GUIDE TO PERSONAL INCOME TAX DECLARATION AND PAYMENT WHEN INHERITING LAND OR HOUSES

GUIDE TO PERSONAL INCOME TAX DECLARATION AND PAYMENT WHEN INHERITING LAND OR HOUSES

1. Cases Where PIT Must Be Paid Upon Inheriting Land or Houses

According to the Personal Income Tax Law 2007 and Circular 111/2013/TT-BTC, income from inheritance of land or houses (by will or law) is subject to PIT and includes:

Land use rights;
Land use rights attached to assets;
House ownership (including future-formed houses);
Infrastructure and construction works attached to land;
Land or water surface lease rights;
Other income from inherited real estate.
Exemptions apply to inheritance between: spouses; biological parents and children; adoptive parents and adopted children; in-laws (parents-in-law and children-in-law); grandparents and grandchildren; siblings.

Note: Even if exempt, a tax declaration must still be submitted.

 
2. How to Calculate PIT When Inheriting Real Estate

Taxable income = Value of inherited assets exceeding VND 10 million per instance.
Asset value determination:
Land: based on the Land Price Table issued by the provincial People’s Committee;
Houses and structures: based on official state pricing or registration fee calculation.
Time of tax calculation: when registering ownership or use rights.
Tax rate: 10% flat rate.
 

3. PIT Declaration Period

PIT must be declared for each instance of inheritance, even if tax is exempt.
Ownership or usage rights can only be transferred once tax is paid or exemption confirmed.
 

4. PIT Declaration Dossier for Inherited Land or Houses

Pursuant to Decree 126/2020/NĐ-CP and Circular 80/2021/TT-BTC, required documents include:

PIT declaration form No. 03/BĐS-TNCN;
ID card/Citizen ID/passport;
Land Use Rights Certificate or House Ownership Certificate;
Documents proving inheritance rights;
Documents proving tax exemption (household registration, birth certificate, adoption decision, etc.).
Note: If birth certificate or household registration is unavailable, a certified relationship confirmation from a competent authority is required.

5. Deadline for Tax Declaration and Payment

Tax declaration: within 10 days from the date of registering ownership/use rights.
Tax payment: as stated in the tax authority’s notice.
 

6. Where to Submit the PIT Declaration

Submit at the land dossier receiving agency (under the one-stop-shop mechanism);
For properties not yet issued with ownership certificates or future-formed buildings: submit at the local tax office;
For inheritance of overseas real estate: submit at the tax office where the individual resides.

Ensures estate protection in the absence of an heir or estate administrator.

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