When doing real estate business, in addition to the fact that real estate must meet certain conditions, the business owner must establish business and post-project information. However, there are still cases where real estate activity is not required to establish a company (business).
When is the real estate company not obliged to start a business?
In accordance with Article 5 of Decree No. 02/2022/ND-CP, in the following cases when organizations, households and individuals sell, transfer, rent, rent real estate on a small scale, infrequently: conditions provided for in Article 4 of Decree Decree No. 02/2022/ND-CP are not required, including the conditions of not having to create a company:
- Organizations, households and individuals who sell, lease, lease houses and construction works under legal ownership, transfer, lease or sublease land use rights under their legal use rights.
- Agencies and organizations sell houses and construction works, transfer land use rights due to bankruptcy, dissolution or division according to law.
- Agencies and organizations that sell, transfer, rent, lease real estate as public property in accordance with the law.
- Credit Institutions, Foreign Bank Branches, Credit Institution Wealth Management Companies (SGA), Vietnam Credit Institution Wealth Management Companies (VAMC) sell houses, construction works, disposals of land use rights, assignments of real estate projects serving as guarantees or mortgages for the collection of debts in accordance with the law.
- Organizations, households and individuals selling houses, construction works, transferring land use rights under decisions of courts or competent state bodies when settling disputes, complaints and denunciations.
- Organizations, households and individuals who sell, lease, lease-purchase or transfer real estate in which they invest and build, which are not real estate construction investment projects for businesses in accordance with the law.
It can be seen that in the above cases, not having to set up a business is quite reasonable as it is an irregular small business like households and individuals transferring real estate under the law 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 start a business, but you must declare and pay tax according to law. In the event of a transfer or donation of a house or land, the following taxes, fees and charges must be paid in full:
- Personal income tax (in accordance with article 17 of circular 92/2015/TT-BTC)
- Registration fee (registered tax) (in accordance with Decree 10/2022/ND-CP and Circular 13/2022/TT-BTC)
- Application assessment fees: The fees for assessing documents when registering a transfer or gift are regulated by the provinces, so the collection rate varies. Normally it will range from 500,000 VND to 05 million VND.
- Certification fee (if applicable): Only when beneficiary transfers, receives new coverage. The fee is less than 100,000 VND.
The above are a few cases of real estate business that do not require the establishment of a corporation, business or cooperative and the taxes, fees and charges that households and individuals must pay when transferring or relocating. donation of real estate.