10 billion VND to 100 billion VND5.2 million + 0.03% of the asset value or contract value, transaction exceeds 10 billion VND.
8Over 100 billion VND32.2 million + 0.02% of the asset value or contract value, transaction exceeds 100 billion VND (maximum collection rate is 70 million VND/case).

(Point a7, Clause 1, Article 4 of Circular 257/2016/TT-BTC)

Fees for issuance of certificates of land use rights, ownership of houses and properties on land

Fees for issuance of certificates of land use rights and ownership of houses and land-attached assets are revenues that organizations, households and individuals must pay when they are granted certificates by competent state agencies, ownership of houses and properties attached to land

Fees for issuance of certificates of land use rights and ownership of houses and land-attached assets include:

– Issuance of certificates of land use rights, ownership of houses and properties attached to land;

– Certificate of registration of changes in land; cadastral map extract;

– Document; cadastral records data

Fees: Based on specific local conditions and local socio-economic development policies to determine appropriate fee rates, ensuring the following principles:

– The rate of collection for households and individuals in districts of central-affiliated cities, inner-city wards of cities or provincial towns is higher than that in other areas;

– The level of revenue for organizations is higher than that for households and individuals

(Point đ, Clause 2, Article 5 of Circular 85/2019/TT-BTC)

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