Ms. P.T.T.D in Ho Chi Minh City pays personal income tax and registers for family deduction at the company. From mid-2019 to now, she has quit her job and returned to freelance business to conveniently take care of her parents (born in 1931 and 1936).
Mrs. D is not married and lives with her parents. Currently, her free income is 13-15 million VND/month, not considered for family deduction.
She suggested that the authorities consider adding family deductions for people with income from freelance business.
Regarding this issue, the 17th Grassroots Tax, Ho Chi Minh City has the following opinion:
Pursuant to Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Minister of Finance guiding value-added tax (VAT), personal income tax (PIT) and tax management for business households and individuals:
Clause 2, Article 4 on tax calculation principles is as follows:
Business households and individuals with revenue from production and business activities in the calendar year of VND 100 million or less are not required to pay VAT and are not required to pay personal income tax according to the provisions of law on VAT and personal income tax.
Business households and individuals are responsible for declaring taxes accurately, honestly, fully and submitting tax documents on time, and are responsible before the law for the accuracy, honesty, and completeness of tax documents according to regulations.
Article 10 stipulates the basis for tax calculation as follows:
The basis for calculating taxes for business households and individuals is the taxable revenue and the tax rate calculated on revenue...".
Based on the above regulations, business households and individuals with revenue from production and business activities in the calendar year of VND 100 million or less are not required to pay VAT and are not required to pay personal income tax according to the provisions of law on VAT and personal income tax.
The basis for calculating taxes for business households and individuals is the taxable revenue and the tax rate calculated on the revenue. According to current regulations, there is no family deduction when calculating taxes for business households and individuals.
HCMC Tax Department 17 replied to you that it is necessary to comply with the provisions of the legal documents cited in this document.
