Question 87: The division of properties in the divorce case of the spouses, especially the real estate and the movable properties which already completed the registration fee according to the requirements of the law, is that required to pay any taxes, fees and charges? How much is the rate of payment?

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Currently, the income from the division of common properties of the spouses as real estate upon divorce is agreed upon by the spouses or in accordance with the Court’s judgement. The income from the division of common poperty is entitled to personal income tax exemption according to the Law on Personal Income Tax and its guiding legal documents. Furthermore, these properties can be houses or construction works to be established in the future and are exempted from personal income tax only when they are the common properties of the spouses during the marital period.

Regarding registration fees, this is the type of fee imposed by the State on organisations or individuals for the purpose of serving the management and provision of related services. Registration fee payers are organisations and individuals that register the ownership and rights to use of assets; they are entitled to registration fees such as houses, land, motorcycles, cars, etc.[2]. Therefore, after a judgement or decision issued by the Court on the divorce and the division of the common properties of the spouses, they shall conduct the re-registration of the rights to own and use the properties which are not excluded from the registration fees in accordance with relevant regulations of the Government. The registration fee level is prescribed as follows:

  • For houses and land: the charge rate is of 0.5%. The prices of houses, land determined to collect registration fee are based on land price framework of each locality from time to time;
  • For cars, motorbikes: the charge rate is of 1% – 5%, based on the number of times of registration fee payment for vehicles and localities where the registration is carried out;
  • For ships, barges, canoes, tugs, pushers, boats, yachts and aircraft: the charge rate is 1%; and
  • For rifles and guns used for training and sport competitions: the charge rate is 2%.

Therefore, after the divorce, the spouses re-register their ownership of divided common properties of the spouses. These divided properties are exempted from personal income tax but subject to registration fees as prescribed by the applicable laws.


[2] Article 2 of the Decree 140/2016/ND-CP.

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