How much is the real estate transfer tax in 2025?

Real estate transfer tax rates are specifically stipulated in current legal documents, applicable to many different subjects in Vietnam. Understanding the regulations on taxes and fees in real estate transactions helps customers avoid legal risks and optimize financial obligations. The following article will analyze in detail the tax rates, calculation method and time to pay real estate transfer tax according to the latest regulations.

Is real estate transfer taxable?

According to current legal regulations, real estate transfer activities are subject to income tax. Decree 65/2013/ND-CP clearly stipulates in Clause 5, Article 3, on taxable income from real estate transfer activities.

Taxable income from real estate transfer includes:

• Income from transfer of land use rights and assets attached to land, including future construction projects;
• Income from transfer of ownership or use of housing, including future housing;
• Income from transfer of land lease rights and water surface lease rights;
• Other income received from real estate transfer in any form;

Taxable subjects apply to both individuals and organizations when carrying out real estate transfer transactions according to regulations.

The law also clearly stipulates that taxable income includes income from real estate management authorization in which the authorized person has the right to transfer real estate or has the same rights as the real estate owner according to the provisions of law. This is to ensure fairness and prevent tax evasion through authorization.

How to calculate real estate transfer tax in 2025

Current regulations on the form of real estate transfer tax will be determined depending on the subject of the transfer.

For individual transfers

Pursuant to Article 22, Decree 65/2013/ND-CP (amended by Clause 12, Article 2, Decree 12/2015/ND-CP) and Article 17 of Circular 92/2015/TT-BTC, personal income tax on income from real estate transfer is applied at a tax rate of 2% on the transfer price.

The formula for calculating personal income tax from real estate transfer is determined as follows: Personal income tax payable = Transfer price × Tax rate 2%

Transfer price is determined based on specific cases:

• For transfer of land use rights without construction: Price stated on the transfer contract at the time of transfer. In case the price is not recorded or the price is lower than the land price prescribed by the Provincial People’s Committee, the transfer price will be determined according to the land price list prescribed by the Provincial People’s Committee.
• For transfer of land use rights associated with construction works: Price stated on the transfer contract. If the land price is not recorded or the price is lower than prescribed, the land transfer price will be according to the regulations of the Provincial People’s Committee, while the value of houses and buildings is based on the registration fee calculation price prescribed by the Provincial People’s Committee.

In case of transfer of jointly owned real estate, tax liability is determined separately for each taxpayer according to ownership ratio. The basis for determining ownership ratio is legal documents such as the initial capital contribution agreement, will or court division decision.

For transfer organizations

For organizations doing real estate transfer business, income from real estate transfer activities must pay corporate income tax according to the provisions of the Law on Corporate Income Tax 2008.

According to the provisions of Article 10, Law on Corporate Income Tax 2008, amended and supplemented in 2013, the current corporate income tax rate applied to real estate transfer activities is 20% calculated on taxable income. Taxable income from real estate transfer is determined as revenue minus deductible expenses of real estate transfer activities.

According to the provisions of Article 6, Decree No. 218/2013/ND-CP guided by Article 4, Circular 78/2014/TT-BTC effective from August 2, 2014, the tax calculation method is prescribed as follows:

Taxable income in the tax period is determined as follows:

Taxable income = (Income from real estate transfer activities – Deductible expenses) + Other income

Corporate income tax payable = Taxable income × Tax rate 20%

Deductible expenses when determining taxable income for real estate transfer activities include:

• The cost price of transferred land is determined in accordance with the origin of land use rights;
• Compensation and support costs when the State recovers land;
• Fees and charges according to the provisions of law related to granting land use rights;
• Costs for land reclamation and site leveling;
• Value of infrastructure and architectural works on land;
• Other costs related to transferred real estate.

>>> See more: When do businesses receive preferential corporate income tax rates?

