Asset Leasing by Individuals: How Is Revenue for Tax Purposes Determined?

Short answer: From 2026, individuals leasing assets are no longer required to pay the business license tax (collection and payment of the business license tax ended under Resolution 198/2025/QH15). The remaining financial obligations are value-added tax and personal income tax on lease revenue — with revenue of VND 500 million/year or less, neither tax is payable.

Legal basis

• Clause 7, Article 10 of Resolution 198/2025/QH15 — abolition of business license tax collection and payment from 01/01/2026;
• Clause 1, Article 7 of the Law on Personal Income Tax 2025 (No. 109/2025/QH15) — revenue threshold for PIT exemption: VND 500 million/year or less (applicable from the 2026 tax period);
• The Law amending the Law on Value-Added Tax (No. 149/2025/QH15, effective from 01/01/2026) — revenue threshold for VAT exemption: VND 500 million/year or less.

Business license tax: abolished

• Previously, asset lease revenue was the basis for determining the payable business license tax;
• From 01/01/2026: no more business license tax — revenue no longer needs to be determined for this purpose.

VAT and PIT exemption threshold: VND 500 million/year

• Individuals leasing assets with revenue of VND 500 million/year or less: not required to pay VAT or PIT;
• Revenue above VND 500 million/year: tax is paid on the portion of revenue exceeding VND 500 million — PIT on asset leasing applies a 5% rate on taxable revenue (Clause 3, Article 7 of Law 109/2025/QH15);
• Taxable revenue is the total lease amount received in the calendar year.

Declaration obligations

• Individuals leasing assets declare tax per contract or per year;
• Keep lease contracts and payment receipts for declaration and inspection;
• Check with the directly managing tax authority on the current declaration forms.

If you need to determine the right approach for your specific situation, you should discuss it with a lawyer in advance for a review of your documents and advice on the course of action.

For quick advice, you can contact a lawyer at 0966.475.966.

Related articles

• Do household businesses have to pay tax?
• Do household businesses under VND 100 million have to pay the business license tax?
• How much income is subject to PIT?