Circular No. 100/2021/TT-BTC Amending and Supplementing Certain Articles of Circular No. 40/2021/TT-BTC dated June 1, 2021, issued by the Minister of Finance, guiding Value Added Tax (VAT), Personal Income Tax (PIT), and tax administration for households and individuals engaged in business activities.

CIRCULAR

Amending and supplementing certain 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 administration for households and individuals engaged in business

Pursuant to the Law on Personal Income Tax dated November 21, 2007; and the Law amending and supplementing certain articles of the Law on Personal Income Tax dated November 22, 2012;

Pursuant to the Law on Value-Added Tax dated June 3, 2008; and the Law amending and supplementing certain articles of the Law on Value-Added Tax dated June 19, 2013;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to the Law amending and supplementing certain Articles of Laws on Taxation dated November 26, 2014;

Pursuant to Decree No. 209/2013/NĐ-CP dated December 18, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Value-Added Tax;

Pursuant to Decree No. 12/2015/NĐ-CP dated February 12, 2015 of the Government detailing the implementation of the Law amending and supplementing certain articles of various Tax Laws and amending and supplementing certain articles of various Tax Decrees;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

amending and supplementing certain forms of

The Minister of Finance issues this Circular amending and supplementing certain articles of Circular No. 40/2021/TT-BTC dated June 1, 2021 guiding value-added tax, personal income tax, and tax administration for households and individuals engaged in business.

At the proposal of the Director General of the State Revenue Administration,

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 amount of tax payable from the beginning of the year shall pay tax according to the notification. In cases where households have been notified of the tax amount from the beginning of the year but cease or temporarily cease operations during the year, the tax authority shall adjust the amount of tax payable in accordance with point b.4 and point b.5 of Clause 4 of Article 13 of this Circular. In cases where new households start operating during the year (operating less than 12 months in the calendar year), if the annual business revenue exceeds 100 million VND, they must pay VAT and personal income tax; if the annual business revenue does not exceed 100 million VND, they are exempt from paying VAT and personal income tax."

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

"d) Organizations including owners of electronic commerce trading platforms shall declare and pay taxes on behalf of individuals based on authorization under civil law regulations;

e) Individuals declaring and paying taxes on behalf of other taxpayers based on authorization under civil law regulations."

3. Amend Point c of Clause 1 of Article 9 as follows:

"c) Individuals who only engage in leasing assets and whose lease period is not a full year, if the annual rental income is 100 million VND or less, are exempt from paying VAT and personal income tax. If the lessee pays rent for multiple years in advance, the annual income for determining whether the individual must pay tax or not is the lump sum payment allocated annually according to the calendar year."

4. Supplement Clause 5 of Article 17 as follows:

"5. Develop solutions and timelines for providing information electronically from electronic commerce trading platforms to tax authorities to build risk-based tax management databases, ensuring information security requirements, and facilitating the operation of electronic commerce trading platforms. The General Department of Taxation shall guide the sharing and provision of information between tax authorities and electronic commerce trading platforms."

5. Supplement Clause 6 of Article 18 as follows:

"6. In cases where organizations owning electronic commerce trading platforms do not declare and pay taxes on behalf of individual businesses through these platforms based on authorization under civil law regulations, the Provincial Tax Departments shall cooperate with electronic commerce trading platforms in sharing and providing information about individual businesses operating through these platforms in accordance with the guidance of the General Department of Taxation for tax administration in accordance with the law."

This Circular takes effect from January 1, 2022.

During its implementation, if there are any difficulties, organizations and individuals are requested to promptly report them to the Ministry of Finance (General Department of Taxation) for research and resolution./.

Article 2. This Circular takes effect from January 1, 2022.

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