According to regulations, revenue from real estate leasing activities includes the rental of houses, premises, shops, factories, and warehouses, excluding accommodation services.
Regarding tax calculation, in cases where revenue from real estate leasing is up to 500 million VND/year, households and individuals are exempt from value-added tax (VAT) and personal income tax (PIT).
For revenue exceeding 500 million VND/year, business individuals are required to fulfill tax obligations, including: VAT calculated at 5% of revenue, and PIT at 5% on the amount exceeding 500 million VND.
Tax policies for households and individuals leasing real estate have been updated.
For tax declaration and payment, if the real estate leasing revenue is up to 500 million VND/year, households and individuals only need to report the revenue to the tax authority.
If the revenue exceeds 500 million VND/year, households and individuals leasing real estate must declare and pay VAT and PIT electronically.
For example, with a house rental revenue of 600 million VND/year, the VAT payable is 30 million VND. The PIT payable is (600 million – 500 million) x 5% = 5 million VND. Thus, the total tax payable is 35 million VND.
Tax declaration documents are submitted to the tax authority where the leased real estate is located. In cases where an organization leases real estate from an individual, and the contract includes an agreement for the lessee (organization) to declare and pay taxes on behalf of the lessor, the organization is responsible for declaring and paying taxes on behalf of the individual.
For individuals leasing real estate directly, they must personally declare and pay taxes as required.
To comply, taxpayers log in to the National Public Service Portal and declare taxes using the forms issued with Circular 40/2021 of the Ministry of Finance, attaching documents and submitting online as instructed.
The deadline for submitting tax declaration documents is the last day of the first month of the calendar year, or the fiscal year if the individual chooses to declare taxes annually; or the 10th day from the start of the leasing period for each payment period if the individual declares taxes per payment period.
In cases where documents are submitted directly to the tax authority or sent via postal services, the tax authority will process the documents as per regulations.
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