Official letter No. 3569/TCT-TNCN
dated August 10th, 2016 of the General Department of Taxation regarding the application of tax policy to “payment discounts” paid to individuals
Posted: 12/8/2016 7:53:06 AM | Latest updated: 17/8/2016 8:29:39 PM (GMT+7) | LuatVietnam: 4034
| Vietlaw: 266
According to the General Department of Taxation’s opinions, with regard to “payment discounts” offered to individuals, if these individuals are consumers who buy goods for their own consumption without reselling or trading, the payment discounts are not subject to personal income tax (PIT)
In contrast, if the payment discounts are paid to individuals who are goods sale agents, 1% VAT on such payment discounts shall be calculated and withheld. Regarding this issue, the General Department of Taxation has provided guidelines in Official letter No. 1162/TCT-TNCN dated March 21st, 2016.
Ms Phuong Thao (VietlawOnline.com)
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