From August 1, the Law on Real Estate Business 2023 takes effect. Many new contents in the law stipulate the rights and obligations of organizations and individuals in real estate business.
Real estate business is the investment of capital to carry out construction activities, purchase, receive transfer for sale, transfer; lease, sublease, lease-purchase real estate; provide real estate brokerage services; real estate trading floor services; real estate consulting services or real estate management for profit purposes.
When is it not necessary to set up a real estate business?
Article 9 of the 2023 Law on Real Estate Business stipulates the conditions for organizations and individuals when conducting real estate business. Clause 1 of this Article clearly states:
"Organizations and individuals doing real estate business must establish an enterprise in accordance with the provisions of the law on enterprises or establish a cooperative or cooperative union in accordance with the provisions of the law on cooperatives, with real estate business lines and occupations (collectively referred to as real estate business enterprises), except for the cases specified in Clause 3 and Clause 4 of this Article.
In case organizations and individuals do business in real estate services, they must comply with the provisions in Clause 5 of this Article".
Thus, it can be seen that there are 2 cases where it is not necessary to establish a business when doing real estate business, including:
Individuals doing small-scale real estate business do not have to establish a real estate business enterprise but must declare and pay taxes according to the provisions of law.
Organizations and individuals selling houses, construction works, and construction floor areas in construction works not for business purposes, or selling, leasing, or leasing-purchasing houses, construction works, and construction floor areas in construction works on a small scale, are not required to comply with the provisions of this Law but must declare and pay taxes in accordance with the provisions of law.
In case an individual sells or leases a house, construction work, or part of the floor area of a construction work, it is also necessary to carry out notarization and certification according to the provisions of Clause 5, Article 44.
A real estate project in progress (Photo: Tran Khang).
Regulations on small-scale real estate business
The Government has just issued Decree No. 96/2024 detailing and guiding the implementation of a number of articles of the Law on Real Estate Business, effective from August 1. Article 7 of Decree 96 clearly states the criteria for small-scale real estate business, not for business purposes and below the small scale level.
Individuals doing small-scale real estate business must meet the following requirements:
Firstly, it is not required to establish an investment project according to the provisions of law on construction and housing.
Second, it is not in the case of a contract with a value exceeding 300 billion VND and with more than 10 transactions per year. In case of a single transaction per year, the value is not counted.
Organizations and individuals selling houses, construction works, and construction floor areas in construction works not for business purposes or selling, leasing, or renting houses, construction works, and construction floor areas in construction works under small scale, including:
Individuals who are not required to establish investment projects according to the provisions of the law on construction and the law on housing.
The organization does not have a contract value exceeding 300 billion VND and has more than 10 transactions per year. If the transaction is only once per year, the value is not counted.
Source: https://dantri.com.vn/bat-dong-san/ca-nhan-ban-bao-nhieu-nha-biet-thu-se-phai-lap-doanh-nghiep-20240805083656753.htm
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