Conditions for transferring and donating land between siblings
To carry out the procedure of donating land between siblings, the following conditions must be met:
+ Land has red book, pink book.
+ Land has no dispute.
+ Land use rights are not subject to seizure to ensure enforcement of judgment.
+ Land in use.
Exemption from personal income tax when transferring red book between siblings
Point a, Clause 1, Article 3 of Circular 111/2013/TT-BTC stipulates that income from real estate transfers between siblings is exempt from personal income tax.
However, when transferring or giving away between relatives, personal income tax is not exempted.
In addition, the transferor who has only one house and land use rights in Vietnam is exempt from personal income tax if he/she simultaneously meets the following conditions:
+ Only have the right to own 1 house or the right to use 1 plot of land at the time of transfer.
+ Have land use rights and house ownership rights calculated at the time of transfer for at least 183 days.
+ Transfer of entire house and land.
Exemption from registration tax in case of gift or inheritance
In case siblings give land use rights as a gift, when making a red book, they will be exempted from registration fees.
In case siblings transfer, this fee is not exempted. This is clearly stated in Clause 10, Article 10 of Decree 10/2022/ND-CP regulating exemption of registration fees when inheriting or donating real estate.
Specifically: "Houses and land received as inheritance or gifts between: Husband and wife; biological father, biological mother and biological child; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; paternal grandfather, paternal grandmother and grandchild; maternal grandfather, maternal grandmother and grandchild; siblings with each other are now granted a certificate of land use rights, house ownership rights and other assets attached to the land by a competent state agency".
Note, people exempted from personal income tax and registration fees must still declare taxes and fees for tax authorities to manage.