Regulations on when to calculate real estate transfer tax

Pursuant to Article 12 of Circular No. 111/2013/TT-BTC, amended by Article 17 of Circular 92/2015/TT-BTC, the time to calculate tax from real estate transfer is determined as follows:

• In case the transfer contract does not have an agreement that the buyer will pay tax on behalf of the seller, the tax calculation time is the time the transfer contract takes effect according to the provisions of law.
• In the case of a transfer contract with an agreement that the buyer is the taxpayer on behalf of the seller, the tax calculation time is the time of carrying out procedures to register ownership and use rights of real estate. This regulation aims to create favorable conditions for taxpayers, while ensuring state budget revenue.
• In special cases when an individual receives a transfer of a house to be formed in the future, or land use rights associated with a future construction project, the time of tax calculation is the time the individual submits a tax declaration to the tax authority. This helps clearly determine when tax obligations arise for transactions related to real estate formed in the future.

Accurately determining the time to calculate real estate transfer tax is an important factor to ensure tax obligations are fulfilled on time, avoid violations and facilitate the process of completing legal procedures related to real estate transactions.

Consulting services on real estate transfer tax rates at Long Phan Consulting Company

Long Phan Consulting Company provides professional real estate transfer consulting services with a team of experts with extensive expertise and experience. The consulting services we provide will help customers clearly understand tax obligations and optimize tax payments, thereby eliminating unnecessary risks when not knowledgeable about tax laws.

We provide real estate transfer tax consulting services including:

• Consulting on determining the tax rate applicable to each specific transfer case;
• Support in calculating tax payable according to legal regulations;
• Provide updated information on new tax policies;
• Consulting on legal tax optimization plans;
• Support in resolving problems related to transfer tax.

Through professional consulting services, customers will receive detailed instructions on tax obligations and necessary procedures when transferring real estate. At the same time, we provide optimal solutions related to real estate transfer procedures, helping customers save costs and time.

Frequently asked questions

Below are frequently asked questions about how to determine tax rates from real estate transfers.

What types of real estate are subject to transfer tax?

Real estate transfer tax applies to the transfer of land use rights, ownership of housing and assets attached to land, land lease rights, and water surface lease rights.

Who is responsible for paying real estate transfer tax?

According to regulations, the transferor (seller) is the person responsible for paying income tax from real estate transfer activities. However, the parties can agree to let the buyer pay tax on their behalf.

How is the real estate transfer price determined for tax calculation?

The transfer price is usually the price stated on the transfer contract. In case the contract price is lower than the price prescribed by the Provincial People’s Committee, the tax price will be based on the land price list and asset value issued by the Provincial People’s Committee.

What is the personal income tax rate when transferring real estate?

The current personal income tax rate for income from real estate transfer is 2% of the transfer price.

How much is corporate income tax for real estate transfer organizations?

The current corporate income tax rate applied to real estate transfer activities of organizations is 20% of taxable income.

When is the time to calculate real estate transfer tax if the contract does not have an agreement on a replacement taxpayer?

Tax time is the time the real estate transfer contract takes legal effect.

When is the time to calculate real estate transfer tax if the contract has an agreement that the buyer pays tax on behalf?

Tax time is the time when procedures for registering ownership and use rights of real estate are completed.

For houses formed in the future, how is the time to calculate real estate transfer tax determined?

Tax time is the time an individual submits a tax declaration to the tax authority.

What expenses are deductible when calculating taxable income for real estate transfer businesses?

Deductible costs include real estate costs, compensation costs for land, crops, compensation costs, resettlement support, site improvement costs, infrastructure construction costs and other directly related costs.

How to determine co-ownership of real estate for tax purposes?

The ownership ratio is determined based on legal documents such as the initial capital contribution agreement, will or court division decision.

What measures are there to optimize tax costs when transferring real estate legally?

Understanding the regulations on taxable prices, deductible expenses (for businesses), and when to pay taxes can help optimize tax obligations. Advice from tax experts is also important.

What happens if the real estate transfer price is declared lower than the market price or state-regulated price?

The tax authority has the right to re-fix the transfer price according to the land price list and property value prescribed by the Provincial People’s Committee, and taxpayers may be subject to administrative penalties for tax violations.

Conclude

The 2025 real estate transfer tax rate is applied according to current regulations. Long Phan’s in-depth support services will help customers fulfill their financial obligations and avoid legal risks that may arise. For detailed advice on real estate transfer taxes and fees, please contact us via the hotline: 0906735386 for timely and professional support.