Circular No.92/2015/TT-BTC on VAT, PIT

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CIRCULAR

GUIDELINES FOR VAT AND PERSONAL INCOME TAX INCURRED BY RESIDENTS DOING BUSINESS, AMENDMENTS TO SOME ARTICLES ON PERSONAL INCOME TAX OF THE LAW NO. 71/2014/QH13 ON THE AMENDMENTS TO TAX LAWS AND THE GOVERNMENT'S DECREE NO. 12/2015/NĐ-CP DATED FEBRUARY 12, 2015 ON GUIDELINES FOR THE LAW ON THE AMENDMENTS TO TAX LAWS AND DECREES ON TAXATION

Pursuant to the Law on Personal income tax No. 04/2007/QH12 dated November 21, 2007 and the Law No. 26/2012/QH13 dated November 22, 2012 on amendments to the Law on Personal income tax;

Pursuant to the Law on Tax administration No. 78/2006/QH11 dated November 29, 2006 and the Law No. 21/2012/QH13 dated November 20, 2012 on amendments to the Law on Tax administration;

Pursuant to the Law No. 71/2014/QH13 dated November 26, 2014 on the amendments to tax laws

Pursuant to the Law on Value-added tax No. 13/2008/QH12 dated June 03, 2008, amended by the Law on Value-added tax No. 31/2013/QH13 dated June 19, 2013;

Pursuant to the Government's Decree No. 65/2013/NĐ-CP dated June 27, 2013 on guidelines for some Articles of the Law on Personal income tax and the Law on amendments to the Law on personal income tax;

Pursuant to the Government's Decree No. 83/2013/NĐ-CP dated July 22, 2013 on guidelines for some Articles of the Law on Tax administration and the Law on the amendments to the Law on Tax administration;

Pursuant to the Government's Decree No. 12/2015/NĐ-CP dated February 12, 2015 on guidelines for the Law on the amendments to tax laws and decrees on taxation;

Pursuant to the Government's Decree No. 209/2013/NĐ-CP dated December 18, 2013 on guidelines for some Articles of the Law on Value-added tax;

Pursuant to the Government's Decree No. 215/2013/NĐ-CP dated December 23, 2013 defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;

At the request of Director of the General Department of Taxation;

The Minister of Finance provides the below guidelines:

Chapter I

POLICIES ON VAT AND PERSONAL INCOME TAX INCURRED BY RESIDENTS DOING BUSINESS

Article 1. Taxpayers

1. Taxpayers mentioned in Chapter I of this Circular are residents including individuals, groups of individuals, and households who manufacture and/or trade in goods, services in any field and sector prescribed by law (hereinafter referred to as businessperson or businesspeople). The business fields and sectors also include:

a) Independent practice in the fields and sectors that are permitted in the practising certificate or license as prescribed by law.

b) Acting as a lottery, insurance, multi-level marketing agent who directly signs a contract with the lottery company, insurer, or multi-level marketing company.

c) Business cooperation with other organizations.

d) Agriculture, forestry, salt production, aquaculture activities that do not satisfy conditions for tax exemption in Point e Clause 1 Article 3 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance.

2. Taxpayers mentioned in Clause 1 of this Article do not include businesspeople whose revenues are VND 100 million/year or lower.

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Article 25. Implementation

1. This Circular comes into force from July 30, 2015 and is applied to the tax period 2015 onwards.

Regulations on businesspeople paying flat tax using invoices of tax authorities shall apply to tax periods from January 01, 2015.

2. Persons who have lease contracts for many years and have declared and paid tax according to previous regulations are not required to adjust the amount of tax declared and paid.

3. Persons who transfer real estate and have applied for registration of right to ownership or right to enjoyment of real estate, or have submitted tax declaration documents before January 2015 which apply 25% tax may apply 2% tax if they have not received any tax notice from tax authority by December 31, 2014.

4. Point b.2.2, b.2.3, and b.2.4 Clause 1 of Article 16, Article 22 of Circular No. 156/2013/TT-BTC are annulled.

5. Regulations on VAT and PIT incurred by businesspeople in Article 16 and Article 21 of Circular No. 156/2013/TT-BTC are annulled.

6. Regulations on PIT incurred by businesspeople in Article 7, Article 8, and Article 9 of Circular No. 111/2013/TT-BTC are annulled.

7. Point d Clause 6 Article 2 on PIT on casino prizes of Circular No. 111/2013/TT-BTC is annulled.

8. Sub-departments of taxation of districts shall send the lists of business households exempt from VAT and/or PIT and the lists of business households paying flat tax to the People’s Councils and Fatherland Front Agencies of districts and communes by August 30, 2015. The lists must also be publicly posted at Sub-departments of taxation and the People’s Committees of districts, at the gates or suitable locations of the People’s Committees of communes, offices of tax collector teams, management boards of markets to ensure convenient obtaining of information by the people and businesspeople.

Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance (General Department of Taxation) for consideration./.