Types of taxes levied on rental housing, land of individual

The individual house and land for lease in Vietnam and want to get an invoice from the Vietnamese tax authorities for delivery to the tenant, the lesser shall complete the following taxes: license tax, value added tax and personal income tax.

Types of taxes levied on rental housing, land of individual 

Types of taxes levied on rental housing, land of individual since 2014 including license tax, value added tax and personal income tax, as follows:

1. License tax:  License tax is the first of types of taxes levies on rental housing, land of individual (Official Letter 4367/TCT-CS, Decree No. 75/2002 / ND-CP dated 08/30/2002):

2. The value-added tax: Value added tax is the second type of taxes levies on rental housing, land of individual 

2.1 Annual sales below VND 100 million: it is not subject to VAT (Point 12, Article 3 of Decree 209/2013/ND-CP), Point 25, Article 4 Circular 219/2013/TT-BTC, effective from 01/01/2014).
2.2 Annual sales of VND 100 million or more:  The amount of VAT payable in  accordance with the  method  of calculating tax  directly on the  basis of  added value equals a percentage (%) multiplied by the turnover of the applicable [entity] (K.2.b, D.8 Decree 209/2013 / ND-CP), Point 2, Article 13 Circular 219/2013 / TT-BTC).

The amount of VAT payable in accordance with the method of calculating tax directly on the basis of added value equals a percentage (%) multiplied by the turnover of the applicable [entity]
Lesser declares and pay VAT under the VAT direct method. The VAT amount payable is equal to 5% multiplied by revenue.

3. Personal income tax: the third type of taxes levies on rental housing, land of individual in accordance with Circular 111/2013/TT-BTC, effective from 1 Oct 2013.
Personal income tax payable = [(Revenue x 30%) - reductions] x tax rate (%),

in which:
- Revenue for calculating taxable income is determined under the contract, regardless of whether or not money was received. If the lessee pays rent in advance for many years, turnover for calculation of taxable income allocated to prior years paid or determined on a lump sum payment of revenue.
- Reduction for the taxpayer and reduction for each dependant of the taxpayer is counted one time (if any. If a taxpayer has income from both rental incomes from salaries, wages and business income, if the taxpayer has registered reduction for each dependant in locality to pay salaries and wages or place of business, the temporary personal income tax rate from the lease is 10%.
- Personal income tax rates applied according to partially progressive tariff in the current personal income tax policy, as follows:

Resident individuals having income from salary, wages, and business shall be responsible for tax finalization, if any additional tax payable or overpaid tax, the request for refund or tax credits on tax returns next following term.

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