Question:
Mr. A sold a house to a company for 10 billion VND. In this case, Mr. A owns only one property in Vietnam at the time of the sale. Does Mr. A have to pay Personal Income Tax (PIT) for selling the house to the company?
Answer:
Based on Article 3, Clause 1 of Circular No. 111/2013/TT-BTC dated August 15, 2013, of the Ministry of Finance, which provides guidance on Personal Income Tax (PIT), it stipulates that income is exempt from PIT. In the case of Mr. A transferring residential property or the right to use residential land to the company, if Mr. A owns only one residential property and the right to use residential land in Vietnam and meets the conditions specified in point b, Clause 1 of Article 3 of Circular No. 111/2013/TT-BTC of the Ministry of Finance, then Mr. A is exempt from PIT.
