[ NEWS ] Management of value-added tax and corporate income tax for business households

Circular 40/2021/TT – BTC takes effect from August 1, 2021, stipulating:

4 The main problem of tax management of business households:

1. Adding a number of industries subject to VAT and PIT as a percentage of turnover, for example:

  • VAT 3% and PIT 1.5% for services of mining, mineral processing, repair and maintenance of machinery, equipment, means of transport…;

  • VAT 5% and personal income tax 2% for massage services, karaoke, bar, laundry, haircut, games, postage, brokerage, legal advice…;

  • VAT 5% and PIT 5% for rental services of factories, warehouses, transportation, housing, shops… (except accommodation services).

2. Additional tax calculation method:

  • Declare monthly (no later than the 20th of the following month) for large-scale or voluntary business households, for example: if HKD pays taxes in September 2021, the deadline is October 20/ 2021;

  • Quarterly declaration for business households newly established or satisfying the conditions for quarterly declaration;

  • Organizations and individuals declare tax on behalf of, pay tax on behalf of business individuals.

Note: No tax finalization is required for the declaration method.

3. Adjustment of the tax payer limit according to the presumptive method

4. Specifying taxpayers according to each time they are incurred.

3 The main reasons for the additional adjustment:

  • Promote large-scale businesses to transform into enterprises;

  • Optimizing tax management for business households;

  • Ensure that the tax declaration and payment of business households are clear and transparent.

If you have not yet determined whether your business household belongs to the subjects mentioned in this Circular, please contact VISION for free consultation support.



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