Individuals earning a rental income of less than VND 100 million/year are not required to pay VAT and PIT from 01January 2022.

The Minister of Finance has just issued Circular 100/2021/TT-BTC amending Circular 40/2021/TT-BTC providing guidance on VAT, PIT and tax administration for business households and individuals. 

Accordingly, the tax calculation method for individuals leasing properties at Point c, Clause 1, Article 9 of Circular 40/2021/TT-BTC was amended as follows:

- Individuals only have property leasing activity and the rental term is not a full year, if the rental revenue is VND 100 million/year or less then they are not subject to VAT and PIT.
- Where the lessee pays the rent in advance for many years, the revenue amount to determine whether an individual must pay tax or not pay tax is the one-time payment allocated according to the calendar years.

* Property leasing activities according to Circular 40/2021/TT-BTC include:

• Rental of houses, premises, shops, factories and warehouses excluding accommodation services;
• Leasing means of transport, machinery and equipment without operator
• Leasing other assets without services.

(Accommodation services that are not included in the above-mentioned property rental activities include: providing short-term accommodation facilities for tourists and other passersby; providing long-term accommodation facilities other than apartments for students, workers and the like; provision of accommodation with food service or recreational facilities).

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