Is inheriting đá bóng trực tiếp right to lease land from adoptive parents subject to personal income tax in Vietnam?

Is inheriting đá bóng trực tiếp right to lease land from adoptive parents subject to personal income tax in Vietnam?

According to point c, clause 9, Article 2 ofCircular 111/2013/TT-BTC, đá bóng trực tiếp regulation on taxable income is as follows:

Taxable Income

As stipulated in Article 3 of đá bóng trực tiếp Personal Income Tax Law and Article 3 of Decree No. 65/2013/ND-CP, taxable personal income includes:

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9. Income from inheritance

Inheritance income is đá bóng trực tiếp income received by an individual under a will or according to inheritance laws. To be specific:

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c) For inherited real estate, including: đá bóng trực tiếp right to use land; đá bóng trực tiếp right to use land with attached assets; đá bóng trực tiếp right to own houses, including future houses; infrastructure and constructions attached to land, including future constructions; đá bóng trực tiếp right to lease land; đá bóng trực tiếp right to lease water surfaces; and other incomes from inherited real estate in any form; except for income from inherited real estate as guided at point d, clause 1, Article 3 of this Circular.

According to point d, clause 1, Article 3 ofCircular 111/2013/TT-BTC, đá bóng trực tiếp following inheritance income is not subject to personal income tax:

- Between husband and wife;- Biological parents and biological children;- Adoptive parents and adopted children;- Parents-in-law and daughters-in-law;- Parents-in-law and sons-in-law;- Paternal grandparents and grandchildren;- Maternal grandparents and grandchildren;- Siblings.

Therefore, inheriting đá bóng trực tiếp right to lease land from adoptive parents does not require paying personal income tax.

Is inheriting đá bóng trực tiếp right to lease land from adoptive parents subject to personal income tax in Vietnam?(Image from đá bóng trực tiếp Internet)

How to calculate personal income tax onincome from inheritance in Vietnam?

Based on clause 4, Article 16 ofCircular 111/2013/TT-BTC, đá bóng trực tiếp calculation of personal income tax on income from inheritance is as follows:

* Where:

Taxable income from inheritance is đá bóng trực tiếp value of đá bóng trực tiếp inherited asset exceeding 10 million VND each time received. đá bóng trực tiếp value of đá bóng trực tiếp inherited asset is determined for each specific case. To be specific:

- For inheritance as securities: đá bóng trực tiếp value of đá bóng trực tiếp inherited asset is đá bóng trực tiếp value exceeding 10 million VND computed on all securities codes received without deducting any expenses at đá bóng trực tiếp time of registration of ownership transfer. To be specific:

+ For securities traded on đá bóng trực tiếp Stock Exchange: đá bóng trực tiếp value of đá bóng trực tiếp securities is based on đá bóng trực tiếp reference price on đá bóng trực tiếp Stock Exchange at đá bóng trực tiếp time of registering securities ownership.

+ For securities not in đá bóng trực tiếp above category: đá bóng trực tiếp value of đá bóng trực tiếp securities is based on đá bóng trực tiếp book value of đá bóng trực tiếp issuing company at đá bóng trực tiếp latest financial report in compliance with accounting laws before đá bóng trực tiếp time of registering ownership of đá bóng trực tiếp securities.

- For inheritance as capital contributions in economic organizations or business establishments: đá bóng trực tiếp taxable income is đá bóng trực tiếp value of đá bóng trực tiếp capital contribution based on đá bóng trực tiếp book value of đá bóng trực tiếp company at đá bóng trực tiếp latest preceding đá bóng trực tiếp time of registering ownership of đá bóng trực tiếp capital contribution.

- For inherited real estate assets: đá bóng trực tiếp value is determined as follows:

+ For real estate as đá bóng trực tiếp value of đá bóng trực tiếp right to use land, đá bóng trực tiếp value of đá bóng trực tiếp right to use land is based on đá bóng trực tiếp Land Price Table prescribed by đá bóng trực tiếp provincial People's Committee at đá bóng trực tiếp time đá bóng trực tiếp individual carries out procedures to register đá bóng trực tiếp right to use real estate.

+ For real estate as houses and architectural works on land, đá bóng trực tiếp value is based on đá bóng trực tiếp regulations of đá bóng trực tiếp competent State management agencies about classification and valuation of houses, set standards, and basic construction benchmarks issued by competent State management agencies; đá bóng trực tiếp remaining value of houses and architectural works at đá bóng trực tiếp time of registration for ownership.

In case of failure to determine it as prescribed above, it is based on đá bóng trực tiếp valuation for registration fee imposed by đá bóng trực tiếp provincial People's Committee.

- For inheritance as other assets required to register ownership or use rights with State management agencies: đá bóng trực tiếp value of đá bóng trực tiếp asset is based on đá bóng trực tiếp valuation for registration fee imposed by đá bóng trực tiếp provincial People's Committee at đá bóng trực tiếp time đá bóng trực tiếp individual completes procedures to register ownership or use rights of đá bóng trực tiếp inherited asset.

In case an individual receives inherited assets that are imported and must pay taxes related to đá bóng trực tiếp importation of assets, đá bóng trực tiếp value of đá bóng trực tiếp asset for personal income tax calculation on inherited gifts is đá bóng trực tiếp registration fee valuation imposed by đá bóng trực tiếp provincial People's Committee at đá bóng trực tiếp time of registration minus (-) import-stage taxes paid by đá bóng trực tiếp individual according to regulations.

When is đá bóng trực tiếp tax period for calculating personal income tax on income from inheritance in Vietnam?

According to clause 6, Article 3 of đá bóng trực tiếpTax Administration Law 2019, đá bóng trực tiếp tax period for personal income tax is understood to be đá bóng trực tiếp time frame within which đá bóng trực tiếp amount of tax payable to đá bóng trực tiếp state budget is determined according to tax laws.

Based on Article 7 of đá bóng trực tiếpPersonal Income Tax Law 2007, amended by clause 3, Article 1 of đá bóng trực tiếpAmended Personal Income Tax Law 2012, đá bóng trực tiếp tax period for personal income tax is determined as follows:

Tax Period

1. đá bóng trực tiếp tax period for resident individuals is regulated as follows:

a) đá bóng trực tiếp annual tax period applies to income from business; income from salaries and wages;

b) đá bóng trực tiếp tax period for each occurrence of income applies to income from capital investment; income from capital transfers, except for securities transfers; income from real estate transfers; income from winnings; income from royalties; income from franchise rights; income from inheritance; income from gifts;

c) đá bóng trực tiếp tax period for each occurrence of securities transfers or annually applies to income from securities transfers.

2. đá bóng trực tiếp tax period for non-resident individuals is calculated for each occurrence of income for all taxable incomes.

Thus, đá bóng trực tiếp tax period for personal income tax on income from inheritance will follow each occurrence of income.