According to Article 10 of Circular 40/2021/TT-BTC, even if contract tax is abolished, the basis for tax calculation for business households and individuals is still based on taxable revenue and tax rate on revenue. Accordingly:
- Taxable revenue
Income for value-added tax (VAT) and income for personal income tax (PIT) for business households and individuals is the revenue including tax (in case of taxable) of all sales proceeds, processing fee, commissions, service supply fee arising during the tax calculation period from production and trading activities of goods and services.
Including bonuses, support for sales, promotions, commercial discounts, payment discounts, support expenditures in cash or non-cash; subsidies, subsidies, allowances, additional fees are enjoyed according to regulations; compensation for breach of contract, other compensation (calculated only for personal income tax); other revenue that business households and individuals are entitled to regardless of whether they have collected money or have not collected money.
- Tax rate calculated on revenue
+ The tax rate calculated on revenue includes the VAT rate and the personal income tax rate applied in detail to each field and industry according to the instructions in Appendix I issued with Circular 40/2021/TT-BTC.
+ In case a business household or individual is active in many fields and occupations, the business household or individual shall declare and calculate the tax according to the tax rate calculated on the revenue applicable to each field and occupation.
In case a business household or individual cannot determine the taxable revenue of each field and profession or determines it in accordance with actual business performance, the tax authority shall determine the taxable revenue of each field and profession according to the provisions of the law on tax management.
