House leasers are entitled to a deduction of 500 million VND before calculating personal income tax

Lawyer Ho Thu Trang, YouMe Law Company Limited answers:

Clause 1, Clause 4, Article 7 of the 2025 Personal Income Tax Law (effective from July 1, 2026) stipulates personal income tax on income from business as follows:

1. Resident individuals with production and business activities with annual revenue of 500 million VND or less are not subject to personal income tax. The Government submits to the National Assembly Standing Committee to adjust the level of revenue not subject to personal income tax to suit the socio-economic situation in each period.

4. Individuals leasing real estate, excluding accommodation business activities, pay personal income tax determined by the portion of revenue exceeding the level specified in Clause 1 of this Article multiplied (x) by a tax rate of 5%.

Clause 4, Article 4 of Decree No. 68/2026/ND-CP stipulating tax policies and tax management for business households and individual businesses (effective from March 5, 2026) stipulates personal income tax as follows:

4. For individuals leasing real estate who pay personal income tax according to the provisions of Clause 4, Article 7 of the Personal Income Tax Law No. 109/2025/QH15:

a) In case individuals have many real estate for lease in different locations, individuals are allowed to deduct 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 yet deducted enough 500 million VND, individuals are allowed to continue to choose other real estate lease contracts to be deducted further until they have deducted enough 500 million VND;

b) 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, individuals leasing real estate and lessees must clearly stipulate in the real estate lease contract the content of declaration and payment of taxes instead and the amount deducted when calculating personal income tax. In case the real estate lease contract stipulates that tax is declared and paid instead but 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 fully deduct 500 million VND.

Thus, from March 5, 2026, the home tenant is entitled to deduct 500 million VND before calculating personal income tax according to the above regulations.