Official Letter No. 1893/CTBDU-TTHT regarding personal income tax obligations for the rental of overseas properties by resident individuals. The Tax Department provides the following opinions:

The Tax Department provides the following opinions:

1. Legal basis:

1.1. Decree No. 126/2020/ND-CP dated October 19, 2020, issued by the Government

• Article 11 stipulates the location for submitting tax declaration dossiers:
  "Article 11. Tax declaration dossier submission location

6. Declarations of taxes that have to be declared and paid separately shall be submitted to the supervisory tax authorities as prescribed in Point b Clause 4 Article 45 of the Law on Tax Administration, except in the following cases:
   g) Individuals having income from leasing out property (except real estate) shall submit tax declaration dossiers to the supervisory tax authorities of the areas where they reside. Individuals having income from leasing out real estate in Vietnam shall submit tax declaration dossiers to the supervisory tax authorities of the areas where the real estate is located. Individuals leasing out overseas real estate shall submit tax declaration dossiers to the supervisory tax authorities of the areas where they reside."

1.2. Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance

• Article 1 defines taxpayers:
  "Article 1: Taxpayers
  ... Determination of taxable incomes earned by taxpayers:
  Taxable incomes earned by residents are the incomes earned within or outside Vietnam’s territory, regardless of locations or payment and receipt.
  Taxable incomes earned by non-residents are the incomes earned within Vietnam’s territory, regardless of the location of payment and receipt."

• Article 2 defines taxable incomes:
  "Article 2. Taxable incomes

1. Incomes from business
   Incomes from business are incomes earned from the production and sale. Specifically:
   a) Incomes from production and sale of goods and services that belong to all industries such as: production, goods sale, construction, restaurants, service provision including lease of houses, right to use land, water surface, and other property..."

1.3. Circular No. 40/2021/TT-BTC dated June 1, 2021, issued by the Ministry of Finance

• Provides guidance on VAT, PIT, and tax administration for household and individual businesses.

2. Opinion of the Binh Duong Tax Department
Based on the aforementioned regulations, the Binh Duong Tax Department provides the following response:

• A resident individual in Vietnam who earns taxable personal income from renting properties outside Vietnam is subject to personal income tax according to Article 1 of Circular No. 111/2013/TT-BTC.
• An individual leasing real estate abroad must submit their tax declaration dossiers to the tax authority directly managing their place of residence, as stipulated in Article 11 of Decree No. 126/2020/ND-CP.
• The tax declaration should be made using Form No. 01/TTS (Tax Declaration for Asset Leasing Activities) as guided in Article 14 of Circular No. 40/2021/TT-BTC.

In summary:
✅ A resident individual in Vietnam who earns income from leasing properties abroad must pay PIT.
✅ Submit the tax declaration dossier to the tax authority where the individual resides.
✅ Use Form No. 01/TTS as per the guidance in Circular No. 40/2021/TT-BTC.

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