Landlords need to understand taxes and reporting obligations

(NLDO) – The tax authority will coordinate with the police and local authorities to accurately determine the revenue of dishonest landlords.

The Tax Department has just sent an official dispatch to the People's Committees of provinces and centrally-run cities, requesting to strengthen coordination and direction of tax management for households and individuals renting houses and offices.

Individuals do procedures at the Ho Chi Minh City Tax Office

According to the Tax Department, there is still a situation where some households and individuals do not declare, do not declare, or incompletely declare revenue from renting houses, offices, and premises.

Therefore, the Tax Department requests the People's Committees of provinces and cities to direct the People's Committees of communes, wards, towns and residential groups to coordinate and share information with tax authorities about households and individuals doing business in renting houses, offices, or accommodation services in the area.

Regarding tax obligations when renting out houses, offices or accommodation services, Circular 40/2021/TT-BTC of the Ministry of Finance stipulates that individuals renting out houses must declare taxes for each contract or declare taxes for multiple contracts on one declaration if the rented property is located in an area managed by the same tax authority.

The Law on Tax Administration also stipulates that individuals renting out houses must declare taxes for each payment period (determined by the starting time of the rental period of each payment period) or declare taxes according to the calendar year.

Speaking to a reporter from the Lao Dong Newspaper , an inspector of the Ho Chi Minh City Tax Department said that currently, households and individuals who rent out houses must self-declare and pay taxes and are responsible before the law for declaring and paying taxes.

Accordingly, landlords with revenue of over 100 million VND/year must pay 10% tax on revenue, including 5% personal income tax and 5% value added tax.

However, in reality, some individuals dishonestly declare rental income in order to reduce the amount of tax payable.

When fraud is detected, the tax authority will coordinate with the police and local authorities to conduct field surveys, determine the correct revenue, and at the same time impose fines and collect taxes from households and individuals who violate the law.

Source: https://nld.com.vn/nguoi-cho-thue-nha-van-phong-phai-khai-bao-va-nop-nhung-loai-thue-nao-196250814115948685.htm