On November 29, 2023, the General Department of Taxation issued Official Letter No. 5329/TCT-DNNCN ("Official Letter 5329"), guiding tax declaration for leasing real estate by business households.
According to Article 5 of Decree No. 02/2022/NĐ-CP detailing the implementation of the Real Estate Business Law ("Decree 02"), it specifies cases where there is no need to establish a business or cooperative when selling or leasing small-scale real estate irregularly. There are two such cases:
- Organizations, households, and individuals selling or leasing houses, construction works under their legal ownership, transferring, leasing, or re-leasing the right to use land under their legal right of use.
- Organizations, households, and individuals selling, leasing, leasing to purchase, and transferring real estate they have invested in building that is not a real estate investment project for business purposes as prescribed by law.
For these two cases, tax declaration and calculation are subject to the regulations for individual asset leasing. The applicable tax rates include 5% VAT and 5% personal income tax. Tax declaration is carried out by the provisions at point a, point b, clause 1 of Article 9, and clause 1 of Article 14 of Circular No. 40/2021/TT-BTC dated June 1, 2021, issued by the Ministry of Finance.
Official Letter 5329 takes effect from November 29, 2023.
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