Question 93. Can the Employee authorises the Employer to finalise PIT on his or her behalf in the case where the Employee earns current incomes from leasing his or her properties co-owned by the Employee’s spouse?

Answer:

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 or below which is the basis to indicate whether or not an individual is 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 or below which is the basis to define those who are not required to pay value-added tax and PIT applies to only 01 owner representing the others in the tax year[1]. In light of the above, if the revenue from leasing houses is over VND100 million/year, individuals must pay PIT on the income from leasing houses. If the leased property is co-owned by spouses, then one of them will be the representative to pay value-added tax and PIT on the revenues from leasing his or her properties.

Regarding the authorisation to finalise PIT, the law on PIT permits the Employee to authorise the Employer to finalise tax if the Employee earns incomes from salaries, wages, and other sources, including current incomes from leasing the properties co-owned by the Employee’s spouse[2]. However, the Employee can only authorise the Employer to finalise PIT on the portion of the income from salary, wages that he or she receives from the Employer, and the authorisation to finalise PIT must meet all the following conditions:

  • The LC with a term of at least 3 months;
  • The Employee is working for the Employer at the time of authorisation to finalise tax, including those who have not spent full 12 months working for the Employer in the year;
  • The average current income per month from other sources in the year is not over VND10 million;
  • The current income has been subject to a tax deduction of 10% by those who pay the income; and
  • The mployee does not request to finalise tax on the current income.

[1] Article 4.1 of the Circular No. 92/2015/TT-BTC of the Ministry of Finance 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