Ministry of Finance Guides VAT and PIT Declaration for Real Estate Leasing Households Operating Across Multiple Provinces
RegHub explainer by New MarketerLast updated:
Based on:68/2026/ND-CP - Ministry of Finance
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
Responding to a business household leasing real estate across multiple provinces with estimated annual revenue above VND 3 billion, the Ministry of Finance (Tax Sub-Department Region 1, Ninh Binh) cited Decree 68/2026/ND-CP (issued March 5, 2026) and Personal Income Tax Law No. 109/2025/QH15 to outline the general declaration and tax calculation principles. Business households and individual traders with annual revenue above VND 500 million are subject to VAT and must use the direct method: VAT payable equals taxable revenue multiplied by the percentage rate for the relevant business line under VAT Law No. 48/2024/QH15. For personal income tax, individuals leasing real estate (excluding accommodation-service business) pay tax on the portion of revenue exceeding VND 500 million multiplied by the applicable tax rate. If an individual leases multiple properties within the same province or across different provinces, they must file one consolidated tax return and choose a single tax authority (in the locality of one of the leased properties) to submit it, unless the corporate lessee has already declared and paid tax on their behalf. The VND 500 million annual deduction can be applied flexibly: the taxpayer selects one or more lease contracts to apply it against first, and if the deduction is not fully used, continues applying it to other contracts until the full VND 500 million is used, capped at VND 500 million total per year across all contracts. Important caveat: the official reply addresses only the general VAT and PIT declaration principles under Decree 68/2026/ND-CP. It does NOT directly answer the taxpayer's specific question about how to determine depreciation costs for fixed assets acquired in 2020 when the original supporting documents are no longer available, nor does it address invoice-issuance requirements that the taxpayer also asked about. The business household should contact its managing tax authority directly for specific guidance on valuing undocumented assets and on invoicing obligations.
The Situation
In 2025, the questioner established a business household (ho kinh doanh) to lease real estate. By 2026, this household has multiple leased properties across several provinces, at addresses different from its registered head office, with estimated annual leasing revenue exceeding VND 3 billion. The questioner asked how to declare and calculate taxes and issue invoices, and raised a specific problem: the only deductible expense available is fixed-asset depreciation, but the assets were acquired in 2020 and the original supporting documents are no longer held, making it impossible to determine the asset value needed to calculate depreciation.
Legal Basis Cited
Under Clause 2, Article 3 of Government Decree No. 68/2026/ND-CP dated March 5, 2026: business households and individual traders engaged in production or business with annual revenue exceeding VND 500 million are subject to value-added tax (VAT) and must apply the direct method, calculating VAT payable as taxable revenue multiplied by a percentage (%) rate. The applicable percentage rate and taxable revenue follow VAT Law No. 48/2024/QH15 and its implementing guidance.
Under Clause 4, Article 4 of Decree No. 68/2026/ND-CP: individuals leasing real estate pay personal income tax (PIT) under Clause 4, Article 7 of Personal Income Tax Law No. 109/2025/QH15:
- Where an individual leases multiple properties at different locations, the individual is entitled to a VND 500 million deduction before calculating PIT, applied to one or more lease contracts of the individual's choosing, provided the total deduction does not exceed VND 500 million per year across all lease contracts. If the selected contract's revenue is not enough to use the full VND 500 million deduction, the individual may continue applying the remaining deduction to other lease contracts until the full VND 500 million is used.
Declaration Method to Apply
Based on the above regulations, individuals leasing real estate (excluding accommodation-service business) must declare tax as follows:
- PIT is calculated on the portion of revenue exceeding VND 500 million, multiplied by the applicable tax rate.
- Where an individual leases multiple properties within the same province/city or across different provinces/cities: the individual must file one consolidated tax return covering all the properties and choose a single tax authority, in the locality of one of the leased properties, to submit that return - unless a corporate lessee has already declared and paid tax on the individual's behalf.
- Individuals with multiple leased properties at different locations may deduct VND 500 million before calculating PIT, applied to one or more lease contracts of their choosing, capped at VND 500 million total per year across all lease contracts. If a selected contract does not use up the full deduction, the individual may continue selecting other contracts to apply the remaining deduction until it is fully used.
The official reply is signed off: "Tax Sub-Department Region 1 of Ninh Binh province answers for reader Dinh Thi Nhan's information."
Important Editorial Note
The tax authority's answer addresses only the general principles for the VAT taxable threshold, the direct VAT calculation method, and how the VND 500 million PIT deduction is allocated for individuals/households with multiple leased properties across locations. The answer does NOT address:
- How to determine the original value and depreciation of fixed assets acquired in 2020 when the original supporting documents are no longer available - this was the core problem the questioner raised.
- Invoice-issuance requirements for a business household with revenue above VND 3 billion per year.
- Whether the household actually falls into the quarterly-declaration "group 3" category the questioner assumed.
This content should therefore be used only as a reference on the general VAT/PIT declaration principles for individual real estate leasing, not as complete guidance for a business household with undocumented assets or invoicing obligations. A portion of the original scanned image (specifically point b) of Clause 4, Article 4 of Decree 68/2026/ND-CP) was too faint to read and has been omitted from this transcription.