What is personal income tax?
Personal income tax is a tax levied on personal income from the transfer of assets (including real estate such as houses and land).
The personal income tax payer is the transferor (seller).
Speaking with Lao Dong reporter, lawyer Truong Anh Tu (TAT Law Firm) said that according to the provisions of Article 3 of Circular 111/2013/TT-BTC, some special cases are exempted from personal income tax, including:
Transfer, gift or inheritance between family members
Between husband and wife; parents; 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 grandson; maternal grandfather, maternal grandmother and granddaughter; siblings.
Transferring red books between family members is often simpler than normal transactions. Normally, if there is no commercial element (no money received), this is a common form within the family.
The transferor has only one house and land use right certificate in Vietnam.
Individuals in this case who are exempt from personal income tax must meet certain conditions such as: having only the right to own one house or the right to use one plot of land at the time of transfer; Having the right to own a house or the right to use land for at least 183 days at the time of transfer.
Legal conditions must ensure that the land has a legal red book and is not in dispute, not seized or in the planning area (if any, it must be approved by the competent authority); The transferor and the recipient must have full civil act capacity.
In addition, lawyer Truong Anh Tu also recommends that when preparing documents, you need to prepare: land use right certificate (red book); ID card and household registration book of both parties; Documents proving family relationship (birth certificate, marriage certificate or household registration book); Contract for transfer or donation of land use rights (made at a notary office).
