Taxable revenue
Income for value-added tax (VAT) and revenue for personal income tax (PIT) for business households and individuals is the revenue including tax (in case of taxable) of all sales, processing, 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-manhan; subsidies, allowances, and additional fees are paid according to regulations; other compensation for breach of contract, compensation (only included in the PIT- tinhable revenue); other profits that business households and individuals are entitled to receive are not differentiated or have not yet 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 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.
Determining the amount of tax payable
Tax payable = VAT revenue x VAT rate
Number of personal income tax payable = Income for personal income tax x Income tax rate
In which:
- Revenue for calculating VAT and revenue for calculating personal income tax according to the instructions in (1)
- VAT rate and personal income tax rate according to the instructions in Appendix I issued with this Circular.
