Do individuals who lease assets need to pay license fees? How is the revenue used as a basis for calculating license fees in this case determined? This article shares in detail the legal regulations surrounding the topic of license fees for individuals with property leasing activities.

CSPL: Clause 2, Article 4, Circular 302/2016/TT-BTC (amended by Clause 3, Article 1, Circular 65/2020/TT-BTC)

            Clause 1 Article 10 Decree 126/2020/ND-CP

1. Licensing fee rates for individuals with property leasing activities

– Pursuant to Clause 2, Article 4 of Circular 302/2016/TT-BTC (amended by Clause 3, Article 1 of Circular 65/2020/TT-BTC), accordingly, license fee rates for individuals with property leasing activities are specifically regulated as follows: as follows:

+ In case of individual with revenue over 500 million VND/year: 1,000,000 (one million) VND/year;

+ In case of individual with revenue over 300 to 500 million VND/year: 500,000 (five hundred thousand) VND/year;

+ In case of individual Individuals with revenue over 100 to 300 million VND/year: 300,000 (three hundred thousand) VND/year.

2. Revenue as a basis for calculating license fees in the case of individuals with property rental activities

Pase Clause 2 Article 4 Circular 302/2016/TT-BTC (amended by Clause 3, Article 1 of Circular 65/2020/TT-BTC), revenue as a basis for calculating license fees in the case of individuals with property leasing activities is determined as follows:

– Revenue to serve as a basis for determining license fee rates for individuals with property leasing activities is: Revenue for personal income tax calculation of property rental contracts of the tax year. In case an individual has multiple property rental contracts at one location, the revenue used as a basis for determining the license fee rate for that location is the total revenue from property rental contracts of the tax year. In case an individual leases property at multiple locations, the revenue used to determine the license fee rate for each location is the total revenue from property rental contracts of the locations in the tax year, including cases where multiple property rental contracts arise at one location.

– In case the property rental contract lasts for many years, the license fee must be paid each year corresponding to the number of years of the individual. Groups of individuals and households declare and pay value added tax and personal income tax. In case an individual, group of individuals, or household declares and pays value-added tax or personal income tax once for a property lease contract lasting for many years, they will only pay the license fee for one year.

3. Time to submit license fee declaration documents for individuals with property leasing activities

According to the provisions of Clause 1, Article 10 of Decree 126/2020/ND-CP, the deadline for submitting license fee declaration documents is prescribed as follows:

Duration submit tax declaration dossiers for land revenues, license fees, registration fees, rights granting fees and other revenues according to the law on management and use of public assets

Taxpayers comply with the regulations on the deadline for submitting tax declarations as prescribed in Article 44 of the Law on Tax Administration. The deadline for submitting declarations of land revenues, license fees, registration fees, rights granting fees and other revenues according to the law on management and use of public assets as prescribed in Clause 5, Article 44 of the Law on Tax Administration is implemented as follows:

1. License fees

…

In case there is a change in capital during the year, the license fee payer shall submit the license fee declaration no later than January 30 of the year following the year in which the change occurred.

b) Business households and individual businesses do not have to submit license fee declaration documents. The tax authority bases on tax declaration records and tax management database to determine revenue as a basis for calculating the amount of license fee payable and notifies the license fee payer to comply with the provisions of Article 13 of this Decree.

Compared with the above regulations, business households and individual businesses do not have to submit license fee declaration documents. Therefore, individuals with property rental activities do not have to submit license fee declaration documents.