From 2026, a series of new regulations related to taxes for business households and individuals officially take effect, in which many points directly affect business households renting houses and premises. Not understanding the regulations can lead to tax arrears and administrative violations.
The tax exemption threshold for house rentals is raised to 500 million VND/year
According to the Law on Personal Income Tax (amended) passed by the National Assembly on December 10, 2025, from January 1, 2026, the tax-exempt revenue threshold for business households and individuals will be increased from 100 million VND to 500 million VND/year.
This regulation applies uniformly to business sectors, including real estate leasing activities such as: leasing houses, premises, stores, factories, warehouses... (excluding accommodation services).
Households and individuals renting real estate with revenue in the calendar year not exceeding 500 million VND are not required to pay value-added tax (VAT) and personal income tax (PIT).
Revenue exceeding 500 million VND/year must pay 2 types of taxes
In case the rental revenue exceeds the threshold of 500 million VND/year, business households and individuals must fulfill tax obligations as follows:
Personal income tax (PIT): Only calculated on revenue exceeding 500 million VND/year, applying a tax rate of 5%.
Value-added tax (VAT): Calculated on total revenue, excluding the tax exemption threshold, applying a rate of 5% according to the direct method on revenue.
Specific examples:
Revenue of 600 million VND/year:
PIT: (600 – 500) × 5% = 5 million VND
VAT: 600 × 5% = 30 million VND
Revenue of 1 billion VND/year:
PIT: (1,000 – 500) × 5% = 25 million VND
VAT: 1,000 × 5% = 50 million VND
Subject to tax exemption, still have to declare revenue
Tax authorities note that tax exemption does not mean tax declaration exemption.
According to the provisions of the Law on Tax Administration, business households and individuals – including individuals leasing assets – are still responsible for: Full, honest, and accurate tax declaration;
Submit tax declaration documents at the tax authority managing the place where the real estate is leased.
In case the lessee pays the rent in advance for many years, the revenue to determine tax obligations will be allocated according to each calendar year, not calculated in bulk at once.
How to determine taxable revenue
Revenue from real estate leasing activities is the entire actual amount collected, regardless of whether it has been collected or has not reached the collection deadline.
If households and individuals both lease real estate and have other business activities, then the revenue to determine the taxable threshold is the total revenue of all activities in the year.
In case the total revenue in the year does not exceed 500 million VND, households and individuals are not subject to tax, but still have to declare according to regulations.
For business households subject to mandatory use of electronic invoices generated from cash computers according to Decree No. 70/2023/ND-CP, registration and use must be carried out in accordance with regulations; all tax procedures are implemented electronically.
Delaying tax declaration dossiers may be heavily fined
According to Decree No. 310/2025/ND-CP, effective from January 16, 2026, business households late in submitting tax declaration dossiers will be fined depending on the severity and duration of the violation, from warnings to fines up to tens of millions of VND, and must also pay the full amount of tax remaining and late payment money (see more HERE).
Distinguishing real estate and accommodation rental services
The tax authority also notes that accommodation services are not classified as property leasing activities, including:
Providing short-term accommodation facilities for tourists and sightseeers;
Providing non-apartment long-term accommodation facilities for students and workers;
Providing accommodation with food and entertainment services.
These activities are subject to separate tax regulations, business households need to classify correctly to avoid errors when declaring.
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