What are the new regulations on house rental tax in 2025? Current Vietnamese law has also provided regulations with specific sanctions. In the process of renting and leasing houses, the State will protect the legal rights and interests of both the lessor and the lessee.

1. Current legal issues on house rental

House rental is a very common activity in reality today when not everyone has the conditions to build or buy their own house.

Accordingly, house rental activities must comply with the provisions of the law. Normally, this house rental will be recorded in the form of a contract, the house rental contract can be typed, handwritten or verbal. The content of the contract will be the agreement of the parties, according to which the lessor will deliver the property, which is the house, to the lessee for use within a certain period of time, and at the same time the lessee will have to pay a rent.

The rental contract will include basic contents such as:

• Basic information of the lessor and the lessee such as: Full name, ID card number/citizen identification card, contact information, etc.
• Information about the house for rent: Area, current condition of the house, equipment in the house, etc.
• Rental price: The rental price will be agreed upon by the two parties or determined by a third party at the request of the parties, unless otherwise provided by law. In case there is no agreement or the agreement does not clearly state, the rental price will be determined according to the market price at the time the parties establish the rental contract.
• Rental period: This content is also agreed upon by the parties, if there is no agreement, this time is determined based on the purpose of the rental. In case there is no agreement and the purpose of the rental cannot be determined, the rental contract can be terminated at any time, but before terminating the contract, the other party must be notified within a reasonable period of time.
• Form of rental payment: As agreed upon by the parties, usually the rental payment will be periodic or paid once for the entire rental period.
• Provisions on the rights and obligations of the parties
• Provisions on the cases of termination of the rental contract…

Article 131 of the Housing Law clearly and specifically stipulates the cases of termination of the rental contract such as:

• The contract has been completed;
• Termination based on the agreement of the parties;
• In case the person entering into the contract is an individual who dies, the subject of the contract is a legal entity that ceases to exist (the house rental contract must be performed by that individual or legal entity)
• The contract is canceled or unilaterally terminated;
• The contract cannot be performed because the subject of the contract no longer exists;
• Termination of the contract according to regulations when circumstances change fundamentally
• Some other cases are prescribed by law.

2. New regulations on rental tax in 2025

House rental is also one of the activities subject to tax under current law. House rental entities will have to fulfill their tax obligations to state agencies according to regulations. New regulations on house rental tax in 2025 are as follows:

According to the provisions of Circular 40/2021/TT-BTC, house rental entities that are individuals and households are responsible for declaring and paying 02 common taxes: Personal Income Tax (PIT) and Value Added Tax (VAT).

However, not all individuals or business households that rent houses must declare and pay these 2 taxes, but only those with revenue of 100 million VND/year or more from house rental activities must pay tax according to the provisions of the law on VAT and PIT.

Accordingly, taxpayers are responsible for accurately, honestly, completely declaring and submitting tax records on time; in addition, they are responsible for the accuracy, honesty, and completeness of the declared tax records before the law.

The calculation of VAT and personal income tax when renting a house is calculated according to the following formula:

VAT payable = Revenue x VAT tax rate (5%)

Personal income tax payable = Revenue x Personal income tax rate (5%)

In addition, individuals or households renting houses must also pay business license fees according to regulations.

As with value added tax and personal income tax, the payment of business license fees is also applied to subjects with annual revenue of 100 million VND or more, accordingly, the business license fee payable is as follows:

• Revenue exceeding 500 million/year: 1 million/year.
• Revenue from 300 – 500 million/year: 500,000 VND/year.
• Revenue from 100 – 300 million/year: 300,000 VND/year.

3. Cases where unilateral termination of housing lease contracts is permitted

Some cases where unilateral termination of housing lease contracts is permitted according to the following regulations:

– For the lessor:

+ The lessee does not have the right authority or the right subject, does not meet the conditions prescribed for state-owned housing or social housing as prescribed by the Housing Law;

+ The tenant does not pay rent for a period of 03 months or more without a valid reason;

+ The lessee does not use the housing for the purpose agreed upon in the contract;

+ The lessee arbitrarily carries out activities such as: breaking, expanding, renovating, demolishing the house;

+ The lessee arbitrarily converts, lends, or subleases the rented house without the consent of the lessor;

+ The tenant performs negative activities such as: Causing disorder, polluting the environment, causing serious impacts on surrounding people… the landlord or the competent person in the residential area has reminded and recorded the minutes for the third time but still does not fix the problem;

+ In case of failure to reach an agreement on the rental price before the lease contract expires, the landlord renovates the house and the tenant agrees.

– For the tenant: unilaterally terminate the lease contract when the landlord performs one of the following acts:

+ Does not carry out repairs when the house is seriously damaged;

+ Unreasonably increases the rental price or increases the price without notifying the tenant in advance for a period of time as previously agreed;

+ Restricts the right to use the house due to the interests of a third party.

When a party unilaterally terminates the contract, it must notify the party whose contract is terminated at least 30 days in advance (unless otherwise agreed). If there is a violation of this notice and damage is caused, compensation must be paid according to regulations.

4. How to declare tax for house rental activities

According to the provisions of Circular 40/2021/TT-BTC issued by the Ministry of Finance on June 1, 2021, tax declaration for house rental activities is as follows:

Prepare tax declaration documents:

– Tax declaration form according to form No. 01/TTS of Circular 40/2021/TT-BTC;

– Appendix of detailed list of house rental contracts according to form No. 01-1/BK-TTS issued with Circular 40/2021/TT-BTC;

– Copies of documents such as: house rental contract, contract appendix (in case of first tax declaration);

– In case the individual renting the house authorizes a representative to carry out the procedure, a copy of the Power of Attorney must be submitted.

Submitting tax declaration dossiers

According to the provisions of Clause 1, Article 45 of the Law on Tax Administration 2019, individuals who directly rent out their houses and declare taxes to the tax authority shall submit tax declaration dossiers at:

– Individuals with income from house rental activities (except for real estate) shall submit dossiers at the Tax Department directly managing the place where the individual resides.

– In case of individuals with income from real estate rental, they shall submit dossiers at the Tax Department directly managing the place where the real estate for rent is located.

Due date for submitting dossiers: Specifically stipulated in Point a, Clause 2 and Clause 3, Article 44 of the Law on Tax Administration 2019

– For cases of tax declaration for each occurrence: no later than the 10th day from the date of commencement of the rental period.

– For one-time tax declaration for each year: no later than the last day of the first month of the following year.

Tax payment deadline

In case of individuals directly declaring tax: no later than the last day of the deadline for submitting tax declarations as mentioned above.

The above are some contents related to the issue of “New regulations on rental tax” that VIET MY LAW AND ACCOUNTING sends to readers, hoping that the above information can be helpful to customers. If you have any questions related to legal issues in life, please contact us directly, with a team of dedicated and experienced lawyers and legal experts, we are committed to providing the most dedicated and effective support.