The Hanoi Tax Department is taking a series of measures to strengthen tax management for house leasing.

In the first four months of 2021, revenue from house leasing
rose by 14% year-on-year. Photo: Internet.

According to the Hanoi Tax Department, business households and individuals in Hanoi who have houses for rent have been aware of complying with tax declaration and payment rules.

However, in 2020, due to the Covid-19 pandemic, the production and business situation of households and business individuals and the house leasing have been seriously affected.

To remove difficulties and support production activities for business households and individuals, Hanoi Tax Department has promoted communications and carried out support policies of the Government and the Ministry of Finance for the people, specifically: Resolution 42 on supporting business households affected by the Covid 19 pandemic; Decrees 41/2020/ND-CP and Decree 52/2021/ND-CP on tax payment extension – including households and individuals engaged in house leasing activities.

At the same time, the Hanoi Tax Department has implemented many solutions to strengthen tax management for business households of house leasing to create fairness and equality in tax obligation performance.

As a result, in 2020, tax revenue from house leasing activity in Hanoi was equal to 2019. In addition, in the first four months of 2021, revenue from house leasing increased by 14% year-on-year. The number of house lessors declaring and paying tax was up 4%.

However, there are still many cases of people failing to declare or pay taxes or making false declarations

Therefore, Hanoi Tax Department has requested tax branches to guide each tax team and each tax officer to strengthen the inspection and review of management areas that have households and individuals engaged in house leasing activity

Also, the tax sector must also closely work with local authorities such as: Police, Land Administration, Building Management Board, Apartment Management Board, etc. to enhance accommodation management, especially for foreigners, to promptly detect and handle according to provisions of law the failure to register, declare and pay tax on the rental of houses and accommodation facilities of business household owners.

Tax branches must advise People's Committees of districts/towns to devise regulations on coordination in tax management for housing lessors.

For individuals who have houses for lease on websites such as AirBnB, Booking.com, Agoda and Luxstay but have not yet declared or paid taxes, Hanoi Tax Department will continue profiling, reviewing database and request tax branches to verify at the addresses of rental houses registered via the website to determine revenue and urge tax declaration and payment according to regulations.

The Hanoi Tax Department will inspect and strictly treat landlords that deliberately evade taxes and fail to declare and pay taxes.