Starting from April 29th, 2026, the new rental properties Tax Policy officially takes effect. With a tax exemption threshold of 1 Billion VND/year and VAT + PIT rates applied to the exceeding amount, investors must recalculate their yield equation. This is especially true now that Airbnb has been legalized in Ho Chi Minh City.
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From April 29th, 2026, the tax calculation method for real estate rental activities has changed significantly. The new policy clearly divides two cases based on total annual rental revenue, replacing the fixed tax framework previously in place.Specifically:
Example: For a rental revenue of 1,5 Billion VND/year, the total tax payable = 75 million VND (VAT) + 25 million VND (PIT) = 100 million VND.
Notable point: VAT is calculated on the total revenue, while PIT is only calculated on the portion exceeding the threshold. This detail is easily missed by many investors when calculating their after-tax yield. (Basis: Decree 141/2026/NĐ-CP, effective April 29th, 2026).
The 1 Billion VND threshold is equivalent to about 83.3 million VND/month in rent. For luxury apartments in Ho Chi Minh City, this figure is not difficult to reach and this is why investors need to recalculate their yield right from the planning stage.
For investors holding multiple rental properties, the question is not just “how much is the tax” but also “how to calculate tax to optimize financial obligations.”
According to Decree 141/2026/NĐ-CP, the 1 BiIllion VND exemption threshold applies to the total of all contracts in a year, not to each individual property. Investors have the right to choose which contract to apply the deduction first, as long as the total does not exceed 1 Billion VND/year.
Example: An investor has 2 rental units with revenues of 500 million and 700 million VND/year. The total is 1.2 Billion VND. The portion subject to PIT is 200 million VND even though each individual property falls below the threshold.
Regarding the tax filing deadline, investors have 2 options:
Filing once a year helps you know the exact total actual revenue of the entire year before paying taxes. This method is highly suitable for apartments with Airbnb occupancy that fluctuates by season. [Airbnb in HCMC Legalized in 2026. Opportunities for Short-Term Rental Investment?]
The rental equation in 2026 does not start with the rental price. It begins with the net amount you actually keep.
With the new rental properties tax policy, the question is no longer “which model yields higher revenue” but “which model retains more after-tax.” For a 2-bedroom apartment in Thu Thiem (estimated value of 25 billion VND), the table below shows a clear difference.
| Criteria | Long term Rental | Airbnb |
| Revenue/ Monthly | $1,800 | $2,800–$3,800 |
| Revenue/Yearly | $21,600 | $33,600–$45,600 |
| VAT (5% Revenue) | $1,080 | $1,680–$2,280 |
| PIT (5% on amount exceeding threshold) | $0 | $0–$280 |
| Total Tax/ Yearly | $1,080 | $1,680–$2,560 |
| Operation Cost/ Yearly* | ~$720 | ~$13,440–$18,240 |
| Net cash flow/Year | ~$19,800 | ~$18,480–$24,800 |
| Yield Net/Yearly | ~1,98% | ~1,85%–2,48% |
| Accumulate 5 years | ~$99,000 | ~$92,400–$124,000 |
| Accumulate 7 years | ~$138,600 | ~$129,360–$173,600 |
PIT only applies in the higher revenue scenario ($45,600/year), where revenue exceeds the threshold by approximately $5,600.
Important note: The table above only reflects net rental cash flow after-tax and operating expenses. The real estate appreciation factor is not included here because it is a variable that depends on the market and cannot be accurately predicted. Even if no tax is generated, the owner is still obligated to declare annual revenue according to Decree 141/2026/ND-CP.
Airbnb leads in the optimistic scenario, but the gap narrows significantly compared to the gross yield figure. For investors who prioritize stable cash flow and low operating costs, long-term leasing remains an option worth considering, especially when the apartment does not have a professional Airbnb management unit.
The new tax policy does not eliminate rental profits, but it changes how we read the numbers. A 6% yield before-tax and the actual yield after-tax, after operating expenses, are two completely different equations. Investors who clearly understand the tax calculation mechanism will choose a rental model that better fits their financial goals, whether it is stable cash flow or maximizing short-term profits.
Looking for a trustworthy real estate agent? La Quinta is your one-stop partner. We offer turnkey support for buying/selling, renting, interior design & furnishing, and full property management. Contact us today.
Mr. DONNIE KIM (Korean & English)
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Ms. TRẦN HOÀNG OANH (Vietnamese & English)
Director of Residential and Investment Team
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