Question:
1. Individual A has rented out three houses to Company B, each located at a different address within the same ward and district in Ho Chi Minh City (under three separate leasing contracts). The total rental income from these houses is over 500 million VND per year. Now, Individual A wants to consolidate these three leasing contracts into a single contract with Company B to lease out the three houses. After consolidating the contracts, should Individual A pay the annual business license tax based on a single contract (with a tax amount of 1 million VND/year) or based on the rental addresses (i.e., 3 million VND/year for the three rental addresses)?
2. Individual C has two cars rented to Company D, with a total rental income of over 500 million VND per year. Should the business license tax for the two rented cars be paid based on the number of cars (i.e., 2 million VND/year) or based on the leasing contracts (i.e., 1 million VND/year)?
Answer:
-CIn accordance with Circular No. 302/2016/TT-BTC dated November 15, 2016, issued by the Ministry of Finance, which provides guidance on business license tax, the following applies:
- In the case of Individual A, who signs contracts with Company B to rent out three houses, each located at a different address within the same ward and district in Ho Chi Minh City (under three separate leasing contracts) and generates a total rental income of over 500 million VND per year, if Individual A consolidates these three leasing contracts into a single contract with Company B to lease out the three houses, the annual business license tax must still be paid based on each rental address (i.e., 3 million VND/year for the three rental addresses).
- In the case of Individual C, who signs contracts with Company D to rent out two cars, with a total rental income of over 500 million VND per year, the business license tax should be paid based on the number of cars rented out (i.e.,1 million VND/year).
