Based on Article 7 of the 2025 Personal Income Tax Law, there are regulations on personal income tax (PIT) for income from business.
Personal income tax on income from business
1. Resident individuals with production and business activities with annual revenue of 500 million VND or less are not subject to personal income tax. The Government submits to the National Assembly Standing Committee to adjust the level of revenue not subject to personal income tax to suit the socio-economic situation in each period.
2. Personal income tax on income from business of resident individuals with annual revenue above the level specified in Clause 1 of this Article is determined by taxable income multiplied by (x) by the tax rate. In which:
a) Taxable income is determined by the revenue of goods and services sold minus (-) expenses related to production and business activities during the tax period;
b) Individual businesses with annual revenue exceeding the level specified in Clause 1 of this Article by up to 03 billion VND: tax rate of 15%;
c) Individual businesses with annual revenue of over 03 billion VND to 50 billion VND: tax rate of 17%;
d) Individual businesses with annual revenue of over 50 billion VND: tax rate of 20%.
Income from real estate leasing specified in Clause 4 of this Article does not apply the tax calculation method specified in this clause.
3. Business individuals with annual revenue exceeding the level specified in Clause 1 of this Article by 03 billion VND are allowed to choose to pay tax according to the provisions of points a and b of Clause 2 of this Article or pay tax according to the tax rate multiplied by (x) with taxable revenue. Taxable revenue and tax rate are determined as follows:
a) Taxable revenue is determined by the portion of revenue exceeding the level specified in Clause 1 of this Article;
b) Distribution and supply of goods: tax rate of 0.5%;
c) Services, construction without bidding for raw materials: tax rate 2%. For asset leasing activities, insurance agents, lottery agents, multi-level marketing agents: tax rate 5%;
d) Production, transportation, services associated with goods, construction with subcontracting of raw materials: tax rate of 1.5%;
e) Activities providing digital information content products and services on entertainment, video games, digital films, digital photos, digital music, digital advertising: tax rate of 5%;
e) Other business activities: tax rate of 1%.
4. Individuals leasing real estate, except for residential business activities, pay personal income tax determined by the revenue exceeding the level specified in Clause 1 of this Article multiplied by (x) by a tax rate of 5%.
5. The Government shall specify this Article.
Based on Article 29 of the 2025 Personal Income Tax Law, there are regulations on the implementation clause as follows:
Enforcement clause
1. This Law takes effect from July 1, 2026, except for the provisions in Clause 2 of this Article.
2. Regulations related to income from business, salary, and wages of individual residents applied from the tax period of 2026.
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Accordingly, from July 1, 2026, resident individuals with income from asset leasing activities will be subject to PIT depending on revenue as follows:
(1) Annual revenue under 500 million VND is not subject to personal income tax.
(2) Annual revenue from 500 million VND or more must pay PIT.
PIT calculation formula:
Personal income tax = taxable income x tax rate
In which:
- Taxable income = revenue - expenses.
- Tax rate:
+ Annual revenue from 500 million VND to 03 billion VND: Tax rate of 15%;
+ Annual revenue over 03 billion VND to 50 billion VND: Tax rate 17%;
+ Annual revenue over 50 billion VND: Tax rate of 20%.
For individuals renting assets with annual revenue from 500 million VND to 03 billion VND, they are allowed to choose to pay tax according to the tax rate multiplied by (x) by the taxable revenue:
The PIT calculation formula is as follows:
Personal income tax = Tax rate x taxable revenue
In which:
- Taxable revenue = revenue - 500 million VND
- The tax rate is 5%.
