Vietnam raises rental‑income tax exemption to VND1 billion per year

Vietnam rental income tax exemption Decree 141 VAT

Decree 141/2026, issued by the Vietnamese government, amends earlier tax regulations by increasing the revenue threshold at which individuals and small business entities must pay tax on rental income. The exemption limit is lifted from VND500 million to VND1 billion per year for both value‑added tax (VAT) and personal income tax (PIT).

Experts explain that landlords whose annual rental receipts are below the new VND1 billion ceiling will no longer be required to remit VAT or PIT. For example, a landlord earning about VND720 million a year would be exempt, while a landlord with VND1.2 billion in revenue must pay 5 % VAT on the full amount and PIT on the excess (5 % of VND200 million, i.e., VND10 million). The revised rules also expand the deductible amount for PIT from VND500 million to VND1 billion.

Implementation details such as the issuance of guiding circulars remain pending. Some tax officials indicate that the existing decree is sufficient, while others await further clarification before processing refunds for taxes already paid under the old threshold.