In Decree No. 68/2026/ND-CP dated March 5, 2026 of the Government on tax policies and tax management for business households and individual businesses, it is clearly stipulated how to determine the level of revenue to be deducted before calculating personal income tax for real estate leasing activities of individuals.
Accordingly, for individuals leasing real estate to pay personal income tax according to Clause 4, Article 7 of the Personal Income Tax Law No. 109/2025/QH15:
In case individuals have many real estate for lease in different locations, individuals are entitled to a deduction of 500 million VND before calculating personal income tax for one or more real estate lease contracts chosen by individuals, but the total amount deducted is no more than 500 million VND per year for all real estate lease contracts.
In case the selected real estate lease contract has not been fully deducted 500 million VND, individuals are allowed to continue to choose other real estate lease contracts to be deducted further until 500 million VND is fully deducted;
In case individuals have many real estate for lease in different locations and there are regulations that the lessee declares and pays taxes instead, when choosing a real estate lease contract to apply the deductible amount when calculating personal income tax, the real estate lessee and the lessee must clearly stipulate in the real estate lease contract the content of declaring and paying taxes instead and the amount deducted when calculating personal income tax.
In case real estate lease contracts stipulate proxy declaration and proxy payment of taxes but have not fully deducted 500 million VND, individuals are allowed to continue to choose other real estate lease contracts to continue to be deducted until they have fully deducted 500 million VND.
