Instructions for declaring property and house rental taxes online

Join fdiinvietnam.com to learn specifically how to calculate property rental tax and instructions on declaring and submitting property rental tax declarations and house rental tax declarations online (with pictures).

I. Legal basis

• Circular 40/2021/TT-BTC issued on June 1, 2021;
• Decree 126/2020/ND-CP issued on October 19, 2020;
• Circular 65/2020/TT-BTC issued on July 9, 2022;
• Circular 100/2021/TT-BTC issued on November 15, 2021;
• Official dispatch 2626/TCT/DNNCN issued on July 19, 2021.

II. Subjects of property rental tax calculation

An individual leasing property is an individual who has income from leasing property, including: 

• Rental of premises, shops, houses, factories, warehouses excluding accommodation services; 
• Rental of machinery, equipment and means of transport excluding operators; 
• Other property rentals do not include accompanying services.

Note : Accommodation services not included in property leasing activities include: Providing short-term accommodation services for tourists and other transient guests; providing long-term accommodation services other than apartments for students, workers and others; providing accommodation facilities with food and beverage services or entertainment facilities.

III. Subjects exempted from property rental tax

1. For personal income tax and VAT

Pursuant to Circular 40/2021/TT-BTC and Circular 100/2021/TT-BTC dated November 15, 2021 (amending Point c, Clause 1, Article 9 of Circular 40/2021/TT-BTC):

• Individuals who lease assets with a full calendar year revenue of VND 100 million or less are not required to pay VAT and personal income tax;
• Individuals who only lease assets for a rental period of less than a year and whose revenue does not exceed VND 100 million per year are not required to pay VAT and personal income tax. In cases where the lessee pays rental fees for multiple years in advance, the revenue level to determine whether the individual must pay tax or not is the one-time payment revenue allocated according to the calendar year. 

2. For business license fees

Pursuant to Clause 1, Article 3 of Decree 139/2016/ND/CP on exemption from business license fees:

• Households, individuals and groups of individuals engaged in production and business activities with annual revenue not exceeding 100 million VND are exempt from business license fees.

Thus, in the calendar year, individuals leasing assets with revenue of less than 100 million VND/year do not have to declare and pay VAT, personal income tax and are exempted from paying business license fees.

Example 1:  Ms. Mai has a house for rent (the whole house) for a term of 1 year (from October 2022 to September 2023). The rental price in 2022 is 8,000,000 VND/month; in 2023 it is 10,000,000 VND/month. Ms. Mai heard that if the rental is less than 100 million VND/year, she does not have to pay tax. So, in Ms. Mai’s case, does she have to declare and pay tax on the house rental?

➥ According to the regulations and instructions of the Ministry of Finance in Circular No. 40/2021 and Circular No. 100/2021, in the case of Ms. Mai’s house rental, the revenue in 2022 is 24 million VND and in 2023 is 90 million VND, which is less than 100 million VND/year. Therefore, she is not required to declare and pay VAT and personal income tax corresponding to the actual revenue generated in 2022 and 2023 according to the house rental contract. 

Example 2: Mr. B leases a house to company X as an office for a period of 3 years (from January 1, 2022 to December 31, 2024) and the rental amount is 96 million VND/year. The entire rental amount has been paid in full from the first signing of the contract, with an amount of 288 million VND. In this case, how should Mr. B declare and pay property rental tax?

➥ Based on the provisions of Circular 40/2021 and Circular 100/2021, we have:

• Mr. B’s revenue in 2022 (from January 1, 2022 to December 31, 2022) is VND 96 million/year, which is less than VND 100 million/year ➜ Mr. B does not have to declare and pay personal income tax and VAT for asset leasing activities;
• Similarly, for revenue in 2023 (from January 1, 2023 to December 31, 2023) and 2024 (from January 1, 2024 to December 31, 2024), Mr. B also does not have to declare and pay personal income tax and VAT for asset leasing activities.

Example 3: Mr. B leases a house to company X as an office for a term of 3 years (from July 1, 2022 to June 30, 2025) and the rental amount is 120 million VND/year. The entire rental amount has been paid in full from the first signing of the contract with an amount of 360 million VND. In this case, how should Mr. B declare and pay VAT and personal income tax for property rental activities?

