Households business and individuals have new guidelines on tax management

VCN - The Ministry of Finance has announced it will collect opinions on a draft circular guiding tax and tax management for household businesses and individuals.
3334-4624-z2379989788910-cb62f7b1005240889ef7e665163f261f
The basis for tax calculation for business individuals is taxable revenue and tax rate calculated on revenue. Photo: Thùy Linh

Accordingly, this circular provides guidance on value added tax, personal income tax and tax management for individuals, groups of individuals and households business as resident individuals doing business; business households and individuals doing business at border markets, markets in border economic zones in the territory of Vietnam, as well as individuals having leased assets in the Vietnamese territory and individuals transferring internet domain name to Vietnam ".vn".

The draft circular prescribes tax calculation methods for each group of subjects as follows: households business, individuals business that pays tax via the declaration method; individuals business declare tax every time it arises; households business and individuals business pay tax by following the flat tax method (households paying flat tax); individuals leasing property, individuals directly signing lottery agent contracts, insurance agents, multi-level marketing agents, organisations and individuals should declare tax and pay tax on behalf of individuals.

The draft also states that the basis for tax calculation for business individuals is taxable revenue and tax rate calculated on revenue.

According to this draft, the time for determining taxable revenue of households business and individuals that pay tax by following the declaration method; for individuals business that declare tax every time it arises, the time for determining taxed turnover is the time for determining value-added taxable turnover in accordance with the provisions of the law on value-added tax.

For households paying flat tax, the time for individuals conducting determination of turnover is from November 20 to December 15 of the year before the taxable year. For individuals doing business paying flat tax and having just started their business or changing the scale or type of business in the year, the time for individual conducting determination the flat taxable turnover of the year is within 10 days of starting business or the date of changing type of business. As for the revenue of invoices issued by the tax authority each time it arises, the time for determining taxable turnover is the time for determining the revenue for VAT calculation in accordance with the provisions of the law on value-added tax.

For individuals leasing property, the time of determination of value-added taxable turnover and revenue for calculating personal income tax is the beginning of each payment period on the property lease contract.

For individuals who sign contracts to act as lottery agents, insurance agents, multi-level sales agents, the time of determining taxable turnover is when lottery firms, insurance enterprises and multi-level marketing enterprises pay personal commissions.

In addition, for individuals doing business with an organisation, the time to determine the personal income taxable turnover is when the business cooperation result is divided.

For an individual earning income from digital information content products or services, the time for determining taxable revenue is the time that the individual actually receives the income.

If an individual has income from digital information content products or services but the service provider is from overseas has a partnership agreement in Vietnam to pay income for individual through a partner organisation in Vietnam, the time of determination of taxable turnover is the time when the partner organisation in Vietnam actually receives payments for that individual from a foreign service provider.

By Thùy Linh/Thanh Thuy

Related News

Review the tax payment of sales livestream individuals

Review the tax payment of sales livestream individuals

VCN - The General Department of Taxation has just issued an official letter directing local tax departments to drastically manage e-commerce taxes and electronic invoices generated from cash registers.
Strong digital transformation in tax management

Strong digital transformation in tax management

VCN - In the context of the Government's drastic direction in implementing the National Digital Transformation Program, building e-Government, digital Government, and digital economy, the Tax industry has made strong strides in digital transformation, creating major changes in management methods and working processes.
Many tax management solutions for e-commerce

Many tax management solutions for e-commerce

VCN - In Vietnam, the e-commerce market is increasingly growing and expanding with a diversity of operating models, many participants... posing great challenges for tax management.
Tax compliance management in the digital economy

Tax compliance management in the digital economy

VCN - The management of tax compliance in the digital economy has faced many challenges compared to the traditional economy. The transactions made via the internet environment and digital platforms have caused monitoring, controlling and management difficulties. Therefore, it is required to have appropriate solutions for management and ensuring revenue sources.

Latest News

Promoting review, classification and management of tax debt

Promoting review, classification and management of tax debt

VCN - According to the General Department of Customs, the amount of overdue debt recovered and processed in the first 6 months of 2024 for the all Customs sector reached VND 349 billion. To ensure completion of tax debt collection and settlement targets, the General Department of Customs requires units to focus on reviewing debt management records to effectively implement measures to urge, collect and handle tax debt.
Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

VCN - VCN- Vehicles carrying import and export cargo across customs clearance routes and specialized roads in the international border gate pair of Huu Nghi (Vietnam) - Huu Nghi Quan (China) must comply with international treaties and regulations of Vietnam Law. Accordingly, the vehicles transporting import and export cargo across Lang Son border gates are required to have at least seven valid documents from August 1, 2024, Lang Son Department of Industry and Trade notified.
Does goods imported for investment incentives project subjected to tax exemption?

Does goods imported for investment incentives project subjected to tax exemption?

