Article 10 of Circular 40/2021/TT-BTC stipulates the taxable revenue as follows:
"The basis for calculating taxes for business households and individuals is the taxable revenue and the tax rate calculated on revenue.
Taxable revenue
Revenue for calculating VAT and revenue for calculating personal income tax for business households and individuals is revenue including tax (in case of being subject to tax) of all sales, processing fees, commissions, and service provision fees arising during the tax calculation period from production and trading of goods and services, including bonuses, support for sales, promotions, trade discounts, payment discounts, support in money or non-money; subsidies, allowances, additives, and additional fees received according to regulations; compensation for breach of contract, other compensation (calculated only to personal income tax calculating personal income tax); other revenue for business households and individuals that are not entitled to receive a difference in whether they have received or not received money or not yet received it".
Thus, taxable revenue for business households is the entire revenue including tax (if subject to tax) arising in the tax calculation period from the production and trading of goods and services.
This revenue includes both collected and uncollected items, and includes bonuses, support, promotions, discounts, phutments, allowances, compensation (for personal income tax), along with all other revenue that households and individuals doing business are entitled to according to regulations.
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 this Circular.
- 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.