➥ Based on the provisions of Circular 40/2021 and Circular 100/2021, we have:

• Mr. B’s revenue in 2022 (from July 1, 2022 to December 31, 2022) is 60 million VND/year < 100 million VND/year ➜ Mr. B does not have to declare and pay personal income tax and VAT on property rental;
• Mr. B’s revenue in 2023 (from January 1, 2023 to December 31, 2023) is 120 million VND/year > 100 million VND/year ➜ Mr. B must declare and pay personal income tax and VAT on property rental corresponding to the property rental revenue;
• Mr. B’s revenue in 2024 (from January 1, 2024 to December 31, 2024) is 120 million VND/year > 100 million VND/year ➜ Mr. B must declare and pay personal income tax and VAT on property rental corresponding to the property rental revenue;
• Mr. B’s revenue in 2025 (from January 1, 2025 to June 30, 2025) is 60 million VND/year < 100 million VND/year ➜ Mr. B does not have to declare and pay personal income tax and VAT on property rental corresponding to property rental revenue.

IV. How to calculate property rental tax

1. For VAT and personal income tax

➤ Revenue for calculating VAT and personal income tax on asset leasing:

• Revenue subject to VAT and personal income tax for individuals leasing assets is the revenue including tax (in case of taxable cases) of the amount the lessee pays periodically according to the lease contract during the tax period and compensation for breach of contract, other compensation (only included in revenue subject to personal income tax);
• In case the lessee pays in advance for many years, the lessor must declare and pay tax for all revenue from that advance payment. The one-time tax payable is the total tax payable for all calendar years calculated according to regulations. 

➤ VAT and personal income tax rates for property rental calculated on revenue:

➤ Time of revenue recognition:

Revenue recognition is determined at the beginning of the lease term of each payment period or tax declaration according to the calendar year. 

Individuals can declare tax for each contract or declare tax for multiple contracts on one declaration if the leased property is located in an area managed by the same tax authority.

➤ Determine the amount of tax payable:

VAT payable = VAT taxable revenue x VAT rate

Personal income tax payable = Taxable revenue x Personal income tax rate

>> See more: How to calculate property rental tax

Depending on the agreement between the parties in the contract, the responsibility for declaration and payment will be different, specifically in the following cases:

Note: In order for a business to include rental costs in deductible expenses, it must have the following documents:

• Lease agreement;
• Rental payment voucher;
• Property rental tax declaration and payment receipt.

Example 4: Mr. Long signed a contract with company X to rent a house as an office for 2 years (from August 1, 2022 to July 31, 2024) with a rental price including tax of 10 million VND/month. 

➥ Thus, the lessor, Mr. Long, is responsible for declaring and paying property rental tax. The taxes that Mr. Long must pay each year are as follows:

• In case company X pays rent by payment period (monthly or quarterly):

        » In 2022, Mr. Long’s revenue from renting out houses from August 1, 2022 to December 31, 2022 is 50 million VND < 100 million VND, so Mr. Long does not have to declare and pay VAT, personal income tax and is exempted from paying business license fees;

        » In 2023, Mr. Long’s property rental revenue from January 1, 2023 to December 31, 2023 is 120 million VND > 100 million VND. We have: VAT payable is 6 million VND (20 x 5%); personal income tax payable is 6 million VND (120 x 5%); business license fee is 300,000 VND = 0.3 million VND (with the level from 100 million VND to 300 million VND);

        » In 2024, the revenue from leasing assets from January 1, 2024 to July 31, 2024 is 70 million VND < 100 million VND. Therefore, Mr. Long does not have to declare and pay VAT, personal income tax and is exempted from business license fees.

• In case company X pays the rent for the entire rental period at once, which is 240 million VND, then:

       » In 2020, Mr. Long must calculate the corresponding tax payable for each year. Specifically: VAT payable is 6 million VND (120 x 5%); personal income tax payable is 6 million VND (120 x 5%); business license fee is 300,000 VND = 0.3 million VND (with the level from 100 million VND to 300 million VND).

