Bases for tax calculation for business households when eliminating contract tax
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 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); other revenue for business households and individuals that are not entitled to receive a difference in whether they have received or not received 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.
Bases for determining contract tax for business households
The basis for determining contract tax includes:
- Tax declaration documents of the contract household are self-declared by the contract household according to the expected revenue and contract tax rate of the tax calculation year;
- Database of tax authorities;
- Consultation opinions of the Tax Advisory Council of communes, wards and towns;
- Results of information disclosure and receipt of feedback from the Tax Advisory Council, People's Committee, People's Council, Fatherland Front of communes, wards, towns, secretaries and other organizations and individuals.
Public disclosure of contract household information is the organization of the tax authority to publicly disclose and receive feedback on revenue and contract tax rates for contract households according to regulations. The first disclosure of information is according to Clause 5, Article 13 of Circular 40/2021/TT-BTC for reference and opinions on expected revenue and contract tax rates; and the second disclosure is according to Clause 9, Article 13 of Circular 40/2021/TT-BTC for reference and opinions on official revenue and contract tax rates payable in the tax calculation year.
The disclosure of information includes: Listing information on paper in the area; sending directly to the contracting household; sending directly to the People's Council, People's Committee, Fatherland Front of districts, towns, communes, wards and cities; publicizing information on the Tax Industry's Electronic Information Page.
