Foreign Individuals owning rental properties in Vietnam are entitled to remit their rental receipts/profits abroad, provided that tax has been paid on the income.
Rental property owners (“Landlords”) are subject to Vietnamese tax obligations once their total income in a year exceeds VND 100 million (or where monthly income, on average, is greater than VND 8.4 million). Landlords are required to pay three forms of taxes in a year: Annual Business License Tax, Value Added Tax (“VAT”) and Personal Income Tax (“PIT”). Along with these tax obligations, Landlords should also be providing their tax registrations & tax payment confirmations to their bank in order to better facilitate the remittance of their tax-paid rental income abroad.
Foreign Landlords should share their ownership and property tax registration with their bank, and confirm that the bank will accept third-party rental income into their bank account. It is also commonly recommended that the Landlord open a separate bank account for receiving rental income, so that later the funds can be easily identified as the rental income for remitting abroad.
Although this is subject to each bank’s internal processes, it is recommended that Landlords periodically provide their bank with copies of tax payment certificates so that bank will continue to treat the rental funds in the bank account as “tax paid”. This makes it far easier for the Landlord when requesting their bank to remit the tax-paid funds abroad to a foreign bank account in their name, in accordance with State Bank requirements.
Download our quick guide showing the 5 steps to sending rental income abroad.