On October 16th, 2024, the Hai Duong Provincial Tax Department issued Official Letter No. 8796/CTHDU-TTHT, accordingly:
In case the company rents a house from an individual to use as a collective canteen for employees; rents land from an individual who only has rental activities and the rental period is not a full year, if generating rental revenue from VND 100 million/year or less (including multiple rental contracts and excluding other activities), no VAT or PIT is payable. If the company pays the land rent in advance for multiple years, the level of revenue to determine whether the individual must pay tax or not is the one-time revenue distributed according to the calendar years.
Business households and individuals that generate revenue from property rental must register and declare property rental activities according to the regulations in Clause 1, Article 14 of Circular No. 40/2021/TT-BTC dated June 01st, 2021, by the Ministry of Finance.
– If the contract stipulates that the company is not obligated to declare and pay taxes on behalf of the business households or individuals, the households or individuals renting the property directly declare and submit the tax declaration dossiers according to the regulations.
– If the contract stipulates that the company is obligated to declare and pay taxes on behalf of the business households or individuals, the company is responsible for declaring and submitting the tax declaration dossiers according to the regulations.
– Based on the property rental contract and payment receipts to determine deductible expenses according to the regulations in Point 2.5, Article 4 of Circular No. 96/2015/TT-BTC dated June 15th, 2015, by the Ministry of Finance.
