Property Rental Tax Obligations: New Regulations, Declaration & Updated Rates 2025-2026

Do you own an unused asset and plan to rent it out to generate additional income? However, you might still be wondering: Is property rental subject to mandatory tax declaration and payment? If so, what are the procedures for declaring taxes? And how much tax must be paid to ensure full compliance with current regulations and fulfill all obligations?

According to current regulations, property rental activities—including residential houses, commercial spaces, stores, workshops, warehouses (excluding accommodation services); vehicles, machinery and equipment (without operators); or other types of assets—may incur tax obligations for individuals or organizations leasing them out.

Let TPM help you understand the mandatory tax obligations involved in property leasing, to ensure compliance with the law and avoid unnecessary risks.

1. Tax Registration

General Rule: Taxpayers registering directly with the tax authority must register within 10 working days from the date business operations begin (or the date the rental activity starts). This is regardless of the contract signing date or deposit date (as the deposit is refundable to the tenant at the end of the lease term).

Legal Basis: Article 22 of Circular 86/2024/TT-BTC on tax registration.

Tax registration documents include:

• Tax registration form No. 03-ĐK-TCT

• Valid Citizen Identity Card (copy)

• Lease contract (copy)

• Or notarized authorization (if the individual leasing the property delegates the activity)

• Copy of the authorized person’s Citizen Identity Card

2. Tax Declaration

2.1. Tax Declaration Documents

• Tax declaration form for property rental activities: Form 01/TTS

• Detailed rental contract appendix: Form 01-1/BK-TTS or 01-2/BK-TTS

2.2. Tax Declaration Deadlines

Annual Declaration (based on the calendar year):

• Deadline for annual tax declaration: No later than the last day of the first month of the following calendar year.

• Example: For rental income in 2025, the deadline for submitting the declaration is January 31, 2026.

Declaration per Rental Payment Period:

• Deadline for declaration per rental payment period: No later than the 10th day from the start date of that specific payment period.

• Example:

  • A house lease contract signed for 1 year, with quarterly payments.

  • The first payment period begins on July 1, 2025 → the rental period is from July 1, 2025, to September 30, 2025.

  • The deadline for tax declaration for this period is no later than July 10, 2025.

3. Applicable Fees and Taxes

There are three potential costs: Business License Fee, Value-Added Tax (VAT), and Personal Income Tax (PIT).

3.1. Tax Exemption if Revenue is Below the Threshold

• If your total rental revenue in a year is VND 100,000,000 or below, you will not be required to pay the aforementioned fees and taxes.

• Important Note: According to Law No. 48/2024/QH15 on VAT, this revenue threshold will be adjusted from VND 100,000,000 to VND 200,000,000, effective from January 1, 2026.

3.2. Tax Obligations When Revenue Exceeds the Threshold

If your total annual rental revenue exceeds VND 100,000,000 (before January 1, 2026) or VND 200,000,000 (from January 1, 2026), the following fees and taxes will apply:

• Business License Fee: Ranges from VND 300,000 to VND 1,000,000 annually, depending on the revenue level.

  • Good news: According to Resolution 198/2025/QH15, starting from January 1, 2026, you will be exempt from the Business License Fee.

• VAT: 5% x Taxable Revenue

• PIT: 5% x Taxable Revenue

Note: Taxable revenue is the total rental amount you receive, inclusive of taxes.

Example Illustration: You lease your house to Person B for a 1-year term from January 1, 2025, to December 31, 2025, at a rental price of VND 15,000,000/month (tax included). Your annual revenue is VND 180,000,000. In this case, you will have to pay the following amounts:

• Business License Fee: VND 300,000

• VAT: 5% * Taxable Revenue = 5% * VND 180,000,000 = VND 9,000,000

• PIT: 5% * Taxable Revenue = 5% * VND 180,000,000 = VND 9,000,000

For detailed consultation, please contact TPM via our website or hotline (+84) 28 3505 1800 for prompt support.

Thao Phung