Example 5: In 2022, Ms. Hoa has 2 houses for rent at 2 different addresses. One is in Binh Thanh district with a rental price of 7 million VND/month and the other is in Tan Binh district with a rental price of 8 million VND/month. According to the contract, the responsibility for paying taxes belongs to Ms. Hoa. So, in this case, how should Ms. Hoa determine and pay taxes?

• Ms. Hoa’s property rental revenue in 2022 at 2 places: 

      » Binh Thanh District: 7 x 12 = 84 million VND; 

      » Tan Binh District: 8 x 12 = 96 million VND.

➜ Ms. Hoa’s total revenue from property rental in 2022 is 180 million VND (84 + 96) > 100 million VND/year. Therefore, Ms. Hoa must declare and pay personal income tax and VAT on property rental activities.

• At the Binh Thanh District Tax Department, Ms. Hoa declared and paid the following tax:

     » VAT: 84 x 5% = 4.2 million VND;

     » Personal income tax: 84 x 5% = 4.2 million VND.

• At Tan Binh District Tax Department: 

     » VAT: 96 x 5% = 4.8 million VND;

     » Personal income tax: 96 x 5% = 4.8 million VND.

➤ Deadline for submitting property rental tax declaration:

In case the lessor declares tax:

• Individuals declare each time it occurs: No later than the 10th day from the start date of the rental period of the payment period;
• Individuals declare once a year: No later than the last day of the first month of the following calendar year.

In case the lessee declares tax on behalf of the lessee:

• Monthly tax declaration: No later than the 20th day of the following month following the month in which the tax declaration and payment obligation arises;
• Quarterly tax declaration: No later than the last day of the first month of the next quarter adjacent to the quarter in which the obligation to declare and pay taxes arises;
• Tax declaration for each payment period: No later than the 10th day from the start date of the rental period of the payment period;
• Annual tax declaration: No later than the last day of the first month from the end of the calendar year.

➤ Property rental tax declaration:

Note : If an enterprise declares tax on behalf of another, check the box “Enterprises and economic organizations declare and pay taxes on behalf of another according to tax law” on the declaration form. If an individual declares tax on behalf of another, sign and state your full name; if an organization declares tax on behalf of another, sign and have the organization’s seal or electronic signature. The tax collection document must show that the taxpayer is an organization that declares and pays taxes on behalf of another.

➤ Place to submit property rental tax declaration: 

You can file your property rental tax return at the tax authority directly managing the rental property.

2. For business license fees

➤ Taxable revenue: 

Taxable revenue for determining business license fees for individuals engaged in property leasing activities is the revenue for calculating personal income tax of property leasing contracts of the tax year. In which:

• In case an individual has many property lease contracts at one location, the revenue to determine the business license fee for that location is the total revenue of the property lease contracts in the tax year;
• In case an individual leases assets at multiple locations, the revenue used to determine the business license fee for each location is the total revenue of asset lease contracts at the locations of the tax year, including cases where multiple asset lease contracts arise at one location;
• Individuals starting a business for the first time will be exempted from business license fees during the first year of production and business activities.

➤ How to calculate subject fees: 

Example 6: In 2022, Mr. X has a house for rent in Binh Tan District with a rental price including tax of 20 million VND/month and a house for rent in District 1 with a rental price including tax of 15 million VND/month. Thus, the business license fee that Mr. X must pay in 2022 is as follows:

• At the Binh Tan District Tax Department, the revenue in 2022 is 20 x 12 = 240 million VND ➜ Mr. X will have to pay a business license fee corresponding to the revenue of 240 million VND/year, which is 300,000 VND;
• At District 1 Tax Department, revenue in 2022 is 15 x 12 = 180 million VND ➜ Mr. X will have to pay a business license fee corresponding to the revenue of 240 million VND/year, which is 300,000 VND.

➥ Thus, the total business license fee in 2022 that Mr. X must pay is 600,000 VND.

Example 7: Mr. Binh has a shophouse that he rents to company X for selling goods, the price excluding tax is 15 million VND/month. Company X must declare and pay tax to Mr. X. Thus, the expenses that company X must pay when renting the shophouse are as follows:

• Revenue subject to VAT: (15 x 12)/0.9 = 200 million VND;

➜ VAT payable: 200 x 5% = 10 million VND.

