How to Bring the Office Rental Fee into a Reasonable Cost

by Huy
June 13, 2022
Leasing Office Guide
0

Here, Lookoffice would like to guide everyone on how to include the office rental fee into tax-deductible expenses so that they can’t be confusing.

Regulations on personal property office rental fee

According to Clause 2, Article 4 of Circular 96/2015/TT-BTC stipulating the cost of renting properties of individuals:

In case an enterprise leases an individual’s property, the documents to determine the deductible expenses are the property lease contract and the rental payment document.
In case an enterprise leases an individual’s property and the property lease contract contains an agreement that the enterprise shall pay tax on behalf of the individual, the documents used to determine the deductible expenses are the property lease contract and the rental payment voucher. property and tax payment documents on behalf of the individual.
In case an enterprise leases the property from an individual but the lease contract has 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 property rental including the tax paid on behalf of the individual.

NOTES ON PAYING TAX ON OFFICE RENTAL FEE PROPERTIES

For individuals leasing properties

Case 1: The individual leasing the property directly declares tax with the tax authority

Case 2: The lessee declares and pays tax on behalf of the lessee if it is agreed in the contract that the lessee is the taxpayer.

You can know more about types of office rental fees here: 12 Types of Office Rental Fees You Need to Know

Dossier as a basis for bringing the cost of renting the company’s office into a reasonable cost includes:

Case 1: If the contract shows that the individual is the taxpayer, the dossier includes:

+ Property lease contract

+ Proof of rental payment

Case 2: If the contract shows that the enterprise pays tax on behalf of the owner, the enterprise needs to:

+ Property lease contract

+ Proof of property rental payment.

+ Tax payment documents on behalf of individuals.

Note: Enterprises will include in reasonable expenses the amount of VAT and PIT paid on behalf of the lessor if the contract shows that you pay on behalf of the business and the rental price does not include VAT or PIT…