News
Renting out houses, apartments, or commercial properties is a common source of income in Vietnam. However, rental activities are subject to tax obligations under Vietnamese law, and incorrect declarations may lead to tax reassessment and penalties.
Individuals who earn more than VND 100 million per year from rental activities are required to pay taxes. If annual revenue does not exceed this threshold, tax payment is not required, but revenue must still be accurately determined to avoid reassessment by tax authorities.
If taxable, the following taxes apply:
Value Added Tax (VAT): 5% of gross revenue
Personal Income Tax (PIT): 5% of gross revenue
Business license fee, depending on annual revenue
⚠️ Taxes are calculated based on gross rental revenue, not net profit.
Declared rental price lower than actual income
Incorrect tax period for advance rental payments
Failure to separate rental income from service charges
Late or incomplete tax declarations resulting in penalties
Tax authorities may reassess revenue and impose administrative sanctions in such cases.
Rental tax compliance involves not only accounting issues but also legal risks related to contracts and financial obligations. Professional legal advice helps landlords minimize risks and ensure compliance.
???? GIVLAW provides:
Legal review of rental contracts
Tax compliance advisory for landlords
Legal representation in dealings with tax authorities
???? Contact GIVLAW for legal advice before tax risks arise.
