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3 useful FAQs for foreign home ownership in Vietnam –  What Taxes law are involved?

Posted by admin on November 16, 2019
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A foreigner is responsible to directly declare and pay tax at the district tax bureau where the property is located. A third party may be legally authorized to act on their behalf. 

1/Purchase

Value added tax (VAT): 10% VAT is applied on any property sale whether local or foreigner.

  • Administration fees: A minor fee is payable for property ownership certificate issuance.
  • Ownership registration tax: 0.5% registration tax against property value to obtain the ownership ‘pink book’ certificate.
  • Maintenance fee/sinking fund: Maintenance fees are referred to as a ‘sinking fund’ and are contributed to by development unit buyers. Fees are for major building and common area servicing to maintain development quality standards.Current sinking fund fees are 2% of the house/apartment price, before VAT.

2/Resale

Personal income earned through assignment or apartment/houses resale requires 2% personal income tax paid on the transacted value.

Personal income earned through house/apartment rental requires 5% VAT and 5% PIT on revenue be paid. For rental income exceeding VND 100 million, a business license tax of VND 1,000,000 per year applies.

3/Lease

Personal income tax: Personal income earned through house/apartment rental requires 5% VAT and 5% PIT on revenue be paid. For rental income exceeding VND 100 million, a business license tax of VND 1,000,000 per year applies.

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