Property lease tax from 2026 is no longer calculated as before, but many individuals and businesses still apply it incorrectly. Misunderstanding the revenue milestone of 500 million VND/year and tax liability may cause leasers to be retroactively taxed, while leasing businesses face the risk of being eliminated from expenses.
Quang Ninh Provincial Tax Department has just issued guidance to help business households and taxpayers properly implement legal regulations for personal property leasing activities, in the context of many new tax policies officially being applied from January 1, 2026.
According to regulations, personal property leasing activities include: leasing houses, premises, shops, factories, warehouses (excluding accommodation services); leasing vehicles, machinery and equipment without drivers; and leasing other types of assets without services.
From January 1, 2026, the leasing of personal assets is managed and taxed according to new regulations. Businesses leasing assets, if they do not comply with regulations, may be classified as expenses when finalizing corporate income tax.
Tax obligations only arise when revenue exceeds 500 million VND/year
According to the Law amending and supplementing a number of articles of the Value Added Tax Law No. 149/2025/QH15 and the Personal Income Tax Law No. 109/2025/QH15, individuals leasing assets only incur tax obligations when revenue in the year exceeds 500 million VND.
In case revenue is from 500 million VND/year or less, individuals are not required to pay value-added tax (VAT) and personal income tax (PIT).
How to calculate personal income tax for individuals leasing assets
According to the new regulations of the 2025 Personal Income Tax Law, PIT is calculated as follows:
Revenue from 500 million VND/year or less: No personal income tax payable.
Revenue over 500 million VND/year: PIT is calculated on the portion of revenue exceeding 500 million VND, with a tax rate of 5%.
Calculation formula:
PIT payable = (Yearly revenue – 500 million VND) x 5%
For example, if an individual has revenue from property leasing of 900 million VND/year, the PIT amount to be paid is:
(900 million – 500 million) x 5% = 20 million VND.
VAT applies at a rate of 5%
According to Decree No. 181/2025/ND-CP, VAT Law and Circular No. 69/2025/TT-BTC, the VAT calculation percentage for property leasing activities is 5%.
Calculation formula:
VAT payable = Revenue x 5%
For example, with revenue of 900 million VND/year, the amount of VAT to be paid is 45 million VND.
Important notes for individuals and businesses
The tax authority notes that individuals leasing assets and businesses leasing assets need to pay special attention to the revenue threshold of 500 million VND/year and the method of calculating VAT and PIT according to new regulations.
Individuals leasing assets are required to register for leasing activities and carry out tax declarations, even if they have not reached the tax threshold. Businesses leasing assets need to have complete dossiers and valid lease contracts to be charged when finalizing taxes.
When signing an asset lease contract, the parties need to clearly state the tax payment responsibility: individual self-payment or enterprise payment on behalf. At the same time, enterprise accountants need to pay attention to the principle of accounting for rent paid in installments, prepayment in multiple installments, deposits and related expenses such as electricity, water... to avoid tax risks.
