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Personal Income Tax

Personal income tax on gifts of jointly-owned land-use rights to multiple recipients, including direct relatives and non-relatives

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Based on:Nghị định số 262/2025/NĐ-CP; quy định thuế TNCN về thu nhập từ nhận quà tặng bất động sản - Ministry of Finance

This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.

The tax authority clarifies the personal income tax (PIT) treatment when two co-owners of a land parcel (Ms. Hao and Ms. Thao) jointly gift the land to three recipients: Ms. Hao's biological child (Mr. Trai), Ms. Thao's biological child (Mr. Hieu), and a nephew/niece (Hoang Dinh Ai Huu). The PIT exemption for gifts between parents and biological children applies only to the specific donor-recipient pair with that direct relationship. The tax authority determines: Mr. Trai is exempt on the portion received from Ms. Hao (his biological mother) but must pay PIT on the portion from Ms. Thao. Likewise, Mr. Hieu is exempt on the portion from Ms. Thao (his biological mother) but owes PIT on the portion from Ms. Hao. The nephew/niece has no parent-child relationship with either donor and must pay PIT on the full amount received. This analysis reflects the principle that the exemption applies to the individual donor-recipient relationship, not to the overall multi-party transaction.

PIT on Land-Use Right Gifts: Co-Owners Gifting to Multiple Recipients

Source: Tax authority image response (Hanoi City Tax Department) Scenario: A land parcel co-owned by Ms. Nguyen Thi Hao and Ms. Nguyen Thi Thao is gifted to 3 recipients:

  • Mr. Ho Vinh Trai (Ms. Hao's biological child)
  • Mr. Hoang Trong Hieu (Ms. Thao's biological child)
  • Hoang Dinh Ai Huu (nephew/niece, not the biological child of either donor)

Applicable Principle

Under Vietnam PIT law, gifts between parents and biological children are exempt from PIT. However, the exemption applies separately to each donor-recipient pair that has the direct parent-child relationship.

Analysis for Each Recipient

Mr. Ho Vinh Trai (Ms. Hao's biological child):

  • Portion received from Ms. Hao (biological mother): PIT exempt
  • Portion received from Ms. Thao (not biological mother): PIT applicable

Mr. Hoang Trong Hieu (Ms. Thao's biological child):

  • Portion received from Ms. Thao (biological mother): PIT exempt
  • Portion received from Ms. Hao (not biological mother): PIT applicable

Hoang Dinh Ai Huu (nephew/niece):

  • No parent-child relationship with either Ms. Hao or Ms. Thao
  • Full amount received: PIT applicable

Vietnam PIT regulations on income from receiving real property gifts exempt only those transactions where the donor and recipient have a direct parent-child relationship (or other qualifying kinship relationship recognized by law).

Practical Note

For real property gift transactions involving multiple donors and multiple recipients, it is essential to determine:

  1. The ownership share attributable to each donor
  2. The relationship between each donor and each recipient
  3. Apply the exemption on a per donor-recipient pair basis
Nghị định số 262/2025/NĐ-CP; quy định thuế TNCN về thu nhập từ nhận quà tặng bất động sản

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