When Selling A House, What Are Taxes And Fees Required?

You have a need to sell your home but do not know what fees and taxes to pay? Vietnam Real Estate thoroughly investigates this issue through the article below.

According to the current regulations of the law, when people want to transfer land use rights and assets attached to land, the following taxes and charges are required:

Registration fee

The provisions of Clause 1, Article 2 of Decree No. 45/2011 / ND-CP of June 17, 2011, on the registration fee and list of houses and land in subjects subject to the registration fee. Accordingly, the registration fee will be calculated as follows in Article 5, 6 and 7 of this Decree:

Registration fee = 0.5% x Registration fee calculation price (this price will be issued by the People’s Committee of the province or city directly under the Central Government).

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Personal income tax

The Law on Personal Income Tax amended and supplemented in 2012 stipulates that income from transfer of land use rights and assets attached to land is also one of the types of taxable income. Accordingly, there will be two ways to determine the personal income tax payable by the assignor of the land use right and the assets attached to the land:

Option 1:

Personal income tax = 25% of profit value (selling price – purchase price)

Where the sale price is the price stated in the transfer contract and the purchase price is determined based on the price stated in the sale and purchase contract. Note that for some houses not originating from the transfer or acquisition, based on the dossiers to fulfill the financial obligations to the State at the time of being granted the house ownership or use right certificates in.

In addition, you can refer information other at: 8 Types Of Papers The Home Buyer Needs To Prepare Before The Transaction

When selling a house, the land use right transferor and the assets attached to the land will pay a personal income tax

Option 2: Applicable in cases where the purchase price can not be determined (the case where the actual price or the price stated in the low transfer contract of the land price can not be determined by the provincial-level People’s Committee at the time of transfer. The transfer price is determined based on the land price table prescribed by the provincial-level People’s Committee.)

Personal income tax = 2% transfer price

When transferring the house, the seller is likely to incur additional charges such as land fees, drawing fees, notary sales contract

>>> Read more: A Series Of New Policies On Real Estate Came Into Effect In February 2017

In addition, when transferring the house, the seller also has the possibility to pay additional fees such as land fee, drawing fees, notarization contract sale … According to the Law on Personal Income Tax, the transferor must pay personal income tax. However, when signing a transfer contract, the parties can still agree to decide which party is obliged to pay personal income tax as well as other fees as stipulated.

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