Vietnam: Property Rentals Under 1 Billion Dong/Year Tax-Exempt But Require Declaration

Vietnam's tax authorities have clarified new regulations regarding property rental income. Individuals earning less than 1 billion Vietnamese dong (approximately $40,000 USD) annually from renting out houses and land are now exempt from value-added tax (VAT) and personal income tax.

However, the exemption does not absolve property owners of their reporting obligations. They are still required to declare their annual revenue and specify the bank accounts or e-wallets used for these business activities to the tax department. This declaration can be made either once a year, with the deadline on January 31 of the year following the tax year, or in two installments. The first installment is due by July 31 of the tax year, and the second by January 31 of the following calendar year.

To comply, taxpayers must use form 01/BĐS, issued by the Ministry of Finance. For those with multiple rental properties, an additional appendix, form 01/BK-BĐS, detailing each property, is necessary. The entire declaration process is conducted online through the eTax Mobile application or the tax sector's public service portal.

Special provisions are made for elderly taxpayers, people with disabilities, those receiving social assistance, residents in economically disadvantaged areas, or individuals facing other force majeure circumstances who cannot conduct electronic transactions. These individuals can submit their hồ sơ (documents) in person or via postal service to the commune-level public service center.

The tax department also emphasized the requirement to declare bank account or e-wallet information on the same form 01/BĐS. This information only needs to be provided once if it hasn't been submitted previously or isn't included in the rental contract. The deadline for declaring account information aligns with the revenue declaration deadlines.

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Cá nhân có hoạt động cho thuê nhà, đất với tổng doanh thu từ 1 tỉ đồng/năm trở xuống không phải nộp thuế giá trị gia tăng và thuế thu nhập cá nhân. Tuy nhiên người cho thuê vẫn phải thông báo doanh thu trong năm và số tài khoản ngân hàng hoặc ví điện tử sử dụng cho hoạt động kinh doanh với cơ quan thuế.