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1. Legal basis and scope of application
From 2026, tax obligations for resident individuals engaging in real estate leasing activities (excluding accommodation services) will be adjusted in accordance with the new regulations under the Law on Personal Income Tax 2025 and the Law on Value Added Tax 2024. This regulation applies to cases with a total annual revenue exceeding the threshold of VND 500 million.
2. Method for determination of tax obligations
Tax obligations are calculated based on actual revenue, including the total amount of service sales recorded on invoices, surcharges, and additional fees enjoyed by the business establishment.
2.1. Value Added Tax (VAT)
Asset leasing activities are classified under services not including materials, applying the direct calculation method on revenue.
- Tax rate: 5%.
- Formula: Payable VAT = Revenue x 5%.
2.2. Personal Income Tax (PIT)
A notable new feature in the regulation is that PIT applies only to the portion of revenue exceeding the VND 500 million threshold, instead of the VND 100 million threshold as previously.
- Tax rate: 5%.
- Formula: Payable PIT = (Revenue – VND 500 million) x 5%.
3. Declaration process and administrative reform roadmap
Tax management for asset leasing activities is being promoted towards digital transformation:
- Form of declaration: Taxpayers perform online declaration via the Information System for handling administrative procedures of the General Department of Taxation at https://dichvucong.gdt.gov.vn.
- Technology application: Expected in February 2026, the eTax Mobile application will be upgraded to allow taxpayers to file returns directly on mobile devices, simplifying the obligation fulfillment process.
- Declaration period: Declaration on a calendar year basis.
