Are Rentals of Houses and Rooms Subject to Annual PIT?
According to Point c, Clause 1, Article 9 of Circular 40/2021/TT-BTC, it is stipulated:
Article 9. Methods of tax calculation for certain special cases
- Individuals renting out property
...
c) Individuals renting out property who do not generate revenue for the full 12 months in a calendar year (including cases with multiple rental contracts) shall have the revenue level of 100 million VND/year or less to determine individuals renting out property who are not required to pay VAT, not required to pay personal income tax (PIT) as the PIT taxable revenue for a calendar year (12 months); the actual taxable revenue to determine the payable tax amount for the year is the revenue corresponding to the actual months of arising property rental.
Example 2: Mr. B enters into a house rental contract with an agreed rent of 10 million VND/month from October 2022 to the end of September 2023. Thus, the actual revenue in 2022 is 30 million VND, but the total revenue calculated according to 12 months for 2022 is 120 million VND; the actual revenue in 2023 is 90 million VND, but the total revenue calculated according to 12 months for 2023 is 120 million VND. Therefore, Mr. B falls under the case of having to pay VAT and PIT corresponding to the actual revenue arising in 2022 and 2023 according to the above-mentioned contract.
Sincerely.
