From November 20: Individual business households must declare the use of invoices.

According to Circular 92/2015/TT-BTC of the Ministry of Finance, on November 20, 2015, individual business households must declare the use of invoices to apply the lump-sum tax rate.

Business households will have to declare invoices to pay taxes. Photo by Chau Lan.

According to this new regulation, in addition to the previous lump-sum tax, individual business households must pay additional tax when using direct invoices. These regulations have caused confusion for individual business households.

This Circular provides detailed instructions on VAT and personal income tax declaration for business individuals; tax declaration for individuals leasing assets, lottery agents, insurance agents, multi-level marketing agents; and amends a number of regulations related to income subject to personal income tax, tax-exempt income; personal income tax on securities transfer, dossiers, personal income tax declaration forms, etc.

Accordingly, business individuals with income under 100 million VND/year are exempt from both VAT and personal income tax.

In case of income from 100 million or more, VAT and personal income tax must be declared and paid at the following rates/revenue: Distribution and supply of goods (1% VAT, 0.5% personal income tax); Services and construction without contracted materials (5% and 2%); Production, transportation, services associated with goods, construction with contracted materials (3% and 1.5%); other business activities (2% and 1%).

For individuals with income from salaries and wages, since 2015, funeral and wedding expenses for the employee and his/her family are also exempt from personal income tax.

The Circular takes effect from July 30, 2015 and applies to personal income tax periods from 2015 onwards.

According to Saigongiaiphong