Official Letter 427/TCT-DNNCN 2025 responding to issues regarding personal income tax policy and registration fees
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MINISTRY OF FINANCE
GENERAL DEPARTMENT OF TAXATION
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No. 427/TCT-DNNCN
Regarding the response to issues regarding personal income tax policy and registration fees
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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Hanoi, January 24, 2025
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To:
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- Hanoi Tax Department;
- Can Tho Tax Department;
- Cao Bang Tax Department.
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The General Department of Taxation has received Official Letter No. 88593/CTHN-QLĐ from the Hanoi Tax Department, Official Letter No. 3243/CTCTH-NVDTPC from the Can Tho Tax Department, and Official Letter No. 1564/CTCBA-NVDTPC from the Cao Bang Tax Department, requesting guidance on determining the subjects eligible for registration fee exemption and personal income tax exemption from the transfer of real estate. Regarding this issue, the General Department of Taxation has the following opinions:
In Clause 10, Article 10 of Decree No. 10/2022/ND-CP dated January 15, 2022, the Government regulations on registration fees specify:
"Article 10. Exemption from registration fees
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Houses and land inherited or gifted between: Husband and wife; biological father, biological mother, and biological child; adoptive father, adoptive mother, and adopted child; father-in-law, mother-in-law, and daughter-in-law; father-in-law, mother-in-law, and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; full siblings, if a competent authority issues a certificate of land use rights, housing ownership, and other properties attached to the land."**
In Clause a, d, Item 1, Article 3 of Circular No. 111/2013/TT-BTC of the Ministry of Finance guiding the Personal Income Tax Law:
"Article 3. Income subject to tax exemption
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According to the provisions of Article 4 of the Personal Income Tax Law, Article 4 of Decree No. 65/2013/ND-CP, income subject to tax exemption includes:
a) Income from the transfer of real estate (including future houses, future construction works as stipulated by the laws on real estate business) between: husband and wife; biological father, biological mother, and biological child; adoptive father, adoptive mother, and adopted child; father-in-law, mother-in-law, and daughter-in-law; father-in-law, mother-in-law, and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; full siblings.
In case the real estate (including future houses, future construction works according to the regulations on real estate business) created by either the husband or wife during the marriage is determined as joint property, in case of divorce, it will be divided according to the agreement or decision of the court. The division of this property is exempt from tax.
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d) Income from receiving inherited or gifted real estate (including houses, future construction works according to the law on real estate business) between: husband and wife; biological father, biological mother, and biological child; adoptive father, adoptive mother, and adopted child; father-in-law, mother-in-law, and daughter-in-law; father-in-law, mother-in-law, and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; full siblings."**
In Clause h, Item 1, Article 7 of Circular 43/2023/TT-BTC dated June 27, 2023, of the Ministry of Finance, amending Clause 1, Article 53 of Circular No. 80/2021/TT-BTC of the Ministry of Finance guiding the Law on Management:
**"1. In case of transferring, inheriting, or gifting real estate (including future houses, future construction works, buildings, houses already handed over for use by the project owner but not yet issued the certificate of land use rights, housing ownership, and attached properties under the law on housing and real estate business) between husband and wife; biological father, biological mother, and biological child; adoptive father, adoptive mother, and adopted child; mother-in-law, father-in-law, and daughter-in-law; father-in-law, mother-in-law, and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; full siblings. The tax exemption dossier includes:
The Personal Income Tax declaration form No. 03/BĐS-TNCN attached to Appendix II of this Circular.
The tax authority is responsible for exploiting information from the national database on citizens as provided in Article 84 of this Circular to handle tax exemption procedures for taxpayers. If information on the citizenship residence cannot be accessed in the national database, the taxpayer must provide relevant documents confirming the eligibility for tax exemption for each case, specifically as follows:
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h) In the case of transferring, inheriting, or gifting real estate falling under the exempted categories mentioned in Clause 1 of this Article, in addition to the aforementioned documents, the transferor, inheritor, or gift recipient may use other documents certified by a competent authority confirming the relationship between the transferor and the recipient of the transfer, inheritance, or gift as the basis for determining the exempted income."**
Based on the above regulations, in cases of transferring, inheriting, or gifting real estate between in-laws (e.g., father-in-law with daughter-in-law or mother-in-law with daughter-in-law), and the transferor or recipient of the real estate has a spouse who has died, it is eligible for exemption from both registration fees and personal income tax, provided that the taxpayer presents relevant documents from a competent authority confirming the relationship between the transferor and the recipient as required by Clause h, Item 1, Article 7 of Circular 43/2023/TT-BTC dated June 27, 2023.
The General Department of Taxation responds for the Tax Departments to be aware.
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Recipients:
- As above;
- Deputy Director Mai Sơn (for reporting);
- Units: PC, GSCST Management Department (BTC);
- Department: PC, CS (TCT);
- TCT Website;
- Archive: VT, DNNCN (1b).
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On behalf of the Director-General of the General Department of Taxation
Deputy Director of the Small and Medium Business and Household Business Department
Ly Thi Hoai Huong
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See details here.