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The draft Decree detailing certain provisions of the Law on Personal Income Tax, issued by the Ministry of Finance, outlines new regulations regarding the conditions for exemption from personal income tax, with specific requirements.
Accordingly, individuals are exempt from income tax on the transfer of houses, land use rights, and assets attached to land if the transferor owns only one house or land use right in Vietnam. This tax exemption does not apply to the transfer of houses or construction works that are still under construction.
Specifically, individuals transferring real estate are exempt from tax if they meet all of the following conditions.
Firstly, ownership rights exist for only one house or the right to use one plot of land.
Secondly, the owner must have held ownership of the house and land use rights for at least 183 days at the time of transfer.
The date of determining ownership of housing and land use rights is the date of issuance of the Certificate of Land Use Rights, Ownership of Housing and Other Assets Attached to Land. In cases of re-issuance or replacement in accordance with land law regulations, the date of determination is calculated from the date of issuance of the certificate before re-issuance or replacement.
Thirdly, the transfer of the entire house and land use rights. In cases where an individual has sole ownership or co-ownership of a house and land use rights, but only transfers a portion, the tax exemption does not apply to that transferred portion.
