In 2023, Ms. Bui Thi Huong's family ( Hai Duong ) rented a house to a company as an office with a rental price of 8 million VND/month, a total of 96 million VND for 1 year.
According to Ms. A, this is her family's only rental activity. However, she recently received a request from the rental company that she must register her business tax code and declare her rental activities.
"According to my understanding, the activity of leasing assets under 100 million VND/year is not subject to VAT and is not subject to personal income tax. So I do not have to register the business tax code and submit tax declaration documents. However, I also wonder if the case of leasing assets with revenue of 100 million VND/year or less must register for tax and declare VAT and personal income tax" - Ms. A shared.
Responding to this issue, the Ministry of Finance said that, based on Circular 40/2021/TT-BTC guiding on VAT, personal income tax and management for business households and business individuals, the definition of an individual leasing assets is an individual who generates revenue from leasing assets including: Leasing houses, premises, shops, factories, warehouses excluding accommodation services,...
In addition, Clause 2, Article 4 stipulates tax principles: Business households and business individuals with revenue from production and business activities in the calendar year of VND 100 million or less are not required to pay VAT and personal income tax according to the law on VAT and personal income tax.
Individual business households are responsible for declaring taxes accurately, honestly, and completely and submitting tax records on time; and are responsible before the law for the accuracy, honesty, and completeness of tax records as prescribed.
Therefore, based on the above provisions, Ms. Huong is an individual who has income from property leasing. Ms. Huong must declare and register for tax and declare property leasing activities according to regulations.
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