On the Ministry of Finance Information Portal, reader D. T. A reflected on the fact that the company operating in the field of commerce and information technology services has signed collaborator contracts with a number of individuals to support customer development and sales.
The work of collaborators includes: Searching for and introducing customers who need to use the company's products and services; introducing product and service information; negotiating commercial conditions according to sales policies; monitoring the progress of contract signing; coordinating in the delivery and service deployment process; monitoring debts; receiving and coordinating customer feedback.
According to reports, these individuals do not own products or services for sale, do not sign contracts with customers in their names, do not issue invoices, do not collect money from customers and do not provide products and services on behalf of individuals.
All contracts, invoices and revenue belong to the company. Based on sales results, the company pays commissions or remuneration to collaborators according to the sales ratio in the contract.
The Company requests the Ministry of Finance to guide 3 contents:
Is the commission or remuneration paid to collaborators determined as income from salary, wages or remuneration according to personal income tax regulations or not.
Are the above-mentioned individuals subject to business individuals?
Is the company's deduction of personal income tax based on income from wages and remuneration in accordance with regulations?
Answering the above content, Hanoi City Tax Department said:
Based on point c, clause 2, Article 2 of Circular No. 111/2013/TT-BTC of the Ministry of Finance, taxable income from salaries and wages includes remuneration such as sales agent commissions, brokerage commissions, project participation fees, advertising service fees and other remuneration.
Based on point i, clause 1, Article 25 of Circular No. 111/2013/TT-BTC, organizations paying wages and remuneration to individual residents who do not sign labor contracts or sign labor contracts for less than 03 months, if the total payment is from 2,000,000 VND/time or more, 10% tax must be deducted from income before payment.
Accordingly, in case the company pays commissions and remuneration to collaborators who are not business individuals, if the total payment is from 2,000,000 VND/time or more, the company must deduct tax at a rate of 10% before paying to individuals.
