THE MINISTRY OF FINANCE
THE GENERAL DEPARTMENT OF TAXATION
Official Dispatch No. 2994/TCT-TNCN dated July 24, 2015 of the General Department of Taxation on Introduction to some contents of Circular No. 92/2015/TT-BTC
To: Departments of Taxation of central-affiliated cities and provinces
On June 15, 2015, the Ministry of Finance issued Circular No. 92/2015/TT-BTC to provide 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.
Departments of Taxation of central-affiliated cities and provinces (hereinafter referred to as provinces) are requested to disseminate this Circular among tax officials and local taxpayers especially the significant contents below:
I. AMENDMENTS TO TAX POLICIES APPLIED TO BUSINESSPEOPLE
1. For businesspeople paying flat tax
1.1 Determination of flat tax payers
According to Article 2 of Circular No. 92/2015/TT-BTC dated June 15, 2015 (hereinafter referred to as Circular No. 92/2015/TT-BTC):
From 2015, businesspeople (including business households) who pay flat tax are those who earn revenue from trading in goods/services in any field and sector prescribed by law, except businesspeople who pay tax whenever tax is incurred, individuals leasing out their property, individuals acting as agents selling at fixed prices, whether or not they do accounting and invoicing.
According to old regulations:
According to Article 8 of Circular No. 111/2013/TT-BTC dated June 15, 2015 (hereinafter referred to as Circular No. 111/2013/TT-BTC):
- Every businessperson that does not do accounting and invoicing shall pay flat tax.
- Every businessperson that does accounting and invoicing shall pay flat tax shall pay tax as declared.
1.2. Determination of taxable revenue under invoices by flat tax payers
According to Point a.2 Clause 2 Article 2 of Circular No. 92/2015/TT-BTC:
From January 01, 2016, every flat tax payer uses invoices of the tax authority shall determine taxable revenue according to the flat revenue and revenue on the invoice, regardless of separate invoices and invoice books.
According to old regulations:
According to Point a.1.2 Clause 1 Article 8 of Circular No. 111/2013/TT-BTC:
- If the flat tax payer uses invoice books: if the revenue on invoices is ≤ flat revenue, the taxpayer shall only pay flat tax; if the revenue on invoices is higher than flat revenue, the taxpayer shall pay tax on the amount in access of flat revenue in addition to flat tax.
- The flat-tax payer that uses invoices sold separately by the tax authority shall pay flat tax, declare and pay tax on the revenue on each invoice.
