On the Ministry of Finance's Information Portal, a reader in Can Tho wondered how to determine taxable revenue for property leasing activities of individuals with total revenue from leasing over 1 billion VND/year.
According to the reflected content, the business leases premises from an individual with many assets for lease, with total estimated revenue from leasing activities of over 1 billion VND per year.
The lease contract has a unit price of 75 million VND/month (excluding value-added tax and personal income tax), lease term of 72 months, starting from January 1, 2026. The rent is paid quarterly, each payment is prepaid for 3 months.
The parties agree that the leasing enterprise will declare and pay taxes on behalf of the individual for leasing activities arising from the contract.
At the same time, businesses apply the method of calculating personal income tax by multiplying the tax rate by the taxable revenue and are entitled to a reduction of 500 million VND before calculating personal income tax for this contract.
From there, businesses propose that the Ministry of Finance guide how to convert to taxable revenue.
Answering the above content, Can Tho City Tax has the following opinion:
In case the enterprise leases personal property and the contract stipulates that the rent does not include value-added tax, personal income tax, and at the same time the enterprise is responsible for paying tax on behalf of the individual according to the provisions of tax management law, the enterprise is included in the expense to be deducted for the tax paid on behalf, provided that there are tax payment documents as prescribed.
For taxable revenue from property leasing activities, the tax authority cited Decree No. 68/2026/ND-CP and Decree No. 141/2026/ND-CP.
According to regulations, the revenue level used as a basis for determining tax obligations has been adjusted from 500 million VND to 1 billion VND.
For value-added tax, business households and individual businesses with annual revenue over 1 billion VND are subject to tax and apply the method of calculating directly based on revenue by a percentage multiplied by revenue.
The taxable price for property leasing activities is the amount of rent without value-added tax. In case of payment in installments or prepayment for the entire lease term, the taxable price is the amount of rent paid in installments or prepayment, excluding value-added tax.
Regarding personal income tax, the tax authority said that individuals leasing real estate, except for accommodation business activities, are determined to have the tax payable equal to the portion of revenue exceeding the prescribed level multiplied by a tax rate of 5%.
In case individuals have many real estate for rent in different locations, they are entitled to a deduction of 1 billion VND before calculating personal income tax for one or more contracts chosen by the individual.
However, the total deduction does not exceed 1 billion VND per year for all lease contracts.
If the selected contract has not used up the deduction of 1 billion VND, the individual is allowed to continue to choose other contracts to apply until the deduction is used up.
For cases where the lessee declares and pays taxes on behalf of, the lease contract must clearly stipulate the content of proxy declaration, proxy payment of tax and the amount of deduction when calculating personal income tax.
If that contract has not used up the deduction, the individual can still continue to choose other contracts to apply until 1 billion VND is sufficient.
