Hanoi Tax Department issues real estate transfer tax guidance

The Hanoi Tax Department has released a guidance document regarding personal income tax procedures for individuals transferring real estate. For resident individuals, the tax rate is set at 2% of the transfer price.

The guidance outlines three specific scenarios for tax exemptions:

First, exemptions apply to income from the transfer, inheritance, or gifting of real estate between close family members, including spouses, parents and children, adoptive parents and children, parents-in-law and children-in-law, grandparents and grandchildren, and siblings. This also includes property division resulting from divorce via agreement or court ruling.

Second, exemptions are available for the transfer of a single residential house or land use rights and associated assets within Vietnam. To qualify, the individual must own only one such property at the time of transfer, have owned it for at least 183 days from the date of the certificate issuance, and must transfer the entire property rather than a portion.

The tax authorities noted that individuals are responsible for self-declaring and ensuring they meet exemption conditions, warning that incorrect declarations will result in tax arrears and penalties.