Procedures for transferring land use right certificates when there is transfer, donation, or inheritance of real estate. This process generates many different types of taxes, fees and charges.
Currently, there is no mandatory regulation that all costs must be borne by the buyer or seller, but the law and transaction practices have formed a common distribution method in practice.
Sellers are usually subject to personal income tax
Sellers usually have to pay personal income tax (PIT) arising from real estate transfers. The current common tax rate is 2% on the transfer value recorded in the contract or at the price prescribed by the State.
However, sellers may be exempt from personal income tax if they are in the case of transferring only one house, residential land use rights in life and fully meet the conditions according to tax law. This is a point that many people overlook, leading to unnecessary tax payment.
Purchasers usually bear the transfer fee
The buyer, as the new registrant on the red book, usually has to pay administrative fees related to the registration of land use rights, including:
Registration fees, usually 0.5% of the house and land value according to the local price list.
Fees for issuing red books and pink books, according to the specific regulations of the Provincial and City People's Committees at the time of transfer of name.
Dossier appraisal fees also depend on each locality and the complexity of the dossier.
Notarization fee for the transfer contract, calculated according to the asset value and current notarization fee schedule.
The two sides can reach another agreement
In fact, many transactions apply the model: The seller bears personal income tax, the buyer bears registration fee and name transfer costs, and notarization fees can be divided in half or paid by one party depending on the agreement. Note that all agreements must be clearly stated in the notarization contract to avoid disputes later.
Cases of fee exemption and reduction
Some cases may be exempted or reduced from taxes or fees when transferring land use right certificates. For example, transferring land use right certificates between husband and wife, parents - children, grandparents - great-grandchildren, siblings; legally inheriting real estate. Or transferring only one house or residential land plot in life.
Note that people should carefully check their dossiers at the tax authority or the Land Registration Office to accurately determine their exemption and reduction rights.
