HCMC launches pilot project to tighten taxation of rental income
HCMC launches pilot project to tighten taxation of rental income
HCMC will launch a pilot program to collect income tax from landlords who lease out apartments in a bid to tighten implementation of existing regulations.
Apartments and villas alongside the Saigon River in HCMC. Photo by Shutterstock/demamiel62.
|
The pilot tax collection program will be implemented at five District 11 buildings: the Res 11 apartment complex; Khai Hoan building on Lac Long Quan street; Thuan Viet commercial and residential area on Ly Thuong Kiet street; the Bao Gia building on Le Dai Hanh street; and the apartment complex at 70 Lu Gia Street.
Landlords who rent out their apartments in the above-mentioned buildings as well as individuals and organizations that do business in the rented apartments will be subject to the taxation program.
The city’s Tax Department will work with the management boards of the five buildings to make a list of landlords who have let out apartments for rent and those who are doing business in the rented apartments.
The Hanoi Tax Department has also been asking apartment owners to declare returns and pay taxes for rented properties. Landlords who have rented out their properties to foreigners in Hanoi must register temporary residency for their tenants.
Taxation of rental incomes is not new in Vietnam, but it is a regulation that is rarely enforced or complied with.
Under regulations of the Ministry of Finance, landlords with an annual rental income of over VND100 million ($4,340) are subject to a 5 percent value-added tax and a 5 percent personal income tax.
