According to the revised Personal Income Tax Law, from 2026, the revenue threshold for personal income tax and value-added tax exemption for business households and individuals will be raised to 500 million VND/year, 5 times higher than the current level of 100 million VND/year.
This regulation applies generally to business households and individuals doing business in many fields.
For real estate leasing activities such as leasing houses, premises, stores, factories, warehouses, except for accommodation business activities, personal income tax is determined by the revenue exceeding 500 million VND/year multiplied by a 5% tax rate. Value-added tax is determined according to the same principle, with a 5% tax rate. Thus, the total tax payable for the revenue exceeding the threshold is 10%.
According to the above calculation method, in the case of households and individuals renting houses with revenue in the year of 600 million VND, the amount of personal income tax and value-added tax payable is determined by the revenue exceeding the threshold of 500 million VND, equivalent to 100 million VND, multiplied by a tax rate of 10%, the amount of tax payable is 10 million VND.
With rental revenue reaching 1 billion VND/year, the tax payable is 50 million VND, calculated on the revenue exceeding 500 million VND. In case rental revenue reaches 2 billion VND/year, the tax payable is 150 million VND, corresponding to the revenue exceeding the threshold of 500 million VND multiplied by a tax rate of 10%.
The tax sector notes that when house rental activities arise, individuals and households who have directly participated in business activities need to fully implement the provisions of law on business registration, tax law and related legal regulations.
Business households and individuals are responsible for accurately and truthfully declaring taxes and submitting tax dossiers on time according to regulations.
For real estate leasing activities, households and individuals make tax declarations directly to the tax authority or through tax declaration organizations to pay taxes on behalf of individuals leasing real estate. Tax declaration documents are submitted at the tax authority directly managing the place where the real estate is leased.
