Circular 100/2021/TT-BTC amends Circular 40/2021/TT-BTC on taxes for household businesses and individual businesses.

CIRCULARS

AMENDING AND SUPPLEMENTING SOME ARTICLES OF CIRCULAR NO. 40/2021/TT-BTC DATED JUNE 1, 2021 OF THE MINISTER OF FINANCE GUIDING VALUE ADDED TAX, PERSONAL INCOME TAX AND TAX MANAGEMENT FOR HOUSEHOLD BUSINESSES AND INDIVIDUAL BUSINESSES

Based on the Law on Personal Income Tax dated November 21, 2007; and the Law amending and supplementing a number of articles of the Law on Personal Income Tax dated November 22, 2012;

Based on the Value Added Tax Law dated June 3, 2008; and the Law amending and supplementing a number of articles of the Value Added Tax Law dated June 19, 2013;

Based on the Law amending and supplementing a number of articles of the Laws on taxation dated November 26, 2014;

Based on the Law on Tax Administration dated June 13, 2019;

Based on Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on Value Added Tax;

Based on Decree No. 12/2015/ND-CP dated February 12, 2015 of the Government detailing the implementation of the Law amending and supplementing a number of articles of the Laws on taxation and amending and supplementing a number of articles of the Decrees on taxation;

Based on Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration;

Based on Government Decree No. 87/2017/ND-CP dated July 26, 2017, regulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

As requested by the Director General of the General Department of Taxation;

The Minister of Finance issued a Circular amending and supplementing a number of articles of Circular No. 40/2021/TT-BTC dated June 1, 2021, guiding value-added tax, personal income tax, and tax management for business households and individual businesses.

Article 1. Amending and supplementing certain articles of Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Ministry of Finance.

1. Amend Clause 3 of Article 7 as follows:

3. Households that have been notified by the tax authority of the lump-sum tax payable at the beginning of the year shall pay the tax according to the notification. If a household has been notified of the tax amount at the beginning of the year but ceases or temporarily suspends business during the year, the tax authority shall adjust the tax payable according to the instructions in points b.4 and b.5, clause 4, Article 13 of this Circular. If a household newly starts business during the year (doing business for less than 12 months in the calendar year), the household is subject to VAT and personal income tax if its business revenue during the year exceeds 100 million VND; or is exempt from VAT and personal income tax if its business revenue during the year is 100 million VND or less.”

2. Amend points d and e of Clause 1, Article 8 as follows:

“d) Organizations, including owners of e-commerce platforms, that file and pay taxes on behalf of individuals based on authorization as prescribed by civil law;

e) Individuals who file tax returns and pay taxes on behalf of other taxpayers, based on authorization as stipulated by civil law.

3. Amend point c, clause 1, Article 9 as follows:

"c) Individuals whose sole activity is renting out property for less than a full year, if generating rental revenue of VND 100 million/year or less, are exempt from Value Added Tax (VAT) and Personal Income Tax (PIT). If the lessee pays rent in advance for several years, the revenue used to determine whether the individual is liable for tax is the one-time payment allocated annually."

4. Add clause 5 to Article 17 as follows:

5. Develop solutions and a roadmap for providing electronic information from e-commerce platforms to tax authorities with the aim of building a database for risk-based tax management, ensuring information security requirements as stipulated, and facilitating the operation of e-commerce platforms. The General Department of Taxation will provide guidance on sharing and providing information between tax authorities and e-commerce platforms.

5. Add clause 6 to Article 18 as follows:

6. In cases where the organization owning the e-commerce platform does not file or pay taxes on behalf of individual businesses operating through the platform based on authorization as stipulated by civil law, the Tax Department shall cooperate with the e-commerce platform in sharing and providing information on individual businesses operating through the platform, following the guidance of the General Department of Taxation, to manage taxes in accordance with the law.

Article 2. This Circular takes effect from the date of April 30, 2012, 01 year.

During the implementation process, if any difficulties arise, organizations and individuals are requested to promptly report them to the Ministry of Finance (General Department of Taxation) for consideration and resolution.