05/04/2024

Official 1368 (2024) converts revenue and declares property rental taxes.

Official 1368 (2024) converts revenue and declares property rental taxes.

According to regulations and based on Contract No. 03/16-JBVN signed on 18 July 2016 between the lessor being an individual and the lessee being Jollibee Vietnam Company Limited, the individual leasing renters are subject to VAT and personal income tax from property leasing activities according to regulations. Because the revenue subject to VAT and the revenue subject to personal income tax are tax-inclusive revenue (in case of being subject to tax), in case the contract stipulates that the rental price does not include VAT or personal income tax, the agency will Tax re-determines VAT revenue and revenue subject to personal income tax (=) Revenue does not include tax paid to individuals leasing property divided by (:) 0.9.

The Tax Authority will base on the tax declaration dossier for the individual’s property rental activities to determine the tax liability according to the above regulations, and at the same time collect the full amount of tax payable (including VAT and personal income tax) for the individual with property rental activities. Whether the lessor or lessee is responsible for submitting declarations and paying taxes will be agreed upon by both parties in the contract according to civil law.

Please see attached letter for details: CV1368_03042024TCT_Quy doi DT tinh thue VAT-PIT cho thue Tai san