According to the Project issued with Decision 3389/QD-BTC, business households have been divided into 03 new tax management groups, detailed as follows:
Group 1: Revenue under 200 million VND/year
- Exemption from value added tax and personal income tax.
- It is not mandatory to apply complex accounting books, but they must still be periodically declared.
- You can choose to declare 02 times/year ( beginning and mid-year or end of year) or choose the right time.
Group 2: Revenue from 200 million to under 3 billion VND/year
- Continue to calculate direct tax on revenue as at present.
- Tax rate by industry:
+ 1%: Distribution and supply of goods
+ 3%: Production, transportation, services associated with goods, construction with material bidding
+ 5%: Services and construction do not include material bidding
+ 2%: Other business activities
- Declare 04 times/year (quarterly).
- Households with revenue of over VND 01 billion/year in the retail and direct service sector to consumers must issue electronic invoices from pre-connected computers with tax authorities.
- Households with a revenue of less than VND 01 billion/year are not required to issue invoices but are encouraged to record full revenue.
Group 3: Revenue over 03 billion VND/year
- Business households with revenue of over 03 billion VND for 02 consecutive years will move to this group.
- Apply the VAT deduction method:
VAT payable = Output VAT - Input VAT
- personal income tax is calculated at 17% of total profit, of which:
Profit = Revenue - Reasonable cost
- Households with revenue of over 50 billion VND/year declared monthly and under 50 billion declared quarterly.
- Compulsory issuance of electronic invoices, opening separate bank accounts for business purposes.
- The use of electronic invoices with codes or invoices generated from cash registers is a mandatory requirement.
