PERSONAL INCOME TAX IS EXEMPTED UPON DIVIDING REAL ESTATE AFTER GETTING DIVORCE
Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance on the implementation of the Law on Personal Income Tax, the Law on the Amendments and Supplement to the Law on Personal Income Tax, and the Government’s Decree No. 65/2013/NDs-CP elaborating a number of Articles of the Law on Personal Income Tax and the Law on the Amendments to the Law on Personal Income Tax. According to this Circular, incomes from real estate transfer between husband and wife, parents and children; adoptive parents and adopted children; parents-in-law and children-in-law; grandparents and grand children, and among siblings are exempted from tax. Besides, the real estate established by either spouse during the marriage, considered marital property, divided under agreements or judgment of the court when they divorce shall be tax-free. However, if the house or rights to use land is the marital property and only property of the husband and wife, the person that has no other private house or land is eligible for tax exemption, the person that has another private house or land is not eligible for tax exemption.
This Circular takes effect on October 01, 2013.