• Revenue for personal income tax calculation: (15 x 12)/0.9 = 200 million VND;

➜ Personal income tax payable: 200 x 5% = 10 million VND.

• Business license fee payable: 300,000 VND (equivalent to revenue of 200 million VND).

➤ Deadline for paying business license fees for property leasing activities:

The deadline for paying business license fees for property and house rental activities is January 30th of each year.

V. Instructions on how to declare property rental tax online

1. For individuals leasing assets without a personal income tax code

The place to submit the tax registration declaration is the Tax Department where the individual resides (place of permanent or temporary residence).

2. For individuals who already have a personal income tax code

That individual will have to register for a tax code for property leasing activities according to the following steps:

• Step 1: Taxpayers access the website http://canhan.gdt.gov.vn;
• Step 2: Taxpayers go to the function ” First time tax registration “, select the subject as ” Household, group of business individuals, business individuals according to Circular 105 “;

• Step 3: Click “ Continue ”, the system will display account information as below;

• Step 4: Click “ Continue ” and fill in the information of the declaration form 03-DK-TCT: 

            » CT [1] Taxpayer name: Fill in the taxpayer name (NNT);

            » CT [2] Tax code: Do not fill in, because the individual has not been granted a tax code (MST) for leasing the property;

            » CT [3] Tax agent information: Do not fill in;

           » CT [4] Business address: Fill in detailed information about the address of the rental property such as house number, street, ward, city, phone number and contact email as stated in the rental contract; 

          » CT [5] Address for receiving tax notices (only declare if the address for receiving tax notices is different from the head office address): Only record this information in case the taxpayer registers to receive notices from the tax authority at an address other than the current business address;

         » CT [6] Information about the business representative: Fill in the information of the taxpayer such as permanent residence address, residential address, phone number, email.

Note : The phone number is the lessor’s main number to receive information from the tax authority.

         » CT [7] Certificate of business registration/certificate of business registration: Do not fill in;

         » CT [8] Information on documents of business household representative: Fill in information of the taxpayer according to ID card/CCCD;

         » CT [9] Business capital: Fill in the business capital (if any);

         » CT [10] Main business lines: Select business lines according to the list;

         » CT [11] Commencement date: Is the date on which the asset leasing operation begins;

         » CT [12] Tax registration status: Select “ New issuance ” or “ Re-activation of production and business ”;

         » CT [13] Information about related units: Select “ Has dependent stores, shops, warehouses ” (if any).

• Step 5: After completing the contents on the 03-DK-TCT declaration form, the taxpayer clicks ” Complete registration ” and the system notifies ” To keep information confidential, please go to the nearest tax authority to complete the registration “;
• Step 6: The taxpayer goes to the one-stop department and prepares the following documents:

Note : If the company declares on behalf of an individual, there must be a power of attorney for the individual to authorize the company to declare and sign the documents and a power of attorney for the company to authorize an employee to declare on their behalf. 

• Step 7: Wait for the tax authority to issue a code and tax registration certificate according to the following form:

The tax code will be the individual’s tax code with the suffix 001 at the end. For example: xxxxxxxxxx-001. 

After having the property rental tax code, you proceed to register an account on the website http://canhan.gdt.gov.vn, the OTP code and password will be provided via the registered phone number. http://canhan.gdt.gov.vn.

3. How to declare rental tax online 

Step 1: Taxpayers access the website http://canhan.gdt.gov.vn and log in with tax code information;

Step 2: Continue to log in with the password provided by the tax authority;

Step 3: Click on “ Tax declaration ”, click “ Property rental tax declaration ” and select the declaration form “ 01/TTS – Declaration for property rental activities (TT40/2021) ”;

Step 4: Next, the taxpayer selects the tax authority (the tax authority managing the leased property) to submit and selects “ Continue ”;

  In there:

• Tax Department: Where the rental property is located;
• Tax office: Where the property for rent is located;
• Type of declaration: Select “ Official declaration ” for first declaration and select “ Supplementary declaration ” in case of adjustment compared to the official declaration;
• Declaration form: “ Yearly ” or “ Occurring each time ”;
• Year of declaration: Enter the year of declaration.

