Official letter No.
1162/TCT-TNCN dated March 21st, 2016 of the General Department of Taxation regarding the application of tax policy on expenditures on incomes of business individuals
Posted: 22/3/2016 3:19:57 PM | Latest updated: 3/4/2016 12:51:45 PM (GMT+7) | LuatVietnam:
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According to point 4 Annex 01 of Circular No. 92/2015/TT-BTC
, a service business individual who is the subject not liable to VAT shall be still liable to 1% PIT
Accordingly, if a company pays “payment discount” (it belongs to the subjects not liable to VAT under Clause 1 Article 5 of Circular No. 92/2015/TT-BTC ) to an individual who is the goods sale agent, it shall declare and deduct 1% PIT of behalf of such individual
The company shall use the declaration form No. 01/CNKD issued together with Circular No. 92/2015/TT-BTC and write the phrase “Declare on behalf of” in front of the phrase “The taxpayer”, then the declarant shall sign and stamp the company’s seal therein. On the tax calculation dossier, the tax receipt is still presented that the taxpayer is the business individual.
Notes
The support or revenue bonus which is paid to an agent being an individual is still deducted 1% PIT according to the guidance provided in Official letter No.
1164/TCT-TNCN dated March 21st, 2016
Ms Phuong Thao (VietlawOnline.com)
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  CV1162_21032016TCT[VLO].pdf
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Payment discount paid to individual agents shall be deducted 1% PIT
