On the Ministry of Finance's Information Portal, the Base Tax Department of 3 provinces of Thanh Hoa said that it received a request for guidance from a business household on how to determine value-added tax and personal income tax for business households registering two occupations including distribution of livestock and commercial laying hens.
According to the proposed content, business households with livestock distribution revenue of 800 million VND/year and commercial laying hen farming revenue of 700 million VND/year.
Business households request guidance on whether the revenue from selling chicken eggs directly raised is included in the revenue threshold of 1 billion VND to determine the obligation to pay value-added tax and personal income tax or not.
At the same time, in the case where commercial revenue is 800 million VND/year, not exceeding the threshold of 1 billion VND, but the total revenue of the two sectors is 1.5 billion VND, how is the determination of value-added tax and personal income tax implemented?
Answering this content, Thanh Hoa Provincial Base Tax Department said that, based on current regulations, the total revenue from goods sales of business households is 1.5 billion VND.
In which, the commercial revenue from selling livestock equipment is 800 million VND and the revenue from selling self-raised chicken eggs is 700 million VND.
For value-added tax, the revenue from selling self-raised chicken eggs of 700 million VND is revenue not subject to value-added tax, and the revenue from selling commercial animal husbandry equipment of 800 million VND is revenue subject to value-added tax.
Value-added tax is determined by taxable revenue multiplied by the tax rate. Accordingly, the value-added tax payable is 800 million VND multiplied by 1%, equivalent to 8 million VND.
Regarding personal income tax, in case business households meet all the conditions for personal income tax exemption according to Clause 2, Article 21 of Decree No. 253/2026/ND-CP, the revenue exempt from personal income tax is 700 million VND from selling self-raised chicken eggs, and the revenue for personal income tax calculation is 800 million VND.
If business households choose to calculate personal income tax according to the taxable revenue method, the taxable revenue is determined by the revenue exceeding 1 billion VND. In this case, personal income tax is determined to be 0.
If business households choose to calculate personal income tax according to the taxable income method, personal income tax is determined by taxable income multiplied by a tax rate of 15%.
Taxable income is determined by the revenue of goods and services sold minus expenses related to production and business activities in the tax period. Business households themselves determine the deductible expenses to calculate taxable income.
Personal income tax is determined by 800 million VND minus deductible expenses, then multiplied by a tax rate of 15%.
In case business households do not fully meet the conditions for personal income tax exemption according to Clause 2, Article 21 of Decree No. 253/2026/ND-CP, the revenue for personal income tax calculation is 1.5 billion VND.
If business households choose to calculate personal income tax according to the revenue tax calculation method, personal income tax is determined by the revenue exceeding 1 billion VND multiplied by a tax rate of 0.5%. Accordingly, the amount of personal income tax to be paid is 2.5 million VND.
If business households choose to calculate personal income tax according to the taxable income method, personal income tax is determined by taxable income multiplied by a tax rate of 15%.
Business households self-determine deductible expenses to calculate taxable income. Personal income tax is determined by 1.5 billion VND minus deductible expenses, then multiplied by a tax rate of 15%.
