Guidance on Tax Declaration for Individuals Renting Out Assets and Directly Declaring Taxes with Tax Authorities? Instructions on Filling Out the Latest Property Rental Tax Declaration Form?
Procedure for Tax Declaration for Individuals Renting Out Assets Who Directly Declare Taxes to the Tax Authority
According to sub-section 112, Section II, Part 2 of the administrative procedures issued with Decision 1462/QD-BTC 2022 as follows:
Step 1:
- Individuals with rental assets prepare tax declaration dossiers on a per-incident basis or annually.
- Deadline for submission of the tax declaration dossier: no later than the last day of the first month of the calendar year or fiscal year if the individual opts for annual tax declaration; or no later than the 10th day from the start of the rental period if the individual declares taxes on a per-incident basis.
- Place of submission for the tax declaration dossier: Individuals with income from asset rental (excluding real estate in Vietnam) submit their tax declaration dossiers to the tax authority where they reside. Individuals with income from renting real estate in Vietnam submit their dossiers to the respective tax authority.
Step 2: The tax authority receives the taxpayer's dossier:
- In the case of direct submission at the tax office or submission via postal services: the tax office receives and processes the dossier in accordance with the regulations.
- In the case of submission to the tax office via electronic transactions, the receipt, checking, acceptance, and processing of the dossier (and the provision of results if any) are done through the tax authority's electronic data processing system.
Guidance on tax declaration for individuals renting out assets who directly declare taxes to the tax authority? How to fill out the latest rental tax declaration form?
Documents for Tax Declaration in the Case Individuals Rent Out Assets and Directly Declare Taxes at the Tax Authority
According to Clause 1, Article 14 of Circular 40/2021/TT-BTC, the documents for tax declaration in case individuals rent out assets and directly declare taxes at the tax authority include:
- Tax declaration form for asset rental activities (applicable to individuals engaged in asset rental activities directly declaring taxes with the tax authority and organizations declaring on behalf of individuals).
- Detailed list appendix of the asset lease contract (applicable to individuals engaged in asset rental activities directly declaring taxes with the tax authority if it is the first tax declaration of the contract or the contract appendix);
- Copy of the asset lease contract, contract appendix (if it is the first tax declaration of the contract or the contract appendix);
- Copy of the Power of Attorney in accordance with the law (in the case individuals authorize a legal representative for tax declaration and payment procedures).
The tax authority has the right to require the presentation of the original for cross-referencing and verifying the authenticity of the copies with the originals.
Instructions on How to Fill Out the Latest Rental Tax Declaration Form
The tax declaration form for asset rental activities applicable to individuals with asset rental activities directly declaring taxes with the tax authority and organizations declaring on behalf of individuals is Form No. 01/TTS according to Appendix I - Tax declaration form list issued with Decree 126/2020/ND-CP as follows:
Download the rental tax declaration form here.
Taxpayers may refer to the instructions on filling out the rental tax declaration form as follows:
- Criteria [01]: Select the declaration period as yearly or per payment period, and the taxpayer (NNT) records the corresponding declaration period.
- Criteria [02], [03]: Type of declaration form, Initial or Supplementary times...
If it is the first time of the declaration period, select the Initial declaration; if there is already a declaration for that period, select Supplementary times...
- Criteria [04], [05], [06], [07], [10]: Fill in the taxpayer's information who has rental assets.
For the section on taxpayer's tax obligations:
- Criterion [28] Total revenue arising in the period: This is the total amount received by the individual from renting assets during the tax calculation period.
+ In the case the tax period is yearly, criterion [28] is the total amount received by the individual from renting assets during that calendar year.
+ In the case the tax period is per payment period, criterion [28] is the total amount received by the individual from renting assets during that payment period for the contracts.
+ If the taxpayer uses the tax declaration support application, criterion [28] is automatically determined from Appendix 01-1/BK-TTS.
Revenue arising in a payment period is determined = [19] x ([18] - [17] + 1).
If the taxpayer declares multiple contracts on one declaration form, criterion [28] is the total revenue arising in the tax period from all contracts.
- Criterion [29] Total taxable revenue: This is the total taxable revenue during the period, provided that the revenue from asset rental during the corresponding tax period exceeds 100 million VND per year.
+ For tax declaration per payment period:
Criterion [29] on Form 01/TTS = criterion [21] on Appendix 01/BK-TTS of the corresponding tax period.
+ For annual tax declaration:
Criterion [29] on Form 01/TTS = criterion [20] on Appendix 01/BK-TTS of the corresponding tax period.
- Criterion [30] Total VAT payable: [30] = [29] x 5%
- Criterion [31] Total PIT arising in the period: [31] = [29] x 5%
- Criterion [32] Revenue base for tax reduction calculation: This is the total revenue from asset rental where the asset is located/used in the Economic Zone eligible for tax reduction as per the Government of Vietnam.
- Criterion [33] Amount of PIT reduced: [33] = [31] x ([32]/[29]) x 50% or [33] = [32] x 5% x 50%.
- Criterion [34] Penalties or compensation received by the lessor according to the contract agreement (if any): This is the amount paid by the lessee to the lessor due to contract violations as per the agreed terms in the contract.
- Criterion [35] Total PIT payable from compensation received due to contract violations (if any): [35] = [34] x 5%.
- Criterion [36] Total PIT payable: [36] = [31] - [33] + [35].
Section B should not be filled by the taxpayer.
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