6 cases of doing real estate business without establishing a company in Vietnam

When doing real estate business, in addition to the fact that real estate must meet certain conditions, the business owner must establish a business and post-project information. However, there are still cases where the real estate business is not required to establish a company (enterprise).

When is the real estate business not required to establish a business?

Pursuant to Article 5 of Decree No. 02/2022/ND-CP, in the following cases when organizations, households, and individuals sell, transfer, lease, lease-purchase real estate on a small scale, infrequently: conditions specified in Article 4 of Decree Decree No. 02/2022/ND-CP are not required, including conditions on not having to establish an enterprise:

1. Organizations, households, and individuals that sell, lease, lease-purchase houses, and construction work under lawful ownership, transfer, lease or sublease land-use rights under their lawful use rights.
2. Agencies and organizations sell houses and construction works, transfer land use rights due to bankruptcy, dissolution or division in accordance with law.
3. Agencies and organizations that sell, transfer, lease, lease-purchase real estate as public property in accordance with the law.
4. Credit institutions, foreign bank branches, asset management companies of credit institutions (AMCs), asset management companies of Vietnamese credit institutions (VAMC) sell houses, construction works, transfer of land use rights, transfer of real estate projects being used as guarantees or mortgages for debt recovery in accordance with law.
5. Organizations, households and individuals selling houses, construction works, transferring land-use rights under decisions of courts or competent state agencies when settling disputes, complaints and denunciations.
6. Organizations, households, and individuals that sell, lease, lease-purchase or transfer real estate they invest in and build, which are not real estate construction investment projects for business as prescribed by law.

It can be seen that in the above cases, not having to establish a business is quite reasonable because this is a small, irregular business such as households and individuals transferring real estate under the right of use and ownership.

4 types of taxes and fees when selling and donating real estate

If you fall into the above cases, you are not required to establish an enterprise but must declare and pay tax in accordance with the law. In case of transfer or donation of house or land, the following taxes, fees and charges must be fully paid:

1. Personal income tax (Pursuant to Article 17 of Circular 92/2015/TT-BTC)
2. Registration fee (registered tax) (Pursuant to Decree 10/2022/ND-CP and Circular 13/2022/TT-BTC)
3. Application assessment fee: Fees for appraisal of documents when registering for transfer or donation are regulated by provinces, so the rate of collection varies. Normally, it will range from 500,000 VND to 05 million VND.
4. Certification fee (if any): Only when the recipient transfers, receives a new cover. The fee is less than 100,000 VND.

The above are some cases of real estate business that do not require the establishment of a company, enterprise or cooperative and the taxes, fees, and charges that households and individuals must pay when transferring or donating real estate.

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