1. Regulations on personal income tax for income received from gifts
Clause 10, Article 2, Circular 111/2013/TT-BTC regulates the personal income tax income for income received from various types of gifts as follows:
a. Gifts in the form of securities, including:
- Shares, stock options, bonds, debentures,
- Fund certificates and other types of securities,
- Shares in joint-stock companies.
b. Gifts consisting of capital in economic organizations, business establishments, including:
- Capital in limited liability companies, cooperatives, joint-stock companies,
- Capital in business cooperation contracts, capital in private enterprises, individual business establishments,
- And capital in associations, funds, or all business establishments if they are private enterprises or individual business establishments.
c. Gifts in the form of Real Estate, including:
- The right to use land, assets attached to the land,
- The ownership of residential houses, residential houses formed in the future,
- Infrastructure and construction works, construction works formed in the future,
- The right to lease water surfaces,
- Other income received from inheritance as real estate (except for cases mentioned in point d, clause 1, Article 3, Circular 111)
d. Assets that must be registered for ownership or use with state management agencies such as:
- Automobiles, motorbikes, scooters,
- Boats, ships, canoes, tugboats, pushboats, yachts,
- Aircraft, hunting rifles, sporting rifles.
2. Calculating the tax on inheritance and gifts
Taxable income for inheritance and gifts is the part of the value of inherited property or gifts exceeding 10 million VND each time received. The value of the property is determined for each specific case as stipulated in Clause 1, Article 16, Decree 111.
The personal income tax rate for inheritance and gifts is applied at the flat rate of 10%.
The time to determine taxable income is when the individual registers ownership or the right to use the inherited property or gift.
Tax calculation formula:
Personal Income Tax = Taxable Income x 10%
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