From July 1, 2025, the tax policy applicable to real estate business activities will have notable changes in accordance with the amended Law on Value Added Tax, the amended Law on Corporate Income Tax and new guiding regulations. In particular, the content related to taxable price is a key point, directly affecting the tax obligations of organizations and individuals doing real estate business.
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Photo 1. Tax calculation price for real estate business activities from July 1, 2025_Hotline: 097 211 8764
Taxable price for real estate business
Pursuant to Article 8 of Decree No. 181/2025/ND-CP, the taxable price for real estate business from July 1, 2025 is as follows:
For real estate business, it shall be the selling price exclusive of value-added tax, minus land use fee or land rent paid to the state budget (deducted land price). The land price deducted for calculating value added tax is determined in some cases as follows:
- In case the State allocates land, leases land with one-time payment for the entire lease term (through auction or not through auction), changes land use purposes, recognizes land use rights, adjusts land allocation decisions, adjusts land lease decisions, adjusts detailed planning, extends land use, adjusts land use term, changes the form of land lease with annual payment to land lease with one-time payment for the entire lease term, the land price deducted for calculating value added tax is land use fee, land rent with one-time payment for the entire lease term calculated according to the provisions of the Government's Decree on land use fee, land rent (not deducting compensation, support, and site clearance for land that the land user has advanced (if any).
- In case the business establishment receives a real estate transfer (i.e. land use rights) from another organization or individual, the land price deducted to calculate value added tax upon transfer is the land use fee, land rent paid to the state budget of the land or land plot received as transfer, excluding the value of infrastructural works. The business establishment shall be entitled to claim input VAT deduction for infrastructure costs (if any). - In case a business establishment receives capital contribution in the form of land use rights from organizations or individuals, the land price deducted for calculating value added tax is the land use fee and land rent paid to the state budget.
- In case a business establishment implementing a BT contract is paid by land fund, the land price deducted for calculating value added tax is the value of the land fund paid according to the provisions of the law on investment under the public-private partnership method.
- In the case of construction businesses, infrastructure businesses, and houses for sale, transfer, or lease, the value-added tax calculation price is the amount collected according to the project implementation progress or the collection progress stated in the contract minus (-) the deductible land price specified in Clauses 1, 2, 3, and 4, Article 8 of Decree No. 181/2025/ND-CP corresponding to the percentage of the collected amount over the total contract value.
- In case a business establishment builds multi-storey houses with many households or apartment buildings for sale, the deductible land price calculated for 01 house lot for sale is determined by the deductible land price according to the provisions in Clauses 1, 2, 3, 4, Article 8 of Decree No. 181/2025/ND-CP divided by (:) the number of square meters of construction floor excluding common areas such as corridors, stairs, basements, and underground construction works.
- In case the business establishment receives the transfer of real estate or receives capital contribution in the form of land use rights from organizations and individuals as prescribed in Clause 2 and Clause 3, Article 8 of Decree No. 181/2025/ND-CP and cannot determine the land use fee or land rent paid to the state budget, the price for calculating value added tax is the transfer price excluding value added tax.
Therefore, the determination of taxable price in real estate business activities from July 1, 2025 shall be carried out in strict accordance with each specific case as stipulated in Decree No. 181/2025/ND-CP, in order to ensure full compliance with applicable tax obligations. Decree No. 181/2025/ND-CP detailing the implementation of a number of articles of the Law on Value Added Tax takes effect from July 1, 2025.
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