21 August, 2016
Tax Department of Hanoi has issued a guidance on tax policy on employees’ house lease expense as follows:
Accordingly, the Tax Department will not issue invoices to households / individuals who rent their assets to enterprises. Supporting documents for determining deductible expenses for CIT purpose in case enterprises lease assets from households / individuals include the lease contract, payment voucher and tax payment voucher on behalf of lessor (in case the lessee is the tax payer on behalf of lessor), and there is no requirement to prepare Form 01/TNDN as stipulated in Circular No. 78/2014/TT- BTC.
Of note, pursuant to Decision No. 2469/QD-TCT dated 31st December 2015 issued by the General Department of Taxation promulgating the formality of tax administration for individual’s leasing assets; if individuals / households deriving income from leasing of assets such as: houses, machines, devices or cars which results in taxable income (i.e. total income of VND100 million/year or above), the lessor is required to register the contract with the Tax Authorities for issuance of a managing code to each respective contract.
Therefore, enterprises should request individuals / households to provide a copy of the contract registration form in accordance with the Decision No. 2469/QD-TCT for filing and as a supporting document for tax purposes.