VCN - That is the problem of Ba Ria - Vung Tau Customs Department related to processing tax exemption documents for imported goods to serve investment incentive projects.
Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

VCN - According to Lang Son Customs Department, to implement the master plan of the land border gate area associated with the goal of digital transformation, in which, to ensure successful implementation of the Customs Development Strategy until 2023, Building digital Customs, a smart Customs model, it is necessary to review and evaluate the overall system of land border gates, paying attention to investment in equipment, facilities, and human resources.

More News

Proposal to reduce registration fees to restore growth of domestic automobile industry

Proposal to reduce registration fees to restore growth of domestic automobile industry

VCN - Facing the significant decline in auto market sales in the last months of 2023 and early 2024, the Ministry of Finance is asking for opinions from ministries, central agencies and relevant agencies on continuing to reduce registration fee to restore growth of the domestic automobile industry amid many difficulties and challenges in the economy.
VAT reform promotes sustainable development of the agricultural sector

VAT reform promotes sustainable development of the agricultural sector

VCN - In the revised Draft Law on Value Added Tax (VAT), the conversion of fertilizers and specialized machinery and equipment serving agricultural production to applying 5% VAT since it belongs to the group of subjects not subject to tax according to current law, it is a content that receives attention from the business community, especially fertilizer production enterprises. According to experts and businesses, converting this item to a taxable object will have a huge impact on agricultural production.
Customs implements VAT reduction policy from July 1st

Customs implements VAT reduction policy from July 1st

VCN - To implement the contents relating to customs field, General Department of Vietnam Customs requested local customs departments to reduce VAT for group of commodities as stipulated at Decree 72/2024/NĐ-CP.
Amend the Law on Corporate Income Tax to ensure stable revenue sources for the budget

Amend the Law on Corporate Income Tax to ensure stable revenue sources for the budget

VCN - According to the Ministry of Finance, the amendment of the Law on Corporate Income Tax (CIT) aims to overcome inadequacies and overlaps, ensure stable revenue sources for the state budget, and contribute to restructuring state budget revenues in a sustainable direction.
List of imported and exported medicine and medicinal ingredients identified commodity codes

List of imported and exported medicine and medicinal ingredients identified commodity codes

VCN – 14 lists of imported and exported medicine and medicinal ingredients for human use and cosmetics that have been identified commodity codes under Vietnam’s Imports and Exports Nomenclature, have been approved and issued by the Ministry of Health from July 26, 2024.
Hundreds of tons of imported raw cashew nuts stuck in quarantine

Hundreds of tons of imported raw cashew nuts stuck in quarantine

VCN – A company is facing problems with plant quarantine regulations when carrying out procedures to import over 384 tons of "raw cashew nuts, originating from Tanzania" from a bonded warehouse in Dong Nai.
Extend deadline for paying Special Consumption Tax on domestically produced and assembled cars

Extend deadline for paying Special Consumption Tax on domestically produced and assembled cars

VCN – The Government has issued Decree 65/2024/ND-CP dated June 17,2024 extending the deadline for paying Special Consumption Tax on domestically produced and assembled cars. The Decree takes effect from the date of signing until December 31, 2024.
Extend the deadline for paying taxes and land rent in 2024

Extend the deadline for paying taxes and land rent in 2024

VCN - The Government has just issued Decree No. 64/2024/ND-CP dated June 17, 2024 extending the deadline for paying value added tax (VAT), corporate income tax (CIT), personal income tax (PIT) and land rent in 2024. This Decree takes effect from June 17, 2024 to December 31, 2024. After the extension period according to this Decree, the deadline for paying taxes and land rent will comply with current regulations.
Tax payment deadline for domestic cars extended

Tax payment deadline for domestic cars extended

The Government has decided to extend the deadline for special consumption tax payment for domestically manufactured or assembled automobiles.
Read More

Your care

Latest Most read
Promoting review, classification and management of tax debt

Promoting review, classification and management of tax debt

According to the General Department of Customs, the amount of overdue debt recovered and processed in the first 6 months of 2024 for the all Customs sector reached VND 349 billion.
Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

VCN - On July 18, Lang Son Department of Industry and Trade notified the method of delivery and receipt of import and export cargo transported across customs clearance routes and specialized roads in the International Border Gate pair of Huu Nghi (Vietnam
Does goods imported for investment incentives project subjected to tax exemption?

Does goods imported for investment incentives project subjected to tax exemption?

That is the problem of Ba Ria - Vung Tau Customs Department related to processing tax exemption documents for imported goods to serve investment incentive projects.
Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

VCN - According to Lang Son Customs Department, to implement the master plan of the land border gate area associated with the goal of digital transformation, in which, to ensure successful implementation of the Customs Development Strategy until 2023, Bui
Proposal to reduce registration fees to restore growth of domestic automobile industry

Proposal to reduce registration fees to restore growth of domestic automobile industry

VCN - Facing the significant decline in auto market sales in the last months of 2023 and early 2024, the Ministry of Finance is asking for opinions from ministries, central agencies and relevant agencies on continuing to reduce registration fee to restore
Mobile Version