Many single-homeowners are still required to pay personal income tax on the basis of “not having enough 183 days”, despite the fact that the red book has changed due to a change in house number or an update of the name of the person inherit…
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Mrs. T.T.X has a house on Tang Bat Ho Street, Le Loi Ward, Quy Nhon, Binh Dinh Province. The real estate was granted by the People’s Committee of Binh Dinh Province on the ownership of houses and the right to use residential land since 1996 with both her husband and wife. In 2006, my husband passed away but did not make a will or leave any other obligations that the heir must perform.
Mrs. X. and the above-mentioned children made a declaration of inheritance for this property at the Notary Public. On the same day, Mrs. X. and her children made a transfer contract to other people. However, before filing for financial obligations, Ms. X inquired and informed her that she must pay personal income tax on the proceeds of the sale of 50% left by her husband.
The reason is that Mrs. X’s case does not guarantee the condition of “Ownership of house and land use right up to the time of transfer is at least 183 days” and “Determination of ownership, using houses and residential land on the basis of certificates of ownership and use of houses and residential land “in accordance with Decree No.65 / 2013 issued by the Government.
“Although we have made a commitment to only own the property in Vietnam (in my Curriculum Vitae Certificate has been endorsed by Le Loi People’s Committee also shows me and the children have. permanent address at 25 Tang Bat). After asking a number of tax officials also confirm such and the jurisdiction of the local tax authorities cannot be resolved otherwise than the provisions of Decree No. 65/2013 / ND-CP and Circular direction led by the Ministry of Finance, “Ms. X. shared.
However, according to Ms. X., the PIT Law provides tax-exempt income, including: “Income from transfer of residential housing, residential land use rights and assets attached to the residential land of individuals in cases where individuals only have a single dwelling, residential land “(Clause 2, Article 4).
Government decrees, circulars of the Ministry of Finance only guide more clearly, not lose or restrict the interests of citizens. Mrs. X. thinks that she and her children only own the property, and the income from the sale of the property must be tax exempt.
Mr. X said that the Ministry of Finance and the General Department of Taxation would soon send detailed instructions to localities to settle the legitimate interests of people in accordance with the law. So far, Mrs. X said that she did not dare to submit the application.
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In the case of Mrs. X, the General Department of Taxation (Ministry of Finance) said that there were some similar cases in which Ms. X questioned personal income tax on income from transfer of real estate, Residential land only.
After reporting to the Ministry of Finance, pursuant to the provisions of the Personal Income Tax Law and Decree 65/2013, the General Department of Taxation said that in the case of Ms. X is exempted from PIT 50% for income from Assignment of house, land only owned by Ms. X under the GCN of ownership of housing and land use rights since 1996.
For the rest (50%) from the transfer of houses and a residential land of Mrs. X and three children inherited due to not secured ownership at least 183 days under the Decree 65 of the Government should not meeting the conditions for tax exemption.
According to the tax experts need specific regulations for each case of selling the house only to be exempt from tax, avoid the case of over-collection, the sole seller of the wrongful tax. In addition, the agencies need to connect information to confirm that it is the only house for people, avoid confusion for the tax authorities themselves, make a reasonable decision.
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