People think that the 10% tax is high, but the tax authority says "this level is reasonable", and will consider raising the tax threshold to higher than 100 million VND.

Ho Chi Minh City will pilot the collection of house rental tax in some apartment buildings in District 11, a solution to prevent budget loss when many house renters have not proactively declared and paid taxes for a long time.

According to current regulations, an individual renting a house is determined to be a person with income from business activities. Therefore, people with house rental income of 100 million VND a year or more need to pay two types of taxes: value added (5%) and personal income (5%), which means the tax rate is 10% on the above. total annual revenue. In addition, once a year, the lessor pays an additional license fee.

This regulation on property rental (house rental) tax collection does not apply to short-term rentals to tourists, visitors, and long-term rentals to vulnerable groups such as students, workers, etc. .

From the perspective of tax management, Ho Chi Minh City's new approach this time is considered highly effective by experts. The local police agency and the building management board are the closest contacts to the area, helping tax authorities identify the right people who are earning income from house rentals.

From the people's perspective, the tightening of rental tax collection raises many concerns. The main concern of many people is that when paying taxes for renting a house, will they be able to deduct input costs such as brokerage costs, financial costs, equipment investment costs, and annual repairs.

This is meaningful for renters who still have to pay bank interest due to installment purchases or want to deduct equipment investment costs. Besides, they are also worried that with this policy, increased rental prices will eventually cause renters to suffer.

However, to make the tax policy more popular and reasonable, Mr. Bao's proposal to the tax authority is to raise the income tax threshold for business individuals (including house renters).

The tax authority noted this opinion and is researching and considering to propose to the Ministry of Finance to amend the taxable income threshold when drafting amendments to the Value Added Tax Law. However, to determine how much the level can be raised, there needs to be a process of research and impact assessment analysis, said a representative of the General Department of Taxation.

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