Is it necessary to establish a business for irregular office leasing?

Based on the provisions of Clause 1, Article 10 of the 2014 Law on Real Estate Business, amended by Point a, Clause 2, Article 75 of the 2020 Investment Law:

Organizations and individuals engaged in real estate business must establish an enterprise or a cooperative (hereinafter collectively referred to as enterprises), except for the cases specified in Clause 2 of this Article.

Clause 2, Article 10 of the 2014 Law on Real Estate Business, as guided by Article 5 of Decree 76/2015/ND-CP, concurrently stipulates:

Organizations, households, and individuals selling, transferring, leasing, or leasing-purchasing real estate under their ownership on a small scale and infrequent basis are not required to establish enterprises but must declare and pay taxes in accordance with legal regulations.

According to this provision, in cases where households lease real estate under their ownership on an infrequent basis, they are not required to establish enterprises.

Therefore, in a case where your household leases one floor as an office infrequently, it is not required to establish an enterprise but must declare and pay value-added tax and personal income tax from real estate leasing when the annual income meets the tax threshold (over 100 million VND).

Respectfully!