Based on Clause 3 Article 4 of Circular 40/2021/TT-BTC, it is stipulated as follows:
Principles of tax calculation
3. For business households and individuals doing business in the form of individual groups and households, the revenue level from 100 million VND/year or less to determine that individuals are not subject to VAT and are not subject to personal income tax is determined for one (01) representative of the group of individuals and households in the tax year.
In addition, Clause 25, Article 5 of the 2024 Value Added Tax Law stipulates:
Subjects not subject to tax
25. Goods and services of households and individuals producing and doing business with annual revenue of 200 million VND or less; assets of non-business organizations and individuals who are not value-added taxpayers sold; national reserve goods sold by the national reserve agency; fees and charges according to the provisions of law on fees and charges.
At the same time, Article 17 of the 2024 Law on Value Added Tax amended and supplemented Clause 1, Article 3 of the 2007 Law on Personal Income Tax stipulates:
Taxable income
1. Income from business, including:
a) Income from production and business activities of goods and services;
b) Income from independent professional activities of individuals with licenses or certificates of professional practice as prescribed by law.
Income from business specified in this clause does not include income from households and individuals producing and doing business with revenue below the level specified in Clause 25, Article 5 of the Value Added Tax Law.
However, recently, on December 10, 2025, the National Assembly passed the Law on Personal Income Tax (amended) deciding to adjust the tax-free revenue of households and individuals doing business from 200 million VND/year to 500 million VND/year and allow deduction of this level before tax calculation according to the ratio on revenue. At the same time, adjust the corresponding value-added tax-free revenue level to 500 million VND.
In addition, Article 10 of Resolution 198/2025/QH15 stipulates the termination of collection and payment of subject fees from January 1, 2026.
Therefore, business households and individuals who do business only pay 2 types of taxes: Value-added tax and personal income tax when they have revenue of over 500 million VND/year.
At the same time, based on Resolution 198/2025/QH15 clearly stating that business households and individuals do not apply the tax arrears method from January 1, 2026. Business households and individuals who are paying taxes according to the arrears tax method must switch to the declaration and self-payment method.
From the above contents, from January 1, 2026, individuals renting houses must pay value-added tax and personal income tax (when there is revenue of over 500 million VND/year).
