blue-check Trade discounts under contracts are exempt from PIT

Official letter No. 4447/TCT-TNCN dated October 27th, 2015 of the General Department of Taxation regarding personal income tax (PIT) policy
Posted: 30/10/2015 1:38:01 PM | Latest updated: 31/10/2017 8:37:13 AM (GMT+7) | LuatVietnam: 3843 | Vietlaw: 235

Under point c Clause 2, point b Clause 6 Article 2 of Circular No. 111/2013/TT-BTCstatus2 , agent commissions and wining prizes from promotion programs are the incomes liable to PIT

However, according to this Official letter, in case an enterprise sells goods under contracts to individuals or agents attaching the trade discounts (directly deducted from invoices), which are not agent commissions or sale promotion prizes from promotion programs, PIT is exempt in this case, regardless of the buyers who are agent individuals or non-agent individuals.

Under the Accounting standards issued together with Decision No. 149/2001/QD-BTC:
+ Trade discount means a reduction of the listed price granted by selling enterprises to buyers of large volumes of goods.
+ Payment discount means a sum of money reduced by sellers for buyers who make full payment for the goods before the contractual deadline.
Ms Phuong Thao (
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blue-check Trade discounts under contracts are exempt from PIT
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