Below are the accounting and tax obligations that landlords/individuals leasing properties need to pay attention to after establishing a company:

1. Accounting Book Requirements

• When operating as a company, all economic and financial transactions arising must be recorded with accounting documents. The company needs to establish and maintain a complete and accurate accounting book system, including general ledgers, detailed ledgers, and other auxiliary books in compliance with the Accounting Law.
• Accounting documents are crucial not only for internal management but also for tax inspection and examination by the tax authorities later on.

2. Tax Filing and Payment Obligations

A company leasing properties must comply with periodic tax obligations, including:

a) Monthly/Quarterly Tax Obligations

• Value Added Tax (VAT): Submit VAT returns and the payable VAT amount (if any) for property leasing services.
• Personal Income Tax (PIT): Submit PIT returns and the payable PIT amount (if any) when the company has employees, generates income payments, and performs tax withholding.
• Deadline: By the 20th of the following month (for monthly tax declarations) / By the last day of the first month of the next quarter (for quarterly tax declarations).

b) Annual Tax Obligations

• License Fee:

Submit the license fee declaration: to be submitted once for the year the company starts operating or the year when there is a change in charter capital.

Pay the annual license fee. Deadline for paying the business license fee: before January 30 each year.

Note: Newly established enterprises or businesses that start operations in the first year are exempt from the business license fee.

In subsequent years, the business license fee ranges from VND 2,000,000 to VND 3,000,000, depending on the registered charter capital of the company.

• Financial Statements: Prepare and submit annual financial statements, including the balance sheet, income statement, cash flow statement, and notes to the financial statements.

Deadline: No later than 90 days from the end of the financial year.

• Tax Finalization: Submit corporate income tax (CIT) finalization return and personal income tax (PIT) finalization return.

Deadline: No later than the last day of the third month from the end of the calendar year or fiscal year for the annual tax finalization return.

c) Compliance with Invoices

• Companies must issue invoices when selling goods or providing services. Invoices must be issued at the correct time, with complete and accurate content. 
• For property leasing activities, note that the invoice issuance time is after the company completes the provision of property leasing services or immediately after receiving rental payments (in case of advance payment according to the lease contract).
• E-Invoices: From July 1, 2022, companies must switch to using e-invoices. E-invoices must be managed and stored carefully, ensuring integrity and security.

Establishing a company to lease properties brings many benefits but also comes with more complex accounting and tax obligations. Individuals need to be well-versed in relevant tax regulations and regularly update changes in tax laws to ensure compliance and optimize payable taxes. Using professional tax advisory services can help minimize risks and increase tax management efficiency.

If you have any further questions or inquiries, please contact TPM via the website: tpm.com.vn or hotline 090 298 1080 for the quickest support.