OFFICIAL LETTER NO. 3332/CT-CS OF 2025 – TAX DECLARATION FOR ACTIVITIES RELATED TO THE TRANSFER OF LEASEHOLD LAND USE RIGHTS

On August 21, 2025, the Tax Department issued Official Letter No. 3332/CT-CS providing guidance on tax declaration issues related to the transfer of leasehold land use rights. The Tax Department’s opinions are as follows:

Regarding Corporate Income Tax (CIT):

• Enterprises engaged in the transfer of leasehold land use rights (land for which rent is paid in a lump sum for the entire lease term) shall treat income from this activity as income from real estate transfer activities (based on Articles 13 and 14 of Decree No. 218/2013/NĐ-CP and Article 16 of Circular No. 78/2014/TT-BTC).
• Income from real estate transfer activities must be separately determined and is not eligible for CIT incentives (based on Clause 3, Article 17 of Circular No. 78/2014/TT-BTC).
• If the transfer price stated in the real estate transfer or sale contract is lower than the land price listed in the land price table issued by the provincial-level People’s Committee at the time of signing the contract, the taxable price shall be based on the land price issued by the People’s Committee at that time (based on Clause 1, Article 17 of Circular No. 78/2014/TT-BTC).

Regarding Value Added Tax (Based on Clause 1, Article 1 of Decree No. 49/2022/NĐ-CP dated July 29, 2022)

VAT taxable price = Transfer price – Deductible land value (excluding infrastructure)

Where the deductible land value is:

           ✔ The land price at the time of receiving the transfer, excluding infrastructure value.

           ✔ If the land price cannot be determined, use the land price issued by the provincial-level People’s Committee at the time of signing the contract.

           ✔ Input VAT on infrastructure (if any) is deductible.