Paying taxes is the obligation and right of the people to promote the development of the national economy. So how do individuals who have both salary income and property rental income calculate taxes? Let’s find out the content of the article below with MISA MeInvoice .
have both salary and rental income
Table of Contents Hide
1. How to calculate personal income tax from salary
2. How to calculate income tax from property rental
3. Questions related to personal income tax payment for individuals
3.1. Where to submit tax declaration from rental activities? Within how long?
3.2. Deadline for paying tax on income from property rental?
4. Conclusion
1. How to calculate personal income tax from salary
how to tax personal income tax from salary
According to Circular 111/2013/TT-BTC, the personal income tax rate for income from wages and salaries of employees is calculated according to the following formula:
Tax payable = Taxable income x Tax rate
In there:
Taxable income = Taxable income – Deductions (3)
Taxable income = Total net income (1) – Tax exemptions (2)
(1) Total actual income includes: salary, wages, other income that individuals receive during work, including holiday bonuses.
(2) Tax-free allowances include: lunch allowance, mid-shift allowance, uniform allowance, telephone allowance, travel allowance, overtime allowance.
(3) Deductions include: family greece telegram data eductions , insurance contributions, charity, humanitarian, voluntary retirement, and education incentives.
Level Taxable income /month Tax rate Calculate tax payable
2. How to calculate income tax from property rental
how to calculate personal income tax from property rental
Households or individuals with rental the most important drawback of the method properties that are subject to declaration must pay business license fees, VAT, and personal income tax to the Tax Authority as prescribed in Clause 7, Article 1 of Circular 119/2014/TT-BTC. In cases where households or individuals with rental bulk data properties have total rental income of less than VND 100 million/year or VND 8.4 million/month, they do not need to declare and pay VAT and personal income tax.
Revenue subject to VAT and PIT from leasing activities includes tax on the amount paid by the lessee periodically as agreed and clearly stated in the leasing contract and other revenues. VAT and PIT will not include compensation and penalties between the lessor and the lessee.
In case the lessee pays the property rental in advance for many years, the tax revenue will be
determined according to the one-time payment revenue.
Conclusion : Thus, through the two information above, we can see that tax income from salary and from property leasing activities are two separate activities. According to Circular 92/2015/TT-BTC, it is stipulated that individuals with income from salary and wages and income from property leasing activities, individuals onlysettle personal income taxon income from salary and wages, not making joint settlement from property leasing activities.