questions about tax rates: No tax or No tax?
Ms. Ngoc from Asia Summit Investment Company Limited - a unit operating in the insurance brokerage industry of Roses, has sent a question to the authorities about applying tax rates when issuing sales invoices.
She wondered whether she wanted to clarify whether, based on Clause 1, Article 9, Decree 181/2025/ND-CP, insurance brokerage commissions will be subject to the Non-taxable tax type or the case of Not having to calculate value-added tax (VAT);
Ms. Ngoc pays special attention to regulations on cases that do not have to be subject to VAT, including the case of "insurance agents".
Confusion from the guiding document: At the same time, "not subject to tax" but also " 10%"
The biggest concern for taxpayers is a previous guidance document - Official Letter 680/TCS1-QLDN2 - answering about brokerage insurance commission tax rates. This document has a clause:
"... Regarding the commission that Bao An Environmental Protection Company Limited received from the brokerage of insurance products not subject to tax as prescribed in Clause 8, Article 5 of Law No. 48/2024/QH15... subject to the value-added tax rate of 10%...".
The simultaneous appearance of "no taxable subjects" and "tax rate... 10%" in the same answer has created a deep confusion about how to accurately determine tax rates for insurance brokerage activities.
Ho Chi Minh City Tax has a definitive answer
Faced with these problems, Ho Chi Minh City Tax has issued a response document based on the latest legal bases:
Pursuant to the new Law on VAT: Refer to Clause 8, Article 5 of the Law on VAT No. 48/2024/QH15 (effective from July 1, 2025) stipulates insurance services related to people, livestock, crop insurance... subject to no tax.
Pursuant to the Guiding Decree: Refer to Clause 1, Article 9, Decree 181/2025/ND-CP detailing the tax calculation price for brokerage activities receiving commissions.
The tax authority affirmed: "Article 9 of Decree 181/2025/ND-CP detailing the tax calculation price for the agency and brokerage of goods and services receiving commissions from an 'insurance sales agent' is a case where VAT is not required to be calculated".
Ho Chi Minh City Tax Department recommends that Asia Summit Investment Company Limited base on the above contents and compare with the actual situation of production and business activities to comply with the provisions of law. The document clearly identified the legal basis to resolve the question of tax rates for insurance brokerage commissions.
