Personal Income Tax Obligation for 1989 Land Transfer when Obtaining First-Time Land Certificate in 2026
RegHub explainer by New MarketerLast updated:
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 Ministry of Finance provides guidance (through the Dak Lak Tax Department) on the PIT obligation for a land transfer that took place in 1989, with the buyer only applying for the first-time Land Use Rights Certificate in 2026. According to the Ministry of Finance's guidance: because the land transfer occurred in 1989 (before the PIT Law existed and before 1 January 2009, when the PIT Law took effect with respect to income from real estate transfers), this transaction does not give rise to a PIT obligation on the part of the transferor (Mr. Luong Dinh Thap). The buyer, when applying for the first-time certificate in 2026, is not required to pay PIT on behalf of the 1989 seller for this transaction.
Background
In 1989, the buyer purchased farmland from Mr. Luong Dinh Thap, with a written transfer agreement endorsed by the Village Chief and signed/stamped by the Chairman of Ea Kar Town People's Committee. On 17 December 2025, the buyer filed an application for the first-time Land Use Rights Certificate. When visiting the tax sub-department on 12 January 2026, the authority demanded payment of PIT on behalf of Mr. Luong Dinh Thap for the 1989 transfer. The buyer asked whether this was correct.
Ministry of Finance Guidance
Legal basis: PIT Law No. 04/2007/QH12 and provisions on effective dates.
Temporal application principle:
According to the Ministry of Finance: The PIT Law applies only to real estate transfer transactions arising on or after 1 January 2009 (the date on which the PIT Law took effect with respect to income from real estate transfers). Prior to that date, land transfers were subject only to the Land Use Rights Transfer Tax (under the old regulations), not PIT.
Under the implementing guidelines for the PIT Law: Where the buyer uses real estate but does not yet have documents proving origin, when applying for the first-time certificate before 1 January 2009 the old land transfer tax applies; from 1 January 2009 onward, PIT applies.
Conclusion:
Mr. Luong Dinh Thap's 1989 land transfer does not give rise to a PIT obligation because it occurred before the PIT Law's effective date. The Dak Lak Tax Department is requested to assist Mr. Nguyen Dinh Long in resolving the matter in accordance with the applicable regulations.