Circular 100/2021/TT-BTC dated November 15, 2021 amending Circular 40/2021/TT-BTC guiding value-added tax, personal income tax and tax management for business households and individuals business.
Accordingly, amending the tax calculation method for individuals leasing properties at Point c, Clause 1, Article 9 of Circular 40/2021/TT-BTC as follows:
“Individuals who only have property leasing activities and the rental period is not full year, if they generate rental revenue of 100 million VND/year or less, they are classified as not have to pay VAT and PIT.”
Currently, Circular 40/2021/TT-BTC stipulates that individuals who lease property without generating revenue for full 12 months in a calendar year (including the case where there are many lease contracts), must have a turnover of 100 million dong/year or less to determine that the lessor is not required to pay VAT and PIT is the taxable revenue of a calendar year (12 months).
The actual taxable turnover to determine the payable tax amount in the year is the revenue corresponding to the actual number of months incurred for leasing the property.
At the same time, the regulation also amends the provisions at Point đ, Clause 1, Article 8 of Circular 40/2021/TT-BTC as follows:
Organizations, including owners of E-commerce trading platform, prepare tax declarations on behalf of individuals and pay taxes on behalf of individuals on the basis of authorization according to the provisions of civil law”
Thus, if the seller does not authorize, the e-commerce platform will not have to declare and pay tax on its behalf.
Circular takes effect from 01/01/2022