Transfer tax on real estate to undergo changes starting from 2025?

Mr.Believer posted on 28/03/2024

Article 247 of the Land Law 2024 will be effective from January 1, 2025.

The transfer tax on real estate will undergo changes starting from 2025. Currently, according to Article 14 of the Law on Personal Income Tax 2007 (amended and supplemented in 2014), income subject to personal income tax from real estate transfers is determined based on the transfer price each time.

However, according to Article 247 of the Land Law 2024 (effective from January 1, 2025), it has been added that "in cases of transferring land use rights, income subject to personal income tax shall be calculated based on the land price in the land price list."

Khai thuế khi phát sinh hoạt động chuyển nhượng bất động sản trong công ty TNHH một thành viên

Therefore, starting from January 1, 2025, income subject to personal income tax from real estate transfers will be divided into two cases:

Case 1: Income subject to personal income tax from real estate transfers is determined based on the transfer price each time (as currently regulated).

Pursuant to Article 17 of Circular 92/2015/TT-BTC, the transfer price of real estate is the value stated in the transfer contract at the time of transfer; if the transfer contract does not specify a price or if the price in the transfer contract is lower than the land price determined by the provincial People's Committee at the time of transfer, then the transfer price shall be determined according to the land price list determined by the provincial People's Committee at the time of transfer.

Personal income tax payable = Transfer price x 2% tax rate.

Case 2: For the transfer of land use rights (not covered in Case 1), income subject to personal income tax shall be calculated based on the land price in the land price list (new regulation).

In cases of transferring land use rights, the transfer price stated in the transfer contract is no longer relevant, and only the land price in the land price list is considered.

Personal income tax payable = Land price in the land price list x 2% tax rate.

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