Real estate transactions aren’t just about supply and demand-they come with legal, procedural and tax challenges. Among them, the real estate transfer tax is a hot topic that often leaves individuals confused: How should I declare? What’s the right value? Will I be penalized or taxed more later? As the market continues to fluctuate and tax regulations tighten, understanding the law and preparing the correct documentation is key to smooth, cost-effective transactions.
Why must you understand the real estate transfer tax?
Transferring real estate ownership triggers mandatory tax obligations. This includes taxes owed by individuals or businesses when transferring property ownership or land-use rights.
Many still confuse “real estate handover tax” with “transfer tax”, but both terms refer to the same legal obligation depending on the taxpayer.
Depending on the entity, property type, and transaction nature, the following taxes may apply:
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Personal income tax (PIT): 2% of the transfer value
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Corporate income tax (CIT): 20% on the difference between selling price and original cost
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VAT: Applicable in certain business transactions involving registered real estate firms
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Registration fees, notarization, ownership transfer, land fees...
The issue is: What price should be used as the basis for tax calculation? According to the law, the taxable price is the actual price stated in the contract, but it must not be lower than the price issued by the provincial Peoples Committee. However, since market prices often fluctuate, if the declared price is not accurate, you may still be subject to a reassessed tax.
Do real estate transfers incur VAT? – Yes, if you’re a business redeveloping and selling property. Individuals are exempt.
Real estate transfer tax in 2025: What’s changing?
According to the Ministry of Finance’s 2025 tax reform plan:
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Undervaluing property in declarations will be more tightly regulated
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Transaction data from banks and real estate exchanges will be collected to support tax enforcement
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Proof of declared value must be supported with financial documents, independent appraisal or valuation
Some still intentionally underreport to save taxes-yet this poses huge risks:
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The tax authority has the right to reassess value using market data
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You may face post-audit reassessment, late-payment fines or even double taxation, affecting legal standing and credit history
The smart solution: Accurate property appraisal
Legal and tax experts recommend using licensed independent appraisers like Hoang Quan Appraisal to determine fair market value.
Why do you need an appraisal for a real estate transfer tax declaration?
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Declared price must reflect market value or exceed the local land price list
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Without proper evidence, tax officers may impose a higher taxable value
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Manual declarations with no valuation certificate are prone to errors or penalties
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A certified appraisal report is a legally strong foundation for both seller and buyer
With thousands of real estate transfer records facing reassessment, penalties or legal disputes due to misdeclared values, one lesson stands firm: Accurate valuation – Correct declaration – Proper tax payment are the three golden principles to reduce tax burdens and protect legal ownership.
Hoang Quan Appraisal – Trusted by banks, financial institutions and major developers. We support clients:
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Identify current market value of property at transaction time-solid basis for PIT or CIT tax declarations
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Advise on related taxes and fees: VAT, registration, transfer, etc.
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Provide appraisal reports compliant with Ministry of Finance regulations-valid for VAT, tax filing or legal defense
Benefits of choosing Hoang Quan’s Real estate appraisal services:
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100% certified professional appraisers with deep local market knowledge
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Apply internationally recognized methods: direct comparison, deduction, income
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Transparent, official valuation reports accepted by tax authorities
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Nationwide network for fast on-site inspection and consultation
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Committed to accurate tax optimization and full support for 2025 transactions
No more worries about unreasonable tax estimates - Hoang Quan Appraisal ensures correct declaration, legal payment and smooth transfers.
Hoang Quan Appraisal Co., Ltd.
Address: Hoang Quan Appraisal System
Phone: 0934.252.707
Email: contact@sunvalue.vn
Facebook: Hoang Quan Appraisal
Website: hqa.com.vn
Real estate transfer tax is a serious financial obligation. Misreporting or vague declarations can become major roadblocks. Instead of worrying about reassessment or penalties, choose the safe path: declare based on an independently appraised market value. With legal certification and industry expertise, Hoang Quan Appraisal stands by your side-helping you optimize taxes, protect your interests and stay fully compliant with the law.
