Renting out many houses at the same time, how to register a tax code?
owning many rental houses, using the same tax code or have to separate them to avoid being fined? The tax authority has just issued instructions to help homeowners troubleshooting.
Concerns about tax codes when expanding business
Reader N.T.S (Ho Chi Minh City) expressed confusion in fulfilling tax obligations for property leasing activities. This reader currently owns 02 assets for lease located in the same tax management area. Previously, Mr. S. had registered and declared the tax code (MST) for the location of the first asset.
The problem arose when the second asset came into operation, Mr. S wondered whether it was allowed to use the previously granted MST to declare for this new business location. In addition, this reader also questioned the use of the Land Use Rights Certificate to register for tax before having a lease contract, in order to prepare legally.
"I am very concerned that if I do not follow the correct procedures, I will be fined for late declaration or violation of tax management principles, but the procedures for separating MST import are quite complicated for non-professionals," the reader shared.
Regulations on new identification codes and location announcements
Regarding this issue, the Tax Department of Region 1 (Ho Chi Minh City) has issued a detailed response based on the latest legal bases including the Law on Tax Administration No. 38/2019/QH14 and Circular No. 86/2024/TT-BTC of the Ministry of Finance.
According to regulations, taxpayers (including households and individuals doing business) must register for tax and be granted a tax rate before starting a business. However, for individuals who already have a business license and have a new business location, the process will be simplified through the personal identification code.
At Point d, Clause 1, Article 22 of the Circular, it is stipulated that: After initial tax registration, if the individual starts a business or establishes an additional business location outside the registered address, the individual shall use his/her personal identification number to declare and pay tax to the Tax Department where the business is located.
This means that the homeowner does not need (and cannot) apply for a completely new 10-digit MST for the second house. Instead, the tax system will manage based on the homeowner's personal identification number (CCCD) to link assets.
Specific procedures for leasing property owners
Regarding the implementation process, the tax authority clearly guides: When a business household/individual establishes a business location other than the head office, they do not have to register with the business registration agency. However, it is mandatory to notify the tax authority where the new business location is located.
This notice is issued through Form No. 01/TTS (for property leasing activities) issued with Circular No. 40/2021/TT-BTC.
Based on the information declared in form 01/TTS, the Tax Management System (TMS) will update information and automatically generate a 13-digit internal code. This code is used to manage that business location separately and support individuals in declaring taxes for the following periods.
Thus, reader N.T.S does not use the old MST to declare in groups, but must complete the procedures to notify the new business location through declaration 01/TTS. At that time, the tax authority will issue a secondary code ( form 13 digits) attached to the original tax code to manage this second asset separately. This should be done immediately upon the emergence of leasing activities to ensure compliance with legal regulations.
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