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Saturday, July 13, 2024

Apartment lessors earning below VND100 million not subject to VAT, PIT

The Saigon Times

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HCMC – Apartment owners who have annual income of less than VND100 million each from leasing their properties will not be subject to value added tax (VAT) and personal income tax (PIT) from January 1 next year.

The Ministry of Finance issued Circular 100 amending and supplementing Circular 40 guiding the collection of the value added and personal income taxes from business households and individuals and the tax management, the local media reported.

Accordingly, if lessees pay the rentals in advance for many years, the lessors’ annual incomes will be determined as their average income each year.

Thus, the Ministry of Finance has acquired public comments on the regulation to align it with the Laws on Personal Income Tax and Value Added Tax. Earlier, under Circular 40, individuals leasing apartments with annual incomes of less than VND100 million each were required to pay VAT and PIT.

In addition, the Ministry of Finance has regulated that the owners of ecommerce platforms must file and pay tax on behalf of individual traders in line with civil laws, instead of with tax agencies’ roadmaps.

Otherwise, tax departments of localities will coordinate with ecommerce platforms to get information on individual traders for tax management.

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