Many businesses, when headquartered, often have their headquarters in the homes of individuals. And of course, when the office tax of individuals will not have an invoice. Office rental cost will not be included in deductible expenses when calculating corporate income tax. How to handle the cost of renting an office without an invoice? How is the cost of office space tax deductible?
Office Rental Cost of renting personal property
Pursuant to Article 4 of Circular 96/2015/TT-BTC, individual property rental expenses are considered non-deductible expenses when calculating corporate income tax. To count as a deductible expense:
- In case the enterprise leases the property of an individual: There must be a property lease contract and proof of rental payment.
- In case an enterprise leases the property from an individual, but in the property lease contract, it is agreed that the enterprise shall pay tax on behalf of the individual: then the dossier is the property lease contract, the rental payment document, and the tax payment document on behalf of the individual.
- In case the enterprise leases the property of an individual, in the property lease contract, there is an agreement that the rent does not include tax (value-added tax, personal income tax), and the enterprise pays tax on behalf of the individual: then the enterprise is included in the deductible expenses the total amount of the rental. Including taxes paid on behalf of individuals.
Handling office expenses without invoices
If the enterprise’s office cost is less than 100,000,000 VND/year
Households and individuals leasing properties with a total rent of < 100,000,000 VND/year or < 8,400,000 VND/month are not required to declare and pay value-added tax and personal income tax. . And do not have to declare and pay license fees. And the tax authority does not issue a single invoice (So there is no invoice).
Accordingly, the enterprise will handle the cost of renting an office rental cost without an invoice as follows:
- Tenancy
- Proof of rent payment.
You can read the previous article here: 5 Effective Office Layout
If the office cost of the enterprise is more than 100,000,000 VND/year
In this case, households and individuals who rent out the property will have to declare and pay personal income tax, value added tax and license fees.
- The license fee to be paid will depend on the amount of revenue that households and individuals earn.
- Personal income tax = Revenue x 5%
- Value added tax = Revenue x 5%
Accordingly, enterprises handle office rental cost expenses without invoices as follows:
- Tenancy
- A certified copy of the identity card or citizen identification card of the individual renting the house.
- Property rental tax return.
- Proof of tax payment of the homeowner or proof of tax payment on behalf of the landlord
- Proof of rent payment
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