1.1. Exemption from personal income tax
Clause 1, Article 3 of Circular 111/2013/TT-BTC stipulates that the following items are exempt from personal income tax:
“…
d) Incomes from inheritance, gifts being real estate (including houses, construction works to be formed in the future according to the provisions of law on real estate business) between: husband and wife; biological father, natural mother with natural child; adoptive father, adoptive mother with adopted child; father-in-law, mother-in-law with daughter-in-law; father-in-law, mother-in-law with son-in-law; grandpa, paternal grandmother with grandchild, paternal grandfather, grandmother with grandchild; siblings with each other”.
Thus, it can be seen that most cases of land inheritance are exempt from personal income tax (in fact, whether inheritance according to will or law, it still belongs to the above relationships, only a few case of making wills for outsiders to inherit).
1.2. Not exempt from personal income tax
If they are not exempt from personal income tax, the tax rate to be paid is quite high, namely 10%.
Personal income tax payable = 10% x Taxable income (real estate value)
In which, taxable income is determined as follows:
(1) If the real estate is a land use right, the value of the land use right shall be determined based on the land price list prescribed by the People’s Committee of the province at the time the individual carries out the procedures for registration of the right to use the land. real estate.
(2) Real estate being houses and structures on land, the value of real estate is determined based on regulations of competent state management agencies on classification of house values; stipulate standards and norms for capital construction promulgated by competent state management agencies; the residual value of the house or architectural work at the time of carrying out the procedures for registration of ownership.
If it cannot be determined according to regulations (1) and (2), the registration fee calculation price shall be determined by the provincial-level People’s Committee.
Note: Taxable income from inheritance is the value of inherited property exceeding VND 10 million each time.
For example: A inherits a land plot of 100m2, the price of 01m2 of land in the Land Price List is 10 million VND.
Taxable income is VND 990 million (100m2 x VND 10 million = VND 01 billion. However, taxable income is the excess of VND 10 million, specifically VND 990 million).
Personal income tax payable by A = 990 million dong x 10% = 99 million dong
2. Registration fee (registered tax)
2.1. Free registration fee
Clause 10, Article 10 of Decree 10/2022/ND-CP stipulates that the following cases are exempt from registration fee:
“…
10. House or land inherited or given as a gift between: Husband and wife; biological father, natural mother with natural child; adoptive father, adoptive mother with adopted child; father-in-law, mother-in-law with daughter-in-law; father-in-law, mother-in-law with son-in-law; grandfather, grandmother with grandson; grandparents, grandmothers with grandchildren; Brothers, sisters and brothers are now granted certificates of land use rights and ownership of houses and other land-attached assets by a competent state agency.”
Similar to personal income tax, most inheritance cases are practically exempt from registration fees.
2.2. Registration fee is not waived
Decree 10/2022/ND-CP and Circular 13/2022/TT-BTC stipulating that the registration fee payable when inheriting a house and land is determined according to the following formula:
Registration fee = 0.5% x Registration fee calculation price
In which, the price for calculating the registration fee is the land price in the Land Price List, the price of 01m2 of housing for the registration fee calculation according to the regulations of the People’s Committee of the province.
Specifically:
– For the heritage being the land use right:
Registration fee = 0.5% x (Price of 01m2 of land in the Land Price List x Area to be inherited)
– For estates being houses:
Registration fee = 0.5% x (Area of house subject to registration fee x Price 01m2 x Percentage of remaining quality)
3. Application appraisal fee
Circular 85/2019/TT-BTC stipulating that the fee for appraisal of documents when registering varies for inheritance cases prescribed by the People’s Council of the province, so the fee rates are different between provinces and cities.
People should also note that not all provinces and cities collect this fee.
4. Certificate issuance fee
This fee must be paid only when the heir requests and is granted a new Red Book and Pink Book (if the box is not checked for the need to issue a new Certificate, the inheritance information will be recorded on page 4 of the Red Book). Red, Pink Book).
Similar to the application fee, the fee for issuing a new cover is decided by the People’s Councils of the provinces and cities. However, the provinces and cities all collect less than 100,000 VND.
Above is the regulation to answer the problem: What amount of money must be paid to inherit the land ? Theoretically, the recipient of a land inheritance may have to pay 04 taxes, fees and charges as above, but in fact most of them are exempt from personal income tax and registration fee. Therefore, if you do not apply for a new book cover, the amount to be paid is very little, even no money.
According to LuatVietnam.
