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

Can Tho Customs finish revenue collection earlier

Can Tho Customs finish revenue collection earlier

VCN - As of October 13, the State revenue collection at Can Tho Customs Department has reached nearly 102% of the assigned budget target in 2024 and increased by over 8% over the same period in 2023.
A new tax management approach needed to promote business household development

A new tax management approach needed to promote business household development

VCN - The Tax Department needs to change tax management methods to facilitate the business environment, promote the development of business households, ensure accurate, sufficient, and timely tax collection, and prevent budget losses.
Proactively mobilizing financial resources from the budget to modernize tax management

Proactively mobilizing financial resources from the budget to modernize tax management

VCN - The regulation of financial resources from the budget, proactively arranging modernization funds, investing in information technology (IT) applications, digital transformation... in a timely manner is very important, affecting the provision of online public services and ensuring the security and safety of taxpayers' databases.
E-commerce tax management increasingly tightened

E-commerce tax management increasingly tightened

VCN - With the explosion of e-commerce business, the application of modern technology will support both e-commerce business as well as e-commerce tax management.

Latest News

"One law amending four laws" on investment to decentralize and ease business challenges

"One law amending four laws" on investment to decentralize and ease business challenges

VCN - According to the Government, the draft Law amending and supplementing certain provisions of the Planning Law, Investment Law, Law on Investment under Public-Private Partnerships (PPP), and Bidding Law (referred to as "One law amending four laws") focuses on amending conflicting regulations that are causing obstacles, to facilitate investment, production, and business activities.
One law amending seven financial laws: New driving force for economic growth

One law amending seven financial laws: New driving force for economic growth

VCN - Draft 1 of the Law amending 7 laws in the financial sector has been officially submitted and discussed at the 8th session of the 15th National Assembly. According to the Law-making program, the Law will be developed and promulgated following a simplified procedure and will be approved at this session. The simultaneous amendment of many provisions in the laws in the financial sector and their early approval demonstrate the determination and great efforts of the National Assembly, the Government, and the Ministry of Finance in creating a system of open and appropriate policies, promoting investment resources in the economy, thereby promoting economic growth in the new period.
Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

VCN - In the short term, applying 5% VAT on fertilizers may increase selling prices, but in the long term, farmers will benefit from this policy. When the fertilizer manufacture is deducted input tax, it will help reduce investment cost and production cost.
Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Recently, the implementation of a series of policies on tax, fee, and land rent exemption, reduction, and deferral has provided timely support for businesses to recover and develop, thereby making positive contributions to economic growth.

More News

Revamping commodity management and trade protection

Revamping commodity management and trade protection

VCN - Completing commodity management policies combined with applying trade defense measures plays an important role in protecting the interests of businesses and the Vietnamese economy. Close coordination between management agencies not only helps prevent trade fraud but also creates favorable conditions for exporting businesses, minimizing risks from anti-dumping lawsuits.
Tax support policy is a "lift" for business bounceback

Tax support policy is a "lift" for business bounceback

VCN- Sharing with Customs Magazine, economic expert, Associate Professor, Dr. Dinh Trong Thinh highly appreciated the effectiveness of tax and fee reduction measures implemented by the Government and the Ministry of Finance. These policies not only enable businesses to reduce input costs and increase profits, but also promote consumption and production of businesses.
VAT policy for on-the-spot imports

VAT policy for on-the-spot imports

VCN- The General Department of Vietnam Customs has instructed Dong Nai Food Industry Corporation on VAT policy for imported tobacco leaves separated from stems.
Applying tax on animal feed ingredient faces problems due to specialized regulations

Applying tax on animal feed ingredient faces problems due to specialized regulations

VCN - The unified application of regulations of specialized legal documents related to value-added tax (VAT) policies on imported raw materials for animal feed has caused many problems. Notably, the accurate identification for imported raw materials for animal feed not only causes difficulties for the enterprise but also for the enforcement authority.
Ministry of Finance proposes to choose the option of reducing land rent by 30% in 2024

Ministry of Finance proposes to choose the option of reducing land rent by 30% in 2024

VCN - The Ministry of Finance has just completed the draft Decree of the Government regulating the reduction of land rent in 2024. Accordingly, in the latest Draft, the Ministry of Finance directly proposed to choose the reduction level according to option 2 of 30%.
Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

VCN - According to the representative of the Vietnam Chamber of Commerce and Industry (VCCI), the Ministry of Finance and the National Assembly Committees are urgently collecting opinions to complete the draft Law amending seven Laws, to ensure that the issued regulations are reasonable and remove difficulties for businesses.
Ensuring global trade security requires cooperation, exchange and processing of information before the goods arrive

Ensuring global trade security requires cooperation, exchange and processing of information before the goods arrive

VCN - As import and export activities increase, security risks also increase. Therefore, to meet the requirements of both strict security control and shortening clearance time, facilitating trade, one of the effective solutions is to cooperate, exchange and process information before the goods arrive.
New regulations on foreign indirect investment in Vietnam drafted

New regulations on foreign indirect investment in Vietnam drafted

The State Bank of Vietnam (SBV) is drafting a circular to better manage foreign investment protocols and hopefully make them speedier.
Considering amending regulations on suspension from exit due to tax arrears

Considering amending regulations on suspension from exit due to tax arrears

VCN - To facilitate the implementation of suspension from exit, the General Department of Taxation directs specialized units to study and amend and supplement current regulations to ensure both improving the efficiency of tax debt collection and creating conditions for enterprises and taxpayers to develop stable production and business as well as facilitate travel and trade activities.
Read More

Your care

Latest Most read
"One law amending four laws" on investment to decentralize and ease business challenges

"One law amending four laws" on investment to decentralize and ease business challenges

VCN - According to the Government, the draft Law amending and supplementing certain provisions of the Planning Law, Investment Law, Law on Investment under Public-Private Partnerships (PPP), and Bidding Law (referred to as "One law amending four laws") fo
One law amending seven financial laws: New driving force for economic growth

One law amending seven financial laws: New driving force for economic growth

VCN - Draft 1 of the Law amending 7 laws in the financial sector has been officially submitted and discussed at the 8th session of the 15th National Assembly. According to the Law-making program, the Law will be developed and promulgated following a simpl
Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

VCN - The representative of the Vietnam Fertilizer Association cites data from the Ministry of Finance, as saying that about VND10,000 billion of VAT has not been deducted from business expenses from 2015 to present.
Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Recently, the implementation of a series of policies on tax, fee, and land rent exemption, reduction, and deferral has provided timely support for businesses to recover and develop, thereby making positive contributions to economic growth.
Revamping commodity management and trade protection

Revamping commodity management and trade protection

Completing commodity management policies combined with applying trade defense measures plays an important role in protecting the interests of businesses and the Vietnamese economy.
Mobile Version