What are guidelines for direct tax declaration for house rental with the tax authority in Vietnam in 2025?

What are regulations on tax declaration period for house rental in Vietnam?

Based on the provisions in Clause 1, Article 9 of Circular 40/2021/TT-BTC, as amended by Clause 3, Article 1 of Circular 100/2021/TT-BTC, specified as follows:

Tax Calculation Method for Certain Specific Cases

1. Individual Leasing Properties

a) An individual leasing properties refers to an individual who generates revenue from leasing assets, including leasing houses, premises, stores, workshops, warehouses not including accommodation services; leasing means of transport, machinery, and equipment without operators; leasing other properties without accompanying services. Accommodation services not considered as property leasing activities according to this clause include: providing short-term accommodation to tourists, other transient guests; providing long-term accommodation not as apartments to students, workers, and similar subjects; providing accommodation along with dining services or recreational facilities.

b) An individual leasing properties declares tax each time the payment cycle arises (each occurrence of a payment cycle is determined by the starting point of the rental period of each payment cycle) or declares tax annually. The individual declares tax per contract or declares tax for multiple contracts on one tax declaration form if the leased properties are under the jurisdiction of the same tax authority.

c) An individual engaging solely in property leasing activities where the rental period is less than a full year, and if the rental revenue is 100 million VND/year or less, is not required to pay VAT, not required to pay personal income tax (PIT). In cases where the lessee pays rental fees in advance for multiple years, the revenue to determine if the individual is liable to pay tax or not is the total rental revenue paid in advance apportioned according to the calendar year.

d) When the lessee pays rental fees in advance for multiple years, the individual leasing the property declares and pays tax in one go for the entire prepaid revenue. The amount of tax paid once is the total tax payable for each calendar year as regulated. If there is a change in the content of the lease contract leading to changes in taxable revenue, payment cycles, rental periods, the individual must make adjustments and supplements as per the regulations of the Tax Administration Law for the tax period with changes.

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Hence, individuals leasing houses declare tax each time the payment cycle arises (each occurrence of a payment cycle is determined by the starting point of the rental period of each payment cycle) or declare tax annually. Specifically:

(According to Clause 3, Article 14 Circular 40/2021/TT-BTC)

Note: Individuals declare tax per contract or declare tax for multiple contracts on one tax declaration form if the rented house is in the area managed by the same tax authority.

What are guidelines for direct tax declaration for house rental with the tax authority in Vietnam in 2025? (Image from the Internet)

How to directly declare tax for house rental with the tax authority in Vietnam in 2025?

Based on Article 14 of Circular 40/2021/TT-BTC, the guidance on directly declaring house rental tax with the tax authority in 2025 is as follows:

Step 01: Prepare the tax declaration dossier

The tax declaration dossier for individuals directly declaring rental house tax with the tax authority includes:

+ Tax declaration form for leasing property activities (applicable to individuals with property leasing activities directly declaring tax with the tax authority and organizations declaring on behalf of individuals) according to Form No. 01/TTS issued with Circular 40/2021/TT-BTC;

+ Appendix detailing the leasing contract (applicable to individuals with property leasing activities directly declaring tax with the tax authority if it is the first tax declaration of the contract or contract appendix) according to Form No. 01-1/BK-TTS issued with Circular 40/2021/TT-BTC;

+ A copy of the property lease contract, contract appendix (if it is the first tax declaration of the contract or contract appendix);

+ A copy of the power of attorney according to legal provisions (in cases where the individual leasing properties authorizes a legal representative to carry out tax declaration and payment procedures).

Note: The tax authority has the right to request the original for comparison and verification of the accuracy of the copy compared to the original.

Step 02: Submit the tax declaration dossier

Individuals with income from house rental in Vietnam submit the tax declaration dossier at the Tax Sub-department directly managing the location of the leased real estate.

What is the deadline for paying tax on house rental directly to the tax authority in Vietnam in 2025?

Based on Clause 4, Article 14 of Circular 40/2021/TT-BTC, the deadline for tax payment for individuals directly declaring rental house tax with the tax authority is no later than the last day of the filing deadline for the tax declaration dossier. In the event of supplemental tax declaration filing, the deadline is the filing deadline of the tax period where errors occurred.