Question 80: Can Employees authorise Employers to finalise PIT on their behalf in the case where Employees earn current incomes from leasing their properties co-owned by the Employees’ spouses?

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According to the law on PIT with respect to individuals who lease out properties (who earn incomes from leasing houses, premises etc.), the revenue of VND100 million/year and below to define those who are not required to pay value added tax and PIT is the total revenue arising from property-leasing contracts in the calendar year. In the case of many individuals co-owning the properties, the revenue of VND100 million/year and below to define those who are not required to pay value added tax and PIT is applicable to 01 person in the tax year[1]. As such, if the revenue from leasing houses is VND100 million/year and over, individuals must pay PIT on the income from leasing houses. If the leased property is co-owned by a spouse, then one of them will be the representative to discharge tax obligations. Accordingly, if the husband is the representative, they will be the one to pay value added tax and PIT on the revenues from leasing their properties.

Regarding the authorisation to finalise PIT, the law on PIT permits Employees to authorise Employers to finalise tax if they earn incomes from salaries, wages and other sources, including current incomes from leasing the properties co-owned by the Employees’ spouses[2]. However, Employees can only authorise Employers to finalise PIT on the portion of income from salaries, wages that they receive from Employers, and the authorisation to finalise PIT must meet all the following conditions:

  • LCs with a term of at least 3 months;
  • Employees are working for Employers at the time of authorisation to finalise tax, including those who have not spent full 12 months working for Employers in the year;
  • The average current income per month from other sources in the year is not more than VND10 million;
  • The current income has been subject to a tax deduction of 10% by those who pay the income; and

Employees do not request to finalise tax on the current income.

[1]Article 4.1 Circular 92/2015/TT-BTC dated 15/06/2015

[2]Article 16.2 (a.4) Circular 156/2013/TT-BTC dated 06/11/2013 as amended and supplemented by Circular 92/2015/TT-BTC dated 15/06/2015