The rent exemption threshold will increase 5 times from 2026
With the new regulation effective from 2026, households and individuals renting houses are subject to tax obligations when their revenue exceeds VND500 million/year.
According to the Law on Personal Income Tax (amended), from 2026, the threshold of revenue exempted from personal income tax and value added tax for business households and individuals will be raised to VND500 million/year, 5 times higher than the current VND100 million/year.
This regulation applies generally to business households and individuals doing business in many fields.
For real estate leasing activities such as renting houses, premises, stores, workshops, warehouses, except for accommodation business activities, personal income tax is determined by the revenue exceeding VND500 million/year with a tax rate of 5%. Value-added tax is determined according to the same principle, with a tax rate of 5%. Thus, the total tax payable for the revenue exceeding the threshold is 10%.
According to the above calculation, in the case of households and individuals renting houses with a yearly revenue of VND 600 million, the personal income tax and value added tax payable are determined by the revenue exceeding the threshold of VND 500 million, equivalent to VND 100 million, multiplied by a tax rate of 10%, the tax payable is VND 10 million.
With rental revenue reaching 1 billion VND/year, the tax payable is 50 million VND, calculated on the revenue exceeding 500 million VND. In case the rental revenue reaches 2 billion VND/year, the tax payable is 150 million VND, corresponding to a revenue exceeding the threshold of 500 million VND multiplied by a tax rate of 10%.
The tax industry notes that when renting a house, individuals and households that have directly participated in business activities must fully comply with the provisions of the law on business registration, tax law and related legal provisions.
Business households and individuals are responsible for declaring taxes accurately and honestly and submitting tax documents on time according to regulations.
For real estate leasing activities, households and individuals must declare taxes directly to the tax authority or through organizations that declare taxes on behalf of, pay taxes on behalf of individuals leasing real estate. The tax declaration file is submitted to the tax authority directly managing the place where the real estate is for rent.
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