Guidelines on tax declaration and tax payment on behalf of the office leasing individual in Vietnam

Currently, there are a lot of small and medium-sized enterprises that rent personal houses for offices. In case the parties agree that the lessee is the taxpayer, the enterprise is responsible for withholding tax, declaring tax and paying tax on behalf of the individual, including value-added tax (VAT) and personal income tax (PIT).

Cách tính thuế theo phương pháp kê khai cho hộ, cá nhân kinh doanh - Luat 3s

Specifically, according to Article 8 of the Circular No. 92/2015/TT-BTC of the Ministry of Finance of Vietnam and Official Dispatch No. 90166/CT-TTHT dated December 02, 2019 of the General Department of Taxation, declaring and paying tax incurred by property lessors are guided as follows:

Deducting tax

The lessee shall deduct VAT and PIT before paying the rent to the lessor of the lessor’s revenue from the lease of such property in the calendar year is over VND 100 million.

Tax declaration principles

The lessee who declares tax on behalf of the lessor must write it on the tax declaration and append the seal on the declaration. On the tax declaration and tax payment receipt, the taxpayer is still the lessor.

Procedures and application for tax declaration

Enterprises shall submit tax declaration application for property leasing activities of individuals to the Sub-department of Taxation where the leased property is located, the dossier includes:

- The declaration form No. 01/TTS enclosed with the Circular No. 92/2015/TT-BTC;

- The appendix form No. 01-1/BK-TTS enclosed with the Circular No. 92/2015/TT-BTC;

- A photocopy of the lease contract, contract appendix (for the first tax declaration of the contract or contract appendix).

Deadline submitting tax declaration documents and deadline for paying tax

- The deadline for submitting tax declaration documents is the 30th day of the quarter succeeding the quarter in which the lease term begins if the lessor declares tax by payment term.

Example: A lessor chooses to declare tax according to the payment period (every 3 months), the lease contract has a lease term from January 11, 2020 (Quarter I), then the time limit for tax declaration for the first period is April 30, 2020 (the 30th day of the second quarter).

- The deadline for submission of tax declarations by business people declaring tax once per year is the 90th day from the end of the calendar year.

Example: The lessor chooses to declare tax once per year, the lease term is from January 11, 2020, the tax declaration deadline is the 90th day from December 31, 2020.

- Deadline for paying tax is the same as the deadline for submitting tax declarations.

Hoa Hong

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