Step 5: Taxpayers fill in the declaration data in the following order:

➧ Trước tiên, NNT phải điền thông tin ở tờ khai 01/BK-TTS dựa vào hợp đồng cho thuê tài sản. Trong đó:

• CT [06]: Số thứ tự (hệ thống tự đánh);
• CT [06a]: Chọn trong danh mục là “Hợp đồng”;
• CT [07]: Điền tên của bên thuê tài sản theo Hợp đồng cho thuê;
• CT [08]: Điền mã số thuế của bên thuê tài sản (nếu có);
• CT [09], [10]: Chọn đánh dấu X vào loại tài sản tương ứng là bất động sản hay động sản;
• CT [11]: Đánh số hợp đồng;
• CT [12]: Đánh ngày trên hợp đồng;
• CT [13]: Chọn mục đích sử dụng tài sản thuê;
• CT [14]: Nếu bên thuê có đầu tư xây dựng cơ bản thì đánh dấu X;
• CT [15a], [15b]: Điền địa chỉ bất động sản cho thuê;
• CT [16]: Điền thông tin diện tích sàn cho thuê;
• CT [17a]: Điền kỳ thanh toán trong năm theo số tháng (căn cứ vào thời gian thanh toán trên hợp đồng là 1 tháng hoặc 1 quý tương ứng với 3 tháng đề điền thông tin);
• CT [17], [18]: Nhập thời gian cho thuê của hợp đồng;
• CT [19a]: Hệ thống tự động hiển thị năm tính thuế;
• CT [19]: Điền thông tin giá cho thuê 1 tháng đã bao gồm thuế. Trường hợp giá cho thuê chưa bao gồm thuế thì NNT quy đổi để ra giá cho thuê 1 tháng;
• Từ CT [20] đến CT [26]: Hệ thống tự động tính dựa trên các dữ liệu đã được điền trước đó;
• CT [27]: Chọn trạng thái hợp đồng. Trong đó:
  » Hợp đồng khai lần đầu: Sẽ tự sinh MSQLHĐ (mã số quản lý hợp đồng);
  » Hợp đồng đã khai, không thay đổi: Phải nhập MSQLHĐ cũ vào chỉ tiêu 27;
  » Hợp đồng đã khai, có thay đổi: Phải nhập MSQLHĐ cũ vào chỉ tiêu 27.

➧ Sau khi điền đầy đủ các thông tin, hệ thống sẽ tự động cập nhật doanh thu và số thuế TNCN, thuế GTGT sang tờ khai 01/TTS.

 

Bước 6: Trên dữ liệu tờ khai chính:

• Nếu muốn lưu tờ khai, bạn nhấn “Lưu bản nháp”;
• Nếu muốn tải file dữ liệu hợp đồng, nhấn “Hoàn thành kê khai”;

• Nếu muốn sửa lại dữ liệu, NNT nhấn “Sửa lại”.

Trước khi nộp tờ khai, NNT phải nhấn “Kết xuất XML”, sau đó chọn“Nộp tờ khai”.

Bước 7: NNT điền số lượng tệp hợp đồng tải lên. Tiếp đến, nhấn“Đính kèm hợp đồng với tờ khai”và tải file hợp đồng lên.

Lưu ý:Chỉ có thế tải file có định dạng .JPG, .PNG, .PDF với dung lượng dưới 10MB. Trường hợp file có dung lượng lớn hơn thì NNT phải nộp hồ sơ qua đường bưu điện hoặc tại bộ phận 1 cửa của cơ quan thuế.

Bước 8: Nhấn “Tiếp tục” để xác thực nộp tờ khai.

• NNT nhấn “Tiếp tục”, hệ thống sẽ tự động gửi một mã OTP về điện thoại theo số đã đăng ký;
• NNT nhấn “Quay lại”nếu muốn quay lại màn hình “Nộp tờ khai”;
• Nhập mã OTP.

Lưu ý: Thời hạn của việc nhập mã OTP là 5 phút. Sau 5 phút, nếu không nhập thì hệ thống sẽ tự timeout. Nếu muốn gửi tờ khai, NNT phải thực hiện lại từ đầu.

Step 9: When completing the obligation to declare property rental tax, the taxpayer goes to the bank to pay property rental tax according to the account information of the tax department. Below is a sample form for paying property rental tax.