According to the provisions of Decree 68/2026/ND-CP of the Government and Circular 18/2026/TT-BTC of the Ministry of Finance effective from March 5, 2026, individuals with real estate leasing activities when revenue in the year exceeds 500 million VND will have to declare and pay taxes according to the provisions of tax law.
Personal income tax calculated on revenue exceeding 500 million VND
For individuals leasing real estate (except for accommodation business activities), personal income tax is determined on the portion of revenue exceeding 500 million VND/year. The tax amount to be paid is calculated by multiplying the portion of revenue exceeding the threshold by a tax rate of 5%, as prescribed in Clause 4, Article 7 of the Personal Income Tax Law.
This regulation allows individuals to deduct 500 million VND of annual revenue before calculating personal income tax, helping to reduce tax obligations for small-scale leases.
In case individuals have multiple real estate lease contracts, the total amount deducted when calculating personal income tax does not exceed 500 million VND/year for all lease contracts.
Tax declaration annually or periodically in the year
According to the guidance in Decree 68/2026/ND-CP and Circular 18/2026/TT-BTC, individuals leasing real estate must declare value-added tax and personal income tax, and send tax declaration dossiers to the tax authority where the real estate is leased.
Tax declaration documents are made according to Form No. 01/BDS attached to the Appendix of the detailed list of leased real estate according to Form No. 01/BK-BDS.
In case individuals directly carry out tax declaration, taxpayers can choose one of two forms of declaration:
- Tax declaration twice in the tax year, no later than July 31 of the tax year and January 31 of the following calendar year;
- Tax declaration once per tax year, no later than January 31 of the calendar year following the tax year.
This regulation allows taxpayers to proactively choose tax declaration methods suitable to the actual rental situation.
Many real estate for lease can be declared in the same file
For cases where individuals have many real estate for lease, taxpayers can carry out a summary declaration on a tax return and choose a tax authority where the real estate is leased to submit the dossier.
Individuals are also entitled to choose one or more rental contracts to apply a deduction of 500 million VND when calculating personal income tax. However, the total deduction does not exceed 500 million VND in one year for all rental contracts.
In case the selected contract is not sufficient to fully apply this deduction level, individuals can continue to choose other contracts to continue deducting until reaching the level of 500 million VND as prescribed.
Cases where the lessee declares and pays taxes on behalf of the lessee
In fact, some real estate lease contracts stipulate that the lessee shall declare and pay tax on behalf of the leasing individual.
In this case, the content on declaring and paying taxes on behalf of others as well as the revenue deducted when calculating personal income tax needs to be clearly stipulated in the real estate lease contract. This is to ensure the declaration and fulfillment of tax obligations in accordance with legal regulations.
According to the tax authority, the regulations in Decree 68/2026/ND-CP and Circular 18/2026/TT-BTC aim to increase transparency in asset leasing activities, and at the same time help business individuals fulfill tax obligations more clearly and conveniently.
